In business, four words have long been used as the foundation for marketing plans and beliefs: product, place, price, and promotion (Marketing Mix or 4Ps). As a small business owner or aspiring entrepreneur who wants to grow your business, you need to know what the Marketing Mix 4 P’s mean so you can leverage them for continued success. Let’s start by taking a quick look at what defines each of these concepts within the marketing mix.
The product element refers to the tangible value you create through your goods or services, the actual value you provide to your customers. It is often defined by an equation, such as product = quality x price. A customer’s perception of value is also a key element of the marketing mix.
The place element of the marketing mix refers to how people get access to and acquire your products and services and where and when they do so (the distribution channels). The channel might be the physical store or showroom where your products are sold, or it could be a virtual venue such as Amazon.com. It could even be the way you share information about your product and its value with potential customers through marketing and advertising channels.
A fundamental aspect of business, the price element, refers to how much customers will pay for your products and services. This includes the list price of products, special discounts, and coupons, how much you charge for shipping and handling, etc. It is also a question of value for many businesses, sometimes referred to as “what’s in it for me?”.
The promotion element is what you do to let people know about the products and services you provide, often through an integrated marketing communications plan. While you can single out a particular activity in order to conduct a promotional campaign, it’s important to note that the promotion element of marketing is not limited to just advertising. It can also include activities like public relations, direct mail, and social media.
If you want to succeed in business, it’s essential to know what each of 4P’s of the Marketing Mix means and how they work together. While the 4Ps are considered foundational pillars in the marketing mix that every business owner should understand, when used effectively, they can help your small business or product stand out from similar products and services offered by competitors.
Ideally, you will learn how to use the 4 Ps as a framework for strategic marketing decisions that will help you achieve your goals, create an effective marketing plan and communicate your company’s or product’s unique selling proposition.