How do the 4 Ps of marketing mix work?
Marketing is comprised of four key elements called the “4 P’s”. Marketers use the marketing mix to influence customers into buying their products by utilizing a set of tools.
Among the factors that make up the marketing mix are:
- Knowing what consumers want or need
- Finding out why the current product is not working
- Solving the problems and changing public perceptions
- Enhancing competitive advantage by creating distinctive characteristics
- Analyzing the interaction between the product and the consumer
Marketing’s four P’s: a historical overview
Neil Borden of Harvard University is recognized as the inventor of the 4 P’s of Marketing. Using the marketing mix framework, Borden published “The Concept of the Marketing Mix” in 1964.
The marketing mix
1. Product – Marketing Mix
Goods and services that satisfy consumer needs and desires are products. Size, shape, and brand are other physical characteristics that can be associated with it.
Products are priced profitably based on their perceived value. Advertising and product placement are also affected by it.
Products can be packaged, after-sales serviced, warrantied, and priced according to the company’s goals. As well as expanding into new markets, the company can achieve its goals by entering new markets. To properly market a product, marketers must understand the product life cycle, i.e., how to introduce a product, grow a product, mature a product, and decline a product.
2. Price – Marketing Mix
Sales volume and profits of a business are directly affected by a product’s price. It is important to consider factors such as demand, cost, and pricing trends among competitors as well as government regulations when setting prices.
Rather than reflecting the product’s actual value, price reflects perception. In other words, you can increase pricing to create exclusivity or reduce it to promote accessibility.
Price setting involves establishing a basic price, determining discounts, altering prices, establishing credit terms, and arranging freight deliveries. Analyzing techniques like discounting is also important to determine whether or not they are appropriate.
3. Promotion – Marketing Mix
Parts of promotion
- Public relations
- Advertising budgets
- Salesforce
- Direct marketing
Promoting a company’s products and services is its primary objective. Using it helps persuade consumers to choose one product over another. Here are a few examples of promotional efforts:
Advertising
Communication of a sponsored, non-personal message about a product, service, or idea in order to sell it.
Public relations
An organization’s process for managing and controlling information flowing from them to the general public or other organizations.
Marketing strategy
Advertising tools used to penetrate the right audience. Furthermore, promotional strategies are affected by the layout and design of a website, the content shared on social media accounts like Twitter and Instagram, as well as Google Ads.
4. Place (or Distribution) – Marketing Mix
Place refers to the location where products will be sold. In order to manage trade channels effectively, one must ensure that products are readily available at the right time and location to customers.
In addition, decisions are made regarding wholesale and retail outlet placements and pricing.
Cost-benefit analyses determine whether to outsource or maintain company transport fleets for distribution. The store’s shelf space commitment is included as well as other details.
Marketing Extensions to the 4 P’s
Marketing experts recommend incorporating services into the 4 Ps. A few of them are:
5. People
In the servicing process, subjectivity is more likely to occur since providers and consumers interact directly. It is equally important to interact with the consumer as well as pay attention to appearances, communication, discretion, and behavior.
6. Physical Evidence
Several factors influence the brand image of a product, including the workplace environment, layout, and design.
7. Process
When it comes to policies, procedures, systems, and consumer involvement, standards are usually adopted in order to maintain continuity.