Updated: Jan 16, 2021
EconWatch (11/01/20)
Written by Emily Liu
The 4 P’s of marketing are the pillars of marketing. They highlight a company’s product/service and differentiate it from other competitors. Also known as the marketing mix, the 4 P’s of marketing are essential to any and all businesses.
1. Product
Because there is such a vast number of competitors in every industry, it is imperative that you create a distinctive product/service. A product/service’s unique quality will be the driving force that keeps old customers coming back and compels new consumers coming in. It is also important to remember that while improving a product/service is useful in generating additional income and sustaining a company, the most successful products/services are those that give the consumers a look into unprecedented territory.
2. Price
Picking the right price of your product/service is arguably one of the most important decisions. Analogous to Goldilocks and the Three Bears, if your product/service is too cheap or too expensive, your company will lose a considerable amount of revenue. To fully capitalize on a product/service, the price must be just right. It is also essential to also keep in mind who your customers are. Just because your competitors sell the same product/service does not mean your prices should be similar. Take Aeropostale and Gucci as an example: even though both companies sell clothing, Gucci is able to sell their products at a notably higher price because they tailor to wealthier customers.
3. Place
The place is where your customers are able to buy your product. Deciding the place of an object, although may seem simple, is extremely intricate. When deciding where to build your company’s store, you must take into account what other stores are around it and the area’s regular visitors. If the store is built near dominating competitors or if the area’s customers are uninterested in the store’s product/service, your company will both lose out on potential revenue and waste costly real estate spending. Additionally, you must consider whether to sell your product/service at retail stores or sustain its exclusivity. While retail stores are a reliable way to further a company’s reach, it could also substantially diminish profit.
4. Promotion
Promoting your product/service is the core method in gaining customers. From advertising on YouTube to endorsing celebrities, there are numerous ways to promote your product/service. Therefore, you must carefully consider where to place your money in order to maximize an audience’s attraction. While there is a lot to be gained off of promotion, promoting to the wrong consumers can dramatically impact your budget. You must also be able to adapt to the changing circumstances to fully utilize your promotion spending. For example, the recent boom in advanced technology forced many businesses to transition from traditional advertising on newspapers or magazines to advertising via social media.
Source: Purely Branded
