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Understanding The Importance Of 4 P’s Of Marketing Mix

The ultimate goal of every marketing is to make sales. The marketing mix combines factors that can make this goal a success.

The marketing mix otherwise referred to as the 4P’s of marketing is a one of the marketing strategies that ensures a business create a favorable marketing plan that will serve the interest of its consumers. In that same light, many schools of thought also have 5P’s and even 7 P’s of marketing mix. However, irrespective of the number of “Ps”, the idea is to make sure you incorporate all your business needs in the proposed mix to ensure sales.

A typical Market consists of four parameters which includes; the product or service to be marketed, the marketer, the buyer and a place for transaction. These parameters and how they interact defines the marketing mix.

Meaning that you will need to monitor the part you play as the marketer, access the product you are marketing to know if they actually meets the customer taste. Finally, to create a compelling price, place or product integrity that the customer can never resist. This is simply the idea of the marketing mix.

The 4P’s of marketing mix

These includes;

  1. Product
  2. Price
  3. Place
  4. Promotion

Product

The product as used in the marketing mix entails both products and services a business renders in an exchange for money. Therefore, this item is what serves the interest of a customer. Hence, the condition of the product or services a business offers is the cornerstone of every marketing endeavor.

So, a good marketing analysis tries to pay attention to every product detail such as; Packaging of your product or services, the quality, the availability, design, features, variety, competition, alternatives, acceptability e.t.c.

Consequently, a business should consider a product or service as not just an item but a solution to a customer’s need. Therefore, the customers perception, review, criticisms and choices are to be considered when developing or improving on a product. So, business may use any of the marketing analysis tools to discover the chances the product have in the market when marketing.

For example, SWOT analysis of a product can reveal the Strength, Weaknesses, Opportunities and Threats of a product or service when you weigh it against a strong competitor or standard.

Price

The price of a product/services is the amount that a buyer is willing to sell and at the same time the customer is ready to pay in exchange of a commodity. Therefore, price of a product are not set arbitrary, meaning, both the marketer and the consumer are to agree to the price.

In that case, a good price of a product is centered on utility. Utility simply means the satisfaction a customer gets from a product when compared to the cost of the product. So, the question is, “is the cost equals to utility? As a result, a good price should commensurate to the product or services you render in other to make sales.

Also when fixing price for a product or services, you have to consider the prices of alternative products, the effect of the change in price on your demand and supply curve and how much customer you will loose or gain because of a price change.

In addition, price in 4 P’s of marketing mix also takes in account discounts, allowance, flexibility of payments or any other monetary factors that can influence the sales of your product.

Summarily, proper analysis on these monetary factors that influence a business is as good as the business itself.

Place

When you hear place as one of the factors that influences a market, it may just sound as a location for the business. But, place in marketing mix means more than that.

In fact, place matters a lot because it includes all special conditions and arrangements that makes a business transaction swift and easy for both the seller and the customer. Such conditions includes;

  • The area of coverage of the business
  • Transportation and conveyance of goods and services
  • Logistics and supply chain
  • Channels of distribution.
  • Location for the business transaction
  • Availability of the services and goods

For example, a good location for business indirectly or directly plays on the buyers psychology regarding the integrity of the business.

On the contrary,most people believe you can market at any place and with any opportunity you get. But, this is not true in all cases as most potential customers feel abused when you talk business to them at a wrong place.

Therefore, incorporate and design “place” as an object when drawing a marketing plan.

Promotion

A business not known does not exist. Therefore, the part promotion plays in marketing can never be over-emphasized.

Promotion in this context means all activities that gets the products to the public which includes public awareness, advertisements and personal selling.

Basically, there are 2 main methods of marketing, which are; offline marketing and online (Digital) marketing. These two are all equally important and helps to create awareness and build the integrity of your products and services.

The offline includes; bill boards, flyers, stickers, advertising jingles e.t.c while in online promotion of products is a bit complex and comprises of terms like;

Again, the promotion analysis have to answer questions like; Is my advertisement targeting the right customers? how can i improve the awareness on my product and services? who needs to see the new packaging of my product? e.t.c.

Business analysis with 4P’s of Marketing Mix

As mentioned earlier, there are so many types of business analysis tools that can help you access the wants of your customers. However, the uniqueness of the 4P’s of marketing mix is that they point out directly to factors that needs the analysis. In other words, these 4P’s are objects of a business to be analysed and at the same time an analytical tool.

That is to say that the marketing mix can be analysed using any of the business analytic tools.

Example, a business can decide to analyse the element of “Price” using the PESTLE analysis.

In that light, you can easily spot how Political, Economical, Social, Technological and Legal factors can affect the cost of your product.

Also, you can use SWOT analysis to compare these elements with that of a competing company.

In summary, these 4P’s of marketing mix is essential for every business and plays a great role in determining the marketing potential of a business. Therefore, if properly done has a great effect on the sales of the product and services.

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