Question: The 4P's work together and one of the P's will often influence a decision on one of the others. If you have a high price luxury item (a rolex or a yacht), how would the price point & luxury status of the product impact the promotional plan and placement (distribution) of the item?
The 4p’s makes the marketing mix which comprises of price, product placement and promotion. These marketing mix are decisions which needs to be put in considerations before launching any new idea about the new product. This sets of actions helps an organization to make the right decisions in making its to be successfully. Product is what the firm is manufacturing, Price is the strategy company use in pricing the product, Placement is the location where the company sells its product and promotions is the way company promotes its product.
The pricing comprises of the cost of the commodity, the publishing and marketing expenses, any changes in price in the market and distribution expenses. Most of this factors can change independently. Therefore, the pricing has to withstand all types of changes at any time. Hence the pricing can either be increase or decrease.
The price and placement of luxury item should be put in consideration since the placement has a huge impact on the cost and profitability of the product. The product should be made available in all locations where there is a flow of customers. The pricing of the item affects the budget of the true customers and the distribution at any place which has frequent buyers
Pricing and promotion has to work together to make sure the products reached as many customers as possible. The pricing can be use as sales promotion by use of trade discount. The pricing of the product can only be generated through robust promotion that position the item as desirable, accessible and easy delivering of target benefit. Promotion add certain amount to the cost of getting product to the market. This result in price changes and product accessibility.