The marketing ‘4Ps’, otherwise known as the marketing mix, is a way of determining the marketing strategy and product portfolio.
What are the 4Ps in marketing?
The 4P marketing mix consists of four basic components:
- product,
- price,
- place,
- promotion.
Brands try to sell their products and win customers through a combination of these strategic areas. Each individual P is connected to the others and they all complement each other.
4P is not 4C
A company’s marketing strategy is a combination of these four components. It is based on the needs of the target group and the position of the brand on the market. Unlike the 4Cs, this strategy focuses on the producer as opposed to the customer. The following video explains how 4P works using a simple example – McDonald’s.
Product
The first component of the 4Ps is the product that you are selling. It doesn’t matter whether it is a physical product, a digital one or a service that you deliver. When it comes to the product, what is crucial is quality, packaging, overall design, execution and the benefits it brings.
Price
The pricing strategy depends on several factors, such as production costs, market prices, competition and product quality. The price category includes not only the pricing of the product or service, but also discounts, the time needed to pay invoices, free shipping or working to meet customer expectations.
Distribution
The third component of the 4P marketing mix is the place(ment) of goods or services. For example, businesses must decide whether they will sell the product solely through their online store or whether they will also distribute it through online marketplaces or retail chains. This also includes, for example, inventory management, warehouse location, return shipping, and so forth.
Promotion
Advertising represents all methods of communication through which a brand informs customers about its offer or activities. It includes classic as well as online advertising, PR, and the marketing communication budget.