Four P's

Four C's

Marketing, always was known with the Marketing mix or 4Ps which are: product price place promotion The 4 Ps tend to be institutional-centric. They are more top-down.

The new factors taken into consideration while launching a product ,i.e. 4Cs are: consumer cost convenience communication

The 4 Cs, on the other hand, tend to be more marketplace-centric. They are more responsive to the marketplace and the customers. The focus is on product. Product part is replaced by cunsumer or consumer models. The focus shifts to satisfying the customer. Prices are fixed by the firm keeping Pricing is replaced by cost, reflecting their interests. the reality of the total cost of ownership.Cost should be fixed according to customers means. Choice of place is made where Convenience of customers is prime products are to be displayed and made concern. available to the customers. Promotion is concerned with bringing Promotion is manipualtive as it's from products to the knowledge of the seller's perspective. customers and persuadng them to buy. Communication ion the other hand, requires a give and take between the buyer and seller.

Discuss price setting in pure and impure competitive environment. There areas 2 types of marketing structures/environments: Perfect/Pure Market This environment occurs when there is a marginal diference between their products and consequently, little opportunity to influence price. Conditions for perfect market: There are large number of firms such that their output of a single firm is very small as compared to their total output of their market. Each firm have identical products. Each firm has freedom to enter and exit their market at its will. Each firm is free to make its own decisions. No firm is large enough to influence their market prices..it sells its products at predecided price. In the perfect market prices are not decided by individual firms, instead it is decided by market forces, i.e. Law of demand and Law of supply. The demand of a product varies inversely with their price of their product,i.e., an increase in price reduces their demand formulation their product, and a decrease in their price increases the demand. The supply of a product varies directly with the price of their product,i.e. A increase in price increases the supply of the product, while a decrease in the price decreases their supply. Demand and supply are jointly determine their price of their commodity that it will be sold for in the market. Excess Demand If the price of commodity is decreased, the demand for the commodity increases.Now as their total output remains constant, there is shortage of product, which will then lead to an increase in the price of the commodity bringing back to equialibrium position. Excess Supply If the price of commodity is increased, the supply for the product is increased and this will lead to abundance of the product in the market. Then their firms will have to reduce prices to clear piled stocks,for which they will offer discounts on prices,thus again bringing back to equilibrium position.

Impure/Imperfect Market In this model, individual firms decide the prices of the commodity. There are 3 policies followed by the firms to fix the price: cost-oriented pricing Firms set the price of commodities on the basis of the costs incurred. demand oriented pricing Demand oriented pricing looks at their intensity of demand.whenever their demand increases, a higher price is incurred while a lower price is charged when the demand for the commodity is less. competition oriented pricing The company sets its own price mainly on their basis of what its competitorss areas charging with little attention paid to its own costs,i.e. There is no strictly defined realtionship between their price of the commodity and their cost incurred or demand formulation commodity.