Heather Introduction: The 4 P's Of Marketing Mix

Heatherintroductionthe 4p Marketing Mix Includes Product Place Promo

Heather introduction the 4P marketing mix includes Product, Place, Promotion, and Price. The discussion thread assignment this week is researching the fourth P, Price. Among the 4Ps, Price is the only one generating revenue. The other three are costs (Baray & Pele, 2020). There are many methods for determining how to price a product or service.

The articles below research current trends in pricing and the importance of applying the correct method. Article #1 Value-based pricing Value-based pricing is the most complex pricing strategy but is considered superior (Christen et al., 2022). To establish pricing based on a product’s value, the customer must understand its attributes and how they benefit from them. When selling a product using the value-based pricing model, the seller must be able to communicate the value-added attributes and how they translate to Price. The pricing model is dynamic and more challenging for the seller, so sometimes, there are better options for specific products.

If the seller can differentiate the attributes and convey the value, the product could be priced higher by understanding all the factors. Hotels need help communicating the value when there are usually multiple options for accommodations (Christen et al., 2022). Not all accommodations are the same value, and those hotels that can differentiate themselves and communicate the attributes that justify the Price successfully attract consumers. In summary, if the product or service provides a differentiating element, it is better to apply the value-based pricing method to apply the proper Price for the value offered to customers. Article #2 Geographical Pricing The establishment of pricing based on geographical location is a common practice.

It has existed for many products such as groceries, bathing suits, and raincoats. All these products are needed, but where they are sold can drastically change the Price. For example, bathing suits sold near a beach will have higher prices than those sold in the mountains. The demand for them at the beach drastically increases, so the Price can be adjusted to meet the demand. This article research how to improve the geomarketing mix.

With the 4Ps of marketing, a spatial component requires additional research. This research reviews the impacts of geopricing and determines the spatial parameters of each. The researchers concluded that analyzing the supply and demand within a geographical area makes it possible to establish product prices (Baray & Pele, 2020). The model studied the supply and demand in a geographical area over time and was able to predict the price fluctuations of products. The article recognizes that geopricing software will hit the market soon, but their model could be used for less sophisticated companies needing more means to invest in the new software (Baray & Pele, 2020).

In summary, geopricing is getting more sophisticated but applying existing models could drastically change the pricing methods in certain regions. Article #3 Product Life Cycle Pricing There are different pricing strategies for each stage of a product's lifecycle. The most challenging stage is the new product stage (Ademi & Avdullahi, 2021). The pricing policy is the company's most crucial decision when producing a good or service (Ademi & Avdullahi, 2021). There are two types of products, and the pricing strategy behind both is very different.

The revolutionary product is described as a new product to the market. An evolutionary product is similar to other products on the market but might be slightly different. Pricing for the revolutionary is more complex than the evolutionary. This article researched the approach to both and found that overall, products are easy to produce but hard to sell (Ademi & Avdullahi, 2021). The marketing department must combine all elements to create a successful pricing strategy.

The researchers discovered through their literature review of many companies that the marketing department needs to be better integrated, and most need additional investment. The researcher recognized that pricing is the only revenue-generating part of the 4Ps, but the other elements make the Price a success. In summary, Price receives much attention, but the overall 4Ps approach is the only way to apply the correct pricing. Conclusion The three articles reviewed on Price indicate that Price and Price alone are not the most essential elements of a product or service. In some industries, it can remain critical, but in other industries, the overall value of the product or service is critical.

Understanding the industry and customers is imperative for pricing and will ultimately generate sales. In the 4Ps, Price is an element that typically carries much weight and consideration. However, there are other considerations, and the other elements must be researched and understood. References Ademi, V. F., & Avdullahi, A. (2021). Pricing strategies for new agricultural products. Emirates Journal of Food and Agriculture, 33(5). Baray, J., & Pelé, M. (2020). A new geographical pricing model within the principle of geomarketing-mix. Recherche et Applications En Marketing (English Edition), 35(3), 29–51.

Christen, T., Hess, M., Grichnik, D., & Wincent, J. (2022). Value-based pricing in digital platforms: A machine learning approach to signaling beyond core product attributes in cross-platform settings. Journal of Business Research, 152, 82-92.

Ghoshray, A., & Mohan, S. (2021). Coffee price dynamics: An analysis of the retail-international price margin. European Review of Agricultural Economics, 48(4).

Guillermo Lara. Marketing- Price Organizations are seeking ways to connect with potential customers to provide them with their needed products. Marketing teams are seeking to make customers into loyal customers. This can be established by providing the customer with quality products that meet the customer's needs. Marketing teams must manufacture a product and set the right price that customers are willing to pay. Prices are selected based on the cost of transportation, manufacturing, and advertising (Ghoshray & Mohan, 2021).

E-Commerce Price Marketing strategies have evolved over the past four years due to increased e-commerce sales. The internet has allowed businesses to exchange goods and reach a larger market, becoming the new trend. Online sales can increase word of mouth and referrals, and influences can influence the consumer's attitude to purchase a product (Cao et al., 2021). The Internet retail industry can lower the cost of products and allow them to provide discounts to the consumer. Price promotions might strengthen the referral's persuasiveness because the cost savings make the purchase even more attractive without quality concerns (Cao et al., 2021). The cost of goods can increase, or decrease based on the restriction of movement within regions. During COVID-19, movement was restricted for the entire supply chain, creating shortages, higher prices, and reduced income that created economic constraints (Alemu, 2021). When prices increase, the consumer's ability to purchase products will decrease, and they will seek out products of convenience. Most consumers are price-sensitive regarding the products on hand (Bissinger, 2019).

Loyal customers are essential for the success of the business and product. Marketing teams must find the right balance of product quality and price that retains loyal customers. Loyal customers will generate word of mouth that will assist the organization's advertising strategy, which will reduce advertising costs. The right mix will also help the business generate more online and brick-and-mortar sales. The price of coffee has two separate costs: the first is the cost of the product as it is received, and then the international price for coffee delivered at the point of entry. Exported coffee will be higher as it will include the exportation fee (Ghoshray & Mohan, 2021).

Conclusion Loyal customers are crucial for a business’s success and generate organic growth through word of mouth and brand loyalty. Pricing strategies, including value-based pricing and geographical considerations, influence consumer perceptions and purchasing decisions. The ongoing developments in e-commerce and global trade require marketers to adopt flexible and innovative pricing approaches that consider costs, demand, and perceived value, ultimately fostering sustainable business growth.

References

• Alemu, A. (2021). Effect of covid 19 pandemic on marketing activity (price of convenience and shopping goods) in bench sheko zone, southwest ethiopia. Academy of Marketing Studies Journal, 25(6), 1-9.
• Bissinger, K. (2019). Sustainability labels: Are price premia relevant in online food retailing? Journal of International Food & Agribusiness Marketing, 31(3), 87-102.
• Cao, Z., Chu, J., Hui, K., & Xu, H. (2021). The relationship between online referral marketing and price promotion: Evidence from a large E-commerce platform. Journal of Management Information Systems, 38(3), 855-876.
• Christen, T., Hess, M., Grichnik, D., & Wincent, J. (2022). Value-based pricing in digital platforms: A machine learning approach to signaling beyond core product attributes in cross-platform settings. Journal of Business Research, 152, 82-92.
• Ghoshray, A., & Mohan, S. (2021). Coffee price dynamics: An analysis of the retail-international price margin. European Review of Agricultural Economics, 48(4), 989-1002.
• Guillermo Lara. (2023). Marketing- Price Organizations seeking customer loyalty and strategic pricing. Unpublished manuscript.
• Baray, J., & Pelé, M. (2020). A new geographical pricing model within the principle of geomarketing-mix. Recherche et Applications En Marketing (English Edition), 35(3), 29–51.
• Ademi, V. F., & Avdullahi, A. (2021). Pricing strategies for new agricultural products. Emirates Journal of Food and Agriculture, 33(5).