馃攳
Introduction to Marketing: The Importance of Product, Price, Place, & Promotion | Episode 118 - YouTube
Channel: Alanis Business Academy
[1]
Welcome to Alanis Business Academy.
[3]
I'm Matt Alanis and this is Introduction to
Marketing.
[7]
First of all, what is marketing?
[9]
Marketing is everything involved in creating,
communicating, and delivering value to customers,
[15]
clients, and even society.
[18]
Marketing is involved in everything from the
market research that goes into determining
[22]
what products consumers are looking for, to
the message that is transmitted to consumers
[26]
to inform them about a product and even persuade
them to purchase it.
[30]
In between those stages, marketing also plays
a prominent role in determining how the product
[36]
should look, designing the packaging that
will enclose the product, deciding whether
[40]
to sell the product through traditional retailers
or entirely online, and establishing a price
[45]
point that is not only attractive to consumers
but allows gives the business the opportunity
[51]
to be profitable.
[52]
Now when most people think of marketing they
often think of advertising, which is completely
[56]
understandable given we are are constantly
exposed to advertisements at home, at the
[61]
office, and even during our commutes.
[63]
Although advertising is a component of marketing
it certainly does not explain the entire subject.
[69]
In fact, advertising is simply one of the
four different types of promotion, and promotion
[74]
is one of the four main elements of marketing.
[76]
So you can see that advertising, like the
other marketing elements, merely plays a role
[81]
in helping businesses create, communicate,
and deliver a single unified message to potential
[87]
customers.
[88]
So how does a businesses create, communicate,
and deliver value to its customers?
[93]
Although there are many variables at work,
a business can increase the probability of
[97]
success by creating an effective and consistent
marketing mix.
[101]
Often referred to as the 4 P's, the market
mix is a collection of four elements that
[106]
outline the strategy for how a business intends
to reach its customers.
[111]
These four elements include product, place,
promotion, and price.
[117]
The product includes the tangible product
or intangible service that will be used to
[121]
fulfill a customer need or want.
[123]
The features of a product, its physical form,
packaging, warranties, and even after-sale
[129]
service are all included under the product
strategy.
[133]
Place includes how a business intends to get
products from the location they are produced
[139]
to where they can ultimately be consumed by
consumers.
[142]
Place is often referred to as distribution
since we are dealing with logistics.
[147]
However, place not only includes the physical
distribution of the product but also the channel
[152]
through which it will be sold.
[154]
Promotion involves establishing the most effective
method for communicating with its customers
[159]
about the various products that it sells.
[163]
Promotion is primarily meant to communicate,
inform, and persuade.
[167]
An effective promotion strategy, like the
other marketing mix elements, depends upon
[172]
a businesses knowledge of its target customer.
[174]
This knowledge allows a business to select
the best way to communicate with its core
[179]
audience and ultimately increase the success
of its communications.
[183]
The last element of the market mix is price.
[187]
Price is the easiest marketing mix element
to alter from a technical sense, however it
[191]
is the most difficult thing to change.
[194]
The reason is that altering the price of a
product affects what consumers pay for that
[198]
product, and a business can only charge as
much as the market is willing to pay for a
[203]
product.
[204]
Technically a business can charge whatever
price it wants, but that does not mean that
[207]
consumers have to pay that price.
[210]
Like the other marketing mix elements, price
can send a message to consumers.
[214]
For example, many believe that maintaining
low prices is the best method to attract consumers.
[219]
Although this can be an effective pricing
strategy for certain items, it can also confuse
[224]
consumers.
[225]
For example, Tiffany & Co. sells expensive
jewelry and is known for high quality and
[230]
is one of the most recognizable brands.
[232]
Because Tiffany & Co is known for quality
and maybe even exclusivity, it wouldn't benefit
[238]
from a low price point.
[240]
Dealing with the psychological aspect of pricing,
consumers tend to view less expensive items
[245]
as cheap in quality compared to their more
expensive counterparts.
[249]
Although this doesn't always hold to be true,
businesses are very aware of the impact that
[253]
price can have on the perceptions of consumers.
[257]
The important thing for a businesses to do
with regards to its marketing mix is to be
[261]
consistent.
[262]
Each element should compliment the other and
communicate a consistent unified message about
[267]
the brand.
[268]
Advertising a product as high-end, but selling
it through a discount retailer can ultimately
[272]
hurt a brand and jeopardize sales.
[275]
This has been Introduction to Marketing.
[277]
If you have any questions or comments please
be sure leave them in the comment box below
[281]
and I'l do my best to get back to those in
a timely fashion.
[284]
For access to additional marketing videos
be sure to subscribe to Alanis Business Academy
[289]
and check out the playlist titled Marketing,
and also remember to like and share this video
[294]
with your friends.
[295]
Thanks for watching.
Most Recent Videos:
You can go back to the homepage right here: Homepage