What are the 4Ps of Marketing Mix
The 4Ps of marketing mix are a set of activities that the company uses to achieve the marketing objectives in the target market to influence demand for its product. The 4Ps of the marketing mix are the four underlying elements of marketing include: product, promotion, price, and place.
To put it simply, the 4Ps marketing mix is a combination of activities that the company can do to influence customers to buy the product. Product is the company’s product. Promotion is communication to persuade the customer to buy. Price is how the company prices the product. Place is how the company distributes the product to reach the customers.
The 4Ps of marketing mix can be used to create a marketing plan in the scenario of launching a new product, developing a new customer segment, or entering a new market. To develop such strategies, you need to understand all elements of the marketing mix in more detail.
Key Points
- The 4Ps of marketing mix are a set of activities that the company uses to achieve the marketing objectives to influence demand for its product.
- The 4Ps of marketing mix are consist of the four elements of marketing include: product, promotion, price, and place.
- Product in the 4Ps of marketing mix involved in developing and managing the company’s products or services.
- Promotion in the 4Ps of marketing mix is the activities that communicate the value of a company’s product to its target customer to influence them to purchase it.
- Price in the 4Ps of marketing mix is determined how much the customer need to pay to obtain your product.
- Place in the four Ps of marketing mix refers to the distribution strategies, it is how the company describes how the company will deliver its value to its customers.
Product
Product in the 4Ps of marketing mix is involved in developing and managing products or services. In the marketing mix product, the business needs to defines who will buy this product, how much they going to pay for (not a price), what will the product offer to the customer, where should the product will be sell, and the product’s appeal.
The product is the most important part of the four elements of the marketing mix. If the business fails to reach the satisfaction of customers, it’s impossible to persuade your customers to repurchase your product with price, promotion, or place.
In the marketing plan you need to answer the following questions for the marketing mix product:
- What benefits that the product offer to the customer?
- How do these products or services solve the customer’s pain point?
- Who are the customers of these product?
- How will the customer use the product?
- What is the subtitude product in the market for this product?
Price
Price in the 4Ps of marketing mix is determined how much money the customer must spend for the product (or service) and describes why the company select this price. In contrast, from the customer’s point of view, the price is what they need to consider is it worth paying to purchase the product.
The pricing is the only element of the marketing mix 4Ps that collects revenue for the company, this is the reason why does the company needs to pay attention to setting prices. However, setting the price of a product you can do with the 6 following steps:
- Define the price objectives to describe what a business needs from the price such as: to maximize profit, to maximize sales, just for survival, or initial price to persuade customers to buy a new product.
- Evaluate the demand of the product to determine the market price of the product that changes signifcantly on the consumer’s need.
- Evaluating competitors’ prices
- Determine the cost of your product to make sure the company will not lose money by pricing too low.
- Choose a price based on the information gathered from steps 1-4 and based on your pricing strategy.
- Monitor and evaluate the effectiveness of the price and reevaluate throughout the product life cycle.
In the marketing plan, you need to answer the following questions for the marketing mix price:
- What price should the company sell the product?
- How do customers perceive value of this product?
- Why does the product use this price?
- What are the benefit of using that price?
- What are competitors’ price for a similar product?
Promotion
Promotion in the 4Ps of marketing mix is the activities that communicate the value of a company’s product to its target customer to influence them to purchase it. The promotion mix helps a company to provide product information, emphasize the value, build a company’s image, and promote positive relations to the public.
The promotion of the marketing mix is also known as the promotion mix. Promotion mix refers to all marketing communication including advertising, sales promotion, personal selling, public relation, and direct marketing.
- Advertising is a paid promotional (to the comminication) channels to communicate about goods and services of the company.
- Sales promotion is a set of tools designed to stimulate quicker and more frequent purchases of a product.
- Personal selling is the two way communication between a salesperson and a customer to influence the customer’s purchase decision.
- Public relations is the communication focused on promoting positive relations of the company to its stakeholders.
- Direct marketing is a direct communication from the company to an existing customer or a potential customer.
In the marketing plan you need to answer the following questions for the marketing mix promotion:
- Where should I advertise?
- How do I want the public to view my product?
- How many customers will see it?
- What is the impact of this promotion?
- Is it relevance to the target customer?
- It is relate to the customer interest?
- What is the call to action?
- What will the potential customers do after they seeing advertise or promotional?
Place
Place in the 4Ps of marketing mix refers to the distribution strategies, it is how the company describes how the company will deliver its value to its customers. In the marketing mix place strategy, the company needs to determine where should the company sell a product, how to deliver the product to the marketplace and customers.
However, the company needs to make the product available for the customers and potential customers to buy without difficulty. Otherwise, they will likely find a substitute product.
In the marketing plan, you need to answer the following questions for the marketing mix place:
- How should the business deliver the products to customers?
- What are the most use channels of your customers?
- How much inventory should the company hold?
- What are suppliers should I use?
- Is this channel difficult to the customer to buy?
- What are the alternative channels to buy the product?
