One of the most famous and popular marketing concepts is the 4ps of Marketing or the marketing mix concept. This idea came about in 1964 when Neil Borden published his article “The Concept of the Marketing Mix”. In this article, he tried to combine all the elements that need to be taken into account when drawing up the company’s marketing plan. Initially, such a plan contained a much larger number of points, but Neal managed to reduce their number to 4 and make them easier to remember. So the 4P complex appeared. In the future, this complex will be expanded to 5, 7 and 10 Pi. The marketing mix complex combines the factors that a marketer can influence. A strategy developed on the basis of the 4P concept should increase the perceived value of the proposed product: product or service.
The basic model includes cost, product, place of sale and promotion. Let’s consider them in more detail:
1. Product (4ps of Marketing)
A product is a product or service that a company offers its customers (both potential and existing). This is the basis of the 4P concept. And from this stage that you should begin developing a marketing strategy.
In determining the product, you must ask pertinent questions to further understand the product that you want to sell. For example, “What problem will this product solve?” or “What will be the features and benefits of this product?” You must determine how your product is unique to the market and who is most likely to purchase the product. One important note: make sure you address the features that aren’t found in this product. No one product can do everything, so narrow down the features and benefits as well as what the product is lacking.
The branding of the product also applies to this section of the concept. It is necessary to develop a name that can be registered and protected and that is useful to develop a logo and corporate identity. No less important is the product packaging, it should stand out among competitors, but not be too original, otherwise, the consumer may simply not see it, even if he is purposefully looking for a certain product.
2. Price (4ps of Marketing)
Price not only affects the profit that the company will receive but also the consumer’s perception of the product. If the assigned price is much higher or much lower than expected, this can negatively affect the decision to purchase and reduce consumer confidence.
The pricing policy of the company determines that in which price segment the product will be placed. This directly affects the perception of the consumer. Pricing directly affects the market entry strategy.
When setting the price, you need to think about different price tactics for different sales channels. For example, you can set special discounts on volume or offer a special price for a certain set of goods. This “package” offer will also allow you to deal with reassortment. It is equally important to take into account the prices that are planned to be set at the time of various promotions (if the company plans to hold them) or determine the conditions for promotional events.
3. Place (4ps of Marketing)
This component of the marketing mix examines the distribution model of the product. The product must be not only in the right place but also at the right time so that the consumer decides to purchase it.
It is necessary to determine the geography of the product, the planned expansion to other markets and territories. No less important are the channels through which the goods will be distributed, it is necessary to provide for the calculation rules, its sizes, and fines for dealers in case of violation of the requirements. Determine how much product you need to keep in stock in case of force majeure.
Promotion refers to the entire volume of a distribution strategy used by a company. Not only channels but also communications that will be transmitted to the target audience. The brand identity and the language that will be used are also very important points in terms of marketing.
“PROMOTION” details all the choices and actions that affect the promotion of the product (we talk about communication-mix ):
- The sales: direct sales, demonstration, testing, sales on the phone, participation in exhibitions and fairs …
- The advertising: radio, press, cinema, newspapers, billboards, brochures, booklets,
- The sales promotion: these are techniques that aim to increase sales by time offers contests, distribution of samples, coupons, occasional discounts, entertainment.
- Public relations: press releases and press kits, sponsorship or patronage operations, sponsorship, lobbying, event management,
- Direct Marketing: sending catalogs, mailing letters, emailing.
Communication must be consistent with product policy and price policy: a low-cost product will be promoted by mass advertising, inexpensive and mainstream. A high-end or distinctive product may be the subject of events or personalized direct marketing.