The four P’s of marketing, commonly known as the marketing mix, are factors that influence the marketing strategy of a firm. These P’s are product, place, price and promotion (Baker, 2012). Each of this P’s had their own importance in the marketing strategy and influence the performance of the firm differently. Since the firm’s main aim is to make profit through gaining market and competitive advantage, these four P’s are crucial in the success and performance of the firm.
Consumers make their purchasing decision basing them on the four P’s. However, though the marketing mix influences the consumer behavior, there is one of the four that stand out in each consumer’s decision. It could be the product itself, looking at its quality and meeting the consumer needs. Secondly, it could be the promotion done by the firm in making their products known to their consumers through promotion and advertisement. Thirdly, it can be the place, that is the availability of the product in the right time and the right place. Finally, it can be the price of the product itself when it reaches the consumer.
Assuming that I purchase five products, holding other factors constant, purchasing decision is influenced by the price of the product. Holding product, place and promotion constant; that is they meet all the appropriate measures required for the success of the firm. My purchase will be determined by the price of the product. If the price of the product meets my personal financial limit, then I would go for the goods (Baker, 2012). This will include the influence of other considerations provided by the firm in relation to the price such as discounting, credit and the credit collection method. The market location of purchase will be influenced by factors such as its distance and accessibility. If the product are easily available and have a favorable price, then without hesitation, we will go for them.
Competition of various products in the market is one of the environmental factors that influence peoples purchasing behavior. Consumers will look at the availability of close substitute and compare their prices, quality and availability before making the purchasing decisions. Often, products that are of best quality, easy to access and fair prices will win the market competition and most people will go for it (Noel, 2009). The availability of new products and product differentiation are other factors that affect consumer decisions in making purchases. When a new promising product is introduced in the market and possible has a better quality than the first, consumer decision will be influenced.
A shift from seller market to buyer market due to increased growth in the industry capacity give the consumer the advantage of selecting their product of choice; basing their decision on the available options in the market. Another environmental factor includes the location of the distribution center where the product is, that is the market. If the product is easily accessible then the purchasing decision will favor it.
Economic status of a consumer influences their purchasing decision. The economic status places individuals in various strata in the social ranking. This is based on their income that gives them a financial power. Consumers in the same economic class exhibit similar purchasing behavior. This is influenced by their interaction which requires the maintenance of their social class. Therefore, they tend to buy similar products that are associated with their class. For example, individual in the upper-upper class will tend to purchase similar goods and services that are associated with their class. In purchasing a car for example, they will go for the expensive Rolls-Royce and access services from the best providers (Noel, 2009). Such purchases are similar to all the members of that social class. A similar relation is observable with the middle class working in the white collar and blue collar jobs, they will purchase Toyota vehicle as their social class can afford. This trend is uniform in all classes around the world.
Social factors influence the purchasing decisions of the consumer in a more outward way and have influences on what we do and our beliefs. They can be divided into culture and further into subculture. They include the influence of groups such as reference, aspiration and member groups, family, roles, beliefs and values that influence our purchasing decisions either directly or indirectly.
The culture of an individual influences their way of life and therefore influences what they purchase. The way of life is described in the culture where the cultural beliefs, customs and behaviors are passed down and they characterize the society’s way of living. Individuals have to adhere to such culture therefore influencing their way of life. The same applies to other sub cultural groups and other groups which have a set way of life and therefore influence what their members purchase.
The Oberweis Company lacks appropriate and attractive marketing advertising methods. Its reliance on word of mouth limits it marketing base. The failure to embrace the growing advance technology in advertisement and product promotion denies the company an opportunity to compete effectively with other companies within the industry. The management lacks adequate information on the best marketing strategies to incorporate in order to increase its customer base thus increasing it overall sales and realizing more profits as a return. Such better marketing strategies can be achieved through the use of twitter and texting.
Twitter can help the company in many ways. First, it can be used for communication in keeping your followers up to date about the business. Secondly, you can twitter about new products or special offers (Ally, & Needham, 2013). Thirdly, you can use the platform to interact with customers in order to know their needs. Four, it can be used for market research and finally to get feedback about the service, product quality and customer satisfaction which help the management to make the company better.
The company can use text to reach their customers and customer can make their orders. It can also use text messaging to carry out important market research which help the in improving the company product and services (Ally, & Needham, 2013). These two mediums can be effectively utilized to make the relationship between the company and the customers strong and profitable to both parties.
Ally, M., & Needham, G. (2013). M-libraries 4: From margin to mainstream - mobile technologies transforming lives and libraries. London: Facet Publishing.
Baker, M. J. (2012). The Marketing Mix. London: Henry Stewart Talks.
Noel, H. (2009). Consumer behavior. Lausanne, Switzerland: AVA Academia.