If you’ve been in the marketing game for some time, you might have heard about the 4 Ps of marketing. However, the term can be more familiar to people who studied marketing in college and found it in classic marketing books.
However, the 4 Ps of marketing are still relevant to crafting a successful marketing strategy.
If you want to expand your knowledge, keep reading.
What are the 4 Ps of marketing?
The 4 P’s are the pillars of marketing. They involve the most vital aspects to consider when promoting a product or starting a business in general. They include four key elements:
4 Ps is one of the basic marketing mixes. Some other modern marketing mixes are extended marketing mix of four Ps, such as the five Ps and the seven Ps. There is also the 5 Cs marketing mix. Although each of these has certain aspects in common with the four Ps, they also have some unique elements that alter their emphasis on the marketing process.
Initially, the marketing model of the 4 Ps was used to help marketing executives identify the obstacles preventing prospective customers from purchasing their products. Today, marketing teams use resources such as people, procedures, and real-world evidence as extensions of the original 4 Ps.
After you’ve gained a basic understanding of the 4 Ps of marketing, let’s look at how to use each element of the marketing mix. Even though the concepts may seem simple, using them in your marketing strategies requires planning and monitoring.
The product is the item that you are selling. This could be a physical product, a digital product, or a service. To properly market a product, you must first consider the target market and its needs.
Most often, successful products meet a need that hasn’t been fulfilled or provides customers with a novelty that creates demand. In the 4 Ps of marketing, this means understanding what your product should be like to stand out from the competition and win over the customers.
You also need to know:
- Who is your target market?
- What needs or wants the product fulfills?
- What kind of features and benefits your product has?
- What does the life cycle of your product look like?
Answering these questions can make it easier to determine whether potential customers will widely adopt a new product or service. To make it happen, the product either needs to meet existing demand or create demand that doesn’t exist yet.
An excellent example of a product is an iPhone, as it meets both of these requirements. When Apple first launched iPhone in 2007, no one had seen anything like it. It created a demand for mobile phones with unique features such as music players or apps. Today, Apple releases a new iPhone each year to meet their created demand.
The price is the amount of money you are asking for your product, in other words – the perceived value of your offer. When setting a price, you need to consider what your competitors are charging, your costs of production, and how much you need to make a profit.
When marketing a product or service, it is important to price the product in a range that makes it accessible to the target market and meets business goals. Pricing can have a significant impact on overall business success.
If you decide on pricing that is too high, fewer people will be likely to purchase your product. On the other hand, if you price your product too low, some people will dismiss it simply because they fear it might be low quality and cut your potential profit margins.
To identify the right price, you need a great understanding of your target audience and their willingness to pay for your product. The following questions can be helpful when considering your product’s price:
- What pricing do your competitors have?
- What price range is acceptable to your target audience?
- How your price fits into the market?
When you answer the questions regarding the price you should set, you should define the pricing model. There are a few different models you can use:
If you create a high-quality product without cutting costs and making compromises, you can charge a higher price than other businesses in your industry. A great example of this strategy is Lexus. Their cars are considered a luxury, allowing them to charge far more than the price of more basic vehicle brands.
If your business aims to gain market share, you can try positioning your product at a lower price. Direct to Consumer (DTC) brands often use this strategy, Dollar Shave Club. Their products may not be of the highest quality, but they cater to a wide audience and satisfy many customers. Additionally, they are significantly cheaper than premium products.
You can use differential pricing when you want to cater to different groups of customers. You can appeal to multiple market segments if you offer your product at different price points. This is common among brands with high-end and low-end products or products that offer more features with each step up in pricing. SaaS businesses and B2B companies often use this strategy to accommodate small and large businesses based on their different needs.
When deciding how to price your products, you should consider several factors. First, you should account for the cost of producing your product. You must ensure a sustainable profit margin and low customer acquisition cost to continue growing your business.
Moreover, you need to consider how you want your target audience to perceive you. For example, do you want to be seen as a luxurious brand, or do you want to have competitive pricing? The ultimate goal you set will play a part in determining the right prices.
The place is an aspect of your marketing strategy that decides where you will distribute the product. This could mean having a physical store, selling online, or using a distribution network. When creating and marketing a product, you must consider how your customers will find and purchase it.
Similar to price, finding the right place to market and sell your product is key to reaching your target audience. If you launch a product your target customer doesn’t know anything about, you will struggle to sell it. However, the right place can help you connect with your target audience and set you up for success.
For example, imagine you design specialized running shoes. However, your target market is athletes, so you decide to market your product in sports publications and sell it at sports stores. Focusing on specialty athletics stores rather than shoe stores, in general, enables you to target a specific place that best fits into your marketing mix.
To decide the best place to market and sell your product, you should research the physical or digital places where your target audience shops and looks for information. Some questions to consider include:
- Where will you sell your product?
- Where does your target audience shop?
- What are distribution channels best to reach your target market?
If you answer the questions thoroughly, you can combine distribution channels and your place in the market. Your distribution channels are the ways of reach to your target market.
There are the most common types of distribution channels:
Direct to Consumer (DTC)
This is one of the two business-to-consumer distribution channels. It allows selling and promoting products or services directly to the consumer. This model is the most common among online brands and can be done through a website, social media marketing, or email marketing.
Indirect to Consumer (I2C)
This channel allows selling products or services through an intermediary, such as a retailer or wholesaler. This model gives brands access to a larger customer base and is the most popular one.
Direct to Business (D2B)
If you sell products or services to businesses rather than consumers, then you use the direct-to-business distribution channel, also called business-to-business (B2B). This is a common model among B2B companies and can be done through various communication channels, such as telemarketing, trade shows, content marketing, or search engine marketing.
Your distribution and marketing channels will also depend on your target audience. For example, if your primary audience is over 60, marketing on TikTok won’t work for your product since that demographic rarely uses those platforms.
What you also sell significantly influences the distribution and marketing channels. For example, an eCommerce store isn’t the most effective way to do business if you sell industrial equipment. It would be too hard to distribute through shipping companies and require customer customization.
Promotion is how you get the word out about your product with the help of different distribution channels. First, consider how you will generate interest in your product and advertise your offer. With a marketing campaign that resonates with your target audience, you can create brand awareness and a community of buying customers.
There are many ways you can promote a product. Some traditional methods include print advertisements or television commercials, but that’s not enough for traditional businesses. In the digital age, marketing channels you can use to promote your product are more elaborate such as content marketing, email marketing, and social media marketing.
When planning your product promotion, you can ask yourself the following:
- What is the right time to reach your target audience?
- What channels should you use to contact your target audience?
- What advertising approaches are the most persuasive to your target audience?
The fourth P of marketing refers to the steps you take to make your customers aware of your product. Promotion includes both elements of your marketing mix and your marketing channels. It also includes things like:
- Marketing communication
- Lead generation and nurturing
- Brand awareness
To make your marketing process smoother, use market research to create buyer personas for each segment of your target audience. Then, craft messaging that resonates with the personas you’ve created. Your marketing communications need to address your audience’s needs, pain points, and goals. Then, you can convince potential customers that your product or service can really help them.
For example, y, you can choose search engine optimization (SEmain promotional strategy). It involves optimizing your website and creating content around specific keywords used by your primary audience. You could also use advertising on social media platforms to narrow the specific demographics you want to target.
How to Use the 4 Ps of Marketing in Your Strategy
The four Ps of marketing provides a transparent framework for creating marketing strategies. When using this workflow, consider each element of the marketing mix. Don’t worry when the factors overlap – that’s inevitable.
To begin, categorize the product you’ll be promoting. What characteristics make it appealing? Then, consider comparable items that are already on the market.
You may improve the quality, appearance, and durability of your product. Its components might be natural or derived in an ecologically responsible manner. Make a list of the features that will appeal to your target consumers.
Consider the product’s market value. It isn’t merely a matter of manufacturing cost plus a profit margin. It might be positioned as a premium or luxury item or low-cost alternative.
You can find products like yours stocked in stores that fit your type and the consumer’s.
Promotion should always be planned considering your target audience. Your marketing plan must reach the proper demographic with the right message.
The four Ps of marketing provides a transparent framework for creating successful marketing strategies. When using this workflow, consider each element of the marketing mix and how it can be tailored to appeal to your target consumers. Don’t worry when the factors overlap – that’s inevitable.
To create an effective promotional strategy, start by analyzing your product and identifying its appealing qualities. Then think through the appropriate price for the product and identify where it should be stocked. Finally, craft a media strategy that reaches the right audience with the right message. By considering all four Ps, you can create a well-rounded plan that will appeal to your target consumers and drive sales.
We hope this article has been helpful, don’t hesitate to comment below! Thank you for reading!