Unit 11 P2

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P2. Explain how relationship marketing can be applied to a selected business. Traditionally there were only 4 Ps; Product, Price, Place, Promotion. But when relationship marketing came into play the traditional 4 Ps were extended into 7 Ps adding People, Process and Physical evidence to the formula. * Product: The service or product that the business offers to its customers, hoping to meet its needs and increase their sales. Needs to be in line with what the target group wants. In the case of Philips this could be a certain light bulb specifically made to give daylight during the late office hours or the Philips Lightning Capital service. * Price: It is determined by supply and demand, which needs to be kept in balance. The price is subjected to many changes. A business like Philips has to adjust their prices all the time, to keep up with customer demand and the changing of the competitors products and prices. * Place: The product or service needs to be reachable for the target group. Philips sells mainly via electronic stores (coffee machines, electric razor etc), supermarkets (lightbulbs, shaving equipment) and the occasional official Philips store. * Promotion: The way a business presents the offered product or service with its intended target group. How they communicate changes and the way it is marketed. Philips uses many different ways to promote their products/services, they use tv-commercials, internet ads, social media campaigns and/or billboards etc. * People: Everyone that comes into contact with the customer (customer service, store workers, delivery guy, mechanics, promoters etc.) or just the persons behind the scenes making sure everything goes accordingly. There are many different people at Philips that weren’t just chosen randomly, there’s been put a lot of money and effort into finding the right person for the job at hand. This

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