The 4Ps of marketing hail from a time before the Internet so at face value it might look like they are completely outdated. However, if we break down the components of the strategy we shall see that they are still relevant in the business environment. So, in the article, we’re going to look at the components and what purpose they serve in the marketing mix and see why they still matter in the current marketing strategy.
The 4Ps of Marketing – What Do They Stand For?
The 4Ps stand for categories one should take into consideration when planning the marketing strategy for a product or service. They also form a ‘marketing mix’ as they interact with each other significantly. The strategy was developed in the 50s, so naturally, there was not the online openness that is available today. Companies had to take into consideration all the aspects that could come between their product and service and potential customers. So, it was all boiled down to the 4Ps: product, price, place, and promotion.
The product, of course, is the good or service that a company is going to sell. For a product to be successful, it needs to be attractive to consumers. When it comes to the first P, marketers need to understand if the product is going to have shelf life and how best to deal with it at different stages.
The cost that a consumer has to pay for a product. Here, marketers have to see what the perceived price is and how close it is to the real price. The second P also takes into consideration the costs that go into supplying the product, if it can be discounted and how it stands in relation to the competitor’s prices.
This, of course, refers to where the product is sold. The product needs to be delivered to a place where customers will be most interested in it. They can either be a physical place, like a store display or on the front page of a website.
Promotion includes advertising and promotional strategy.
How They All Tie Together
The marketing mix comes together when we take into consideration how each P influences each other. Businesses need to take into consideration the type of product they intend to sell in order to establish a fair price. The type of product will influence how the promotional strategy is going to be planned. Moreover, businesses can decide if the product warrants discounts so that it will be made available to more customers. Or, they can establish a higher price and sell it as a luxury item.
In addition, place and promotion tend to overlap. By placing a product on visual media like TV shows and films, marketers tie place with promotion. Promotion then can go back and encompass the rest of the Ps. Therefore, it will show why the customers need the product and why should they purchase it at the established price.
In conclusion, even if we could analyze the 4Ps of marketing independent of each other, practice shows that they constantly influence each other in the marketing mix. The strategy is still relevant today as they represent the core dynamics of marketing. While the mix has been extended to include other aspects as well, businesses can adopt various strategies starting from these 4 main concepts.
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