Marketing Mix BOM Assignment 1

Q.1 What do you understand by 4P's of marketing mix?
Discuss the 4P's in detail with

context to any retail shop of your choice
The retail shop for this context is Gift and Toys shop.
What is Marketing?
Marketing is simplistically defined as ‘putting the right product in
the right place, at the right price, at the right time.’
What is Marketing Mix?

The marketing mix is a crucial tool to help understand what the
product or service can offer and how to plan for a successful
product offering. The marketing mix is most commonly executed
through the 4 P’s of marketing: Price, Product, Promotion,
and Place.
4 P’s of Marketing
1. Price:
Price covers the actual amount the end user is expected to pay for a
product. How a product is priced will directly affect how it sells. This is
linked to what the perceived value of the product is to the customer rather
than an objective costing of the product on offer. If a product is priced higher
or lower than its perceived value, then it will not sell. This is why it is
imperative to understand how a customer sees what you are selling. If there
is a positive customer value than a product may be successfully priced higher
than its objective monetary value. Conversely, if a product has little value in
the eyes of the consumer, then it may need to be under-priced to sell. Price
may also be affected by distribution plans, value chain costs and mark-
ups and how competitors price a rival product.
In relation to a retail shop price of a product do matter a lot due to:
 Cut throat competition
 Choices of people
 Government regulations
 Transportation cost
 Level of demand
 Pricing strategy
2. Product:
The product is either a tangible good or an intangible service that is seem to
meet a specific customer need or demand. All products follow a
logical product life cycle and it is vital for marketers to understand and plan
for the various stages and their unique challenges. It is key to understand
those problems that the product is attempting to solve. The benefits offered
by the product and all its features need to be understood and the unique
selling proposition of the product need to be studied. In addition, the
potential buyers of the product need to be identified and understood
In relation to retailers the product plays an important role. The following
factors affect the product choice of the retailer:
 Nature of the Product
 Nature of the Market
 Stages in the Product Life Cycles
 Market Penetration
 Market Size
 Characteristics of Buyers
 Availability of Funds
3. Promotion:
The marketing communication strategies and techniques all fall under the
promotion heading. These may include advertising, sales promotions,
special offers and public relations. Whatever the channel used, it is
necessary for it to be suitable for the product, the price and the end user it is
being marketed to. It is important to differentiate between marketing and
promotion. Promotion is just the communication aspect of the entire
marketing function.
In context with retailer promotion is affected by following factors:
 Promotion strategy
 Cost of promotion
 Modes of promotion
 Distribution strategy/method of distribution
 Effective promotional tools
 Marketing channels
4. Place:
Place or placement has to do with how the product will be provided to the
customer. Distribution is a key element of placement. The placement strategy
will help assess what channel is the most suited to a product. How a product
is accessed by the end user also needs to compliment the rest of the product
strategy. The factors affecting place in marketing for retailer are as follows:
 Location of the business
 Place of suppliers
 Transportation cost
Q.2 Because the purpose of business is to create a customer,

the business enterprise has two and only two basic
functions: marketing and innovation. marketing and
innovation produce results; all the rest are costs. Marketing
is the distinguishing, unique function of the business".
comment and define marketing. Explain the core concept of
marketing.
 Marketing is a distinguishing, unique function of a

business.
 Marketing is about delivering value and benefits, creating products and services
that will meet the needs and wants of customers at a price they are willing to pay
and in places where they are willing to buy them. It is also about promotion,
getting the word out that the product or the service exists.
 The marketing concept has guided business practice since the 1950s.
 Customer value is the difference between perceived benefits and perceived costs.
There are different types of customer value: functional, social, epistemic,
emotional, and conditional.
 Marketing plays a key role is delivering value to the customer.
 Market segmentation, target market, niche market, marketing mix, marketing
environment, marketing management, and marketing strategy are key marketing
concepts.
Core concept of marketing: Marketing creates value for the customer. So, marketer
has to clear concept regarding customer needs, wants and market conditions. For
getting clear idea regarding customer, marketer has to consider five fundamental
concepts of marketing. These concepts are given below:
1. Needs, Wants and Demands:

 Needs: Human needs are states of felt deprivation. Needs, may be various types.
Such as; physical needs, social needs, personal needs
 Wants: Wants are the form of human needs take as shaped by culture and
individual personality. When we feel hungry, we take rice and fish and others, on
the other hand, An American takes fast food.
 Demands: Demands are human wants that are backed by buying power.
Demand must have three conditions;
a) Desire of getting the product or service
b) Ability to pay for the product or service
c) Intention to pay for the product or service
2. Marketing Offers: Marketing offers are some combination of products, services,

information, or experiences offered to a market to satisfy a need or want.
a) Products: A product is anything that can be offered to a market for attention,
acquisition, use or consumption that might satisfy a want or need. Such as; book,
rice, pen etc.
b) Services: Service is any activity or benefit that one party can offer to another
that is essentially intangible and does not result in the ownership of anything.
Such as; health service, banking and insurance service, transportation service
etc.
c) Experiences: Experiences are knowledge or skill which is obtained from doing,
seeing or felling things. Such as; due to experience, Nike not only produce shoe,
but also they are producing high quality sports elements.
3. Value and Satisfaction:

a) Value: Customer value is the difference between the customer gains from owing
and using a product and the cost of obtaining the product.
b) Satisfaction: Satisfaction is a person’s feelings of pleasure or disappointment
resulting from comparing a product’s perceived performance in relation to his or
her expectations. Satisfaction depends of the perceived performance of product
or service.
4.Changes Transaction and Relationships:
Exchanges: Exchange is the act of obtaining a desired object from someone by offering
and something in return
a) Transaction: Trade values between two parties. Here must have financial
relations.
b) Relationships: Relationship marketing is the process of creating, marinating and
enhancing strong value-laden relationships with customers and other
stakeholders. Marketer always has to create good relationship with target
customers
5. Market: A market is the set of actual and potential buyers of a products or services.
Markets have some conditions;
a) Actual and potential customer.
b) Desire of product and service.
c) Ability for paying behind the product.
Q.3 Define marketing.

Definition: According to Philip Kotler “Marketing is the process by which companies
create value for customers and build strong customer relationships in order to capture
value from customers in return”.
From the above definition we can say that;

a) Marketing creates value for the customers.
b) Marketing satisfy customer with profitably.
c) Marketing creates good relationship with customers.
d) All activities of marketing with customer oriented.
Concept: Marketing is the study and management of exchange relationships. Marketing

is the business process of creating relationships with and satisfying customers. With its
focus on the customer, marketing is one of the primary components of business
management.

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Q.1 What do you understand by 4P's of marketing mix?

Discuss the 4P's in detail with

What is Marketing Mix?

Q.2 Because the purpose of business is to create a customer,

 Marketing is a distinguishing, unique function of a

1. Needs, Wants and Demands:

2. Marketing Offers: Marketing offers are some combination of products, services,

3. Value and Satisfaction:

Q.3 Define marketing.

From the above definition we can say that;

Concept: Marketing is the study and management of exchange relationships. Marketing

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