Question

Describe the 4 key components of the New Era of Marketing and give a real-world example of how each plays out in the marketplace. Then give an example of how your consumer behavior has been affected by any of these changes.

Answer 1

Solution

The 4 key components of marketing are also known as the 4 Ps of marketing They are the price,product,place and promotion

The mix of these 4 elements are components of any marketing plan.

Product - It is coming out with an appropriate product for our target market.Target market means the particular kind of customers whom we are planning to take our products to.

Ex: Land rover luxury cars belong to the luxury segment.

Price - The pricing for a product plays a very important role.The pricing of a product should match with the willingness of the consumers in our target market.it should be in such a way that it generates profits for the company

Ex: The carbonated beverages like Coca-Cola etc., are sold at different prices at different places.In multiplex movie theatres ,they are priced double as that of priced in normal supermarkets.

Place - The place where the product is made available is a very important component. If the chosen place is inappropriate,whatever product you sell and how much value you would provide through it ,it will not be able to reach the right customers( i.e., target market)

Ex: Premium watches are generally sold branded outlets which are generally located in the malls because those are the places where their target audience are available.

Promotion - Its communicating with the target market about the product like in where the product is available and at what price it is available and how it can be used etc., Different kinds of businesses have different kinds of promotion strategies as they cater to different target markets.

Ex:If you are a manufacturer of Landrover luxury cars,you need to promote it in places like luxury malls and other places where the rich are available.

How consumer behavior has been affected by any of these changes ?

Generally, I do not like to have pop-corn.Bit couple of years when I visited a premium multiplex theatre I purchased the same for thrice the price at which it is normally available outside.This is because I like the way in which it is presented and also I am convinced about the quality of the product.

So,here I can say that the place (premium multiplex) has motivated me to purchase the product .It in fact dominated the other feature of the product - High price ; improved my perception about it's quality. (When value increases,price automatically will be justified).