If you are a marketing fanatic like myself, then you’ve heard about the “Marketing Mix” coined by Professor Neil Borden. If you haven’t, do not fear, we are here!
Businesses understand that in order to maintain stability and growth, marketing is a crucial element for their success. As such, the marketing mix, aka The 4 P’s, is the most effective strategy in marketing to get your business there. Essentially, it is about putting the right product in the right place at the right price.
Now that we have a basic overview, let’s dig in to what each variable means.
The first of the four P’s of marketing is product. A product can be a tangible good or intangible service that consumers either want or need. A product can simply be custom jewelry, technology services or even luxury accommodations. It is vital to have a clear understanding of what exactly your business is going to sell. Ask yourself these questions:
- What does the consumer want from this product or service?
- How is the consumer going to use it?
- Where will they use it?
- Does your product or service meet the needs of the consumer?
- Is your product or service catchy? Is it Memorable?
- How does your product or service stand out from competitors?
- What does your competitors look like?
You should always be asking yourself these questions when developing the right product.
The price of the product is essentially the amount the consumers will be paying to enjoy it. Not only is it an important component in the marketing mix, it is also key when it comes to the marketing plan as it will determine your profit margins. In some cases, businesses can manipulate a price to make a product seem more luxurious or they can lower the price to attract more consumers. Price can also be affected by competitors and how they price their products.
Place or placement decisions are where the products will be sold. Essentially, where is your target market, and how are you going to get your product or services to them? Whether it be a business store front, warehouse or an eCommerce site place must always be considered for the success of your business.
Ah, my favorite, good ol’ promotion. Sometimes, businesses think that the sole definition of promotion means “discount price” or “cheaper.” It is that and more, sure you can have a product that is $100.00 and mark it down to $50.00 and expect to sell out. But how are you delivering that message to your consumers? Promotion encompasses different variables like:
- Sales Organization (implementing a strategy designed to increase market share, maximizing profits and increasing sales)
- Public Relations (press releases, exhibitions, conferences, trade shows or events)
- Advertising (direct advertising, media, radio, product placement, visual display etc.)
- Sales Promotion (incentives, mark downs, clear outs or cross promotion)
The combination of promotional strategies and promotional marketing is what makes your business a reputable company.
Hopefully this quick overview of the 4 Ps provide some insight into a critical aspect of successfully taking a product or service to market.