However, Price can be counted in a different category than these approaches. This is because of the nature of the factor price and its effects on the other three Ps of marketing mix. This essay would further describe the marketing mix in terms of all four Ps. And it would conclude as to if the factor of price is very important in the marketing mix. Furthermore it would help the readers to differentiate between the four Ps and tell them about the dependency of the factors on each other (NETMBA, 2007).
Marketing Mix is a useful tool used by almost all the organizations in the world to determine and establish their advertising strategy. This advertising strategy further helps the organization to boost up their products and sales. The four Ps of this marketing mix are important ingredients which form it. And it can be said that all the Ps in the marketing mix are dependent on each other.
The first P in the marketing mix stands for Product. "The product area is concerned with developing the right product for the target market(and) may involve a physical good, or service, or blend of both" (Perreault & McCarthy, 2004, p. 38). Product here stands for the goods and services which the organizations offer to their customers. This P tells the organization as to which class of customers would require the product or service and if or not the product would satisfy the needs of the customers. The class of products is also developed in this stage of the marketing mix as to how the product should be established and the exact requirements of the products. This stage in the marketing mix tells the organization how the product should be developed and why it should be developed. The target audience is also selected in this stage.
'Price', which is the second stage in the marketing mix, generates revenue for the businesses. "Price setting must consider the kind of competition in the target market and the cost of the whole marketing mixand must also try to estimate customer reaction to possible prices" (Perreault & McCarthy, 2004, p.40). All the other Ps in the marketing mix are the costs for the businesses however price in the marketing mix helps the businesses to attain a certain income. Price can be set according to the market demand of the product by the organization. If the prices are not set according to the local demand the organization may suffer a loss. However, it is not necessary that lower prices can make the organization suffer in terms of revenue. They can be lowered to lure customers into buying the products and discouraging other similar products given out by the competitors. Price can be termed as a relatively firm point in the marketing mix which determines the relationship between an organization and the customers.
Similarly, the third P in the marketing mix stands for Place. "Place is concerned with all the decisions involved in getting the right product to the target market's place. A product isn't much good to a customer if it isn't available when and where it's wanted" (Perreault & McCarthy, 2004, p.39).This approach of the marketing mix tells the organizations how to place their products according to the market demand. It tells the organization how to get the desired product in the desired market at the right time. The demand and supply is basically met through this type of approach in the marketing