The four Ps are often referred to as the marketing mix. They encompass a range of factors that are considered when marketing a product, including what consumers want, how the product or service meets or fails to meet those wants, how the product or service is perceived in the world, how it stands out from the competition, and how the company that produces it interacts with its customers.
Creating a marketing campaign starts with an understanding of the product itself. Who needs it, and why? What does it do that no competitor’s product can do?
The job of the marketer is to define the product and its qualities and introduce it to the consumer.
Defining the product also is key to its distribution. Marketers need to understand the life cycle of a product, and business executives need to have a plan for dealing with products at every stage of the life cycle.
Price is the amount that consumers will be willing to pay for a product. Marketers must link the price to the product’s real and perceived value, while also considering supply costs, seasonal discounts, competitors’ prices, and retail markup.
Marketers also need to determine when and if discounting is appropriate. A discount can draw in more customers, but it can also give the impression that the product is less desirable than it was.
Place is the consideration of where the product should be available—in brick-and-mortar stores and online—and how it will be displayed.
That means placing a product only in certain stores and getting it displayed to the best advantage.
The term placement also refers to advertising the product in the right media to get the attention of target consumers.
The goal of promotion is to communicate to consumers that they need this product and that it is priced appropriately. Promotion encompasses advertising, public relations, and the overall media strategy for introducing a product.
Marketers tend to tie together promotion and placement elements to reach their core audiences. For example, In the digital age, the “place” and “promotion” factors are as much online as offline. Specifically, where a producti appears on a company’s web page or social media, as well as which types of search functions will trigger targeted ads for the product.
The four Ps are the key considerations that must be thoughtfully reviewed and wisely implemented in order to successfully market a product or service. They are product, price, place, and promotion.