Product, Price, Promotion, Place Show
What are the 4 P’s of Marketing?The “4 P’s of Marketing” refer to the four key elements comprising the process of marketing a product or service. They involve the marketing mix, which is a set of tools that a company uses to influence consumers into buying its product. The marketing mix addresses factors such as:
History of the 4 P’s of MarketingThe individual who conceptualized the 4 P’s of Marketing was a Harvard University professor named Neil Borden. In 1964, Borden introduced the idea in one of his published articles called “The Concept of the Marketing Mix.” he mentioned that many companies could use the framework to increase the likelihood of their success when advertising their products. Marketing Mix1. ProductA product is any good or service that fulfills consumer needs or desires. It can also be defined as a bundle of utilities that comes with physical aspects such as design, volume, brand name, etc. The type of product impacts its perceived value, which allows companies to price it profitably. It also affects other aspects such as product placement and advertisements. Companies can change the packaging, after-sales service, warranties, and price range, or expand to new markets to meet their objectives. Marketers must understand the product life cycle and come up with strategies for every stage in the life cycle, i.e., introduction, growth, maturity, and decline. 2. PriceThe price of a product directly influences sales volume and, consequently, business profits. Demand, cost, pricing trends among competitors, and government regulations are crucial factors that determine pricing. Price usually reflects the product’s perceived value rather than its real value. This means that pricing can be increased to promote exclusivity or reduced to create access. Thus, pricing involves making decisions in terms of the basic price, discounts, price alteration, credit terms, freight payments, etc. It is also important to analyze when and if techniques like discounting are required or appropriate. 3. PromotionPromotion involves decisions related to advertising, salesforce, direct marketing, public relations, advertising budgets, etc. The primary aim of promotion is to spread awareness about the product and services offered by a company. It helps in persuading consumers to choose a particular product over others in the market. Promotional efforts include the following:
4. Place (or Distribution)Place involves choosing the place where products are to be made available for sale. The primary motive of managing trade channels is to ensure that the product is readily available to the customer at the right time and place. It also involves decisions regarding the placing and pricing of wholesale and retail outlets. Distribution channels such as outsourcing or company transport fleets are decided upon after cost-benefit analysis. Small details such as shelf space committed to the product by department stores are also included. Extensions to the 4 P’s of MarketingNew marketers recommend expanding the 4 P’s of Marketing to include services as well. They include:
More ResourcesThank you for reading CFI’S guide to the 4 P’s of Marketing. To keep learning and advancing your career, the following CFI resources will be helpful:
What is the process of establishing and communicating to customers the value of goods and services?Cards
What function of marketing is involved in determining the value of the product or service?Cards
What is the term for the process of creating communicating and delivering value?Marketing is a set of processes for creating, communicating, and delivering value to customers and for improving customer relationships. It includes everything that organizations do to satisfy customers' needs.
What term is used for describing the offering and its value to potential and current customers?Communicating Offerings
Communicating is a broad term in marketing that means describing the offering and its value to your potential and current customers, as well as learning from customers what it is they want and like.
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