University of Phoenix
May 11, 2010
The Marketing Mix is a tool used by companies which break down into four parts. Commonly known in most companies as the Marketing Mix as the four P’s which the core of a company’s success is. The marketing mix consists of the four P’s. The four P’s are known as the Product, Price, Place and Promotion. In this paper it will explain each P and the impact each one would have in an organization. Marketing decisions generally fall into these four categories. These four P’s are the key components that the manger can control, subject to internal and external constraints of the marketing environment (Management and Business 2002). The main goal is to make decisions that are centered on the four P’s.
The Product is the first P in the mix. The Product refers to tangible, physical product, as well as service in an organization. The Product will be used to target and satisfy the customer or consumer. A Product can also be called a commodity due to the differences that range in physical and geographical. For example Coca-Cola, is one company that produces many different products that will satisfy almost any customer’s lifestyle.
The Price is the next P in the market mix. The Price is the next step to the marketing mix. The price of a product depends on a few factors which are the product being offered, the competition pricing on an item that may be similar and the demand for that product or service. Companies can use different approaches to reach the most competitive price for the product to sale. One method that could be used is adding a markup to the existing cost of the item, which is known as cost-based pricing. The other method is called valued-based pricing. Valued-based pricing is simple a hypothesis of the maximum amount of money a person will spend on a product and then pricing it below that figure to make the product appealing( Management...