Marketing is the total system of interacting activities designed to plan, price, promote and distribute products to present and potential consumers. At the heart of this system is the concept of the marketing mix, consisting of four components known as the four P's - product, price, place and promotion. Getting the right balance between these four factors is the difference between a successful and a failed result. .
Product.
Getting the product factor right is obviously critical. A product or service that really meets customer demands, and is both different and better than the existing competition, could be a winner. Product development is an important part of this, often the result of extensive consumer research implemented through surveys, questionnaires and flyers. The quality, style, servicing, packaging, warranty and labelling of the product can also be derived from the information gathered. .
Aside from the practical side of the product, we need to look at the creative aspect as well, as it is a well known fact that consumers not only buy products through their function, they are also lulled by the emotional image the product portrays. .
Think about cars for example. All are designed for the sole purpose of getting you around, so why do consumers choose luxury brands that often cost so much more? The answer is that they are buying status as well. And that's another aspect of the product offering. You need to give customers both functional and emotional satisfaction. .
Price.
The price of a product is often defined by the costs of the manufacturing, labour, transporting, promotion and packaging processes that have resulted in the final product. Another factor that is also taken into account is the profit margin instilled. .
Setting the right price of a product is a very significant issue contributing to the success of the product. The price often portrays an image concerning the quality of a product, as in if the cost was high, consumers would instantly think that it is a high quality product but if the price were low, then it would be useless.
