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Marketing is the process responsible for identifying, anticipatingand satisfying customer requirements profitably.
What is the marketing mix'?The marketing mix is made up of four components, sometimes called the four Ps. These are:
1. Product: the firm has to identify what products the consumer wants and the way existing products can be adapt¬edto meetconsumer preferencesmore successfully,
2. Price: a firm has to decide on its pricing policyfor list prices, discountfor bulk-buyingand interest-freecredit, A low price may make consumers suspicious ('cheap andnasty') or the low price may be thought of as a bargain ('cheap and cheerful').If the price of the product is too high then the com¬pany may be pricing itself out of the market. If the price of the product is higher than what competitors are charging then it must be justified in some way, e.g. because the quali¬ty of the product is higher.
3. Promotion: this amounts to choosing methods that can generate sales of the product. Possibilities here include advertising, personal selling, publicity and other promotion¬al work.
4. Place: the product has to be in the correct place - retail outlet - in order to capture sales. Exactly where a firm decides to sell its product will depend on the nature of the product.