Problem: What is the purpose of having more than one Marketing Mix for the same product? Cite a real life example and explain the advantages and/or disadvantages having more than one 4P Mix.
- Product
- Place
- Price
- Promotion
These are basically strategies to make available the product to the final consumer. To achieve this goal a producer has to indentify the place where he wants to market and the type of consumers there. It would determine two things, first the price and second type of promotion required. If the market is situated in a place patronized by rich and extravagant customers the price and the quality of promotional effort should be matching.
Often the manufacturers sell the same product by different names. At the prime market the manufacturer would always try to push newly designed products and the unsold products at the other market in name of discount sale, or the off season sale etc.
This is with a view to reduce the investment blocked in the unsold products. This will allow the firm to keep its inventory low and reduce the time cycle of converting the product in cash. If the firm is having a banking facility it will have to pay low or no interest at all on its working capital.