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Glossary keyword - Four P's of Marketing

Four P's of Marketing

Four P's of Marketing is a fundamental component of marketing. When businesses decide what it is that they are going to Produce, how they are going to Place it, Price it, and most importantly, how to Promote it. This is the consideration of the elements of the marketing mix or Four P's of marketing. The Four P's consist of the product, the place, the price as well as the promotion. 

We are going to talk about those individually and learn what purpose they have. We will learn what companies have to consider when they are choosing one particular category over another. 

The Product

What the product refers to is the tangible product or the actual service itself. The difference between a product or service is that the product is typically something you can hold in your hand but not services. Services are also usually provided and consumed at the same point and time. For example, if you want to get your car's oil changed, your vehicle would have to be present, and you could not store that service for a later date. Not only will you have to take part in the delivery of the service, but you would also have to consume it by the time it was delivered. A product does not only refer to actual good or service, but we also talk about the packaging, talking about the warranty, brand name, company's image as well as the assistance provided after the sale. Now the product piece is the first component of the four P's of marketing. It is challenging to determine price strategy, knowing how to place and promote it unless you know what the product is. This is why a product is the first component of the marketing mix.

The Place 

Marketers also have to consider what we call a place. Place refers to distribution. What businesses are trying to do is making sure that their products are available when and where the customers want them to be available. Entrepreneurs should consider geography, the location to make products available in convenient locations. So how do businesses decide to get their products or services that they provide ultimately to the end-user? There are some things companies can do. For example, they can engage in what we call "direct distribution strategy," and what this involves is that companies sell the products directly to the customer. Maybe they sell on their website and ship the items directly to the consumers. This might depend on what companies are trying to achieve. Another option is that they can engage in the traditional retail model in which they partner with a particular retailer to sell their products. 

The Price 

The next thing we have is our price. The price is essentially what a buyer must give up to obtain the product or service. The price is the most flexible among the others because it is effortless to change the price and instantly have an effect at the store level or on the website. But that does not mean the price should be manipulated very often. One of the things the companies consider is that prices usually a gauge for product quality. When consumers don't have some fundamental background of the product itself, they will typically rely on price. 

The Promotion

Last but not least, promotion is what companies use to either inform, educate, persuade and even remind customers that their products and services are better or reminding them of different benefits and features. Sales promotions, which typically take the form of discounts and coupons and different things, promotions are designed to get people to make an immediate purchase. They are designed to get them from the stage in which they were evaluating products to taking action and buying.


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