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Marketing – 5 Ps Of Marketing
Topic: Marketing
1. lesson — Definition of marketing, customers , buyers, sellers, market, market research, competition, competitors
2. lesson — Marketing mix — 1. Product
3. lesson — Marketing mix — 2. Price 3. Place
4. lesson — Marketing mix — 4. Promotion, Direct marketing
5. lesson — Marketing mix — 5. Packaging, Revision (questions)
6. lesson — Oral exam (Marketing)
Marketing
DEFINITION
Marketing is the process of planning, designing, pricing, promoting and distributing ideas, goods and services, in order to satisfy customer needs, so as to make a profit.
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People who buy �everyday’ services are called customers.
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A person or organization that buys something is a buyer or purchaser. People who are responsible for buying goods that the company uses or sells are “buying managers”.
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A person or organization that sells something is a seller.
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Buyers and sellers of particular goods or services form a market.
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Market research are methods for obtaining information about the market for a company�s product.
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Companies or products in the same market are competitors or rivals. Competitors compete with each other to sell more, be more successful. The most important companies in a particular market are called key players. Competition describes the activity of trying to sell more and be more successful. The competition refers to all the products, businesses..
MARKETING MIX = THE FOUR ’Ps’
The four Ps are summary of the marketing mix, the activities that you have to combine successfully in order to sell.
PRODUCT
Product is an item which is made for sale. Companies make products to sell them and make profit. It is easy to make it but difficult to sell. New products are developed in the department called Research & Development (R&D).
Product lifecycle: are the stages in the life of a product, and the number of people who buy it at each stage.
There are 4 stages in the product lifecycle:
Launch is characterized by a very low profit rate.
Rise is the period when sales and profits increase and bring their profitability.
Maturity is the phase during which customers become more and more aware of the product. The gap between profits and costs reaches its maximum.
Decline is the closing stage which occurs due to market saturation. Both sales and profits fall and the only remaining buyers are scattered laggards.
Goods can refer to the materials and components used to make products, or the products that are made. There are 2 types of goods:
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Consumer durables are consumer goods that last a long time, such as cars and washing machines.
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Fast-moving consumer goods, or FMCG are consumer goods such as food products (bread, milk) that are sold quickly.
Labels can give the consumer quite a lot of information about a product. E.g. the type of product, the name of the retailer, the weight of the item, the price the shopper pays, the bar code, instructions on how to store it, instructions on how long to keep it.
PRICE
Price is another important thing in marketing. Prices must be competitive. Your company is not the only one that produces similar products. The company must face a keen competition on the market. Consumers follow the prices carefully.
Products can be low-priced, mid-priced or high-priced.
PLACE
Place plays also an important role in marketing. It is often called distribution.
Marketing (distribution) channels
Marketing channels are the different ways that a product may go from the manufacturer to the consumer. Often, marketing channels include distributors. They are, for example, wholesalers and retailers. They receive money in return for their product distribution services.
Retailers buy goods from the manufacturer or from a wholesaler and make their income from the margin, or difference, between the price they pay for the goods and the price they sell the goods at to the consumer. The retailer is the manufacturers’ link with the consumer. Retailers include department stores, chain stores, and many other companies that have direct customer contact.
Wholesalers are companies that buy goods from the manufacturer and sell them to retailers or to other wholesalers. Wholesalers act as middlemen between manufacturers and retailers. They buy goods in bulk and sell them in smaller lots to the retail trade.
Producers (manufacturers)
wholesalers
retailers
customer
distributors