ACCA SBL Syllabus C. Strategy - The 4 Ps - Notes ^{4 / 10}

The approach needs to appeal to customer needs such as:

1. Quality

2. Design

3. Availability

4. Ease of purchase

Different types (consumer, commercial customers & government) of customer have different needs

The Marketing Mix (4Ps)

1. Promotion - Including direct sales

   This will depend on market segmentation to an extent.

   The company will decide on whether it is just pushing its features out to the customer through advertising, or whether it is trying to get more indirect promotion by creating a great product that customers come to you (what is known as ‘pull’ (by the customer) promotion)

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2. Product - Design & quality; Delivery & service

   Customers are segmented according to their needs, so products can be developed to meet those needs. The closer the needs are met, the higher quality the product.

   Augmenting the product is a way of meeting these needs, or creating new needs.

3. Place - The channel of distribution

   This is all about convenience to the customer. How easy is it to buy the product. Obviously the internet helps here, but many products people like to actually go and browse or trial

4. Price - including discounts

   This affected by costs, economy and competition. 

   It also depends on where you position your product (high or low end), or where the product is in its lifecycle. 

   Market penetration for example would mean a lower cost.
   There are also practical issues such as loss leadership.

3 more P’s are sometimes added to the mix (particularly for services):

1. People

2. Processes

3. Physical Evidence