Marketing is all the activities to identify, meet and satisfy customers' wants while bringing profit to the business. Sales is the process of turning a product or service into money. Marketing is broader than selling because it begins before the product is sold and continues afterwards.
The marketing mix (4Ps)
- Product — the goods or service offered, including quality, brand and design.
- Price — the amount the customer pays; the pricing strategy affects sales.
- Place — the distribution channels so the product reaches customers.
- Promotion — the ways of informing and persuading customers, such as advertising.
Example
A drinks brand sells coconut water (product) at RM5 (price), selling it in supermarkets and online (place), and advertising it on social media (promotion).
Methods of promotion
Promotion covers several methods:
- Advertising — paid messages through media such as television and social media.
- Personal selling — a salesperson dealing directly with the customer.
- Sales promotion — discounts, coupons and special offers.
- Publicity — free coverage in news or reviews.
Remember
The purpose of promotion is to inform, persuade and remind customers about a product.
Before arranging the marketing mix, a business must understand its target market through market segmentation, that is, dividing customers by traits such as age, income or location. A business also distinguishes between customers' wants and needs. This understanding allows each element of the 4Ps to be matched to the right group, for example affordable prices for students or premium products for higher-income earners.
By combining all four elements of the 4Ps in balance, a business can attract its target customers, increase sales and compete effectively in the market.