Have you ever heard about 4 Ps of marketing or marketing mix? It’s an important thing for the understanding of your marketing strategy and planning your offers for a market.
The marketing mix is a way how you take a new product or service to a market. You need taking into account four main points: how to create the right product, how to put it in the right place, at the right price and at the right time with a successful plan of promotion.
As you see, that’s what they are — 4 Ps of marketing (also called 4 Ps of marketing mix): Product, Price, Place, Promotion.
At first sight, everything seems easy and simple. You just need to create a unique product which many people want. Then you need to put your product or service on sale someplace that the same people visit regularly. You should neither set your price too low nor too high. And do all that at a time people want to buy. Everything’s ready, you’re on the top!
But if at least one point goes sideways, the whole marketing mix can be destroyed. So, it’s important to consider the 4 Ps of marketing in detail. Knowledge of marketing mix helps you to avoid many mistakes and disasters.
4 Ps of marketing: product, price, place, promotion
Of course, it’s Alpha and Omega of the marketing mix. You should ask yourself: “What do our customers want?”. Also, you should ask how it differs from competing products. What makes your product unique?
Write down by points: what benefits the product offers, what features make the product the unique selling proposition, what customer’s problems the product can solve. Also, it’s important to identify the audience of potential clients.
Price determinations will impact profit margins, supply, demand and marketing strategy. Don’t set your price too low or too high because it will not sell.
When pricing, consider not only the required parameters. Try to answer following questions. Will people think that your product is a great value? Is your target customer price flexible and sensitive?
Also, distribution plans, value chain costs and markups can influence the price, and how competitors price their own product.
Which of the 4 Ps of marketing is most closely related to a distribution strategy? Placement, of course! Good placement choice helps identify the channel which will be the most suited to a product or service.
Today more than ever the place we engaged potential clients is online. But other trading places continue to work fine for many products.
Where would customers look for your product or service? In a store or exclusively online? Maybe, sold by sales reps? Think!
This is when, where and how you’ll get your message out to the buyers. Promotion is the main communication aspect of the marketing function.
Effective online marketing promotion nowadays includes advertising, public relations (PR), social media marketing (SMM), email marketing, search engines optimization (SEO), video marketing and more. But traditional channels (TV, press, radio, billboards) still work with some products too. Whatever the channel will be used, it must be suitable for the product, its price and the end user.
Each point should be supported by the good position of the brand. Also, pay attention to how your competitors do their promotions.
Why do you need the marketing mix?
Four Ps of marketing mix were developed and transformed over the years by different experts. With a correct understanding of it, the marketing mix is a key factor in the success of the product.
Marketing mix has some main purposes that you should know:
- It helps to achieve marketing targets (sales, profits, customer satisfaction).
- Its flexible mechanism allows focusing more on any variable depending on customer requirements and specific features of the marketing conditions.
- You need constantly monitor all new trends to update the relevant elements of the marketing mix.
- The skill manipulation of the variables of the marketing mix is the key to achieving the required results, so the marketing manager must have such skills.
- As you know that the customer is the main goal of the whole activity, you need to determine the product’s value by customer’s perception.
The main purpose of the marketing mix is decision making help with a new market offer. The 4 Ps help you to decide how to take it correctly. You can use marketing mix for testing of the existing offer and the whole marketing strategy too. In that way, you can check and update your marketing mix variables.
How to use 4 Ps of marketing?
It’s not enough to know 4 Ps of marketing, also you need to use them correctly. If you already understand why you need a marketing mix, now you should learn the main steps to use it in the right way.
Follow the next steps:
- Define a unique selling proposition.
Test your offer in the focus groups. Identify the key features and benefits of the product. Think about how they can help in sales.
- Feel yourself in the client shoes.
It’s necessary to define your target audience. Who are your clients? What their problems does your product help to solve? Or what their needs does it satisfy?
- Analyze competitors.
This step will help to take into account all their mistakes and don’t repeat them. Also, you’ll learn which distribution channels and promotion methods work best and which ones shouldn’t be used. And you can estimate the subjective value of the product for pricing. It’s really important!
- Define placement options.
You should think about where your customers most likely buy your product or service, and how much these channels will cost. If you need a wide customer base, you should use multiple channels. But if you have a niche product or service it makes a sense to concentrate distribution to specific channels.
- Develop a marketing strategy.
Promotion depends on the audience, price and place points. Marketing strategy should be finalized with all four elements’ harmony. Whatever methods of promotion you choose, remember that they must reflect the benefits of the product and its uniqueness clearly and accessible.
We hope that this overview of 4 Ps of marketing will help you successfully take your product or service to the market. It’s critical to define a product, price, place and promotion in developing any marketing strategy.
The marketing mix is an excellent point to start working on your plans for a product or service. Whether you are a startup or well-established business, 4 Ps of marketing are sure to help you effectively position your brand or product in the marketplace.
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