Explanation : Nonfinancial firms commonly extend trade
credit to their customers. A typical set of
terms are 2/10 net 30. These terms mean that
a firm which is selling a good or service is
telling its buyer, “If you pay within 10 days
you will get a 2 percent discount and, if not,
the entire amount due has to be paid in 30
days.” By extending trade credit, the seller is
providing financing to the buyer. And so the
buyer has obtained two resources, not one,
from the seller: the good or service that is
being purchased and short-term financial
Explanation : Jerome McCarthy (1960) proposed a fairly restrictively defined marketing mix framework that has come to be known as the 4Ps of
product, price, place, and promotion.
> Product: A physically tangible object or an intangible service produced and offered to consumers in the marketplace.
> Price: What a consumer pays for the product or service—usually focused on the economic cost but can also include intangible costs such as time and effort expended to uptake the offering.
> Place: Refers to the location (physical or virtual/online) in which a product or service is offered for purchase, and also the process by which it is distributed to the purchase point (the distribution channel).
> Promotion: The range of communications used by marketers to promote offerings to consumers in the marketplace, for example,
advertising, public relations, personal selling, and sales promotion.