The 4 Ps – Product, Price, Place, and Promotion of a Good or Service
Any good business knows the importance of marketing their products or services.
A good marketing strategy is important and will bring you a long way in ensuring that you have regular customers.
Now to be successful in marketing, one must always remember what is called the 4 Ps – product, price, place, and promotion of a good or service.
By understanding these 4 Ps you will be able to unlock all the secrets of marketing and make any business become successful.
But what are the 4 Ps all about and how exactly does it work? Let’s find out, why don’t we.
What Are the 4 Ps?
The 4 Ps in marketing represents four key factors that guarantee success in any marketing campaign and has long been used by businesses as indicators of what elements are still needed so that you can reach and engage your possible customers.
The 4 Ps include product, price, place, and promotion of a good or service.
The product talks about what your good or service is; the price is the amount you are selling the good or service or how much customers are willing to pay; the place considers where you are actually marketing the product; promotion talks about the actual advertising that you are going to do.
The concept of the 4 Ps is not a new concept and has been around since the 1950s.
These concepts have solidified what marketing is all about but as the years progressed, the industry also evolved.
Concepts of people, process, and physical evidence have become important components as well into any successful marketing campaign.
Background on the 4 Ps
What would be the 4 Ps was first popularized in the 1950s by Neil Borden – an advertising professor from Harvard University. Back then, it was known as the marketing mix.
In a later 1964 article of Borden called “The Concept of Marketing Mix” further brought the concept to a broader audience popularizing the concept to agencies, marketing companies, and businesses.
As the marketing concept evolved, E. Jerome McCarthy would refine it and would later be known as the 4 Ps.
McCarthy who was a marketing professor from Michigan State University would bring together product, price, place, and promotion of a good or service as important ideas that every marketer should be aware of.
In 1960, he even co-wrote the book Basic Marketing: A Managerial Approach that would continue to bring the idea of 4 Ps into mainstream knowledge.
But why should you familiarize yourself with the concept of the 4 Ps? Let’s find out.
Benefits of Knowing and Understanding the 4 Ps
There are several benefits of actually knowing and understanding the 4 Ps that any decent marketer should know.
- A great reminder of all the important key factors in marketing
- Ensure success by employing each of the 4 Ps
- These basics guarantee that you know what you are doing
- Tried and tested knowledge
- Essential for any marketing campaign.
Each of the 4 Ps Explained
For you to really understand how the 4 Ps let’s go and define each one and its role in marketing and perhaps you will know how you can use them in your marketing campaigns.
The product is a good or service that the company is selling to its customers.
This is what you want to sell and will often be something that would fulfill a demand by consumers.
However, a good product will also be strong enough that it will create a demand in its consumers.
A demand that customers may not have been aware they needed in the first place.
For a marketer to be successful, they need to understand fully what the product is and its life cycle.
By doing so, you also get an answer as to where to place your product, how much it should be, and what is the best method for promotion.
Your marketing campaign begins with knowing all the details of your good or service.
Once you have analyzed and understood every detail of your product, next you need to determine is your price.
Price refers to the amount your product is going to sell for.
Often you need to determine not just by how much you want to sell your product but by how much people are actually willing to pay for it.
As a marketer, you will want to come up with a price that is closest to the perceived value of the good or service while taking into consideration your costs in producing the good or service and how much possible competitors are actually charging.
A higher price compared to its perceived value can give an appearance of luxury while a lower price can appeal to a greater number of customers and may also serve to undercut the possible competition.
The next step is to determine the place. When talking about place, this can mean where a product will be selling.
This can mean either through an online eCommerce platform like Amazon or eBay or through a physical store.
If you decide to sell via a physical store, which store are you using, where is the store located, etc.
You may also want to consider the placement of the item in a physical store.
Lastly, you need to consider in what media will you want your product to appear.
Do you want your good or service to appear in traditional print media like newspapers and magazines, on TV or film, or maybe online ads on web pages?
Lastly, you will need to consider your promotion.
This refers to your strategy that you will employ when it comes to promoting and advertising the good or service.
You need to consider how you can actually connect and engage with your consumers and how you can create a desire in your customers for the price you are offering it.
Many marketers combine elements of place and promotion to actually reach their core audience.
Knowing the kind of strategy you’ll employ and who your audience can mean the difference between success and failure.
The product, price, place, and promotion of a good or service are all very important aspects of marketing.
By knowing each aspect, you can ensure that success in marketing your products is just around the corner.
You can easily apply the 4 Ps with any product that you want to offer.
What’s great is that the 4 Ps is the key for every marketing campaign you launch and will ensure success in all your marketing campaigns.
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