4 p's of the marketing mix: what they are
T
he 4 p's of marketing indicate the set of variables and measurable elements that a company uses to achieve its goals. In other words, they are the key factors that determine and influence the marketing mixi.e., the set of strategies and actions required to market a good or a service. The 4 P's therefore represent a real reference for all those who work in the world of marketing and need to draw up an effective strategic plan.
The first 'P' refers to the 'Product', i.e., the good or service being marketed. The second refers to the'Price'at which the product is sold on the market. The third P stands for'Placement', i.e., the physical or virtual place where the good is produced. Finally, the fourth P stands for'Promotion', i.e., the set of advertising activities whose function is to create value around the product.
What are the 4 P's of marketing for?
These parameters are therefore fundamental to creating the right marketing mixmarketing mix, i.e., the set of strategies and actions needed to increase sales of a product or service. Specifically, considering theProduct'means making the best use of this component. In other words, you need to know everything about your product, so as to grasp its distinctive and characterising features. Not only that'Price'is also a very important variable. Even before defining it, it is in fact good to know the perceived value of the product, i.e., the amount of money the customer is willing to pay to receive a certain good or service. Of course, when defining it, all the costs involved in producing it must also be considered. The third P of marketing'Placement'allows the identification of product positioning, i.e., all the channels in which to sell and market the good or service.
Each company must in fact determine where to sell a particular item and how to deliver it to the market. Finally,'Promotion'is certainly among the most important variables. After defining the distinctive traits and elements of a product, identifying its market price and positioning, it will in fact be necessary to promote it through a series of ad hoc actions and tools, including advertising and public relations. On the other hand, promotion aims at revealing to consumers why they need that good, that service, and why they should pay a certain price for it.
The 4 p's of marketing examples
To fully understand the meaning of the 4 p's of marketinghowever, it is good to give some concrete examples, identifying the variables within a specific business reality.
In the case of a fashion company, for example, the 'Product' could be identified with a specific item of clothing, such as a woman's or a man's suit. Such a good will have unique characteristics that are completely different from those of any other item.
The variable 'Price', on the other hand, will include all types of prices at which a good can be sold on the market: from the lowest prices for sub-brands to the highest prices for tailor-made clothes designed by designers. Not only that, but a fashion company will also have to consider price variations according to sales and any seasonal promotions or discounts.
'Placement', on the other hand, in this specific example, is identified with the point of sale, which may be physical or virtual, as in the case of an online shop.
Finally, the 'Promotion' of a garment will include all the traditional advertising channels, off-line and on-line, necessary to promote the product: from billboards to newspaper ads, web advertising, social media marketing, etc.
