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Many cracks can arise when overseeing multiple marketing strategies, but the 4 Ps of marketing, AKA the marketing mix, serve as a useful safety net—even if they sound like the beginning of a kindergarten lesson.
Business Plan Product Price Place Promotion
The 4 Ps of Marketing cover all the basics of marketing, most of which you already know. The idea is to create a simple and mnemonic method for memorizing the basics; When you’re stuck or confused about a strategic decision, you need to get back to the basics.
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So consider this guide somewhere between a refresher course and an advanced technique seminar. We’ll cover each of the Ps thoroughly, including an overview and best practices—plus 4 Ps marketing examples.
In the early 1900s, economist Neil H. Borden first came up with the “marketing mix,” which we know today as the 4 Ps of marketing. During a marketing revolution of sorts in the 1940s, coinciding with the emergence of marketing theory, Borden proposed a somewhat complex checklist for successful marketing.
In the decades that followed, his ideas proved true, and in the 1960s, his list was simplified to the “4 Ps of Marketing” for accessibility. While Borden may not have anticipated half a century of technological advancements, the core of his message is still helpful to marketers in all industries.
Although methods have changed since Neil Borden’s time, his ideas remain in good marketing. Below, we’ll look at the four Ps of marketing one by one, and I’ll share some modernized best practices and examples to help you understand the bigger picture.
Marketing Mix: The 4 Ps Of Marketing And How To Use Them
Your product—for all intents and purposes includes services—is the core of your marketing. That’s not to say that your product defines your marketing strategy, but it’s certainly where you start. (After all, look at what past marketing geniuses have done with pets.)
A minimum requirement for a product is that it satisfies some consumer need, even if that need is only imagined. While many products target practical needs (ie, food or toilet paper), it is equally viable to offer products that satisfy emotional needs such as status or identity. Think of customers who buy six-digit watches when they can tell the time on their phones.
Ideally, your products or service will fit the market niche, fulfilling a need that current products do not. In the digital age, new products often arise from technological advances where solutions did not exist before.
But improving an existing product or targeting an underserved niche is just as typical. For example, rubber ducks have been around for ages, but what about rubber ducks with pop culture references? Little-known pop culture fans don’t have much merchandise available, so companies like Celebridux are able to exploit overlooked niches.
P’s Of Marketing To Grow Your Business
Whether you’re looking to improve your current product or launch a new product line, consider your target customers’ pain points or things that make them uncomfortable. Whether it’s a minor inconvenience (an alarm app to help you wake up on time) or a life-threatening one (a smoke detector to protect against fires), a good product addresses a user’s pain points.
Finally, you need your product to stand out from the competition. Even if you create an original and successful product, it won’t take long for a rival to come up with a copycat product or worse, an even better version.
In a crowded market, you need to add something extra to encourage people to choose you over your competition. These unique features should present some other pain points that are also on the surface (eg, your competitors don’t offer their products in blue, so you make them in blue).
Netflix’s original service (product) is DVD rentals by mail. They saw the market state at the time dominated by companies like Blockbuster and saw a way to improve the “product” by incorporating a mail system for more convenient deliveries and revenue. Later, they pulled the same trick again by refining their model once again to include streaming, reinventing their industry twice over through product innovation. (Image from Marit & Toomas Hinnosaur via Flickr)
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Price affects much more than profits: Strategic pricing can help you enter a new market, earn customer loyalty, or establish your brand as high-end or low-cost.
First of all, your price should cover all the costs of running your business. There are exceptions to this rule:
Your prices also feed directly into your branding. If you want to be seen as a unique “premium” brand, you want to raise prices as high as people are willing to pay. Alternatively, you can position yourself as the cheaper option in an expensive market by meeting the needs of consumers who cannot afford your competitor’s products.
There are dozens of different pricing strategies, and only a few of them focus on maximizing profits. Most are designed to fit specific circumstances or objectives, such as setting a higher price but moving fewer units to recover investment costs (“price reduction”) or raising the price of one item to encourage sales over another lower-priced item (“premium pricing”).
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It’s worth taking the time to review the list to see if any of the general pricing strategies help with your specific needs.
The Chanel Classic Flap, a flagship product, saw three price hikes before landing at $8,200 in 2021. This is not unusual in an industry where markups typically range from 12x to 20x over manufacturing cost. After all, the company’s founder, Coco Chanel, was one of the early pioneers of premium pricing. People outside the fashion world often ask, “Who pays that much?” But fashion shoppers are well aware of the importance of perceived value and how good it feels to wear luxury brands. (Image from stylehouseofbonadasio at Wikimedia Commons)
Don’t worry so much about selling where everyone else shops; Find out where stores for your specific customer types are located. Amazon, Etsy, and brick-and-mortar Walmart all have very different shoppers. The more you narrow your target group, the easier it will be to find them—not to mention you won’t waste marketing resources on dead-end segments.
Start by identifying both the demographics (age, gender, income, location, etc.) and psychographics (lifestyle, personality traits, ideologies, values, etc.) of your target customers. This adds insight into how they shop, which helps you choose the right sales channels and types of promotions to offer.
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In particular, pay attention to whether your target customers prefer to shop via e-commerce or in brick-and-mortar stores. Depending on the industry and the tastes of that customer segment, you may need to switch between online and offline.
Equally important, you need to find the best places to advertise and promote your products, again going where your target customers are. Advertising channels come in all shapes and sizes, with something for every customer segment and every budget.
Consider which social media platforms your shoppers prefer, which public venues they frequent, which blogs and news sites they go to, and even the search engines they use. Finding your audience is the first step before reaching them, which brings us to our final p…
Amazon may be the largest online marketplace, but if you’re selling antiques or collectibles, your best bet is Ruby Lane. By itself, Ruby Lane doesn’t compete with a general marketplace like Amazon, so they specialize in rare and unique items. Since their success, they have earned a dedicated following of shoppers who know to check there first when they want to buy something special. Despite the hard data on traffic and sales figures, an antiques seller can find their target audience more easily on Ruby Lane than on Amazon.
The 4 Ps Of Marketing: What They Are And How To Use Them
The last of the 4 Ps of marketing is promotion, which includes all publicity, outreach and advertising as well as literal promotions such as special offers and contests.
Advertising is the most common form of promotion, and is a flat-out necessity for most companies. Advertising is a direct way to increase brand awareness and attract new customers by communicating the benefits of your products. Ideally, your ads will draw attention to the pain points your product solves, perhaps adding urgency or even increasing stake.
The content of your ads can also further enhance your branding; Using the right visuals, colors, words and typography can influence how shoppers perceive your brand. Your brand’s image can influence purchasing decisions, especially if you’re promoting a specific identity
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