- Price - how much are customers charged for the product and what are the terms of payment?
- Product - this term includes the features of the product, such as design, quality, reliability, features and functions.
- Place - this is the way the product is distributed. Is the product sold direct to the customer or through retail outlets?
- Promotion - is the way in which the firm communicates information about the product to the customer. For example, it may use advertisement or a sales force, promotion also includes the image customers have of the product.
Price war - is a term used to identify a state of intense competition, usually followed by a series of price reduction strategies. e.g. the supermarket price wars.
Competition through the use of loyalty schemes - loyalty schemes are designed to employ customer satisfaction and are in the main developed to keep a sustained customer base by offering rewards e.g. club card points from Tesco which offers reduced sales on certain products.
Tale-overs and Mergers - combine two previously separate firms into a single legal entity. These can create monopolies with the power to exploit customers.
Special offers - are when a firm offers a product at a price for a limited amount of time, in order to gain interest from the consumer and hopefully create an awareness of the product and get people to buy it more often when it goes back to its normal price.
Product extension strategies - a firm may try to prevent sales from decline by using these...
- increasing the use of the product
- encouraging the use of the product on more occasions
- reducing the price
- adapting the product
- introducing promotional offers
- changing the name of the product.
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