Ote2601 Assignment 1 Latest Updates May 2023

QUESTION 1 The marketing plan includes everything that has to be done to convey the product or service to the consumer or target market. Show how the following “4 Ps” instruments or steppingstones become a necessity in making the plan work (function): 1.1 The product We can define a product as a combination of utilities, which satisfy needs offering by the business to the customers. When an entrepreneur start a new business the entrepreneur should, in his/her choice of product, concentrate on consumer products. These products are immediately available for use. There are certain aspects, which customers consider when deciding on a product, like trademarks and packaging. The entrepreneur has to decide what product he/she wants to sell and how. 1.2 The price We can define the price as the amount of money the customer pays for a product. The price of a product is closely related to the value and use the customer gains in exchange for the money sacrificed. The price of a product is determined by taking into account, among others, the following factors • The running costs of the business. • The cost price of the product. • A realistic profit • The competitors prices • Demand/supply 1.3 The place The place where the business is situated plays an important role. Customers prefer to purchase the things they need at businesses situated close to their homes. Other reasons that contribute towards the popularity of a business are the following: Reasonable prices Enough parking area. Sufficient security Good quality products Cleanness and neatness in and around the shop. Is there credit facilities available? Big variety of products. 1.4 Promotion We can define promotion as all the techniques used to create a demand for new products, or to increase or maintain an established demand for known products. The main purpose of promotion is to remind, informed or persuade customers to buy the products/services of the business.