The parameters in the ômarketing mixö for a product include the product itself, along with the place, price, and promotionùalso referred to as ôthe 4 PÆs.ö The product parameter includes such things as brand name, functionality, and quality, as well as cosmetic features such as packaging. The productÆs repairs, support, warranty, accessories, and features also play a part in its overall desirability from the customerÆs standpoint. The place parameter refers to distribution of the product and includes such factors as distribution channels, market coverage, warehousing, inventory management, transportation, and order processing. There are a number of considerations regarding the price of a product. For example, the item may be priced using a particular pricing strategy such as skim or penetration. The suggested retail price, volume discounts, wholesale pricing, cash discounts, seasonal pricing, bundling, price flexibility, and price discrimination can all figure into the price parameter. The promotion of the product includes the promotional strategy, advertising, personal selling, sales force, sales promotions, public relations, publicity, and marketing communications budget (The Marketing Mix).
Motorola is an example of a for-profit company that has developed a successful marketing mix. MotorolaÆs product line includes wireless communications devices like cell phones and pagers. It has distribution channels that reach around the world, including a nationwide distribution network in China with over 300 hand-picked agents (Motorola to Improve Sales Network, 2000). For its pricing strategy, Motorola utilizes the MarketPrice software suiteÆs pricing capabilities; this suite has allowed it to maximize revenue and margins by continuously analyzing, planning, controlling, and measuring its pricing performance (Revenue TechnologiesÆ MarketPriceÖ 4 Solution Provides Price Management Benefits to AMD, 2005).
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