4p’s of marketing are Product, Price, Place, & Promotion. – And they are the four pillars of an effective marketing mix strategy for a product or service.
The process of promoting and reaching out to several customers includes multiple areas of focus as part of a comprehensive marketing plan that functions through E. Jerome McCarthy’s four Ps that are also called the marketing mix.
What are the 4 P’s of Marketing?
The 4 P’s of marketing empower marketers to consider everything about the marketing of a product or service by understanding what customers want and what market competition wants.
The first known mention of a marketing mix has been attributed to James Culliton who was a Professor of Marketing at Harvard University and coined this term in the 1940s. Then in 1964, Neil Borden came up with the article “The Concept of the Marketing Mix”, and since then, the concept of marketing mix gained popularity.
The concept of these 4 P’s of marketing was discussed by E. Jerome McCarthy in his book Basic Marketing- A Managerial Approach.
In layman language, the 4 Ps of marketing are the key factors responsible for establishing a strong market base. They are named a price, product, place, and promotion of a specific service or a manufactured good.
After its first introduction in 1960, there has been a lot of improvement in everything works. These are dependent on various external and internal factors present in the ecosystem of the business market.
Moreover, one can find a connection between them, and they often link with each other to get the best result. The next sections contain a detailed overview and information regarding these factors.
As the name suggests, any good or service initiated by a company is known as the product. This commodity is directly associated with the needs of customers, and they can purchase it accordingly. The product launched in the market must be viable and have the ability to meet the demand.
Moreover, there is no fixed volume, quantity, or design of a specific product. The main aim is to provide a better solution to the customers with appropriate product functions. The companies are primarily focused on manufacturing the product with the latest trends in the market.
The customers too tend to buy the products that fit their routine and serve better than other options. Moreover, the manufacturers should give something new and extra to the buyers to have a market commanding position.
If any competitor brand introduces a better product, the older one will go down the lane.
Tips on Launching New Product
- Know the biggest problem that your product can solve
- Know what is your favourite product in your industry and the reason you like that
- Why your target audiences would come to your site or opt for your product
- Know ways of improving your product
- Know what you dislike in your competitor
Tools like Hotjar can help you run polls for the aforementioned queries to know the best-suited launch of your product as per the concept of the marketing mix.
Every product or service has a particular price tag that conveys the amount the manufacturers will charge. The customers need to pay the amount to use the product or avail of the service.
Consumers can not access the product unless there is a special provision of testing or something similar. In an ideal situation, the price related to the product should be genuine and reasonable. However, it is a common trend for companies to sell it at profitable prices.
This sometimes leads to conflict as various companies can manufacturer almost the same product at two different price tags. Therefore, a successful business should be aware of the persistent value of the product.
Moreover, the human brain tends to have a luxurious picture of the product at a high price. The discount privileges and other campaigns should be regulated accordingly to have a reasonable profit.
Tips of getting the right Price
- Know the lowest product price you are willing to sell your product or service for
- Know the highest price that consumers would be willing to pay for your product or service
- Be aware of the sensitivity of your customers towards the pricing factor in four p’s of marketing
- Know the prices leaders in your industry charge to find the perceived value
- Do a competitive analysis of the pricing of your competitors
The next P of four p’s of marketing on the list in Place. When it comes to place, the company should decide the appropriate marketing location for their product.
This involves the analysis of the place where there is enough demand for the product. Also, have a track of all the existing products that can prove to be a competition. The main aim is to introduce the product to the customers that will probably buy it.
Further, it is important to plan a proper channel to distribute the product to that specific place. Make sure that there are enough travelling channels that be used to transport the product. Finally, there is a need for proper display facilities for the product.
There is no doubt that customers will be attracted to the product if they can view it. The company should manage the price accordingly after having a particular overview of the place.
Tips on getting the right place in the Marketing Mix
- Know where is your customer
- Be aware of the outlets (online and offline) that sell your product
- Know about the distribution channels that are currently working for you
- Be clear if you will sell directly to businesses or consumers in your target market
- Know whether you will directly sell to your end customer or you will sell via middlemen
- Be aware of the places of your competitors by analyzing the physical evidence of product presence
Finally, every effort from making the product to transporting it to the place depends on the promotion levels.
Promotion is the major concept in marketing that involved decision reading advertising of the product. The companies focus on public relations, digital marketing, and advertising budgets for their brand.
Moreover, the customers will never come to know about your product until they watch it on TV or in a newspaper. This will increase the overall sales, and the product will reach a larger group of customers. The company needs to analyze the proper way to promote its product.
Tips on Promoting your Product
Some of the marketing plans that can help you in your product promotion are-
1. Public Relations
This involves a modern technique to control the company and the customer’s information. It majorly concerns the public community and often relates to a larger group.
It is one of the most common and effective methods to promote any product. The basic idea is to spread the information about the service or commodity using mass media channels.
3. Digital Marketing
The new generation will have the upper hand in the marketing sector. Digital Marketing refers to promoting the products on the latest gadgets such as mobiles and laptops with the internet’s help.
4. Social Media
This is the right time of using social media for product promotion, so your products are made available in front of your target audiences or target customer through an effective promotion strategy.
Companies need to market their products and get the most out of them by effectively using four p’s of marketing.
They will help various firms to stand tall in the community by considering all the factors. Also, a better marketing strategy will pay off in the long run by letting you meet your customer via effective market penetration, sustainable market presence, and a loyal customer base.
How effective do you find 4 p’s of marketing in launching a good or service and optimizing its presence in the target market?
Pinky is an MBA in Marketing from the University of Mumbai. She loves helping people out in learning Marketing and sharing latest ideas and tactics for growing businesses.