Marketing Mix and the Four Ps

It could very easily be the most famous term in marketing and one of the first concepts learned by marketers.  It is also known at the Four P's each representing one tactical component of price, place, product and promotion within a comprehensive marketing plan.

After all what is marketing if it is not putting the right product in the right place, at the right price with the right promotion?

You need a product that people want, offerer for sale in a place they frequent, at a time when they want to purchase, at a price they feel matches the value they will receive from it.

It is simple right?  Well at least the idea is.  It takes an enormous amount of work to actually identify what it is that the people want.  After you do that you still need to figure out where it is that they do their shopping.  In addition you need to produce the product at a cost they find value with.  And then make it all come together on time.

Get just one element of the mixture wrong and it could mean disaster.  If the price is too high it will not sell and if too low it will not be profitable.  No one wants text books after the start of the school year.  By working through the marketing mix you can avoid these mistakes.

The marketing mix as first expressed in 1960 by EJ McCarthy is your recipe to the success of your product.

Product / Service

The product is simply what is produced and offered for sale.  It could also be a service.  An example might be an automobile or laptop computer.  There are a few things that you need to take into consideration when developing your product.

• How will you differentiate your product/service from your competitors?
• What will your product/service be called?
• How will the product/service be branded?
• What need or use does the consumer need the product or service to satisfy?
• Does it have the features needed to meet consumer's expectations?
  • Have you included expensive features that are not needed or wanted?
  • Have you included all the features that are needed to meet expectations?
• Does the cost of the product meet the expectations of consumer value?

Place

This represents that location where your customers will be able to purchase the product or use the service.  Another term associated with it sometimes is distribution channel.  It can be a physical location, but could easily be an online store.  When considering place you should keep the following in mind.

• Where will your customers seek out your product or service?
  • Is it online, in a store, via a catalogue or in a supermarket?
• Will you have channels to distribute your product?
• How do your competitors distribute products and can you differentiate yourself from them?
• Will you need a sales team?

Price

Made up of several factors price is really what a customer perceives the value of the product to be.  Factors that make up price include the cost of materials and production, competition, branding and your share of the market.  When setting price your business should consider the following.

• Where are you priced in comparison to your competitors?
• Will you offer discounts to any segment of your market such as tradesman?
• How sensitive to price are your customers? Will it be more profitable to lower prices to gain extra market share?
• How much demand is there for your product or service?
• Most importantly - how much do your customers value your product or service.

Promotion

The promotion piece represents how the marketer communicates within the marketplace in promoting the product or service.  There are four basic areas, those of point of sale, word of mouth, advertising and public relations.  Using all four areas of promotion will create a certain amount of crossover.  Here are some highlights for creating a campaign.

• Determine where and when to take your message to your customers.
• How will your each your target market? With television, radio, newspaper, billboards, direct mail marketing, press releases or internet marketing. There are endless possibilities.
• The timing of your promotion is important. Is your product seasonal such as trees or are there any environmental issues that affect your products sales?
• Where and how are your competitors promoting themselves? Will this affect how effective your promotions are?

The marketing mix model of the 4Ps just outlined is only one of several such lists which have been developed over the years.  No matter the model used, they are intended to provoke thought and probing into the core elements which lead to a successful product launch or re-launch.

Another version of the marketing mix is based on 7Ps developed by Boom and Bitner.  They use the original 4 and add people, processes (the customer experience such as Disney World) and physical layouts (examples include facilities or uniforms).

Implementing the Marketing Mix

After reading through the principals of the marketing mix, you are probably wondering where to start.  It can be used on either an existing offer or when bringing on a new product or service.  Start with the outline below.

• Decide on the product or service you need to examine.
• Keeping your product or service in mind answer the questions that relate to the 4Ps which we already covered.
• In addition to the 4Ps ask yourself questions that start with "why" or "what if". Examples would be what if I offered my product in different sizes? Why is it offered in seven colors? You want questions that really challenge your strategy and force you to analyze every aspect of your product. Your answers to these questions should be well researched and factual.
• Test your theories and offers on the target market to measure the response.
  • Do the products features meet the customer's needs?
  • Is the product available where the target audience shops?
  • Does the price represent a good value to the consumers?
  • Do your promotional methods get through to your target audience?
• Based on your answers repeat the marketing mix process until you have a program in place which based on facts is likely to be successful.
• External factors change with time so you need to regularly review your marketing mix to remain competitive in the marketplace.

Consistently using the marketing mix to develop new products and evaluate existing offers will help you to effectively manage your line.