Marketers use numerous tools to elicit the desired responses from their target markets. These tools constitute a marketing mix:12 Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. As shown in Figure 1-3, McCarthy classified these tools into four broad groups that he called the four Ps of marketing: product, price, place, and promotion.13
Marketing-mix decisions must be made to influence the trade channels as well as the final consumers. Typically, the firm can change its price, sales-force size, and advertising expenditures in the short run. However, it can develop new products and modify its distribution channels only in the long run. Thus, the firm typically makes fewer
List price Discounts Allowances Payment period Credit terms
Sales promotion Advertising Sales force Public relations Direct marketing
Figure 1-3 The Four P Components of the Marketing Mix period-to-period marketing-mix changes in the short run than the number of marketing-mix decision variables might suggest.
Robert Lauterborn suggested that the sellers' four Ps correspond to the customers' four Cs.14
Customer solution Customer cost Convenience Communication
Winning companies are those that meet customer needs economically and conveniently and with effective communication.
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