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A New Look at the 4Ps of Marketing

Nothing explains a complicated business algorithm like a cute mnemonic device!

Hence the 4 Ps of marketing. This is one of the first things they drill into your head in business school. Actually, in any type of formal Marketing instruction. It’s everywhere, everyone knows it, and you need to know it too.

Let’s go, 4 Ps: Product! Place! Price! Promotion! Got that? Say it again (say it out loud – it helps.) Product! Price! Place! Promotion!

Once more, with feeling! Product! Place! Price! Promotion!

Never forget these four words – they are the key to your business success. Here’s how…

Each of the 4 Ps represents one of the really, really important elements of marketing that you need to consider when developing your campaigns. Alone, none of them will do you much good. The 4 P’s need to work together.  They’re like the four wheels of a car, or the four legs of a table, or Charlie’s Angels without Bozley. If you’ve got trouble with or, (heaven forbid) are missing one entirely – you’ll have trouble getting anywhere.

So it’s easy right? Find a good product, slap a good price on it, sell it somewhere people go and throw together some promotion. Yes? No, because first you have to figure out how to define these things as “good”.  It’s all about fit. Each of the 4 Ps has to be geared towards your specific target market, and work with each of the other 4 Ps to do so.

Product

This is what you’re selling, be it a pot scrubber, e-book or car detailing service.  But it’s not just the item or service itself that’s included in the Product P. It’s also the different varieties of your product, the quality of it, how it’s designed packaged and branded. Anything that adds value to your product, any reason a customer might want to purchase it is part of Product. Obviously, it’s pretty important.

Price

You may be tempted to believe that the price of your product or service is merely the amount you charge customers when they purchase it. Dispel that notion immediately. The Price includes the retail price, any discounts or special offers, bonuses, payment plans, and credit terms. In short- anything even remotely related to money.  It makes sense when you think about it: a discount lowers the price of an item. A bonus offer also lowers the price. Credit terms and payment plans make it easier for your customers to pay the Price. All of these must be considered.

Promotion

This is what most people think of when they think of marketing. Promotion includes the advertising, the personal selling, sales promotions and public relations. Sponsoring your nephew’s little league game – that’s Promotion. Making a sales call? That’s Promotion. Handing out Brochures? That’s Promotion. Answering client emails? Still Promotion.

Place

Place is also known as distribution. How do your clients get what they’ve paid for once they’ve paid for it? Is it delivered to their door? Is right there in a retail location? Do they download it? Place also includes the logistics of each of these things. If you’re product is sold in retail stores how did it get there? How many of them are there? How soon do you need to get more there? Everything that you need to consider about how to get your product to your customer, or to a place where your customer can find it is a part of Place.

Now remember, it’s not enough to choose a good Product, Price, Place and Promotion, because we have to know how to define “good”. Let’s use an example to illustrate.

So let’s say that your seven-year-old wants to set up a lemonade stand to make some extra money. What will she have to figure out? She’ll need to decide where to place her stand, how to make the lemonade, what she should charge for it and how to let people know what she’s doing. If she came up to you and asked you how to do all of this, you’d have to tell her that “it depends.”

Where she sets up her stand depends on who she wants to sell the lemonade to; grown-ups or kids – should the stand be in the park or at the end of her driveway? Same with the recipe – how much sugar should she add? More for kids than for grown-ups, probably.  If she makes grown-up lemonade, she might be able to charge more for it because adults have more money to spend. On the other hand if she sets up her stand in the park, and sells sweet lemonade to kids, more of them will see it and she won’t have to tell people about it.

You have to know who your target market is before you make any of the 4P decisions, or you’ll be in the same mess as the seven-year-old – not knowing which course of action is best for any of the Ps. If the seven-year-old knew from the get go that she wanted to sell lemonade to other kids, she would have been able to decide right away that she should have a sweet lemonade (product) that she would sell in the park (place, promotion) for $0.10 a cup (price).

If she wanted to sell to grownups she would have her stand at the end of her driveway where lots of adults walked to and from work (place) the lemonade would be tart (product), her mom would probably tell some of her neighbors about it (promotion) and she could charge $0.25 a cup (price).

At the end of the day it comes down to figuring out your target market, and what works for them. Your offering will be perfect for some people, and those are the ones you need to reach.

Want more lessons and tips like this one? Subscribe to the Mirasee.com blog, or sign up for our FREE Seven Day “Business Fireproofing” Video Course!

 

About Danny Iny

Danny Iny (@DannyIny) is the CEO and founder of Mirasee, host of the Business Reimagined podcast, and best-selling author of multiple books including Engagement from Scratch!, The Audience Revolution, and Teach and Grow Rich.

9 thoughts on “A New Look at the 4Ps of Marketing

  1. Hi ,

     I think this is one of the nicest explanation of basic yet so important principles of marketing. The examples too have made it very clear .

    I repeat four Ps Product/Place/Price/Promotion and it is all set in my mind 🙂

    Thanks for sharing.
    Ashvini

  2. I really enjoyed this explanation of the 4 Ps! Pretty much every single marketing course I’ve taken has touched on these, but the way you’ve laid it out is so simple and clear. The example of the lemonade stand is priceless 🙂 And it really helps to drive home the point of the importance of your target and how you should market to them.

  3. I love the videos you guys produce. They are simply unbelievable. You two take the use of videos to the next level.

    This particular course was great. It reminded me of a marketing class I took in college where a young professor was teaching this very lesson. She was very caught up in delivering the theoretics behind the 4 P’s, but when I asked for her to give a couple of examples – she couldn’t. In fact, she asked me to stay after class and went on to say that she felt attacked. All I did was ask for some examples because that’s how I learn best. She took offense because she couldn’t offer a simple examples.

    You two provided that simple example – in two different formats helping to drive the importance of the 4 P’s. Without the examples – the message would have went in one ear and out the other. Thanks for taking the time on this guys. I really really appreciate it and look forward for more.

    Have a great weekend!

    • Hey Jk, thank you for your kind words – I’m really glad you enjoyed it!

      That’s really a shame – I had a professor like that years ago, and I still remember her (very negatively) – I don’t think anybody has any business being a teacher if they feel threatened by questions.

      I think in your case, she felt attacked because she didn’t really understand what she was teaching – otherwise there’s no reason for her not to be able to give examples (they’re everywhere!).

      This is very common, though – the 4 Ps is one of those things that everybody has heard of, but almost nobody understands. I find that it’s most effective when used in conjunction with the concept of a chain of conversion – for each step off the chain, if there is a problem, you’ve got to figure which of the 4 Ps is not aligned with the customer.

      Oh well – as long as there aren’t enough people out there who understand it, there will be a competitive advantage for those of us who do! 😀

  4. Danny – you guys do a bang-up job with these videos. I really enjoy them and think they make the topic fun and digestible. Awesome!

    The 4P’s, how can we forget them now? As was mentioned in some of the comments, being taught this in school years and years ago would have been better had the teachers been experienced. Most times we’re taught by those who have no real-world experience and even struggle to come up with real-world examples or reasons why we’re learning the course material.

    This isn’t a “ding” against the people. They were taught by people who shared similar traits.

    Glad to be back here, it’s been a while since I visited!

    • Jon, it’s great to see you back here – we missed you, buddy. 🙂

      Yeah, you’re right, the problem is a cycle of teachers who don’t have real world experience, who teach students but don’t foster real understanding (how could they), who then go on to teach the same theory devoid of understanding.

      I was hoping to break that cycle by becoming a teacher myself, but alas, it wasn’t meant to be…

  5. Pingback: The Ultimate Guide to Becoming a Successful Freelance Marketer

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