5 P’s

5 P’s The 5 P’s are: Product Place Price Promotion People

Product First, marketing is used to find out if there is a demand for a product. Then marketing predicts how to make the product appeal to the consumers. Packaging is a major part of marketing. It includes the design, color, size, and brand name of a product

Place Marketers have to decide how and where customers will buy their goods and services. For example: A company is more likely to sell snowshoes in Maine than in Texas because of the snowy weather in Maine.

Place There are three types of distribution Channel distribution- is a pathway to direct products to consumers Direct distribution- occurs when goods or services are sold from the producer directly to the consumer Indirect distribution- involves one or more intermediaries.

Price To determine the price of a product, marketers consider these three things: How much are customers willing to pay? Is the price competitive with other products? Can the company make a profit? In order for the company to make a profit, they must first reach the ‘break-even point.’ This is the point at which the total revenue, or sales, equal the total costs and expenses.

Promotion Promotion involves making the customers aware of the product. The most familiar form of promotion is advertising.

People The people is your target market Target market- is the people, or group of people, that you are trying to reach with the other 4 P’s The people are who you, as a marketer, try to sell your product to.