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OC BMGMT 180 - Lecture Notes 1.2

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Once a customer base and their values are determined, a marketer puts a marketing strategy into actionto start building customer relationships. The marketing strategy consists of the firm’s marketing mix” which is a “set of marketing tools the firm uses to implement the marketing strategy. The Five Ps of the marketing mix are product, place, price, promotion, and people. A firm will need to first select or develop a product that people need or want. Then, the firm needs to decide on a competitive price and where the product will be offered to consumers (place). It must then promote the product to prospective consumers to convince them that the product is worth purchasing at the price it’s being sold. Lastly, the people/employees selling the product need to be able to build relationships with consumers and present the product in a way that encourages the consumer to purchase. For example, you have decided to sell top-notch quality coffee. Coffee isn’t expensive at all to make but it’s the milk, flavoring, and paper products that hike up the price. Therefore, plain coffee and espresso will be $1.25 or $1 if they bring their own cup and lattes, and other flavored drinks will range from $3.75-$5. We will also have a rewards system that will offer a free drink after 5 drinks have been purchased. Your promotion will be focused on the perks for $1 coffee if you bring your cup and the rewards system to entice customers. You will also need to promote the flavored drinks with fun toppings, latte art and great pictures. You will find a business space near other business spaces on a street with easy freeway access to make it easy for consumers to stop by on their way to work or for a lunch pick me up. The employees (people) tasks will be to brighten up the customers day with a great attitude and up-sale shots, flavor, milk alternatives, or seasonal drinks that would be an additional charge. A marketing mix is the set of marketing tools product, price, place, and promotion that the firm blends to produce the response it wants in the target market. Basically the marketing mix is everything that is going to draw the consumer to your company number one a product researching the product industry that you're in or want to be in to make sure the product that you are putting out is one that customers will buy. Price is setting the price of the product so the customers will purchase will also making a profit for the company. Place is location a place where the people in the area will be interested in the product you are selling. Promotion is using ads, TV commercials, billboards and such to promote your business sothe consumers are aware that you are open for business and what you offer. People is the fifth P of the marketing mix which is the most important part of the marketing mix in which some people don't include to it. "In the article it discusses that having employee/customer relationships is key to selling products and to keep the customers coming back.You work at Sam’s, and you see some of the member there 2-3 times a week, so you start to hold conversations with them learn their names and their routines. People notice when you notice and you caring for them while in your store will ensure that they will continue to frequent it. A product that you like would be Nike shoes the product itself is of a great quality stylish and comes in multiple colors, the prices vary but you get a discount on the products, but they do frequently have good sales at the outlets. Promotions would be the commercials you see all the time on TV that feature a celebrity with the new latest shoes or clothes on. Place would be that they are available relatively everywhere you can shop online on several different websites, but you can also get them on the ground in places other than the Nike store so it’s convenient. People would be the employees working at the Nike store that help you to make sure that this is the right shoe for you and to answer any questions you might have about the product.These terms of marketing that are referred to as the five P’s is product, place, price, promotion, and people. It is important to think about all these aspects in any industry. You think in today’s world most people can understand this pretty easily if they watch the show Shark Tank. Any product that is being put on the market needs to be thought about thoroughly and answers the question if it is needed or not.Placement of a product in its basic form would be where can you find it. If people cannot find the product you are selling, then you won’t be selling it. At the same time though the product might fit a certain group or demographic better and need to be placed in those areas. Price is a tricky definition to cover in your opinion. That is because your product has to have a price point to sell. This will be determined by the consumer if the product rates the price that you have set, or you will have to educatethe consumer on why you might be price high than the competitors. The promotional aspect of the marketing strategy comes down to what the costumers think about your company. Do you give to charity, how does your advertising look and general appeal of the company? For people, you believe that kind of follows along with promotional in the sense of the people you employ to give the feel of the company. Are the employees smiling and taking care of the customers? At the same time, people can also refer to the customers you are trying to attract to your product.A product that you enjoy and spend a lot of time on has to do with four-wheel driving your Jeep around. A specific product that comes to mind would have to be lift kits for these vehicles. There are many different products on the market for Jeeps and all have a different price tag. The quality definitely dictates the price point on these kits. A company like rough country has a very low cost but the quality isnot the best for extreme off-roading. A company such as pro comp has better quality and is none for better reliability off-road. Their advertising is definitely placed properly such as at the off-road shops likefour-wheel parts. Their people are very good and nice to talk to when there is an issue or if you are just looking for information. The five Ps in marketing are all important information to know because it can impact what someone or agroup of people are trying to sell. If these five things are not thought about then it can lead to


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