Marketing mix
The four Ps
- The marketing mix = product, price, place, promotion — they must fit each other.
- Product: meets needs; the product life cycle (introduction → growth → maturity → decline) uses extension strategies in maturity; a strong brand and packaging help.
Practice
Which is one of the four Ps?
The 4Ps are product, price, place and promotion.
Practice
Put the product life cycle stages in order.
Sales rise from introduction through growth to maturity, then fall in decline.
Price and place
| Pricing method | How it works |
|---|---|
| cost-plus | add a profit margin to the cost |
| penetration | low price to enter a market |
| price skimming | high price for a new special product |
| competitive | price close to rivals |
- Place = how the product reaches the customer (a channel of distribution via wholesaler → retailer, or selling directly/online).
Practice
Penetration pricing means setting:
Penetration pricing uses a low price to break into a market; skimming starts high.
Promotion
- advertising (paid messages) and sales promotion (discounts, free gifts).
- The internet and social media reach many people cheaply and target the right customers.
You've got it
Key idea
- the 4Ps: product, price, place, promotion — must fit together
- product life cycle: introduction → growth → maturity → decline (+ extension strategies)
- pricing: cost-plus, penetration, skimming, competitive; place = distribution channel