The 4Ps of Marketing Mix: Product, Price, Place, Promotion
What are the 4Ps of Marketing Mix?
The four Ps of marketing are product, price, place, and promotion. They represent the key elements that must effectively get addressed to successfully market a product or service.
Marketing experts refer to the four Ps as the marketing mix and they encompass several factors that influence the marketing of a product. These factors include consumer needs and desires, the ability of the product or service to meet those needs, its perceived value, its differentiation from the competition, and the company’s relationship with its customers.
Since the introduction of the four Ps in the 1950s, additional Ps have been identified, including people, process, and physical evidence. These additional elements further expand the marketing mix to provide a comprehensive understanding of the key considerations in marketing.
Deep overview of 4Ps of Marketing Mix
In the 1950s, Harvard advertising professor Neil Borden introduced the concept of the marketing mix in his article “The Concept of the Marketing Mix.” He showed how companies can utilize advertising strategies to connect with their consumers. This idea became widely accepted and remains relevant in today’s marketing industry.
Borden’s ideas were further developed and improved by other industry leaders. E. Jerome McCarthy, a marketing professor at Michigan State University, refined Borden’s concepts and referred to them as the “four Ps” of marketing. He co-authored the book Basic Marketing: A Managerial Approach, which helped popularize the idea even more.
Over the years, the four Ps concept has been widely adopted and remains an important part of the marketing world. The four Ps of marketing consist of product, price, place, and promotion and provide a comprehensive understanding of the key considerations that companies must review and implement in order to market their products or services effectively.
Breaking down the 4Ps of Marketing Mix
The 4 Ps of Marketing are Product, Price, Place, and Promotion. In order to create a successful marketing campaign, it’s essential to understand these four key elements.
- Product: This is the foundation of any marketing campaign and requires a deep understanding of the product itself. What does it do that other products don’t? Who needs it and why? Marketers need to define the product’s features and benefits, as well as its target audience. It’s also important to understand the life cycle of the product and have a plan in place for each stage. The type of product will impact its price, distribution, and promotion strategies. An example of a successful product is the iPhone, which was the first touchscreen smartphone with the ability to play music, browse the internet, and make phone calls. In 2021, Apple reported sales of 2 billion iPhones.
- Price: The price of a product must reflect its value to the consumer, taking into account costs, competition, and any seasonal discounts. In some cases, the price may be raised to convey luxury or lowered to increase accessibility. Marketers must carefully consider when discounting is appropriate and how it will impact the product’s perceived value. An example of a company with a successful pricing strategy is UNIQLO, a global manufacturer of low-priced, high-quality casual wear. The company achieves this by purchasing large quantities of fabric, negotiating directly with manufacturers, and outsourcing production to partner factories for quality control.
- Place: This refers to the availability of the product and how it’s displayed. The goal is to get the product in front of the target audience, whether in brick-and-mortar stores or online. The placement of a product must align with its target audience and convey the right image. For example, a luxury cosmetic product would likely be sold in Sephora or Neiman Marcus, rather than Walmart or Family Dollar. Placement also refers to advertising the product in the right media to reach the target audience.
- Promotion: The goal of promotion is to communicate the product’s value and need to consumers. This includes advertising, public relations, and overall media strategy. In the digital age, “place” and “promotion” are as much online as offline, with considerations for the product’s presence on the company’s website, social media, and search engines. An example of a successful promotional campaign is the Absolut vodka campaign, which ran continuously from 1981 to 2005 and helped increase sales from 10,000 cases in 1980 to 4.5 million cases in 2000.
What are examples of Marketing Mix?
Place: The place where consumers purchase or discover your product is a crucial aspect of marketing. This can include online platforms, smartphone apps, retail stores, or through sales representatives. Today, consumers have a wide range of options to learn about and purchase products, and it’s important for companies to consider their target audience when deciding on the best place to sell their products.
Price: Determining the cost of your product or service is a key aspect of marketing and requires careful consideration of various factors. This includes analyzing the competition, evaluating consumer demand, taking into account production costs, and considering what consumers are willing to pay. Companies may use different pricing models such as one-time purchase or subscription options.
Product: The product a company offers is a reflection of the company’s identity and what they excel in. For example, McDonald’s is known for its consistent fast food offerings in a casual setting. While they may expand their product offerings, they stay true to their core identity.
Promotion: Effective advertising that reaches the target market is an important aspect of promotion. Companies can use a combination of advertising techniques, such as Instagram campaigns, public relations campaigns, advertising placement, email campaigns, or other methods to reach their target audience in the most effective way possible. It’s important for companies to carefully consider the most effective promotion strategies to reach their target audience.
Other marketing mix
Expanding upon the traditional four Ps of marketing, several other marketing models have been developed to better encompass the complex and multifaceted nature of marketing. These include the five Ps, seven Ps, and five Cs. Each model takes into account different aspects of the marketing process, providing a more comprehensive and nuanced approach to product promotion.
The five Ps model expands upon the original four Ps by adding “people” as a critical factor in the marketing process. By considering the experiences of both customers and staff, the five Ps model emphasizes the importance of creating a positive customer experience, and ensuring the satisfaction of both employees and customers.
The seven Ps model goes further, adding “processes” and “physical evidence” to the mix. Processes refers to the specific customer service processes that define a product and the customer experience, while physical evidence you can see in things like websites or store displays that help potential customers imagine themselves using the product.
The five Cs model looks beyond the internal factors of product, price, place, and promotion, and instead focuses on external factors such as competition, collaborations, and the broader social, political, and economic climate surrounding the market. The five Cs also places a strong emphasis on the target market and customer experience, and the position of the company and its resources in the marketing process.
Each of these models offers a unique and valuable perspective on the marketing process, helping companies to make informed and effective marketing decisions.