Question

I am working on a case study for my business marketing class. The case talks about Best Buy (electronics store) bringing new smartphones for sale in Canadian market. We need to perform a 4P analysis. I know what they are, but don't know where to start. Could you please help me?

Answer 1

Marketing mix of any company or brand involves the strategies & plans relating to the execution of a marketing plan. The focus is on the 4P elements i.e. Product, Place, Promotion, & Price.
A good marketing mix is one that involves diverse strategies that correspond to the competitor's approach. In developing a marketing mix, an exclusive brand focuses on premium branding with the purpose of capitalizing on the premium brand by ensuring that all 4P elements enhance the brand image. For example, Apple’s products match its premium brand & also the perception of customers that associate the products with premium value & premium quality.

The 4 P’s of marketing are –
1. Product - The apt product to satisfy consumer needs. Attributes related to products are quality, features, services, warranties, brand name.

2. Price - The right product presented at the right price. Common pricing strategies are – Cost-plus, Value-based, Competitive, Skimming, Discount, etc. Apart from pricing strategies payment method, seasonal allowances, price flexibility, trade discounts, bundling of products should be taken into consideration.
The pricing approach needs to reflect the suitable positioning of the product in the market & a price that covers cost & a profit margin.

3. Place - The apt place where the product is accessible to customers. A product can be offered to sell either via direct or reseller/retailer or online medium but the coverage area must be decided in product distribution. Which strategy should be pursued - selective, intensive & exclusive coverage? Diverse places have diverse customer base with a different perspective of their needs thus, location & placing of the product plays an important role in deciding the success of the product.

4. Promotion – Attracting potential customers via providing information regarding the product i.e. its features, reliability, worth, etc. It includes advertising & selling part of the marketing mix. Customers should be made aware that the product satisfies their needs & it is worthy of purchase. Common medium to promote is Radio FM broadcast, Television, Print & electronic media, Social media platforms, Word of mouth publicity.

•   The 4P’s help in creating the marketing mix that attracts customers to products or brands.
•   The success of a business depends on the marketing mix therefore careful attention should be paid on that.
•   An effective marketing mix can be created by conducting Customer research.
•   Knowledge of the target market & of the competitors provides an edge & an opportunity to offer a product that will attract customers & circumvent costly mistakes.

• The four P’s—product, price, place, promotion ought to work together in the marketing mix.
• Decisions taken with one element can influence the preference available with others.
• An effective marketing mix requires time & effort that pays off once the customers are satisfied & profit is generated.
• A good marketing mix— good product at the right price, presented at the right place with a good promotion strategy makes a position for the product & brand in the market. The need then arises to continue to stay on top of the market by adopting changes in the marketing mix. Thus, marketing is a never-ending process.