“Focus on the right message for the right people at the right time.” – Russell Glas.
If you are a small business, you might have come across the 4 Ps of marketing while making significant decisions or strategies.
What should you sell? How much to charge? Where to promote? or whom to target — are some of the questions which have occurred to your mind with the very idea of starting a business. Right?
To help small businesses make the right decision, experts introduced the 4 Ps of marketing, also known as the marketing mix. It is considered one of the crucial concepts for making your business grow swiftly.
In this article, we will try to understand what is marketing mix is and why it is so vital for small businesses.
Table of Contents
What is Marketing Mix?
The marketing mix is referred to as the foundation model for any business. Also known as the 4 Ps of marketing, it is historically centred around product, price, place, and promotion.
The marketing mix concept can be defined as the “set of marketing tools that businesses use to fulfil their marketing objectives in the target market”.
The term ‘marketing mix’ was first used by a Harvard Business School professor, Neil Bordon, in 1953 during his presidential address to the American Marketing Association.
The marketing mix, or the 4 Ps, refers to the four vital elements of a marketing strategy that guide the marketing initiatives, wording and positioning for a product or a particular brand.
What are the 4 Ps’ of Marketing?
In 1960, E. Jerome McCarthy proposed the 4 Ps, which Phillip Kotler later popularised. The 4 Ps’ of marketing are Product, Price, Place, and Promotion, a framework that makes formulating marketing strategies possible for companies. It is a crucial tool determining a product’s offering to the customer.
Here are the 4 Ps at a glance,
Product refers to the goods and services a company is offering to fulfil the needs and demands of the customers. So, it is necessary to analyse the life cycle and decide the strategies for every stage.
It is essential to decide how much you’re going to charge your customers for the products and services to make a profit out of the sale. But at the same time, you also need to analyse the cost of your competitors’ product or service and how far customers are willing to pay before coming up with your pricing strategy.
Also, you must think about the discounts or offers you can use to boost your marketing skill. The golden rule of pricing your product is to find that exact spot where both the seller and the buyer are satisfied. So while thinking about price, you have to think about perception.
The word ‘place’ not only defines physical locations but can also be an online e-commerce store where you have listed your products, and it refers to any platform consumers can purchase your products from. Since ‘place’ is where you market and distribute your products, marketers must select the best distribution channel to decide how quickly consumers can reach your products.
Promotion is considered to be the bread and butter of marketing. Offering an excellent product at a competitive price is necessary, but that alone is not enough.
Promotion is an essential element of the marketing mix that comprises communication tactics to inform your target segment about your products. So when it comes to promotion, the utmost important factor is to keep the word ‘communication’ in mind.
What is the Importance of Marketing Mix or 4 Ps of Marketing?
One of the most critical and popular theories in marketing is the 4 Ps of marketing. Marketers benefit from it as it helps them devise a working strategy and help them concentrate on all the significant factors related to product pricing, distribution and promotion.
To achieve a high success rate in the market, each company needs to make sure that the products are of the best quality and can satisfy the customer needs well as expected and maybe even more.
However, if you offer the best quality product at a great price point but do not make it available to the targeted group, the sales cannot occur in the marketing jigsaw puzzle. Also, without clearly letting people know about the product, the strategy remains incomplete.
So, to stand out from your competitors, carefully apply the marketing mix principles. There’s no denying that these 4 Ps of the marketing mix have become crucial in helping businesses create a winning strategy.
Since the four Ps was developed, marketing has experienced a rapid change in building strategies. By applying the marketing mix concepts, one can craft successful marketing strategies to launch and promote its products.