The Fundamentals Always Matter
Somewhere along the way, perhaps in school or the business world, you’ve learned or heard about the “4 P’s” of marketing – Product, Place, Price, and Promotion. They are the core fundamentals of any business strategy. Yet, while the 4 P’s are crucial elements of a holistic marketing approach, a lot of folks like to rush right to the 4th P (where all the fun happens): Promotion.
The reality is that you need all 4 P’s working synergistically to effectively differentiate your brand from the competition and put sales records up on the board. So, let’s explore the 4 P’s and why you need all of them to create and execute an effective marketing strategy in the 21st century.
What Are the 4 P’s of Marketing?
- Product: The product is what your company sells, whether a product, solution, or service. Product is focused on understanding what your offering requires to stand apart from competitors and win over your customers. This might include developing and testing new products in the market, modifying or upgrading existing products to meet changing market demands, or eliminating a product or service that no longer satisfies the needs of your target market. Having a product that will fulfill your customers’ demand and be defensible in the market is crucial, first and foremost.
- Price: In its simplest terms, price is how much you charge for your offering to sell. Price can get extremely challenging, though, when linking a product’s real and perceived value – based on not only what your team thinks it’s worth – but rather up what your target market perceives and will bear. When formulating your pricing price strategy, you’ll need to consider a number of factors, such as the formulation of pricing policies, the method or methods used to set prices, determining discounts and special promotions for different types of buyers, conditions and terms of sales, and analyzing competitors’ prices (along with cost of doing doing, a favored approach for many customers). Want more insight on how to set the right price for your product? Check out the Price Intelligently blog.
- Place: Place is exactly what it sounds like, the location – identifying where to sell and market your product to get it in front of your buyers. Identify the places (both physical or digital) where your target buyers go to research and purchase your type of product or service, and make sure your product or service is there, front and center. When selecting the best places for your product, start by intimately understanding the demographics of your target buyer, where your competitors’ products are, and distribution channels (current or future) selling your type of offering.
- Promotion: Promotion is the cool part of any marketing strategy – creative messages, visuals, tactics, campaigns, and the like – that you need to capture your target audience’s interest and keep them engaged throughout the buyer journey. In addition, promotion involves your sales tactics and tools, such as developing compensation programs and incentives for your sales team, establishing sales territories, planning and implementing sales promotions, and formulating strategic partnerships and referral networks. To ensure a successful promotional strategy, make sure you’ve identified (and tested with your customers, getting their buy-in) the right messages and have content ready that speaks to the unique needs and challenges of your various target audiences.
Want to learn more about the 4 P’s? Here are a couple of great resources to delve deeper into:
- What Are The 4 P’s of Marketing? (HubSpot)
- Evolution Of The Four P’s: Revisiting The Marketing Mix (Forbes)
Forget all the hype, and let’s get back to the fundamentals. Start your marketing mission with ResultRocket!