Marketing Mix: The Four Ps of Marketing
The marketing mix describes the choices your business makes during the process of bringing a new product to market. The primary elements that define your marketing mix are the four P’s: Product, Price, Promotion, and Place.
Your product is a tangible good or intangible service that addresses consumers’ needs or demands. When you’re deciding how to market your product, it’s important to know exactly what it is and what makes it stand out from your competitors.
When you’re determining how to best present your product to consumers, consider the following questions:
- What do consumers want from my product?
- How and where will consumers use my product?
- What needs does my product satisfy?
- What features does my product include to meet those needs?
- Have I missed any features?
- Am I including any costly features that consumers won’t use or don’t want?
- What will my product be called?
- How is my product different than my competitors’ products?
These questions will help you ensure that you’re creating a product that consumers will want to buy. They’ll also help you determine the best way to present your product to highlight its key features.
The price of your product determines your company’s profitability.
When you’re deciding how to price your product to be competitive (but also profitable), consider these questions:
- What is the value of my product to the consumer?
- What is the perceived value of my product?
- Are there established price points for similar products?
- Are my customers price sensitive?
- Will a small decrease in price give me extra market share?
- Will a small increase in price be unnoticeable and increase my profit margin?
- What discounts should I offer to different segments of my market?
- How does my price compare to my competitors’ prices?
When you’re considering your promotion activities, consider the following questions:
- Where can I promote my product to consumers?
- Will I reach my audience by advertising online? In print? On television? On the radio?
- When is the best time for me to promote my product?
- Is there seasonality in my market?
- Are there wider issues that dictate the timing of my product launch?
- How do my competitors promote their products?
Your product must be in a place where customers can access it.
When determining where to place your product, consider these questions:
- Where do consumers look for similar products?
- What kind of store would my product do the best in? A boutique? A supermarket? Online?
- Do I need to use a sales team? Do I need to attend trade shows?
- Where do my competitors sell their products?
- How can I differentiate my product placement?
After you’ve defined your marketing mix using the four Ps, test your overall plan from your customers’ point-of-view. Ask yourself these questions:
- Product – Does the product meet customers’ needs?
- Price – Do customers think the product is priced favorably?
- Promotion – Will my communications reach consumers?
- Place -Will customers find the product where they shop?
Continue to adjust your marketing mix until your product is positioned successfully.