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The 4 Ps of Marketing

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The 4 Ps

Referred to as The Marketing Mix

All four are essential to the success of a marketingplan for either a product or a service

4 Ps stand for Product

Price

Place Promotion

A mix of the four is necessary to sell a product

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The Marketing Mix

Think of a Cake

All cakes need 4 thingsflour, egg, sugar, milk

However, you can play with the flavour of yourcake by changing the ingredients slightly

Example: Sweeter cakeadd

more sugar

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The Marketing Mix

The same thing is true with the marketing mix

You can very the type of message you are

sending out about your product/service by

mixing different elements of each of the Ps

Example: Want to be seen as a luxury item

make the price high, have limited selection

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Product

Refers to the benefits of buying a product What need does the service/product fulfill

Quality What will the quality of your service/product be?

Some people really want quality (Ferrarri) vs. others thatdont really matter (McDs)

Features How will your product/service differ from the competition

What will you do differently?

Design How is it going to look?

Consumers often will purchase because it looks cool

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Product

Packagingif your selling a product what image

will the packaging communicate?

If a servicehow will the appearance of your operation

communicate an image about your business Range of Productswhat complimentary

products may you offer

If service: Will you offer other products with your

service

Example: Moose Winooskis you can buy T-Shirts and

Hats

Example: Think of the range of products that apple has

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Price

Marketing is responsible for establishing the priceof their service/product

Must consider the costs of all the inputs

(materials, labour, etc) Mark-up PriceHow much profit do you want to

make on every product/customer

Example: Selling Cupcakes

Every cupcake uses $1 of materials and labour roughlycosts $0.25 to make one muffin

You must charge at least $1.25 to break-even

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Price

The price of your product or service tells the

customer a lotabout your product

$550 $1550

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Price

Different Pricing Strategies

Competitionbasing your prices on those of the

competition

Penetrationmaking your price low while new

just to get some business

Bundleputting the product/service with another

item and bundling the prices Psychologicalmaking the price say something

about the quality of your product

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Place

Simply refers to how & where you are going tosell the product to the consumer

Direct Distributionselling your product directly

to the consumer Brick & Mortar vs. Virtual Store

Indirect Distributionsold through a 3rdparty

What retailers are the best for reaching your Target

Market?

Example: Selling protein powderwhere do I sell?

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Place

For a service : where are you going to locate in

order to best reach your target market

You want to be in an area that

your target market frequents

Says something about your business

Notice how car dealerships are

always on the outskirts of

town or close to a highway?

Brantford Commons

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Promotion

A successful product or service means nothing

unless the benefit of that product/service can

be communicated to the Target Market

There are many ways to get the word out

How many can we think of...

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Promotion

BuzzSales

AdvertisingPublic Relations

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Marketing Mix Activity

Lets Rank each of the elements of the

marketing mix in terms of importance for the

following products/services/businesses

Set Up a blank piece of paper like this:

Business Product Price Place Promotion

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Air Canada

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The GAP

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Nike

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Pepsi

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Hooters

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Tim Hortons

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Green Peace

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Toronto Maple Leafs

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Blackberry

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Louis Vuitton

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INTRO TO GO VENTURE!

GO Venture is an old game that lets you

stratagize your own business in terms of the

four Ps

You will start a business selling a product of your

own choice

Set your own prices

Chose your location Chose to promote your items at certain times of

the week etc.

Quick demo and then it is your turn!