The four Ps of marketing are the most important aspects of selling a product or service. They are a good or service’s product, pricing, location, and promotion. The four Ps, often known as the marketing mix, are influenced by both internal and external elements in the broader corporate environment, and they interact heavily.
Companies utilise the 4 Ps to figure out what their customers want from them, how their product or service fulfils or fails to satisfy those demands, how their product or service is viewed in the world, how they differentiate themselves from their competitors, and how they engage with their customers.
In the 1950s, Neil Borden popularized the concept of the marketing mix—and the concepts that would eventually be known as the four Ps. Borden was a Harvard University advertising professor. His article “The Concept of the Marketing Mix,” published in 1964, illustrated how businesses should employ advertising methods to engage their customers. Companies are still advertising their goods and services using the themes that Borden popularized decades later.
The marketing mix helped corporations account for the physical hurdles that impeded widespread product adoption when it was originally coined. Today, the Internet has aided businesses in achieving a higher level of integration with their customers, as well as overcoming some of these hurdles. People, process, and physical evidence are additions to the classic four Ps that are more relevant to today’s marketing trends.
Any object or service that satisfies a customer’s wants or preferences is referred to as a product. It can also be characterised as a collection of utilities with physical characteristics such as design, volume, and brand name. The perceived value of a product is influenced by its type, which allows businesses to price it profitably. It also has an impact on things like product placement and advertising.
To achieve their goals, businesses might alter packaging, after-sales service, warranties, and pricing ranges, as well as expand into new areas. Marketers must comprehend the product life cycle and devise strategies for each step, including introduction, growth, maturity, and decline.
The price of a product has a direct impact on sales volume and, as a result, earnings. Demand, cost, rival price patterns, and government laws are all important considerations in determining pricing. The price of a thing usually reflects its perceived value rather than its actual value. As a result, cost can be raised to promote exclusivity or lowered to promote accessibility.
As a result, pricing entails making judgments on the base price, discounts, price changes, credit terms, freight payments, and so on. It’s also crucial to determine when and if discounting strategies are necessary or appropriate.
Advertising, salesforce, direct marketing, public relations, advertising budgets, and other considerations are all part of promotion. The fundamental goal of promotion is to raise awareness of a company’s products and services. It aids in influencing customers to choose one product over others available on the market. The following are examples of promotional efforts:
- Advertising: Advertising is a method of promoting a product, service, or concept by sending out a sponsored, non-personal communication about it.
- Public Relations: Management and control of the flow and matter of information from one’s organisation to the general public or other institutions is what public relations entails.
- Marketing Strategy: Marketing strategy is determining the correct target market and employing methods like advertising to enter it. Online variables such as defining the class of Google search operations that may trigger corresponding or targeted adverts for the product, the design and layout of a company’s webpage, or the content shared on social media accounts like Twitter and Instagram are all examples of promotion.
4. Place (or Distribution)
The term “place” refers to the location where things will be made available for purchase. The fundamental goal of trade channel management is to guarantee that the product is available to the customer at the appropriate time and location. It also includes judgments about where wholesale and retail stores should be located and how much they should cost. After a cost-benefit analysis, distribution options such as outsourcing or business transport fleets are chosen. Smaller data, such as department store shelf space devoted to the product, are also mentioned.
Extensions of 4Ps of Marketing
The 4 P’s of Marketing should be expanded to cover services, according to new marketers. They are as follows:
People: Servicing entails direct engagement between service providers and users, increasing the potential for subjectivity. Appearances, communication, discretion, consumer engagement, demeanour, and service attitude are all critical factors.
Physical Evidence: The atmosphere, layout, and style of a workplace can have a significant impact on a product’s brand image.
Process: When it comes to policy, processes, systems, and consumer interaction, standardised procedures are frequently used to ensure consistency in service delivery.