Price, Product, Promotion, and Place
The Four P’s of Marketing The four P’s of marketing are product, price, place and promotion. Product is a good or a service that is intended for the consumers based upon their wants or needs. Price is the set price on the product. The price will depend on the targeted consumer, the economy, and the location. Place is merely the location in which the company decides to distribute the product. Promotion is the way the company decides to advertise their product to the public. (Griffin, & Ebert, 2003). Playstation 3 I just recently bought Sony’s Playstation 3. I must say, it is the best $300 ever spent.
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Not only can I play my video games, but I can also watch both DVDs and BlueRay movies. I also have the ability to play my games online, and order Netflix movies. A bonus is that I do not have to buy a memory card to save any of my games. The PS3 that I own has 160 GB of memory, so a memory card is not necessary. I never participated in the new Playstation 3 craze when it first was introduced, however after seeing all the advertisements, and hearing from my friends how awesome it is, I just had to get one. Marketing Decision Product The PS3 is the most recent Playstation product that Sony has come out with.
Playstation itself has come a long way through the years. A product, in order to “survive” the economy, must change with the needs and wants of their consumers. The PS3 has many new features, as opposed to the Playstation and Playstation 2. The first Playstation console only played CD-ROM games, when it was officially released in 1994 (Bellis). My father had the first Playstation, and thought it the best thing that could have ever been released. To keep up with the latest technology of online gaming and DVDs, in October of 2000, Sony came out with the upgraded version of Playstation; the Playstation 2.
This upgraded console not only plays the CD-ROM games, but it also plays DVDs, CDs, and the feature of online gaming was introduced. The PS2 was a great system until the new technology of BlueRay movies, and Wi-Fi was introduced to the public. Now the PS2 was not only behind the times, but it was also facing the major competition of the Xbox and Xbox 360, which featured the online, gaming. In November of 2006, Sony introduced their newer and improved console; the Playstation 3 (Bellis).
The features include Wi-Fi, BluRay player, online gaming, DVD player, Netflix for streaming movies, and have built in memory (“Sony playstation 3,”). Now that the product has been established, the next step in a marketing plan is price. Price There are many types of pricing strategies that businesses use. The strategies that Sony has used to market their PS3 is skimming pricing, competition pricing, bundle pricing, and psychological pricing. Skimming pricing is when Sony started off their price at a little over $500, then slowly lowered the price over time to open the market to more consumers.
When Sony lowered their price to match the price of the Xbox 360, they took business away from Xbox, because of all the additional features that PS3 offers, opposed to the Xbox. This is called competition pricing. An example of bundle pricing is when Sony decided to sell the bundle package which included the PS3, extra controllers, and two games, at a reduced price. Psychological pricing is something businesses do all over the world. This pricing technique is when a product sells for $199 or $198 instead of $200. These pricing techniques are used not only by Sony, but corporations and businesses everywhere. “Pricing strategies,”). There are many factors to keep in mind when setting a price for a product. The cost of the actual materials to create the product and the cost of the features it will include determines the initial cost. Then a company must keep in mind of the competitors. When the PS3 was initially launched it cost over $500. The only consumers that were able to afford the new console were those who had the extra finances. After a year of this high price and noticing the price of its competitor, the Xbox 360 (original price $300), Sony dropped the price of the PS3 to $300 (Peckham, 2009).
Unlike the Xbox 360, Playstation included the new features, like Wi-Fi, and the BluRay player into the system price (Peckham, 2009). The gradual drop in price is also known as a pricing strategy called skimming pricing. Another variable in the strategy of pricing is the targeted consumer for the product. The PS3 was originally priced at $500, however their targeted consumers; previous users of the PS1 & 2, could not afford the $500 (Sampei, Chang, Watanabe, Kim, Yoshigoe, & Joon). Sony then had to rethink their pricing strategy to include all consumers. Promotion
Promotion or advertising is one of the most important parts of marketing a product. Sony has used man methods of advertising the Playstation 3. Some of these methods they have used are television commercials, newspaper articles, magazine articles, billboards, radio, mailers and advertisements through collector’s cups and other knickknacks. Sony’s slogan for the PS3 is “It Only Does Everything,” (Dille, 2010). The slogans along with the advertisements have grabbed the consumers’ attentions. Place Place is where the corporation or business decides to distribute their product.
Sony has decided to distribute the PS3 through major retail stores, such as Wal-Mart, K-Mart, Radio Shack, Circuit City, Best Buy, Sears and many more. Sony has chosen these specific places for two reasons; one, because it’s where the competition is sold, and because these stores are popular among the community, so a lot of traffic goes in and out of each of the department stores. If Sony were to sell PS3s only at Dollar General, a local pharmacy, or another small non-electronic business, sales would not be as high as they are right now.
Playstation 3 has been one of the top sellers, since it was introduced almost five years ago. Due to Sony’s great marketing strategies, PS3 will be around and popular for time to come. Well, at least until Sony comes out with a Playstation 4. References Bellis, M. (n. d. ). History of sony playstation. Retrieved from http://inventors. about. com/library/inventors/bl_playstation. htm Dille, P. (2010, April 5). Sony’s ‘it only does everything’ campaign paying off. Retrieved from http://ps3. ign. com/articles/108/1081778p1. html Griffin, R, & Ebert, R. (2003). Business essentials [ed. 8]. Adobe Digital Editions version), Peckham, M. (2009, August 18). Ps3 slim vs. Xbox 360 price fight. Retrieved from http://www. pcworld. com/article/170411/ps3_slim_vs_Xbox_360_price_fight. html Pricing strategies. (n. d. ). Retrieved from http://www. learnmarketing. net/Price. htm Sampei, M, Chang, B, Watanabe, F, Kim, A, Yoshigoe, E, & Joo, Y. (n. d. ). Ps3 vs wii. Retrieved from http://are. berkeley. edu/~sberto/wii. pdf Sony playstation 3. (n. d. ). Retrieved from http://us. playstation. com/ps3/? SR=nav:playstation:playstation3:overview:ps=http%253A%252F%252Fwww. sony. com%252Findex. php