IB Design Technology 9.3 Marketing Mix Notes

The 4Ps of Marketing: Building a Successful Product Strategy

1. The 4Ps of marketing—Product, Price, Place, and Promotion form the foundation of a marketing strategy, helping businesses position their offerings effectively.
2. Let’s explore how each “P” contributes to marketing success and how they interconnect.

Product: Standardization vs. Adaptation for Different Markets

1. At the heart of any marketing strategy lies the product.
2. A product is more than just a physical item; it’s a solution designed to meet customer needs.
3. But here’s a key question: should your product remain consistent across all markets (standardization) or be tailored to suit local preferences (adaptation)?

Standardization: Consistency Across Markets

1. Standardization involves offering the same product in all markets.
2. This approach is effective for products where customers expect uniformity, such as high-tech gadgets or luxury goods.

Adaptation: Tailoring to Local Needs

In contrast, adaptation involves modifying a product to align with local tastes, cultural preferences, or regulations.

Price: Strategies to Capture Market Value

1. Price is more than just a number—it communicates the value of a product to customers.
2. Setting the right price involves balancing profitability with customer perception.

Cost-Plus Pricing

1. This straightforward strategy involves adding a fixed markup to the production cost.
2. If it costs $10 to produce your water bottle and you add a 50% markup, the selling price would be $15.
3. While simple, this method doesn’t account for demand or competition.

Demand-Based Pricing

1. This strategy focuses on what customers are willing to pay.