If you’ve studied marketing, you’ve probably heard of the four Ps of marketing – product, place, price and promotion. You’re also probably wondering if they are still relevant in this fast-changing world we currently live in. They are still important but they’re changing. Several marketers suggest that additional P’s make sense.
The Traditional Ps
Product refers to the good or service that your company offers to its customers. Businesses need to understand the product life cycle and develop plans to manage through the stages. You should understand the problem that your product or service answers to your customers. This will help you develop a unique selling proposition. There is a lot of pressure to get this P right because consumers are very knowledgeable and they’re only a click away from finding information about your competitors on the internet.
Place is where you sell your products and how they’re delivered to the customer. Place has taken on a bigger role with the introduction of e-commerce. Placing your product on Amazon can help you reach many more customers, but you need to take into consideration how your other distributors might react. You should also consider if your strategy is to demonstrate scarcity to drive up prices. Placement doesn’t just include where your product is sold, it includes where it is displayed in a store or what section you find it online. It can refer to placement on television shows, but this can also be considered part of a promotion.
Price is what a consumer is willing to pay for the product or service. Pricing is also more dynamic in this world, where information is just a tap away from every consumer. Marketers must consider the product’s perceived value in addition to the real costs. A business needs to understand how the customer perceives the product. A product that has a high perceived value can be priced above the actual monetary value. Pricing can also be affected by competitor actions, supply chain costs and distribution plans. It is also important to look at discounting strategies. We all know a few brands or outlets where we are no longer willing to pay the retail price.
Promotion is the fourth P in the four Ps of marketing and it includes advertising, public relations and sales promotions. Promotion helps a consumer understand why they need your product and how much they should pay for it. Promotion is as much online as it is offline today. Promotion and placement are often tied together. Businesses need to meet their client where that client lives which can be on their iPhone or reading a magazine. With all the options available to consumers, it can be difficult to determine the best promotion strategies for your product.
Several marketers argue to add Ps including positioning, physical evidence, process and people. People play an important role in the mix. Hiring and training the right people can help grow a business. Talented and motivated people give your business a competitive advantage.
If you’d like to learn more and explore your product’s marketing mix and the four Ps of marketing, we’re here to help. Contact Outlook Business Solutions to find a professional that can help you build your strategy to maximize profits.