The 4 Ps of Marketing Explained
Marketing your small business is critical to its success. There are so many tips and tricks out there to keep track of, however. And far too often, folks aren’t familiar with a little something called the 4 Ps of Marketing. Today we’re going to explain just what these powerhouse Ps actually mean – read on!
Essential for marketing a product or service, the four Ps of marketing are sometimes referred to as “the marketing mix.” They are as follows: Product (or service), Price, Place (where the product is being marketed), and Promotion.
Product
What do you have? When we talk about “product,” we’re talking about the good or service you’re offering to customers and clients. Your product may satisfy an existing customer demand. It may also be so groundbreaking that it creates its own demand (remember, no one thought they needed a watch anymore until the smartwatch was invented). It’s also best that you understand the life cycle of a product, which is defined as the time between a product being introduced to the public to the time it’s taken off the market. There are 4 stages: introduction, growth, maturity, and decline.
Price
The type of product you offer directly relates to how much you can charge consumers for it. It needs to be tied to both a real and perceived value. According to the website Chron, “Real value refers to how much it cost to produce the product, how useful it is to the buyer and how much value its individual components have. Perceived value is a more abstract measurement that represents how much customers feel a product is worth.” You’ve also got to take into consideration things like manufacturing costs, competitor pricing, etc., and whether or not to discount the product at any point. Remember: discounts can lure customers into a purchase, but discounts can also dampen the exclusivity of a product.
Place
We hear so much about “product placement,” especially in television shows and movies. Any time you see an actor sipping a particular brand of soda or wearing a certain type of shoes, that’s product placement—and it’s done very strategically at the hands of the companies trying to market their goods. The third of the four Ps, place is obviously where a product should be sold and how it’ll make it to market. Marketers may place their goods in certain stores or run ads on certain radio and television stations, or they may put up display advertisements on websites. The goal of “place” is to get a product or service in front of those most likely to buy it.
Promotion
Not to be confused with a sale promotion, “promotion” in the context of the 4 Ps is, in essence, raising awareness. Promoting a product’s existence and necessity to a consumer. Things like advertising, public relations (PR), and promotional strategy all come together to make this up. Promotion ties into placement very closely, given that you can’t really have one without the other.
Now that you know the four pillars are marketing, take a look at the strategy in place for your business. Small business owners can sometimes find themselves in a bind when it comes to introducing a new marketing plan. Marketing can be low-cost, but that doesn’t mean it’s free. Clients turn to ARF Financial for help getting a small business loan or line of credit. Our terms are flexible, our experienced consultants are local to your area, and we pride ourselves in making the entire loan process as seamless as possible. Stop by today and learn why businesses continue to bank on us for their success.