Marketing plays a critical role in the success of any business. It is, without doubt, that every business entity is either selling goods or providing service/s and for effective promotion distribution there is a need to devise a means by which information about these can reach the targeted customers. This is where marketing comes into play and this article explains what are the 4 Ps of the marketing mix.
As it is in every field of business, one needs a strategy for execution of the 4 ps of marketing mix which are product, price, place, and promotion with no exception, hence the term “marketing strategy,” which simply translates to the techniques employed by organizations when working around accelerating their sales.
When given a marketing job the key elements of the job to reckon with before coming up with a strategy are known as the four Ps of marketing which are; Product, Price, Place, and Promotion. These have been common fundamentals for marketers all around the world since the 1950s.
What are the 4 Ps of marketing
The 4 Ps of Marketing – Example: The 4 Ps of marketing includes the product, price, place, and promotion which are also often referred to as the marketing mix. What are the elements of the marketing mix explained with an example? Price, Product, Promotion, and Place are important elements of the marketing mix. Below we explain the 4 Ps of marketing with examples:
Every business has a specialty in the provision of either tangible goods or services. These are what constitute the first P. Although not all companies manufacture their products from the beginning, manufacturing or availing the product or service in question is the first step.
In trying to understand what are the 4 Ps of marketing, you cannot really sell what you do not have. Over the years, observations have revealed a three-stage life-cycle through which almost every product goes.
Growth phase: This is the stage at which the product begins to gain momentum in the market from its introduction.
Maturity phase: At this stage of the business cycle, the product is well known and becomes a market preference. Sales decline phase: As the name implies, this is the point at which the product has lost popularity.
Quick transition from the growth phase into maturity is the task that separates good marketers from the rest.
However, if the marketers do not exercise due diligence, the product reaches the third stage quickly, which is never a part of any marketing strategy.
In the event that they find themselves in this crisis, marketers ought to come up with alternatives. These may sometimes mean the reintroduction of the product, either using new packaging among other techniques. An example of such problematic products is bath soaps. Upon introduction, these usually do well from the growth stage to maturity but quickly reach the sales decline phase because of stiff competition.
Price in marketing is the monetary value placed on a product or service. This can arguably be the most critical of the four Ps because from the price comes profit which is the lifeblood of every business. Before deciding the price of the product, companies factor in the cost of production of the product right up to the point where you place it on the shelf.
Product price determinants are more than just the cost of production but also aspects like list price, competitor prices, discounts, and a couple more.
Customers generally gravitate toward products and services that are pocket friendly, such that slight adjustments can significantly affect market demand in the positive or negative towards a particular product or service. This phenomenon of what are the 4 Ps of marketing is very important for understanding the Price Elasticity of Demand.
The interesting thing about customers is that if a product is underpriced, it repels them too. We tend to associate underpriced products with poor quality. Therefore, marketers also need to exercise due diligence before initiating discounts.
A place can be explained as the physical address or geographical location where the company sells its products and services. This phenomenon is not to be overlooked what are the 4 Ps of marketing at any point in the devising of your marketing strategy as it impacts heavily on how quickly the product will be distributed. Certain products attract a specific set of customers who, sometimes are found in particular areas.
It is only logical for marketers to then place the product in such an area. An example is placing a luxurious car sale in low-income housing settlements. This is a disservice to the company because little to no sales will be made over a significant period of time.
Another place determining factor is the price itself. Societies are divided along lines of financial capacity and as such, pricey products should be appropriately placed along these lines. The term “target market” then refers to customers who are likely to buy your product. These can be people of a particular age group, gender, race, ethnic group, or religion among others.
In a store, there are compartments where products are displayed. These can also fall under place. Products in a store should not only be visible but also displayed in an orderly and desirable manner which makes customers’ desire to buy them grow. With technology and the internet taking over the business space, a place can also refer to the online platforms a company can choose to use for its online customers.
Promotion is a systematic communication between the company and its target market about a product, service, or brand. This is to accelerate sales or grow the visibility of a brand. The way marketers promote products to determine which brands develop reputable names.
Some promotions involve price adjustments, incentives for customers in the form of prizes won for buying a certain number of products, and more. These attract customers to particular products and brands, and in some cases, they subsequently become household names.
A series of advertisements are placed in the media for a particular promotion. These usually run for a number of days, weeks, or even months depending on the nature of the campaign. This is just but one example out of a plethora of promotional activities used in the marketing mix.
Over the years, marketing has evolved and new ideas coined. What stands out about the classical four Ps is their ability to capture the infinite importance of visibility as far as, products, services, and brands are concerned. It is without any doubt that knowing what are the 4 Ps of marketing and marketing theories is of great essence to innovations that have been developed to date and are heavily anchored on these fundamentals. A look at the relationship between the four Ps and “Digital Marketing” would be quite interesting.