Product, price, place, and promotion. These four words are often referred to as the marketing mix. They’re essential elements involved in the marketing of either a good or a service, and together they help brands become successful.
Companies often use them to identify the key factors for their businesses and gauge what actions they can take to ensure that the business marketing strategies work out well in the long run. In this video, we’ll be teaching you everything you need to know about the 4 Ps of Marketing.
Niel Borden popularized the 4 Ps in the 1950s. They were very influential in the business world, and they were refined over a number of years by other great advertisers, but essentially the principle stayed the same.
However, it was E. Jerome McCarthy who had popularized the 4 Ps concept that we now know today. Borden was an advertising professor at Harvard University, and until today his initial article in 1964 titled “The Concept of the Marketing Mix” is still being taken inspiration from by companies that want to market their goods and services.
Product
The product, referring to the company’s good or service to customers, is ideally the main focus of a business. The product either has to be so compelling that the customers are willing to spend money to have it or create a new demand where they believe they need it.
In order to be successful in understanding how the creation of a successful product works, marketers have to understand the life cycle of a product. They have to see how much people are willing to pay for the product once it hits the market and how long a product will be a hit and sell profitably. It’s also important to know how unique it is, and if it’s going to have to deal with other similar products from other businesses.
Price
The price is how much a consumer is willing to pay for a product. It’s a very important factor to consider because a marketer must link the product’s price and maintain a sweet balance between the product’s real and perceived value.
The real value of a product is how much it costs to produce the product, and the perceived value of a product is how much customers feel a product is worth. This is very important when considering the marketing of a product because if people don’t believe that your product is worth it, it won’t make a sale even if you try selling it for a breakeven price.
A perfect example of this is Nike, a sporting goods company that manages to sell its shoes for hundreds of dollars despite only spending an average of 10-15 dollars per shoe in production costs. What you are buying from them is no longer just the product’s actual value but the perceived costs and the branding itself of the product.
Place
Place is not as complicated as the other Ps but still quite relevant. When a company makes decisions regarding where they plan to sell it, they have to consider a lot of factors like the buying capacity of the location, the number of people who enter the shop, or the number of customers willing to spend that much for a certain product.
For today, a place may no longer mean an actual location but also a spot in online shops, their own websites, or what social media they choose to market on.
Promotion
Last but not least of the 4 P’s, promotions include advertising, public relations, and overall promotional strategy. The goal of promoting a product is to convince customers that they need it and why they should pay a certain amount of money for it.
This is exactly how Nike was able to pull off selling 10-dollar real production value shoes at prices 10-12 times more than the costs. Marketers tend to tie promotions and placement elements together to reach their core audiences, which is a great start.
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