Understanding the Four Ps of Marketing

As a marketing major in college, the "marketing mix" was drilled into our heads. This mix, often referred to as the foundation of all marketing principles, easily sets the stage for anyone who wishes to understand what forces drive consumer behavior in the market. The marketing mix, also known as the four P's of marketing, consists of four main principles - product, price, place, and promotion. Whether you are a marketing student or a business owner looking to grow your company, understanding the marketing mix is an important place to start.

Product

Successful marketing always begins with your product. The goal is to create a product that your customers want and that is superior in some way to its competition. When developing or reevaluating a product or service, first find out how the public feels by conducting a survey or focus group. After all, what really matters most is how your consumers perceive your product. Use the opportunity to learn ways that your product can improve or gain an edge over the other competitors in the market.

Price

Product pricing can greatly affect your success in the marketplace. While you might make a larger margin per unit, you will sell fewer items if your price is too high. On the other hand, low pricing may lead to a company's inability to keep up with market demand. To ensure appropriate pricing, research how much other similar products or services are sold for. Using this as a guide, find out what price will give your product a leg up on the competition.

Place

Place refers to the placement of the product or service within the market. This is one of the hardest of the four P's to understand since it can mean several things. Primarily, placement refers to how the product will be accessible to consumers. For example, a luxury watch maker might partner with a high end department store to be the sole distributor. It can also refer to a companies target market. A good example of this is a hair care line that is `sold exclusively to licensed cosmetologists.

Promotion

The promotion stage is where the rubber meets the road. It is a crossroads where marketing meets advertising and sales. The focus here is to enhance consumer awareness, generate positive perceptions, and increase sales. In this stage of the marketing process, there are too many possibilities to mention. Some companies prefer to promote their product or service by using expensive advertising methods, some drive their promotions with a sales team, and others use a combination of the two.

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