4P’s – Product, Price, Promotion, Place
A company follows certain strategies and plans to offer a product as successfully as possible in the market. For this purpose, the so-called marketing mix is used, which can be divided into four strategies (product, price, communication, distribution policy).
The product policy deals with everything that constitutes the product or service design. Et al in what quality a product is made, how it should look and be packaged.
The pricing policy deals with which price can be enforced on the market. The design of the price depends on various factors. A company has to keep an eye on the prices of its competitors, as well as the supply and demand of the product. Also, the manufacturing cost of the product must be considered, so that the bottom line, a profit can be realized. Other points that can be considered in the pricing policy of a company include u.a. Fees, possible discounts and terms of payment.
By means of the communication policy the image of the product should be promoted. Possible forms of the communication policy are, for example, advertising, distribution by salespeople in the sales outlets or the public appearance of the company in order to improve the effect of the product on customers.
The distribution or distribution policy determines how the product best comes from the business to the customer. On the one hand, the products may be offered at the point of sale by a seller/consultant or they may be ordered by the customer and sent to him.
When talking about 7 P’s, the process management (how are the production processes running, how are they constantly being improved?), The personnel policy (promoting employees, identifying the employees with the company) and the physical facilities (the equipment of the company) in the marketing mix.
3C’s – Customer, Competition, Company
The 3 C’s are used for analysis and self-classification of a company.
Too german: customer, competition and company, are three factors that are important for a strategic positioning in the market. A company should always pay attention to and be aware of all three areas. It should be monitored in advance to respond promptly to changes in these areas and to act in a timely manner. Following the 3 C’s are explained.
The 1st C = Customer:
The first C deals with the customer, that is, who is in the target group that the company is targeting to dispose of its products. Furthermore, he is interested in how big the sales market is and how it will develop in the future. That is, how many consumers are interested in the product or may be interested. Then, from this point of view, it is still interesting to see why the customers chose the product and not that of a Kokurenten. The question is, how the consumer infortmiert has (he has seen the new commercial, the product was recommended by a friend or a seller, or he did not inform in advance?). In order to keep the customer, it is important what he also has for wishes and ideas. In order to create a customer loyalty or brand loyalty, must constantly be adapted or renewed in the interest of the customer.
2. C = Competition
The second C stands for the competitors in a branch. A company researches who belongs to the direct or indirect competitors. It is very important to determine the strategies and approaches of the competition. Under special observation here should be companies that want to re-establish themselves in the market and the industry. Each competitor raises the question; what they do differently or maybe even better. The discussion then looks at how one’s own company responds, whether it adapts, develops a new strategy, or even does not need to be handled.
3. C = Company
The third C stands for the own company (Company). It encompasses the goals as well as the strengths and weaknesses of the company. In order to continuously improve, a company must constantly look for opportunities for improvement and optimization in its own ranks
There are internal and external company analyzes.
The external analysis gets its information from outside. Customer surveys are carried out and competition analyzes evaluated. The 1st C Customer and the 2nd C Competition are therefore external analyzes.
The Internal works with information that can be acquired within the company. They are based on evaluations and statistics. The 3rd C Campany is therefore an internal analysis.
The product life cycle reflects the “life” of a product. It starts with the introductory phase, goes through the growth, maturation and saturation phases and ends with the degeneration. In the introductory phase, the product (as the name implies) is launched on the market.
As soon as the sales volume increases, the product is in the growth phase. Profits can be generated. After the growth phase, the product goes into the maturity and saturation phase. It is characterized by falling sales figures, a saturation of the market and finally a decline in sales. The profits diminish.
In the decay phase, also called degeneration phase, the product is at the end of its cycle. The product is “running slowly” and disappears from the market.