The four Ps of the marketing mix are place, product, promotion, and price. These are interrelated in the sense that they help the organizations to devise marketing plan. Likewise, these help organizations to conduct market study. Four Ps form the basis of marketing plan and each element influence other (MCHUGH, 2016).
The consumer market deals with the consumer who buy products for their use and not for resale. However, the habits and choices of consumer can vary. In business-to-business, market goods and services are not sold to public. Rather, the goods are sold to other businesses. It is also termed as industrial market. The major difference between the consumer market and business-to-business market is that business-to-business market sells good to businesses and consumer market sells goods to consumers (MCHUGH, 2016).
The product life cycle describes the overall period of the product from its production or manufacturing to the market. It describes the production phases of the product and its arrival in the market. It also describes the removal of the product from the market (MCHUGH, 2016).
The product life cycle has four stages. These include introduction, growth, maturity, and decline. The theory starts from the introduction phase. It is that phase when a product enters the market. Second phase is the growth phase when the product starts its marketing and starts making place in the market.
Next come the stage when the product becomes mature in the market and makes its place and name in the market. The last stage is the decline stage when the market rejects the product or ask for change and replacement (KENTON, 2018).
The four traditional elements of the promotion mix are:
Personal selling means using the personal links and relations and targeting customers to sell products and services (MCHUGH, 2016). Personal selling is usually not sufficient strategy. Advertising is marketing of products and services using various sources and media channels like social media, paper media, and electronic media. Public relations is another promotion strategy that uses public relations for promotion. Sales promotion means offering goods and services at reduced rates to attract customers (S, 2019).
Managerial accounting is also termed as the cost accounting and it collects, organize, interpret, and communicate information to the managers to achieve organizational goals. Financial accounting keeps an eye on the financial transactions of the organization. It provides financial reports and income statements. The major differences between managerial accounting and financial accounting are managerial deals with information and financial accounting deals with funds transactions (KENTON, investopedia.com, 2019).
The formula for the balance sheet shows relationship between the assets, liabilities, and owners’ equity of a business. It is given as
Assets = Liabilities + Owner’s Equity. …
It includes assets, liabilities, and owner’s equity. Assets are personal possession and liabilities are things and organization owes to others. Owner equity shows the investment of owner deducting the withdrawals (MCHUGH, 2016).
Money has time value. It means that the money in hand is more valuable than sum in the future. It is important as it has the potential to earn more money through investment and the time increases its value (MCHUGH, 2016).
Money has time value because it can help to earn more money. Moreover, money can help organizations to earn certain interest. It is important as money earned today has more intrinsic value in the future. It is also termed as the present discounted value (CHEN, 2019).
CHEN, J. (2019, February 23). investopedia.com. Retrieved from www.investopedia.com: https://www.investopedia.com/terms/t/timevalueofmoney.asp
KENTON, W. (2018, May 27). investopedia.com. Retrieved from www..investopedia.com: https://www.investopedia.com/terms/p/product-life-cycle.asp
KENTON, W. (2019, February 22). investopedia.com. Retrieved from www.investopedia.com: https://www.investopedia.com/terms/f/financialaccounting.asp
MCHUGH, N. (2016). Understanding Business. McGraw-Hill Education.
S, S. (2019). yourarticlelibrary.com. Retrieved from www.yourarticlelibrary.com: http://www.yourarticlelibrary.com/marketing/4-most-important-elements-of-promotion-mix-business-marketing/8796
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