Download The Four Ps

(We carry out market research)
We must SUPPLY exactly what the customer wants.
We can do this by offering the right MARKETING MIX:
“The Four Ps”
= the right PRODUCT
at the right PRICE
available through the right channels of distribution: PLACE
presented in the tight way: PROMOTION.
The Four Ps
PRODUCT = the goods or the service that you are marketing
A “product” is not just a collection of components. A “total product” includes the image of the
product, its design, quality and reliability – as well as its features and benefits. In marketing terms,
political candidates and non-profit-making public services are also “products” that people must be
persuaded to “buy” and which have to be “presented and packaged” attractively. Products have a
live-cycle, and companies are continually developing new products to replace products whose
sales are declining and coming to the end of their lives.
PRICE = making it easy for the customer to buy the product
Pricing takes account of value of a product and its quality, the ability of the customer to pay, the
volume of sales required, and the prices charged by the competition. Too low a price can reduce
the number of sales just as significantly as too high a price. A low price may increase sales but not
as profitably as fixing a high, yet still popular, price.
As fixed costs stay fixed whatever the volume of sales, there is usually no such thing as a “profit
margin” on any single product.
PLACE = getting the product to the customer
Decisions have to be made about the channels of distribution and delivery arrangements. Retail
products may go through various channels of distribution:
(1) Product - end-users (the product is sold directly to the end-user by the company’s sales force,
direct response advertising or direct mail (mail order)
(2) Producer - retailers - end-users
(3) Producer- wholesalers/agents - retailers - en-users
(4) Producer – wholesalers – directly to end-users
(5) Producer – multiple store groups / department stores / mail order house – end-users
(6) Producer – market – wholesalers – retailers – end-users
Each stage must add value to the product to justify the costs: the person the middle is not normally
someone who just takes their “cut” but someone whose own sales force and delivery system can
make the product available to the largest number of customers more easily and cost-effectively.
One principle behind this is “breaking down the bulk”: the producer may sell in minimum
quantities of, say, 10,000 to the wholesaler, who sells in minimum quantities of 100 to the retailer,
who sells in minimum quantities of 1 to the end-user. A confectionery manufacturer doesn’t
deliver individual bars of chocolate to customers: distribution is done through wholesalers and
then retailers who each “add value” to the product by providing a good service to their customers
and stocking a wide range of similar products.
PROMOTION = presenting the product to the customer
Promotion involves the packaging and presentation of the product, its image, the product’s brand
name, advertising and slogans, brochures, literature, price lists, after-sales service and training,
trade exhibitions or fairs, public relations, publicity and personal selling. Every product must
possess a “unique selling proposition” (USP) – the features and benefits that make it unlike any
other product in its market.
Thinking marketing
Marketing affects every aspect of a company’s operations, as shown here:
Everyone who works for the company must “think marketing”
To think marketing we must have a clear idea of
What the customers need
What the customers want
What causes them to buy
What the product is to the customer:
its functional, technical and economic aspects
as well as the aesthetic, emotional and psychological
aspects
“FEATURES” (what the product is) + “BENEFITS” (which means that ..)
We must be aware of our firm’s strengths and weaknesses as well as the opportunities and threats
we face in the market (“S.W.O.T”).
This unit deals with various aspects of marketing: market research, applying marketing principles,
promotion and advertising.
Section 10.4 covers the notions of expressing degrees of certainty, possibility and probability.
10.1 The marketing mix (about 90 minutes)
Vocabulary
Brand
promotion
Image
publicity
Design
P.R. = public relations
Distribution
threats
Demand
outlets
hire purchase
opportunities
posters
tastes
buying habits
labels
end-users
This section introduces the topic of marketing, including some crucial concepts and vocabulary.
Step B
Let’s discuss just one of the items listed in Step A – Luxun Cinema, a particular local cinema,
for example:
 What competition does the cinema face from other cinemas, from other leisure
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industry products, from non-leisure related products?
Does it have a up-market or a down-market image?
Where do customers receive their information about its products?
Is promotional material generated by the owner of the cinema or by the distributors
of the films shown?
Are its customers regular customers or one-time customers?
If you were running the cinema, would you market it more strongly and if so how?
10.2 Advertisements and commercials (about 90 minutes)
Vocabulary
USP = Unique Selling Proposition
nostalgic
AIDA = Attention, Interest, Desire, Action desirable
Features
rate
Tense nervous headaches
updated
cross-referenced
package
benefits
commercials
The ads in the Students’ Book show the following products:
First Choice Holidays – the first poster is a “tease” which arouses the public’s interest by
apparently advertising a mystery product. The last poster on the page is the “reveal” ad which
makes sense of the “teaser”, while still keeping the comic image alive in the public’s mind.
Ben & Jerry’s Ice Cream – an interesting combination of cartoon-style drawing and real
photograph of Ben Cohen and Jerry Greenfield, whose luxury ice cream ranks second to
Haagen-Dazs in the USA. Their “product mission” is to make the finest all-natural ice cream
in innovative flavors from Vermont diary products. Their factory is Vermont’s number one
tourist spot.
Michelin Maps and Guides – as described in the recording – Michelin’s main business is making
tyres, but their maps and guides are an important part of their income.
United Colors of Benetton – one of a series of posters on the theme of “black and white”
promoting racial harmony. These posters don’t show any Benetton products, but promote the
brand name and its positive image.
10.3 Promoting products and brands (about 45 minutes)
Vocabulary
Brochures
showrooms
comic
Leaflets
stands
portable
Direct mail
trade fair
brand name
Point of sale displays
sponsorship
bubble gum
Press releases
word of mouth
liqueur
10.4 Possibility, probability and certainty (about 50 minutes)
Vocabulary
Degree of probability
break into
manure
trend
global brands
luxury brands
sales literature
Sales forecast
Sales figures
over-optimistic
prediction
sales-wise
Step A – talking about degrees of probability
Certain (100%) -- likely (75%) -- possible (50%) -- unlikely (25%) – impossible (0%)
10.5 marketing your own region (about 90 minutes)
Vocabulary
Questionnaire
hospitality
Misconception
wilderness
Gloomy
landscape
Specialist skills
outside agencies
consultants
package tour