English

THE FOUR P’S
Buying, selling, market research, transportation, storage, advertising – these are all part of the complex area of business known as marketing. In simple terms marketing means themovement of goods and services from manufacturer to customer in order to satisfy the customer and to achieve the company’s objectives marketing can be divided into four main elements that are popularlyknown the four P’s:
Product
Price
Placement
Promotion
Each one plays a vital role in the success or failure of the marketing operation.
The product element of marketing refers to the goodor service that a company wants to sell. This often involves research and development (R & D) ofa new product, research of the potential market, testing of the product to insure quality, and thenintroduction to the market.
A company next considers the price to charge for its product. There are three pricing options the company may take: above, with or below the prices that itscompetitors are charging. For example, it the average price of a pair of women’s leather shoes is $47, a company that charges $43 has priced below the market; company that charges $47 has prides eith themarket; and a company that charges $53 has prices above that market. Most companies price with the market selling their goods or services for average prices establishes by major producers in theindustry. The producer who establish these prices are known as price leaders.
The third element of the marketing process – placement – involves gettir the product to the customer. This takes placethrough the channels of distribution. A common channel of distribution is:
Manufacturer -- Wholesaler - Retailer - Customer
Wholesalers generally sell large quantities of a product toretailers, and retailer usually sells smaller quantities to customers.
Finally, communication about the product takes place between buyer and seller. This communication between buyer and seller is...