Price
Using a Premium Pricing means that there is uniqueness about your product or service and the business can target to a higher price policy. For a new company trying to gain market share usually we identify a penetration pricing policy with the result the price is low until the product or service is known to the customers and when this is achieved, the price will increase. With low cost manufacture and distribution keeping the price low we identify an economy pricing strategy. A few companies with a strong competitive advantage and unique product or service usually they will use a price skimming policy. Even though this strategy will attract more competitors to produce asimiliar product or service with the result the price to fall due to the amount of business that can supply a similar service or product. The above are the most important forms of ‘price’, even though there are other types of the first P, the price.
Place / Distribution
Place is how the products or services will be distributed from the manufacture to the user. We can separate them to three categories, wholesalers, agents and retailers. Wholesalers they buy from producers and resell to retailers. Agents are used in international markets and retailers will promote the product direct to the end user, the customer.
Product
The product is the final stage when the consumer will purchase the product or service.
Promotion
Promotion includes all of the tools available to the marketing manager for marketing promotion of the product or service. We can separate in different categories: personal selling, promotion, public relations, direct mail, exhibitions and advertising.
People
People is the last element of the marketing mix and the most important element of any transaction. People are the end user, the customer whom will buy the service or the product that a company will promote.
