Chapter 11, Problem 13AA

To determine

To discuss: The 4 “P’s” of planning a marketing strategy.

Answer to Problem 13AA

The four P’s of marketing are price, product, promotion and placement.

Explanation of Solution

While determining the price various factors need to be considered as it plays a major role in decision making by the customers. The company needs to examine the competitors’ price, payment policy, and distributors’ cost and maximum price the customer is willing to pay.

While deciding the product to offer many relevant questions need to be examined such as whether the product solves the customer’s problem, what additional feature the customer wants and so on. This forms an important marketing strategy as it is the basis of the business.

Promotion of the product is necessary to create awareness in the minds of the customers and make them know the benefits of using the product. Deciding on an appropriate promotional strategy is very crucial in order to get the attention of the prospective customer within the given budget.

Placement in marketing strategy means the location where the product will be sold. It is important to understand what the target market is and which method will help the company to reach its target market.

Economics Concept Introduction

Introduction:

Marketing strategy - it refers to planning the overall process of selling a particular product to the customer and getting the prospective customer for the product or service that the company is producing.