Understanding Marketing Decision Variables
Making decisions about marketing activities is integral for any business. It is important to understand the various decision variables that influence how a company should promote and sell its products and services. The following provides an overview of the key marketing decision variables and some examples to help illustrate their importance.
Product
The product is the main focus of a business’s marketing activities. Product decisions involve the type of product, features and benefits, product design, packaging, positioning, branding, and warranties.
Price
Price is an important decision variable as it affects the profitability of a product. Pricing strategies include cost-plus pricing, penetration pricing, market-oriented pricing, and price skimming.
Place
The place decision variable involves the channels of distribution that a business uses. This includes physical stores, e-commerce websites, wholesalers, and distributors.
Promotion
Promotion is the communication of a product’s features and benefits to the target market. The promotion decision variables include advertising, public relations, personal selling, sales promotion, and direct marketing.
People
People decisions involve the selection, training, and motivation of employees that are involved in the marketing activities.
Process
Process decisions involve the implementation of the sales and marketing activities. This includes the order-taking process, fulfillment process, customer service processes, and marketing processes.
Physical Evidence
Physical evidence decisions involve the tangible elements of a product or service that customers can experience. This includes the product packaging, store or website design, and customer service interactions. Understanding the decision variables involved in marketing activities is the first step in making effective decisions. By taking into account each of these variables, businesses can create effective strategies that will help them reach their marketing goals.