The 4P's of Marketing
For starting with the 4P’s we should go with the marketing mix.
The 4Ps that makes up a marketing mix are
Another name of the marketing mix is the 4Ps tool. Neil Borden gave the term Marketing Mix. The idea behind is to simplify the pattern by introducing 4Ps.
Is marketing mix is just that 4Ps?
The term marketing mix has been defined as the set of marketing tools the firm uses to pursue its marketing tools that the firm uses to pursue its marketing objectives in the target market. The marketing mix often refers to four levels of marketing decision: Product, Price, Place, and Promotion.
Focusing on a marketing mix helps organizations so that they can make strategic decisions when launching new products or revising existing products.
Let's try to understand the 4Ps in marketing.
Use to identify some key factors for the business that includes:
- What consumer want from them
- How their product and services meet those needs
- How their products are preserved in the world
- How they stand out from their competitors
- How they interact with their customers.
Elements of the marketing mix – the 4Ps
The 4 Ps of marketing means 4 pillars of marketing strategy: product, price, place, and promotion. Let's dive into each P
Product is the life of the marketing mix. All marketing activities begin with the product. Product is not only the physical entity; it captures whole tangible and intangible aspects. In short, the product is everything that is made available to the consumer. Examples- the market of airline travel, smartphones, new cars. So why product is the life to marketing mix? If we don’t have a product what should we price, promote or place? Hence, from all the 4Ps product is the most elemental P. Product refers to any item that intends to satisfy the needs and wants of the target customer.
Some questions we need to keep in mind for creating a product customer will want to buy. They’ll help you to determine the best way to present your product
- What are the wants of your customer from the product?
- What your product has that other products don’t have?
- What are the needs that are satisfied with my product?
- Have I missed any features?
The factors on which decisions of product mix depends are:
- Brand name
- Product variety
- Packaging, returns, etc.
The price is just so simple. It just how much you charge for a product. Price is the monetary value that has to be paid by a customer to acquire or own the product of a company.
The decisions of pricing mix need to consider the below marketing variables :
- Methods of pricing; policies; strategies
- Discounts, rebates
- Payment period
- Credit policy
Although its to simple to understand its hard to come up with the right price. Pricing decisions should be taken with great care. If your product is priced too high, it may exude a feeling of high quality. At the same time, it will make your product placing to limited and standard stores. So the marketer must know the art of wielding this dangerous sword of pricing.
How to pick the right price for your product?
It's probably the toughest thing to do. There are various and different types of pricing strategies in business. Certain factors to price your product including -
- Pinpointing your target customer
- Tracking how much your competitors are charging
- Understanding the relationship between price and quality
- Maintain some flexibility while setting the price
Marketers also need to determine when and if discounting is appropriate. A discount can sometimes draw in more customers, but it can also give the impression that the product is less exclusive or less of a luxury compared to when it is was priced higher.
Some questions you should ask yourself are:
- What would be the lowest price you are willing to sell your product?
- What would be the highest price that consumers would be willing to pay?
- How sensitive to price are your customers?
‘Place means location’ that means locating or distributing the product. Physical distribution deals with the transfer of ownership of the product from the manufacturer to the customer. When a company makes decisions regarding place, they are trying to determine where they should sell a product and how to deliver the product to the market. This might be known by you that marketing is putting the right product at the right time, this means placing the right product then get their products in front of the consumers that are the most likely to buy them.
The place is not just the physical store or physical marketing location it can also be an online e-commerce store where businesses display their listed products and customers buy online. Want to know more about how a website or e-commerce store can help your business? Click here to know more.
How to pick the right place?
1. Study the geographical concentration of customers
2. Place the product according to the price
3. Select the right stores to place the product.
Channel distribution is the activity requires to move a product from the producer top the consumer. Placing the product involves intermediaries who are the middle man in the distribution process. Agents, Wholesalers, Distributors, Retailers are the middle man in this process of placing the product.
Once we are done with these 3 Ps now its time to promote the product. Promotion is an important part of the marketing mix. Promotion is done on many channels. Most marketing managers select more than one channel to promote a product.
The promotion aims to serve two objectives:
- Firstly, inform potential customers about your product.
- Secondly, it persuades them in a way to buy your product.
An effective promotion mix will ensure good sales.
The main elements of a promotion mix are:
- Personal selling
- Public relations
- Direct marketing
- Publicity -social media, print, etc.
- Sales promotion
What is the importance of the 4Ps of marketing?
- Product is important to obtain or develop the best product mix within your market and your target market.
- The place is important because it is the venue you come into contact with your customer. This is the element that has a direct impact on loyalty and respect for the customer.
- Price is important because it establishes your profit and set the quality level of your product and the service.
- Promotion is important because it communicates with your customer so they can know about your product mix.
4Ps of Marketing is a very important aspect of marketing. Most of the companies don’t use all the p’s but most of the companies use the mixture of some. These 4Ps help the company as it improves the working which is beneficial for the company.
Let's take a short of 4Ps :
The product mix includes use, design, packaging, size, color, shape.
Price mix depends on packaging (include size), discounts, timing, area, shipping, and other offer relevant aspects.
Place mix includes retail, wholesale, digital, phone, chat, fax & multi-channel options.
Promotion consists of content, communication, messaging & advertising to persuade the customer to buy the product
Thus 4 Ps are beneficial for big, medium, or small scale companies.#concepts of marketing #marketing #practices of marketing #4P's of marketing