4 Ps of Marketing and how to use them effectively?

Marketing mix

in order to be successful in marketing efforts, a company needs to have a robust clear-cut marketing strategy. However, have you ever consider what the components of a successful marketing campaign are? In this article, we will discuss the main factors such as marketing mix or 4 Ps of marketing which you must consider while designing your overall marketing strategy. But, before getting started with the marketing mix let’s understand what is marketing?

What is Marketing?

To quote in simple marketing refers to “sum total of all the activities through which we make our target aware about us, our product and its price”. Here the main aim is not to just sell but to retaining the person and turning him into loyal. In fact, we try to make long-term relationships with the customers.

Marketing mix

Although the vague idea of the marketing mix was of Neil H Borden, it was E. Jerome McCarthy who clearly coined the term. Basically, marketing mix refers to the combination of the 4 factors which need our attention to be successful with our clientele/customers. These four components are called The 4 Ps of Marketing.

Similar to the four wheels of a car, these four parts of your marketing plan can move your business forward. Imagine if one wheel is not working, the car will not work at all. In simple words, failure to focus on even one part may break down your entire Marketing planning.

The four Ps of Marketing:

These encompass product, price, place, and promotion. In case a company forgets any of these 4 valuable elements. Its losses in competition sooner or later. In fact, paying attention to all 4 ps of marketing is the foundation of victorious brands. So, let’s get started and discuss each component in some detail.

4 Ps of Marketing

Product:

The core of a business is a product. It is something that you offer to your customers and in consideration charge a price. The definition of product is changing as time is passing. Initially, it was a physical thing like any goods, foods, furniture, luxuries, or else. But nowadays many intangibles are also taking place in the product category and software and data are prime examples of intangible products.

Actually, the product sometimes includes other things like packaging and additional services. Remember, we are talking about the product and not about service. Many marketers apply the 4 Ps of marketing to services. But, in the service context, there are 7 Ps.

product in 4 Ps of Marketing

Key points

  • They may come into any form tangible or intangible.
  • A product satisfies certain needs or wants. If it can’t, it is not a product that you can offer
  • It is the worth of the product and demand which determines the price.
  • Brand, packaging, and complimentary services are part of your product strategy
  • The product does also ages like humans and this concept is called the product life cycle.

While carving out an effective business plan a business house must have large to small details about its products. How they differ from the competitors and how much value they can offer to customers. So, when you are thoroughly aware of your offering to market then and only then you can go ahead with other parts like price and promotion.

To survive in any industry you should have a product that is offering value or satisfaction to people and there are 2 approaches to start with a product. Either you find out what people need and make your invention. Or, you can update existing goods as per the changing attitude, desire, and level of satisfaction of people. Most of the time products act as a competitive advantage. overall, the product is an important component of 4 ps of marketing.

For example, the world-famous beverage coca-cola was something new and till now has remained resilient. The secret to success is the secret ingredient/ recipe.

Price

When you have determined what you are going to offer to the market. Now, it the time to discuss how much you are going to charge from your potential customers. This charge in monetary terms is your price. In other words, the monetary value a customer has to forgo to attain one unit of a commodity is the product price. On the one hand, it is revenue for the seller while on the other, it is the cost to the customer. During, the 4 ps of marketing strategy don’t forget price at all.

Price is that you charge, but the process or way you are going to charge is pricing. A proper pricing policy is a win-win for you and your customers. On one side it ensures good profit margins and business survival. But, on the other side, it keeps your customer joyful and turns them loyal. Here you should remember that your pricing policy may undergo several changes over the period time.

Price 4 ps of marketing mix

Key points

  1.        Cost
  2.       Competition
  3.       Brand worth/equity

If the product cost is high naturally product price ultimately will be high. Less competition can encourage to have better control of prices. Finally, with amazing brand worth or goodwill, your customer will willingly come forward to pay better. This part of 4 ps of marketing gives you chance to implement some of the tactics namely premium pricing, discount, and rebates. Hence, it is always desirable to make a flexible pricing policy which you can change as product mover further in the product life cycle and customer behavior changes.

Place

Now we are on the third part of our 4 ps of marketing mix strategy. So far, we have discussed our product and price, but, what if we are unable to provide our product to customers on time. Thus, in this stage, a company decides as to where and how our product may reach within the reach of its customers.

Because products are manufactured at one place while their consumption point may be located to farthest corners in the world. Hence, in this stage, you should look at how your product will be available to consumers. Mainly, the focus must be on logistics, warehousing, and supply chains, and its participants as Product is not like services where the service provider and client are at the same place.

Marketing mix

Key points

  • What mode of transportation we are about to use
  • How many participants( wholesalers, retailers) or links will be there is a supply chain
  • What incentives we are going to provide them so they accept our products
  • How and on what points goods will be stores in warehouses.
  • Are we going to single supply chain medium or joint?

For new businesses, it is hard to create their own distribution channels. So they can contact other well-established companies for this for a fee. It becomes easy and feasible if your product is similar or needs the same type of distribution channel. Businesses should always pay attention to their distribution channels and remove weaknesses if any. Consequently, it is going to act as a competitive advantage in 4 ps of marketing.

Promotion

Finally, the last part of 4 ps of marketing is promotion. We all know the world has become more competitive than ever. So, having a clear policy about your product promotion is as necessary as diligence in the three mentioned dimensions. If your customers are not aware of your offerings they will never come to buy.

Promotion is all about creating awareness about your brand, products, and policies as to how easily you can communicate with your target audience will go a long way. Basically, promotion includes advertising, reputation management, and sales promotions. While designing your advertisement part one have to see primly following aspects.

key points

  • What is your product type (intermediate, business, or made for final consumption)?
  •  kind of your target audience (their geographical, demographical, and social features)
  •  What is the amount of financial resources available to you?
  •  What is your advertising goal (brand awareness, conversions, or customer acquisition)?

Promotion is the final part of 4 ps of marketing. Generally, business products don’t need advertisement, unlike customer goods. Demographic and social features can help you identify the mode and time for proper communication. Along with this, you cannot utilize all of your monetary resources for advertisement so use wisely and effectively.

For example: in the awareness phase, you can introduce what you are and what your offer. But for conversion and acquisition, you need to tell more details and emphasis how do you do things differently than your peers.

Why 4 Ps of Marketing matter?

By far, we have the basic conceptual clarity regarding the product, price, place and, promotional concept of our marketing program. It is of no use if we don’t know how to use them. Let’s talk about how we can deploy them and reap benefits.

Product

  • If your product suits customer needs if no then change or modify it to suit customers.
  • Add more value than your competitors.
  • Check if the price is right or not. It must be as per product worth and 4 ps of marketing.
  • Always gather customer responses from customers and do improvement of your offerings.
  • Adapt product as per audience, remember they are going to pay and expect value.

Price

  • Is the product rightly priced in the market and What is the rate of competitors?
  • Check if you can reduce the price by properly analyzing your cost involved.
  • Try to offer discounts whenever suitable.
  • Rebates are a good option where your product could not deliver the value promised.

Place

  • Make sure you are delivering in time as late delivery means no business by customers.
  • Check distribution channel. Try to give them incentives and benefits.
  • Any useless intermediary should be removed as it may save cost and time.
  • Always be proactive not reactive as far as the place of the marketing mix is concerned.
  • A solid delivery and distribution is the backbone of 4 ps of marketing

Promotion

  • Always check the demographic of your audience (age, gender, interest, and education, etc.)
  • Make your advertisement campaign as per your audience characteristics.
  • Monitor your complete blueprint for promotions.
  • If any part is not working then remove it.
  • Go online it is always as you can select your ultimate audience very easily.

In conclusion

Though we are living in a digital world and the Marketing mix concept seems outdated. The basic functions of the 4 Ps of the marketing mix are more than relevant than ever. Try to incorporate these four dimensions. Step by step figuring out the problems in each component and solving them may take a while. However, in long run, it paves the way for the success of all of your marketing and promotional campaigns. Additionally, in case you are interested in stock-related terms please check our other blog share market and important terms.

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4 Ps of marketing and how to use them effectively
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4 Ps of marketing and how to use them effectively
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a marketing plan is surrounded by 4 elements. for a successful business one should follow all 4 aspects of marketing
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writingfunn.com
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