What is it?:
A product is anything that can be offered to a market that might satisfy or want a need. A product can also be a service that a corporation is offering to the public.
Examples of products:
How are products sold on the internet?:
1. Products are put onto the internet through business websites, usually a worker who is operating the business website will regularly put up products that are being sold at a company.
2. The CRM is a software that records customer purchases, so that customers see products that they are interested in.
3. target customers are identified before selling a product online, as the seller needs to know what
who the product is aimed at/ the age and gender .
4. Products are usually offered at a competitive price on the internet Key facts:
In the year 2017,the value of UK manufacturers’ product sales was £384.5 billion.
Manufacturing of food products experienced the largest increase in sales between 2016 and 2017, at £4.6 billion.
When looking for products online, there is usually a reviews section in which there are lot of reviews about the product. This makes it helpful as it gives opinions of other people who have used the same product.
What is it?:
Cost of a product or the amount of money required to give for a product.it is the quantity of payment given by one party to another in return for a good or service.
A business can use a variety of pricing strategies when selling a product or a service
The different ‘pricing strategies’ available to a business are:
Dynamic pricing- when businesses set flexible prices for the products being sold, based on customer expenditures .
Penetration pricing-when companies sell their products at a low price so that customers can purchase the products.
Competition pricing-when businesses set the price of their products the same as competitors.
Skimming pricing- retailers set relatively high prices for a product or as service at first, then gradually the prices are reduced.
Premium pricing- used when businesses want to charge higher prices than competitors for their products. The aim is to create the perception that the products must have a higher value than competing products because the prices are higher.
Products are repriced in order to gain more customers.
Prices can be refined, so that customers can see products within their price range.
Why are online prices cheaper than traditional retailers?:
Stores pay for instalments, whereas online retailers do not have to pay instalments.
Online businesses do not have to spend much on operational expenses, such as taxes.
Pricing strategies are used in order to attract customers at first.
What is it?:
The place represents the location from which a product can be purchased.
The place of a business can be a physical store or based on the internet.
The place is somewhere in which a business is located, for example a store or a warehouse.
The product should be available where the target consumer finds it easier to access.
A product is usually delivered from the seller/company.
Internet/websites/how you can access the websites:
A customer would search for a website in a browser such as google, the customer will then choose their preferred website based on the first three links that appear .
What is promotion?:
The publicizing of a product, organisation or venture so as to increase sales or public awareness.
Promotion is a way of communication that is used by organisations in the market.
Promotion is a key element in putting across the benefits of a product or service to the customers. Well designed marketing and promotional strategies ensure long term success, they bring in more customers and ensure probability for businesses.
The way online businesses promote their companies is by advertising, either on social media or television etc. Tv adverts have a larger audience which means businesses are most likely to be known of when advertised on television. Online businesses use promotion to show the benefits of their products to the customers.
Online businesses also use promotion by offering coupon codes exclusively through social media, in order to gain customers and social signals.
All companies are reliant on the people who run them from front line sales staff to the manager
People (Employees) are a key factor when it comes to selling products.
People (Employees) deliver a service, they also promote and sell products or services.
Examples of people in a business:
It is important to have people in the marketing of products and services, as they influence others to make purchases.
Online businesses need people (employees) to operate their websites, to sort out the stock and manage the stock. It is just like a normal business, the difference is that these people cannot be seen by customers.
Some online businesses have web chats to provide service online.
Offers are provided to exclusive customers.
Employees make changes to and operate the website in order to meet customers needs/demand.
Employees who operate the website must deal with any complaints that have been made, the FAQ’S and any other customer issues.