Suppose you decide to manufacture soaps and start selling them? How are you going to build your business strategy? When a business decides to create a product, there are a number of factors in the picture like the pricing, advertising, and manufacturing process. These factors need to be taken care of before you make the final decision so that you stand out in the market. But, how do you do that? There is these 4Ps of Marketing.
In this article, we will talk about:
- What are the 4Ps of marketing?
- How to use them?
What are the 4Ps of marketing?
First developed by Neil Borden in the 1950s, the 4Ps of marketing comprise Price, Product, Promotion, and Place. They are also dubbed as marketing mix and these 4Ps are the foundation to build any marketing strategy of a business.
Let us look at each P, one by one.
The value that you add to your product and service and then charge this value to the customers is essentially what the price is.
In fact, before a business decides to add a price tag to a product, various other costs like distribution and supply costs are added to the price.
How you decide the value of your product or service is an important factor in this mix. The price should be fixed according to the market and product type.
There is no strategy without a product or service for the entire marketing process. Understanding the recent trends and what your customers require while creating a product, is a great way to start the business journey.
A product is something that a price is placed on and which is marketed to the target audience. It is ideal for the product to be unique and in line with the customer’s requirements.
After creating a product and placing a price on it, it is time to market it. After all, what is the point of creating a product for people if they are left unaware of its existence?
One thing, that needs to be focused on in this step is to understand the best possible way to reach your potential customers. You have to inform your customers about the benefits of your product and be persuasive enough to make them understand why they need to invest in your product.
Finally, it is time to sell your product or service to your customers. For this reason, an ideal place or market has to be identified which can be both online or offline stores.
It is vital to recognize the place where your target customers are as marketing the product to the wrong crowd will lead to disappointments.
How to use 4Ps of Marketing?
We are living in a dynamic world, where the choices are unlimited. But, for any business, it is crucial to choose the best possible mix out of these limitless options.
Choosing the right product
This is probably one of the most crucial steps that need to be done properly. Choosing the correct product or service is vital before putting in all the hard work, otherwise, it will all be in vain.
This is the reason why taking feedback from the customers is a great idea before you decide to build a product. Feedbacks can be done in a number of easy and simple steps like online polls or feedback forms. You can ask them direct and relevant questions. For example, if you are into the school supplies business, you can ask questions like:
- What are the problem areas in your daily school life?
- What kind of products can be improved for the better convenience of your school and education process?
- How can we improve our product in the future?
After going through the responses, you can build the perfect product for your customers according to their needs. Using relevant data gives you a better chance of success in your business strategy.
Finding your customers
Imagine selling some security control software on a toy selling e-commerce website. You would never reach your potential customers and the place of selling would make no sense.
This means that you have to adequately identify the place where your kind of customers like to hang out and use the opportunity to sell your products on the best possible platform.
In this case, it would be on a technical website or eCommerce website. Accordingly, every product can be sold in a place that is relevant to the product type.
There are two dangerous things when it comes to pricing a product. They are underpricing or overpricing a product.
For a successful and profitable marketing mix, it is essential to decide the price of your product wisely. A wrong pricing strategy can lead to customer discouragement.
Understand how your customers spend money, what are their expectations, and just how much are your competitors charging the customers for similar products.
You can then decide your ideal price by taking these things into account so that you can tackle both customer satisfaction and business profitability.
For example, a brand like Zara adopts a more affordable pricing strategy while a brand like Gucci goes with a luxury pricing strategy. This gives different identities to both the brands and their products.
How to promote
When it comes to advertising, there is one important rule: Try your best to speak the language of your customers.
Choose the correct platform to market your product or service for a better conversion rate. The medium that you choose should be easily accessible to your customers, whether it is digital, tv, movies, or plain old newspapers and billboards.
If your product requires digital marketing, the digital; strategy formulated should be in line with your product and your business goals.
The 4Ps of marketing are the guiding elements for a good marketing strategy which are followed even today. It is important to ask the relevant questions about your business to get the relevant answers before you decide on your marketing strategy. Moreover, this strategy should not in any case remain stagnant. It needs to be updated and adjusted according to the growth and goals of your product and business.