Step 9: The 4 P's of Marketing
Product – Describe the product or service you are offering below.
“Stephanie’s Sweets Bakery” sells many home-baked desserts, including Cookies, Squares, Brownies, Cakes, and Cupcakes.
Pricing Strategy – List the costs that must be covered by your selling price – be
sure to narrow it down to per unit costs. Include both fixed and variable costs.
The selling price must include a portion of the operating expenses and the costs of the supplies to make the goods. There would also need to be some profit included in the selling price. These are all variable, as the amount of desserts I sell will determine how much of the operating expenses and profit I need to include in the price. I would start out with low reasonable prices, like the ones listed below, and as time goes on, and I find out how popular my business is, the price may need to be adjusted accordingly.
List the prices of comparable products or services currently available.
The bakery section in Sobeys sells cookies at 12 for $5, and cupcakes/muffins at 6 for $5.50. Tim Horton’s sells cookies at 95¢ each and muffins at $1.19 each.
Promotion Methods – Consider the requirements that your promotion methods must fill. Rate the following priorities from highest to lowest in terms of their level of
importance for your company. Low – 1,2,3,4,5 – High
Cost – 5
Clear Communication –2
Audience Reach – 3
Remaining Competitive– 4
Control – 1
Place – Brainstorm here the various distribution channels that could work for your product or service.
There are two distribution channels that would work well for delivering my product or
service.
1. Customers order their desserts in person. → Customers pick up their desserts in person.
→ Customers take their desserts home.
2. Customers order their desserts by phone. → Customers pick up their desserts in person.
→ Customers take their desserts home.
“Stephanie’s Sweets Bakery” sells many home-baked desserts, including Cookies, Squares, Brownies, Cakes, and Cupcakes.
Pricing Strategy – List the costs that must be covered by your selling price – be
sure to narrow it down to per unit costs. Include both fixed and variable costs.
The selling price must include a portion of the operating expenses and the costs of the supplies to make the goods. There would also need to be some profit included in the selling price. These are all variable, as the amount of desserts I sell will determine how much of the operating expenses and profit I need to include in the price. I would start out with low reasonable prices, like the ones listed below, and as time goes on, and I find out how popular my business is, the price may need to be adjusted accordingly.
List the prices of comparable products or services currently available.
The bakery section in Sobeys sells cookies at 12 for $5, and cupcakes/muffins at 6 for $5.50. Tim Horton’s sells cookies at 95¢ each and muffins at $1.19 each.
Promotion Methods – Consider the requirements that your promotion methods must fill. Rate the following priorities from highest to lowest in terms of their level of
importance for your company. Low – 1,2,3,4,5 – High
Cost – 5
Clear Communication –2
Audience Reach – 3
Remaining Competitive– 4
Control – 1
Place – Brainstorm here the various distribution channels that could work for your product or service.
There are two distribution channels that would work well for delivering my product or
service.
1. Customers order their desserts in person. → Customers pick up their desserts in person.
→ Customers take their desserts home.
2. Customers order their desserts by phone. → Customers pick up their desserts in person.
→ Customers take their desserts home.