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The traditional marketing includes the grouping of four Ps; product, price, place and promotion which are used by marketers to create tactics that will help the business to achieve its goals and aims.
Product: The marketing department will think of a product and then wondering, for example, what are the expectations of customers relative to product concerned, what does it do, or does it already exist. The decision to develop the product or not would depend on the answers of those kind of questions.
Price: The marketing department will also think about the price a product or service should be set at. They will consider the type of customers will buy the product or service, for example high income customers or low income customers? What price those customers will be willing to pay for this specific product or service, what price would be more attractive, and so one. There exist several pricing strategies accessible to businesses in accordance with the objectives that they want to accomplish;
-Penetration pricing: It is when prices are set at a certain level so that the business can acquire a foothold in a market.
-Destruction pricing: It is when prices are set so that the business can ejected other competitors out of the market.
-Competitor pricing: It is when prices are set as the business competitors.
-Skimming: It is when prices are highly set because by the business because the product is unique.
-Discrimination pricing: It is when prices are set according to the customers. The business set diverse prices for diverse customers.
Place: Marketers always take into account the place where the product is going to be purchased by customers. This involves merchandising and physical distribution. Products have to be transported from the manufacturer to retail shops, passing though some intermediaries.
Promotion: The marketing department also have to think of how they will let the potential customers know about the product. This involves advertising through, for example, the internet, or in the physical store in order to attract and have the attention of customers.
The extended marketing mix (3 Ps)
Presently, three more Ps, which are people, processes and physical evidence, are now part of the combination. Not many companies sell products, a lot of them offer services that are intangible instead. This lead to a bigger number of people and businesses that are working to provide services than the number of people and businesses that are working in manufacturing. The marketing of physical products is very different to the marketing services and this was the reason why those 3 Ps have been added to the combination.
People:People, customers are the ones who receive services. Therefore, their satisfaction will depend on how they have been treated by the persons offering the service.
Processes: Sometimes customers have to be part of certain activities or procedures when they use a service. For example, in Nandos, customers have to serve themselves drink at the bottomless drink or they have to communicate with the waiter to order their food.
Physical evidence: Physical evidence correspond to the environment in which the services is delivered to customers. For example, sometimes customers judging a store by its physical appearance and they are frequently searching for touchable physical evidence to state if the service is what they really want or not.
