The P’s of Marketing

1. The P’s of Marketing Tourism 12

2. Marketing • The strategies used to advertise your business / service to attract customers and prosper as a company. Putting the right product in the right place, at the right price, at the right time.

3. The 4 P’s • A model of marketing (advertising) • Used to determine who the customer is and what they need / want therefore increasing business by providing a service that is desired.

4. Product • What does the customer want from the product/service? • What needs does it satisfy? • What features does it have to meet these needs? • Are there any features you've missed out? • Are you including costly features that the customer won't actually use? • How and where will the customer use it? • What does it look like? How will customers experience it? • What size(s), color(s), and so on, should it be? • What is it to be called? • How is it branded? • How is it differentiated versus your competitors? • What is the most it can cost to provide, and still be sold sufficiently profitably? • Brand Name • Functionality • Styline • Quality • Safety • Packaging • Repairs and Support • Warranty • Accessories and Services Tangible, physical products as well as services

5. Price • Pricing Strategy • Suggested Retail Price • Volume Discounts and Wholesale • Cash and early payment discounts • Seasonal Pricing • Bundling • Price Flexibility • What is the value of the product or service to the buyer? • Are there established price points for products or services in this area? • Is the customer price sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so gain you extra profit margin? • What discounts should be offered to trade customers, or to other specific segments of your market? • How will your price compare with your competitors? Determining the value of the product to the customer.

6. Place • Distribution Channels • Market Coverage (inclusive, exclusive or selective) • Specific Channel Members • Inventory Management • Warehousing • Distribution Centers • Order Processing • Transportation • Where do buyers look for your product or service? • If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalogue? • How can you access the right distribution channels? • Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies? • What do you competitors do, and how can you learn from that and/or differentiate? Getting the product to the customer.

7. Promotion • Strategy (push /pull) • Advertising • Sales Force • Sales promotions • Public Relations and Publicity • Marketing Communications • Where and when can you get across your marketing messages to your target market? • Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards? By using direct marketing mailshot? Through PR? On the Internet? • When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions? • How do your competitors do their promotions? And how does that influence your choice of promotional activity? Communicating about the product with the goal of generating a positive customer response (i.e. Sale)

8. iPad • Today, Apple unveiled its new product, the iPad. The much publicized rumor about a tablet created by Apple is now a reality. Tablet pc's have been around for a long time, but what makes the iPad different from the other market offerings? What strategy does Apple have in place in order to make this a runaway hit like its iPhone and iPod product lines? We'll use the marketing mix(4 P's) to see how Apple strategized its goal to make the iPad a bestseller.

9. Product • The iPad is a tablet device that has several features. It looks like a bigger iPhone or iPod Touch and possess a led touch screen interface. Its dimensions are 9.56 in x 7.47 in. It is also very thin and has a battery life of ten hours. This product has the ability to surf the internet, listen and purchase music, watch videos, view photos, read e-mail, read and purchase e-books and execute multiple applications. In fact, the multiple applications available for the iPhone will be fully compatible with the iPad! There will be different versions of the iPad at launch with different hard drive capacities and 3g capability. There will be a 16 gb, 32 gb, and 64 gb variants. Also all iPads will have wi-fi and are wireless-n capable. The iPad will also feature the latest bluetooth profile and will have an on-screen keyboard for inputs.

10. Price • The iPad can be purchased at multiple price points. The base model (16gb) without 3g capability is the cheapest at $499, 32gb at $599, and 64gb will retail for $699. If a customer wants 3g capability they will have to pay an additional $130 on top of the base price. The consumer also has the option to sign up for AT&T data plan that allows them to have access to the internet virtually anywhere and in areas without wi-fi connections. The data plan is two tiered: the customer has a choice between $14.99/month for 250mb or $29.99/month for unlimited access. The data plan will also allow the consumer to access various AT&T hotspots for free. Unlike the iPhone, the customer will not be locked into multi-year contractual obligation and they can terminate it at any time. As far as discounts go, Apple is known for charging higher, premium prices however, they usually offer $100 off certain products to college students. They also do special bundles for purchasing certain products during different times of the year. For example, I purchased a Macbook Pro during the summer and they had a promotion that gave me a free iPod and a free printer plus the $100 discount because I was a college student. They have done the same promotion for the previous two years as well.

11. Place • The iPad will most likely be sold in place where other Apple products are sold. There several retail outlets that carry various Apple products so purchasing this product should not be difficult. There are multiple Apple stores across the United States, 284 of them, in which these products will be sold. Customers can also order the product online in Apple's website. Best Buy, one of Apple's partners, also sells Apple products and also has a large retail footprint in the United States. Amazon, one of the largest online retailers, also carries Apple products. The iPad won't be out for another two months, initial availability might be low depending on consumer demand like the shortage of iPhones during its initial release. Apple should gauge consumer demand and produce enough in order to satisfy the market.

12. Promotion • Apple held a press conference to debut the product. Several of the major techblogs and websites (zdnet, gizmodo, engadget) also covered the event. Given Apple's track record of heavy promotion and advertisement of its marquee products, the IPad has a high probability of getting the same advertising treatment. The iPad is already highlighted on the front page of Apple website and the hour long keynote by Steve Jobs regarding the iPad is also available on the website. Upon its’ release date their had not been a tv commercial for the iPad.

13. The 7(!?) P’s of Marketing

14. Now you try… For the following ad, identify the 4 P’s…