The 4 P's

Stuart Smith
Mind Map by , created over 5 years ago

GCSE Business Mind Map on The 4 P's, created by Stuart Smith on 05/13/2014.

Stuart Smith
Created by Stuart Smith over 5 years ago
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The 4 P's
1 Price
1.1 One way to try to ensure a profit is to use cost plus pricing
1.2 Lowering the price of a product increases customer demand.
1.2.1 However, too low a price may lead customers to think you are selling a low quality ‘budget product’.
1.3 Competitive pricing occurs when a firm decides its own price based on that charged by rivals
1.4 Penetration pricing means setting a relatively low price to boost sales
1.5 Price skimming means setting a relatively high price to boost profits
2 Product
2.1 A product is a good or a service that is sold to customers or other businesses
2.2 The product life cycle contains 4 stages
2.2.1 Maturity
2.2.2 Decline At this stage a business could use an extension strategy
2.2.3 Launch
2.2.4 Growth
2.3 Star products have a high market share in a fast growing market
2.4 Cash Cows have a high market share in a slow growing market.
2.5 Question marks or problem children products have a low market share in fast growing markets.
2.6 Dogs are products with a low market share in slow growing markets.
3 Place
3.1 Place often involves a 'Channel of Distribution'
3.1.1 Producers The business that is making/growing the product
3.1.2 Retailers The business that sells the completed product
3.1.3 Wholesalers A wholesaler buys in bulk and resells smaller quantities to retailers or consumers
3.1.4 Consumers
3.2 Place is the point where products are made available to customers
4 Promotion
4.1 Sales promotions, which encourage customers to buy now rather than later.
4.2 Advertising, where a business pays for messages about itself in mass media such as television or newspapers
4.3 Personal selling using face-to-face communication
4.4 Direct marketing takes place when firms make contact with individual consumers using tactics such as ‘junk’ mail

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