“Mitochondria is the powerhouse of the cell” is something that we all remember from our school days whether we had biology in our graduation or not.
Whenever someone is studying Marketing concepts, there is a very little chance that they will not learn about the famous and highly spoken “4P’s of Marketing”. The 4 P’s form the pillar of marketing strategies introduced by McCarthy in his book “Basic Marketing: A Managerial Approach”.
4 P’s include: product, price, place and promotion. Often referred to as the marketing mix, the four Ps are constrained by internal and external factors in the overall business environment, and they interact significantly with one another. According to investopedia, the 4 Ps of marketing are used by companies to identify some key factors for their business, including what consumers want from them, how their product or service meets or fails to meet those needs, how their product or service is perceived in the world, how they stand out from their competitors, and how they interact with their customers.
It basically refers to the goods or service that the company has to offer to its customers. It should cater to the demands of the customers. Marketers make a lot of efforts to improve and customize their products according to customers in order to create differentiation and include value proposition. They also need to understand the life cycle of a product, and business executives need to have a plan for dealing with products at every stage of their life cycle. The type of product also partially dictates how much businesses can charge for it, where they should place it, and how they should promote it in the marketplace.
Place is the distribution channel used to sell the product or service. The goal of business executives is always to get their products in front of the consumers that are the most likely to buy them. At times, some products are sold in the market physically and kept at stores while others are sold online through e-commerce websites. It’s critical then, to evaluate what the ideal locations are to convert potential clients into actual clients.
Price is the cost end consumers pay for that specific product or service. Ideally, marketers must try to link the price to the product’s real and perceived value, but they also must consider supply costs, seasonal discounts, and competitors’ prices. In some cases, business executives may raise the price to give the product the appearance of being a luxury. Price is a sensitive issue and hence a lot of decision making is needed in order to get and evaluate the right cost of the product.
Promotion includes all the strategies in order to increase brand visibility and reaching out to the masses such as advertising, public relations, and promotional strategy. The goal of promoting a product is to reveal to consumers why they need it and why they should pay a certain price for it. Each touch point must be supported by a well positioned brand to truly maximize return on investment.