chapter  Chapter 12
22 Pages

Product, price, place

ByKarel Jan Alsem

This chapter explores the relationships between a chosen value strategy, the marketing strategy, and decisions about three of the four marketing instruments: product/service, place/channels/distribution, and price. It shows what kinds of decisions have to be made for the instruments product, price, and channels. The chapter presents key issues about push/pull, intensity of distribution, forms of products, and distribution figures. Marketing is about finding and creating opportunities, and about making customers happy. This means that marketers should have a kind of positive mindset. The urgency for innovation and the choice of forms of innovation depends on the value strategy of a company. Companies focusing on operational excellence will focus on costs and/or convenience innovation. Price policy involves the description of policy rules in relation to price. The goal is to create a framework of parameters that the various decision makers in a company can use to make price decisions.