The 4Ps of Marketing
While you research your business marketing ideas, it is most likely that you will come across the 4Ps. But what exactly do they stand for and why are they so important?
Well, you’re in good hands. Because by the end of this article, you will learn how to apply the 4Ps of marketing strategically and amplify your business in the marketplace.
What are the 4Ps of marketing?
The 4Ps of marketing are core elements that must be considered when constructing a marketing strategy for any business. Think of them as the fundamental pillars of marketing. The 4Ps are meant to function as a framework to help you organize everything related to your company’s marketing initiatives.
The concept was first introduced in 1960 by Jerome McCarthy in his textbook, Basic Marketing: A Managerial Approach. Although certain marketing approaches have evolved over the past decades — mainly due to the advancements in digitalization — the 4Ps of marketing remain just as valid today.
It does not matter if you’re a large company or a small company; the 4Ps are critical to all business marketing strategies. In fact, the smaller and newer your company is, the more essential it is for you to utilize the 4Ps of marketing to the fullest extent.
Without further adieu, let’s see what the 4Ps are all about.
The 4Ps of marketing stands for:
Product
The first P you should consider is your product. This could be a tangible good or a service. For example, if you’re in the fashion industry, then your product would most likely be clothes or accessories. You can also sell services such as a writing gig or even a consultation session in your field of expertise.
Basically, you need to have a clear understanding of what you are selling before you make any next steps. Sounds pretty straightforward, right?
As easy as it sounds, part of identifying your product is also knowing what makes your product stand apart from your competitors. What are the features that make customers choose you instead? This means taking the time to explore and examine your market trends; especially if you’re in a crowded market place. Find out what gives you the extra edge.
Perhaps the materials that you incorporate in your product are 100% eco-friendly, allergen-free, or child-proof? Or maybe your product addresses a specific customer pain-point and guarantees results within five sessions?
Branching out, you can think about how you want to elevate your end-product. This includes the packaging, the customer service, the brand voice etc. The more intimate you are with your product, the more you’ll know how to successfully market it.
As you can see, the possibilities are endless. However, defining your product ultimately depends on how innovative you are and how accustomed you are with your market.
Developing a champion product
It’s okay to be unsure of what you want to sell exactly. Developing a champion product takes time and a lot of brainstorming. The questions below are designed to guide you towards creating a more distinctive product:
What’s the main problem that you want your product to solve?
Reflect on the problems that you face in your life or the problems of people that you know. Sometimes the best inspiration is from your surroundings. You never know, you might even tap into a whole new market opportunity.
What products are you passionate about?
In the field of entrepreneurship, it is mostly a test of endurance. So find out what fuels you to carry on. This is critical in helping you achieve new heights in the long-run as well.
What’s the potential of this product?
It’s simply not enough to identify a product of your passion. Because at the end of the day, you still want to gain profit from all of your hard work. By choosing a product that has the potential to shine and sustain in the market, you ensure that people will actually buy your products.
Price
Once you have decided on which product you wish to sell, the second P to look out for is the price. The price affects your supply, demand, and profit margins. How you price your product has a huge influence on your position in the marketplace. Think of it as a first impression; you want prospective customers to perceive your brand as trustworthy.
An overpriced product can turn off customers easily.
Similarly, depending on the market you’re in, low prices might serve as a red flag. For example, if you deem yourself as a luxury brand or take pride in providing exceptional customer service, pricing your product slightly above average may give customers greater assurance. However, if you are aiming to be a cost-friendly alternative in your market, then a lower price would make sense.
So how do you determine the right price?
Well, the best way to gauge the right price is by determining what your competitors are charging and analyzing market price trends. This will give you an idea of how much your target audience is inclined to pay.
Thinking ahead, you should also calculate the price of discounts or offers that you plan to incorporate in your long-term marketing strategy.
Place
The third P stands for the place. Where will you sell your product? Or more specifically, where will your target audience go to look for your product?
It is critical to know your customers. Take into consideration the places that they frequent. For example, if your ideal customers are students, opening a shop on campus might be the right move.
However, the place you sell your product might not even have to be a physical location. Modern-day technology has opened new doors for us. Customers across the globe are able to carry out transactions online. Online shopping has become remarkably popular. This is evident from the impacts of COVID-19 wherein e-commerce sales more than doubled year over year (110.8% increase). An online store can be useful in helping you reach more customers than a physical store.
Other than where you distribute your product, the place where you market your product is equally important.
Think about the various platforms where you can reach your target audience. Given that most people have access to social media, it is beneficial to implement a social media strategy for your business. Social media is a great way to connect with customers and build brand awareness. If you have an online store, or you’re planning to have one, it would be in your best interest to discover innovative ways to drive traffic to your site.
Though, keep in mind that not every place is perfect. Let’s say the product you’re selling is targeted towards an older generation, then it would be irrelevant to place your business on Snapchat or TikTok. Choosing the place to sell your product may be tricky. A good principle to follow is to think of where your customers are — don’t try to bring them to you, bring yourself to them!
Promotion
Last but certainly not least, the final lap is the promotion. This is where you will determine how your product will be introduced to the public eye. This is our favourite P because it’s your chance to get creative and venture out on the array of strategies to promote your product.
Methods of promotion exist in many ways: public relations, advertisements, email marketing, search engine marketing, video marketing, and content marketing such as guest blogging. The list goes on, but the main takeaway is that you shouldn’t feel restricted to only one method of promotion. Throw in as many ideas as possible about how to generate leads and revenue.
Another key factor in promotion is building relationships through effective communication. To promote well, you need to maintain a brand voice and brand awareness that people resonate with. What message are you promoting? Remember, people like to buy from people. So, be real with your customers.
What will your 4Ps of marketing look like?
Now that you’ve learned about the 4Ps of marketing, it is time that you put your skills to the test.
Remember, behind every successful company is a marketing plan that’s unique and thoughtful. The 4Ps are interconnected with one another. Be sure to give each of them sufficient attention before moving on to the next one. Don’t be afraid to go above and beyond. Once you’ve laid out concrete groundwork, more customers will be drawn to your brand in the future.
Stand out from your competition by leveraging the 4Ps in your marketing strategy today. It should be as easy as 1, 2, 3... and 4!
FAQs
Do I have to follow all 4Ps of marketing?
We believe that following all 4Ps of marketing is important. In addition, the concept has proven to benefit business marketing strategies for decades.
Experienced marketers often say that marketing is all about putting the right product, at the right price, at the right place, at the right time. Sounds familiar, right? This is essentially what the 4Ps of marketing are about — they rely on each other to help your business attain the greatest level of success.
How do I know that I have planned the 4Ps of marketing correctly?
As the famous saying goes: There is no such thing as failure, only learning experiences.
There’s actually not much of a right or wrong answer to follow. The 4Ps simply serve as a basic guide for marketers to set a clearer path. Every company will plan the 4Ps of marketing differently depending on their particular position in the marketplace. It is also perfectly okay to test out new strategies as you progress through your business goals.
Are the 4Ps of marketing enough for my business marketing strategy?
Absolutely. The 4Ps of marketing are the main pillars of your business marketing strategy. However, there are more considerations to be taken underneath each P. For instance, digital marketing strategies under Promotion is a whole new concept that you need to learn.
Developing your business marketing strategy may seem like a slow process, but it is a fun challenge. We are excited to see what you can achieve!
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