Unit 3.3 Four components of marketing mix

Product
Answers: What are you selling?
Price
Answers: How much is it?
Place
Answers: Where can I get it?
Promotion
Answers: Why should I buy it?
Perpetual Inventory:
Tracking inventory on a daily basis as it arrives or is sold.
Physical Inventory
Conducting a physical count of inventory. They are “actual” numbers.
Just-in-Time (JIT)
Suppliers ship inventory just before it’s used to keep stock at a minimum.
Price Strategies
mark up, cost based, competition based, demand based.
Psychological Pricing
discounting & credit
Competition-based
Lower or raise price of products/services based on what the competition is doing.
Demand-based
Price is raised or lowered based on supply and demand.
Prestige Pricing
Denotes status
Odd/Even Pricing
Odd numbers suggest bargains.
Even numbers suggest higher quality.
Price Lining
Pricing items in low, moderate, and high-priced categories.
Promotional Pricing
Lower prices offered for a limited time to stimulate sales
Multiple-unit Pricing
Items priced in multiples to suggest a bargain and to increase volume sales
Bundle Pricing
Bundling several complementary products together and selling them for a lower combined-price
Discount Pricing
offers customers reductions from the regular price.
Cash discounts
Given for prompt payment
Quantity discounts
The larger the order, the cheaper the per-unit price.
Trade discounts
Given to distribution channel members who provide marketing functions.
Promotional discounts
Given to wholesalers & retailers for carrying-out manufacturer promotions.
Seasonal discounts
Given to customers who buy seasonal items in the off-season.
Credit
Allows customers to obtain products or services with the promise to pay later.
Buying “On Account”
Take the chance of late payments or defaulting
Use of credit cards
Costs business money in service fees to accept credit cards
Channels of Distribution (Place)
The path a product takes from producer to final user (consumer)
Promotional Mix
Advertising, Personal Selling, Publicity, Promotions
Advertising
broadcast, print, outdoor and transit, internet.
Publicity
News releases (aka press releases)
Feature articles
Press conference
Seek interviews
Public relations
Any activity that creates goodwill for a business