I am sure that at one time or another you have heard about the 4 P’s of marketing. The 4 P’s reflect company actions that influence the consumer decision to purchase goods or services. The 4 P’s or The Marketing Mix refer to: Product, Price, Place and Promotion.
The Marketing Mix model is used when implementing the company marketing strategy. However, the 4 P’s are adjustable variables that can be changed when addressing changing market dynamics. The only problem that has been raised when observing the 4 P’s approach is that they emphasize an inside–out view and not the necessary outside–in approach required by today’s companies.
So what are the 4 P’s?
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Product:
What is your product offering, how does it relate to the needs of your potential customer?
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Elements to be addressed include:
Functionality, quality, appearance, packaging, brand, service, support and warranties.
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Price:
What is the price of your product or service, is it affordable, how will customers value your prices?
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Elements to be addressed include:
List price, discounts, financing, leasing, allowances etc.
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Placement:
How does your product reach the customer, where is it distributed and how is it delivered?
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Elements to be addressed include:
Locations, logistics, channel members, channel motivation, partners, market coverage, service levels & internet.
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Promotion:
How do people know what you’re selling? How do you build market awareness?
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Elements to be addressed include:
Advertising, sales promotion, public relations, messaging, direct sales, branding, Marcom, media, & budget.
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The Marketing Mix was developed to satisfy customer needs and at the same time maximize the performance of your company. Over the years people have tried to increase the number of P’s and I have heard of the 5 P model and the 6 & 7-P's of marketing for more service oriented companies.
The most frequently mentioned additions to the original 4 P’s of marketing are ‘People’ and ‘Production’.
‘People’ refers to the types of people will actually use your product and understanding what is most important to them and ‘Production” addresses the company’s commitment to producing what you promise, meeting demand and overall flexibility to meet changing needs.
The 4 P’s are simple in concept and it is the responsibility of any marketing manager to fully optimize the potential that the marketing mix has to offer.
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For further information check out:
Wikepedia 4 P's of Marketing
Mindtools 4 P's of Marketing
Recommended Reading:
Marketing Mix Decisions: New Perspectives and Practices by Roger A. Kerin
Marketing Mix Decisions: New Perspectives and Practices by Roger A. Kerin
Contemporary Marketing Mix for the Digital Era by Nik Tehrani
The Marketing Mix by Robert C. Blattberg (Author), Gary Getz (Author), Jacquelyn S. Thomas (Author)
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