The 4 Ps of marketing are the crucial parameters influencing the entire marketing of a service or a good. They are Product, Price, Place, and Promotion. Also referred to as the marketing mix, the 4 Ps are constrained by the external and internal factors in the overall business environment. These are utilized by companies to identify some crucial parameters for their business. They identify what their consumers are looking for and how their product or service meets or fails those expectations. It also helps brands in understanding how they are perceived in the world and where they stand amidst the competition.
The idea of the 4 Ps of marketing was conceptualized by Neil Borden, a Harvard University Professor. He introduced the idea in 1964 in one of his published articles titled, “The Concept of the Marketing Mix”. He had explained how companies could use this simple framework to improve the likelihood of their success while advertising their products to their potential audience.
The 4 Ps Model
Product: A product refers to either a tangible good or an intangible service that fulfills the requirements of the consumers. Whether you offer luxury accommodations or sell jewelry, it is essential to have a clear picture of what your offering is and what makes it unique before launching it in the market.
Marketers need to have a clear understanding of what their product or service stands for and how it is different from others. Here are some key questions marketers need to answer while launching anything into the market.
- What are the customers expecting from your service/product?
- Does your product satisfy the needs of your potential customers?
- What features of your product meet the requirements of your customers?
- Where and how the customers will use it?
Price: This involves a concrete understanding of the product offering before taking some pricing decisions. It is vital to remember that price determinations will tremendously affect the profit margins, demand, supply, and marketing strategy.
Pricing strategy is an art and science. It involves careful calculations based on market data. You need to skillfully balance the pricing between too low and too high. Determining appropriate pricing is critical to the revenue as it will impact the demand, supply, and profit. This will affect how much marketers will invest in marketing strategies. Companies also need to decide their pricing models. This may include choosing from a one-time purchase or opting for a subscription model depending upon the spending patterns of target customers.
UNIQLO, headquartered in Japan, is a manufacturer of low-price, leading global casual wear. What sets it apart from its competitors is its innovative offering. The company purchases high-quality fabric in large volumes to cut down the cost. It also outsources its production and has the option to change production partners and locations anytime. Moreover, they have also hired a team of skilled artisans to ensure quality control at the production centers. This strategy of cutting down price smartly wherever possible and providing premium quality to the customers has tremendously contributed to their success.
Here are some key questions you need to find answers for while proceeding with product pricing.
- What is the value of the product or service to a customer?
- How will the pricing compare to that of your competitors?
- Is there any established price point for the product or service in this domain?
Promotion: Once a product is ready and the price has been set, it obviously requires promotion. This involves looking at various ways the product information can be disseminated to the consumers. Social media marketing, public relations, advertising, search engine marketing, email marketing, video marketing, and more techniques can be used for promoting a product. If you wish to maximize your return on investment, then you need to take promoting your product or service seriously. It is one of the most critical components of 4 Ps of marketing.
The way brands promote their products has unarguably witnessed the greatest growth in this digital age. With the exceptional outreach promised by B2C marketing solutions, marketers can easily and effectively promote all the products with more personalization options. Therefore greater outcomes can be anticipated with promotion tactics. Your focus must be on pushing specific and thoughtful advertising to channels where your target audience is most active.
Here are some key questions that marketers need to answer before running a promotion campaign.
- How do you plan to reach your target audience?
- Which platform will you use to send marketing messages to your target audience?
- How does your competition promote their offerings? Will their activities influence their promotional activity?
- When is the best time to kick start the promotional activities?
Place: You will hear marketers say that the right product at the right place and right time makes all the difference. It is critical to analyze the ideal locations to convert potential customers into actual customers. For instance, you need to consider whether your consumers prefer purchasing products online or do they rely on smartphone apps. You need to identify the retail locations where you can connect to them. You also need to check if you can sell the offering through the marketplace channels such as Walmart or Amazon or through sales professionals.
Of the 4 Ps of marketing, you need to be really careful with choosing the right place to target your potential audience. If you fail this step, then your efforts on balancing the other Ps as a compensation would not make much of a difference.
Here are some questions that marketers need to find answers to.
- Where do the target customers prefer to shop?
- Do they use mobile devices or desktops?
- Are they shopping for similar products from brick-and-mortar stores or online?
- Where are they most active on social media?
Using the 4 Ps of marketing
The four elements of marketing can significantly impact the way you make a new launch into the marketplace. These can also help you test your marketing strategies. Here are some of the best ways to utilize the 4 Ps of marketing before launching a marketing campaign.
- Identify the service or product you wish to analyze
- Review and answer the questions concerning the 4 Ps listed above
- Once you have clearly defined your marketing mix, you can test the overall offer from the perspective of a customer. Here are some questions that can help you clearly understand the perspective of your potential customers.
- How does the product or the service satisfy their needs?
- Will your customers find the price reasonable?
- Where will the customers shop for your product/service?
- Have you targeted your audience appropriately and interacted with them through various channels of communication?
- Continue optimizing your marketing mix by constantly asking questions and making revisions to your strategies
- Review your plan on a regular basis and adapt to the constantly evolving market
This quick review of 4 Ps of marketing should help you gain some insight into the critical aspect of launching a product or service successfully into the market. You need to define the product, price, promotion, and place clearly before coming up with any marketing strategy. Try to balance all four elements and learn how to use them within the current framework of the digital age. There are various new techniques that you can use depending upon the circumstances and the potential audience.