4Ps are the four elements of a traditional marketing mix, including products, place prices, and promotions. These variables are strategic elements in delivering superior value to customers and produce successful marketing. Marketers have control over all four aspects, so whether they are success or no, it depends on how they translate those elements.
A more up-to-date marketing mix also combines process, people, and physical evidence. We call it called 7Ps.
4Ps component of the marketing mix
Each element influences one another. Selling prices, for example, depending on product elements, whether homogeneous or differentiable and where marketers sell them. In short, companies should combine them properly to provide the greatest success.
The marketing mix requires a lot of knowledge, market research, and marketing programs. And, when it’s managed improperly, success is at stake.
Now, let’s briefly discuss each component:
Product
Products can be tangible or intangible. Products exist to meet consumer’s needs.
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Strategies vary depending on product types and product life cycle. Cost-leadership products will require a different approach compared to differentiated products. Also, each cycle stage requires a diverse mix from each element.
Marketers should choose which benefits and features of a product that consumers are most desirable, hence delivering the best value proposition. For instance, when they adopt a low price strategy, product features may lesser crucial than in a differentiation strategy. Differentiation requires a uniqueness, which allows companies to charge premium prices.
Price
This element requires marketers to answer the question of “how much consumers want to pay for company products?”
A low or high price is not necessarily bad or good. It all depends on the value proposition that marketers deliver plus the consumer’s perception of it. When the price is higher than the value perceived by consumers, they are not interested in buying. Or, if the price is lower than the customer’s perception of its value, it wastes a potential profit.
Marketers can choose several pricing methods, including market penetration pricing, price skimming, product-bundle pricing, captive product pricing, product line pricing, and psychological pricing.
Promotion
Promotion is a marketing communication strategy to increase sales, audience awareness, or create brand loyalty. It can be advertising, sales promotions, special offers, and public relations. Whatever communication channels marketers use, the message should be consistent among channels.
Place
This element requires marketers to decide about their sales location, market coverage, distribution channels, inventory, warehousing and logistics, and assortments. In general, marketers must ensure that the product is in the right place, at the right time and in the right quantity.
Walmart is the best example of developing this element. An effective and efficient company distribution system makes it possible to offer “everyday low prices” to its customers.
