Concept 3 – Elements of Marketing Marketing Unit Concept 3 – Elements of Marketing

Lesson Essential Question What are the four elements of marketing?

The four Elements of Marketing The four elements of Marketing are Product, Price, Distribution, and Promotion. The blend of all decisions related to the four elements is called the marketing mix.

Product A Product is all attributes, both tangible and intangible that customers receive in exchange for the price. This could be a service or a good. You must be sure to consider what the customer wants, the number of items to produce, the physical features, quality, number of different models, packing features, brand name, guarantees and services, and image/reputation.

Price Price is the amount of money given to acquire a product . The price must be high enough to cover cost of product itself and must consider price of competitors. You must consider the demand of the product, the form of payment you would require, and whether you will accept coupons or provide discounts. Also, you must decide on what to charge retailers vs. wholesalers (if you will charge them differently).

Distribution Distribution is all the activities required to transport and store products to make them available for customers. This includes all the various routes that products will follow, all the physical “handling” of the products, and also the customer service provided in the processing of the orders.

Promotion Promotion is the information provided to consumers that will assist them in making a decision and persuade them to purchase a product. The type and price of the product should influence promotional decisions. You must also consider what kind of promotion competitors are using.

Assessment Prompts What kinds of thing should be considered when setting the price of a product? What kinds of things are considered a part of the distribution of a product? What kinds of things should be considered when deciding how to promote a product?

LEQ 3: What are the four elements of marketing?