Product
The product represents the tangible, physical product itself and the benefits that the
consumer can gain from buying the brand. It includes the design, brand name, func-
tionality, quality, safety, packaging, etc. The product encompasses all the tangible
aspects of the product a manufacturer offers. The primary aim of the product is to
be able to satisfy a functional demand – the functionality of the product, as such, is
very important and the first prerequisite in the economic approach.
Price
The price refers to the price that consumer will eventually pay for the product.
The price is in the economic approach based on the total cost of manufacturing
the product, the distribution and advertising cost. These direct and indirect
production costs combined with a competitive analysis, and perhaps uncovering
how much consumers are willing to pay for the product, make up the input for the
analysis of what the price of the product should be. There are, however, other
aspects of price that are important in the economic approach. The price factor of
the marketing mix is closely linked with the marketing mix factor of promotion.
Since promotions are often used as a way to increase awareness or boost sales in
the economic approach – pricing strategies are often planned based on scanner
data from supermarket checkouts measuring how promotions affect the overall
demand for the brand.
Place
Place in the marketing mix refers to the distribution of the product from the
manufacturer to the end consumer. In short it is about making goods available
in the right quantities in the right locations. It is essential here to consider
which distribution channels will be most effective for the brand and to develop
a supply chain strategy that fits with the attributes of the brand and the demands
of the consumers. This supply chain strategy implies the identification of the
right channel partners, inventory management basically ensuring that all steps
from when the brand leaves the production site until it reaches the consumer are
geared and optimized.
Promotion
Promotion represents the various elements that a marketing plan can consist of
when promoting a brand. In the economic approach, the aspects of promotion
that have received most interest are promotion and advertising. Advertising
covers all the primary functions involved in ensuring that consumers are aware
of the brand at the best possible moment when they are looking to buy a product
in the relevant product category. An important part of advertising in recent
research in the economic approach is signalling theory. Signalling theory inves-
38 Seven brand approaches