Introduced in the 1950s as a part of the marketing mix, the concept of 4Ps is widely used in the field of marketing. The factors that fall under 4 Ps are Price, Place, Product, and Promotion. It is also commonly known as the marketing mix. These four factors interact with each other in a business environment and are controlled by the external and internal environment.
When goods and services are marketed to the public, these four factors of the marketing mix come in to play a significant role. The 4Ps of marketing stand for Product which comprises the goods or services that a business deals in. The second P stands for Place, which means the location wherefrom the goods and/or services are marketed. The third P stands for Price, i.e. the rate at which the product is sold. The final P stands for Promotion that involves the advertising of the goods and services. The business environment is incomplete without these factors interlinked with each other and operating at the same time.
Here is a detailed guide on what the 4Ps stand for and how they affect marketing strategies.
The product market involves factors such as brands, packaging, and services. In marketing, brand authority and value play a vital role. The brand may influence the sales and marketing of goods and services. The packaging is a part of the product factor and has an impact on sales and revenue as it helps to attract customers.
The price of the products mainly depends on factors such as offer price, credit policy, and discount. It also depends on the availability of raw materials and access to markets. Price also involves competition in the market. As in, the price is kept low when there are several brands that offer similar products or services. Again, in a monopolistic market, a company gets to determine the charges.
Another significant part of the 4Ps is promotion, which influences sales via advertising and publicity measures. The more the product is known to people through advertising, sales promotion, and publicity; the more it will bring in sales for a company. Customers are significantly influenced by the marketing tools used in promotion. Advertising changes the mindset of customers. Good advertising spread the product on the market. Promotion can be of various kinds. With social media in the mix now, the promotion also involves social media advertising alongside offline advertising. The promotion factor also differs, considering the type of product or services a business is selling.
The final element of the marketing mix deals with the place. The role of place is crucial as it is where the products are exchanged. Three essential factors of the place are channel, market, and distribution. To strengthen the marketing tool, strategies such as selective distribution, intensive distribution, and exclusive distribution are taken into consideration. Market coverage is a vital feature of the place too. The decision of location affects the sales of the products. Sometimes products are franchised. Some major factors that contribute largely to the marketing process are logistics, inventory, transport, and warehousing, thus making it essential to control these factors.
Knowing the factors does not solve the purpose unless you know how to use the 4Ps of marketing. To make it simpler for you, I have incorporated the 4Ps through some questions that will help you define your brand’s marketing mix. Here are the questions to consider:
- What is the USP of your product or service that will compel customers to invest in it?
- What needs do your products address?
- What channel do your potential customers use to look for your product or service?
- What differentiates your brand from your competitors’?
- What is the perceived value of the product or service you offer?
- What interactions do you have with the potential buyers?
Only with proper answers to these questions will you be able to get the hang of how you can use the 4Ps of marketing to your advantage.
Author Bio: Alley John has an MBA and is a guest lecturer in several B-schools. He is also the marketing head of the assignment to help brand MyAssignmenthelp.com. In his free time, Alley likes to write and travel around the world.