A customer's perception of value is
largely affected by supply and demand. For example, the high price of
diamonds are controlled by controlling the availability of mined
diamonds in the world. However, diamonds also have value beyond their
literal worth by having prestige value.
Getting the price right is essential,
because the wrong price will hinder business either through reduced
sales volume or by hindering overall revenue, which may threaten the
survivability of the company.
Marketing Mix: Place
The marketing mix category place goes
beyond the location of the business. It also has to do with the
location of the product itself on store shelves or location on an
internet page. Is the location of the product somewhere potential
customers expect to find it?
Convenience is an important factor for
many customers. If they have to search for your product, they are
unlikely to buy it, especially if a similar product is readily found.
You may offer a one-of-kind product on your website, but if visitors
cannot easily find it or access it, then they will lose interest.
In large companies, place also includes
supply chain management, and having the products in the right place at the right time.
Marketing Mix: Promotion
Promotion is all about communication.
Specifically, promotion is about communicating value (although price
also communicates value). You may have the best product in the world,
but if no one knows about it or how it will benefit them, then it
will remain unsold. However, certain products need the right avenue
of communication. Attempting to sell satellite radio in a magazine is
not as appropriate as selling satellite radio on a FM radio station.
The goal of promotion is to encourage
the process of AIDA: Awareness, Interest, Desire, Action.
Article: How to Sell Online with the Marketing Mix