Marketing Mix: Understanding the 4 Ps of Marketing

The marketing mix refers to the four Ps of marketing (product, price, promotion and place). This model helps brands promote new or existing products and services. Companies can effectively reach and communicate with their customers by using all Ps cohesively, increasing sales and customer satisfaction.

Fast forward to today, and the marketing mix is one of the most well-known models for marketing strategies and campaigns worldwide. Understanding the marketing mix, the 4 Ps and how to use them will help companies advertise their offerings more successfully.?

What Is the Marketing Mix?

The marketing mix is a set of actions or strategies companies use to advertise brands, products and services. Often, a company’s marketing mix will include pricing, promotions, locations and other features that differentiate itself from competitors.?

What Are the 4 Ps of Marketing?

The four Ps of marketing are the basic concepts necessary to organize and launch any effective marketing campaign . With all four Ps working together, a company can easily define its offering to the public and highlight how it meets demand.

Here is an explanation of each component in this model.

Product (or Service)

The product or service is simply what the company wants to sell to satisfy its customers. This offering could be tangible or intangible.?

Most importantly, the product often fills a market gap or offers something other products don’t.?

Price

A product or service’s price is vital, as customers may not want to purchase if the price seems too high or too low. Setting a price that represents current trends and considers the target audience must be a priority, but prices may vary based on supply and demand.

Promotion

How can you reach the right audience with the right message at the right time? Katrina Kibben , founder and CEO of Three Ears Media, explains that “marketers try to get 1% of the world to know about a brand ,” and spending time on the most crucial efforts to stand out is the optimal way to do this. Promotion is the best option to connect with consumers.

Promotion informs others about the offering to help showcase how it satisfies needs or wants. Additionally, a strong promotion will entice customers to choose one brand over others through popular channels, such as social media , email marketing or word-of-mouth.?

Place

Place refers to where and how customers can make a purchase. Companies may also disclose information on where they manufacture or store their products.

This part of the marketing model may also consider where a company may advertise a product or service (e.g., radio, banner ads, television, billboards, etc.). When companies choose locations to advertise and promote their product, they must consider where their target audience will most likely see that content.?

Why Is It Important to Understand the Marketing Mix?

The marketing mix is a model that marketers use when explaining why their product or service is the best option. It helps people plan, develop and implement effective strategies that generate sales. However, as the world of marketing and consumption changes, marketing strategies must also adapt.?

In more recent decades, marketing experts have introduced three additional Ps to the marketing mix. These include:

• People: Who creates, promotes or distributes the product or service?
• Process: How do you deliver the product to the customer? How is the product consumed?
• Physical evidence: How can you prove that your business is legitimate? Why should consumers trust you?

While the four Ps are more traditional and widely known, the additional three Ps may also apply to various companies’ marketing efforts.?

Further, understanding the seven Ps of marketing (along with other popular models ) will help companies in almost all industries. If a brand plans to market an offering, the marketing mix will help.

For a company to successfully implement a marketing campaign , its team should consider how these Ps work together and prioritize based on their market research. For instance, it may be wise to focus on “Product” or “Physical evidence” if most consumers already know “Place” and “Process.” This can all depend on the brand’s reputation and previous marketing successes.

How to Execute the 4 Ps of Marketing

With a better grasp of the marketing mix and the 4 Ps, you can learn how to apply these concepts to campaigns. Here are some tips on implementing the marketing mix.

Understand the Product (or Service) Offering

Knowing an offering inside and out is one of the most important parts of marketing a product or service. If a marketer doesn’t know about what they want to sell,?customers won’t trust them ?as much.?

Answer these questions to ensure you can identify and understand the offering:

• What is the point of the product or service?
• Who is the target audience?
• How large or small is the market?
• What features do people need or want?
• How is this different from other options?

Choose an Optimal Price

Factors that should go into valuation before a product or service hits the market include:

• Competitor pricing
• Costs to manufacture or distribute
• Current trends
• Product or service quality and credibility
• Brand type (e.g., luxury, value, etc.)

Companies should look at market research to see what perceived value customers place on similar products or services. From there, valuation should come from economic data regarding the target audience (i.e., their income or spending habits).

Established brands should also consider their brand archetype and how this may influence consumer opinions on whether the price for a product or service is “fair” based on market research.?

Consider Where Your Audience Shops

If your target customers mostly shop online, but you only offer your product in retail stores, it could create a disconnect. Market research should tell marketers where customers shop, which helps a product or service become more accessible and convenient.?

Products or services sold in physical locations must exist in the demographic areas where customers live and shop. Online offerings, however, should be easy to find and on e-commerce sites that the target audience already uses.?

Create Meaningful Marketing Messages

Promotion marketing concepts must appeal to potential customers and their communication styles.?

A strong marketing campaign needs a consistent message across all platforms to reach everyone within the target audience. However, this doesn’t mean advertising the product or service across every platform out there. Companies should aim to meet their buyers where they already exist.?

Depending on the product or target audience, a solid marketing strategy could be to use various traditional and digital platforms to reach customers.?

Continuously Evaluate the Marketing Mix

Marketers must revisit and adjust their marketing mix plan over time. A product or service will grow and change as it exists in the market, which means strategies that worked before may no longer have much effect. Additionally, the people interested in the offering may shift, meaning various parts of the marketing mix shouldn’t remain static.?

With all the above in mind, companies need to re-evaluate if the Ps fit together within their marketing plans. Constructing a successful marketing mix means each element works together to create a cohesive message.

Final Thoughts on the 4 Ps of Marketing

The marketing mix is an effective model to use when planning marketing strategies. The 4 Ps of marketing are useful when companies want to:

• Promote a completely new product or service
• Reinvent or relaunch an offering
• Optimize sales for a product or service

Any company planning to use the marketing mix should remember that each P works together to build a holistic plan. Companies may maximize their chances for sales and customer satisfaction by paying close attention to the main marketing mix components.?

Top Takeaways

Marketing mix: Understanding the 4 Ps of Marketing

• The marketing mix comprises the four Ps of marketing (product, price, promotion and place).
• These elements are essential when planning and executing product or service marketing strategies.
• Considering all Ps before, during and after marketing campaigns will help brands build a holistic marketing strategy that boosts sales and customer satisfaction.

(Reporting by NPD)