Market Principle - Definition & Meaning
What is Market Principle?
Marketing principle are the widely used product promotion strategies which are agreed upon by all stakeholders. Companies use different marketing principle to optimize the performance of the existing product or to launch a new product in the market. Marketing mix forms the backbone of designing any product promotion strategies.
Marketing mix is of two types : product and service.
For product promotion strategies only the 4P’s of product marketing mix are used.
They are
1. Product
Before making any marketing plan product related decision like the quality of the product, unique feature, USP of the product needs to be made. Product decisions will in turn affect the other marketing mix. Say if the decision is to provide a high quality product, the pricing needs to be appropriate
2. Pricing
Price setting of a product is based on the price method used, the objective of the firm and the total cost incurred in manufacturing the product. Competitors cost and price analysis will also affect the price setting process.
3. Place
Distribution channel of the product is referred as place. For fast moving consumer products it is imperative that the products should be made available at all possible points. On the other hand, for premium products the distribution channel should be limited and exclusive. Initial Segmentation, targeting and positioning affects the distribution decisions.
4. Promotion
Again promotion of a product depends on the type of product and price. Promotions can be Above the line , Below the line , sales promotions or complete integrated marketing communication. Promotions make the product to reach the minds of the consumer and persuade him to buy a particular brand compared to the other.
Issues with the Product Promotion strategies
• Ethical
• Social responsibility
Marketers should maintain the standards of contract and moral values by following the marketing principle. The social criticisms of marketing are deceptive pricing, high pressure selling and planned obsolescence. The criticisms based on the 4P’s are
1. Product—Product obsolescence, poor quality and safety
2. Price—deceptive pricing and price discrimination
3. Promotion—Exaggeration and unrealistic claims
4. Place—Predatory competition and dumping
Hence, this concludes the definition of Market Principle along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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