by iWrite

Created on: January 16, 2009   Last Updated: September 23, 2011

Marketing is defined as the process of buying or selling in a market and transferring goods from producers to consumers. People that work in marketing need to know about advertising, to get the consumers attention and draw them toward the good or service that the company is putting out. This is where the principles of marketing come in, also known as the 4 P's which are known as the basic components of marketing, they stand for product, price, place, and promotion.

Product - Products can be either tangible, or intangible, tangible is something that you can physically hold, intangible is something such as a service, like babysitting or maid services. A variety of decisions are chosen when the product is, such as design, size, packaging, and anything that will make the customers more happy.

Price - Price is the cost of the material paid for by the producers, and how much it will be sold for a reasonable (usually) profit to the consumers. Usually the price is set twice as high as the material cost, plus the cost to make it. Also, business people tend to change prices to look a lot cheaper than they really are for example if something at the store would normally be sold for twenty dollars, they would sell it for nineteen, because to consumers, it looks like a lot smaller a number than it actually is. It's a marketing technique that has been used for years.

Place - Place is were the products will be distributed to the buyers. This is a very important part of the process, because by choosing the place, you can choose who your directing the product to, for instance, if you have advertising on stock market and news channels you will be directing the product to the more wealthy, and visa versa.

Promotion - Promotion is how the company gets the product out to the public, where to advertise, mediums to advertise on (example: television, newspaper, magazines, etc), its very important, because if the product does not get out to the public, there won't be any, or there will be little buying or selling with this product.

These are the four principles in marketing, they are very important with the economy, and getting products from the producers out to the consumers for the company's to get a profit and make good business. Its an ongoing process, it involves everyone in the economy, if there's not a seller, there's no buyer, everyone relies on everyone. That is why marketing is so important.

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