Understanding the

Marketing Mix Concept – 4Ps

Prepared by: Divine Grace M. Jasa

BSBA Mktg. Major

Marketing 101

Understanding the Marketing Mix Concept – 4P’s

What is marketing?

The definition that many marketers learn as they start out in the industry is:

Putting the right product in the right place, at the right price, at the right time.

Marketing is simplistically defined as ‘putting the right product in the right place, at the right price, at the right time.’

Though this sounds like an easy enough proposition, a lot of hard work and research needs to go into setting this simple

definition up.

The marketing mix is a crucial tool to help understand what the product or service can offer and how to plan for a

successful product offering.The marketing mix is most commonly executed through the 4 P’s of marketing:

Price, Product, Promotion, and Place.

Understanding the Marketing Mix

"Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the

whole process of bringing a product or service to market.

The first of the Four Ps of marketing is product.

a.) Product – defined as a good or service that satisfies some wants and needs of customers.

A product can be either a tangible good or an intangible service that fulfills a need or want of consumers. Whether you

sell beverages or any food products, accessories or offer gadgets that provide luxury accommodations, it’s vital that you

have a clear grasp of exactly what your product is and what makes it unique before you can successfully market it.
(USP) Unique Selling Preposition

The factor or consideration presented by a seller as the reason that one product or service is different from and better

than that of the competition. This is especially important when your product or service is similar to those around you.

Very few businesses are one-of-a-kind.

Service is a broad category of marketing strategies focused on selling anything that is not a physical product.

 lack physical form;

 they cannot be touched or held.

 value derives from consumption or

 experience

b.) Price – the amount of money a customer is willing to pay in order to acquire a product or a service.

Pricing strategy refers to method companies use to price their products or services. Almost all companies, large or

small, base the price of their products and services on production, labor and advertising expenses and then add on a

certain percentage so they can make a profit.

There are several different pricing strategies, such ;

1.Penetration pricing is a common strategy often used for new company or product launches.

The intent is to attract reach a wide fraction of the market and initiate word of mouth ..

2.Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first,

then lowers the price over time. A company sets its prices high to quickly recover expenditures for product production

and advertising

3.Psychological pricing is the practice of setting prices slightly lower than rounded numbers, in the belief that

customers do not round up these prices, and so will treat them as lower prices than they really are. This practice is based

on the belief that customers tend to process a price from the left-most digit to the right, and so will tend to ignore the

last few digits of a price.

4.Discount Pricing Strategy

Businesses use discount pricing to sell low-priced products in high quantities. With this strategy, it is important to cut

costs and stay competitive. During a short-term discount period, more units are sold, allowing the company to decrease

inventory and temporarily raise revenues.

c.) Place-this strategy plays a fundamental role in the marketing mix of a product or service. Place strategy outlines how

and where a company will place its products and services in an attempt to gain market share and consumer purchases.

This component of the 4Ps is sometimes referred to as the distribution strategy and may include stores, both physical

and online, and any other means by which the company can reach customers.

Place or placement has to do with how the product will be provided to the customer. Distribution is a key element of

placement. The placement strategy will help assess what channel is the most suited to a product. How a product is

accessed by the end user also needs to compliment the rest of the product strategy.

d.) Promotion is the aspect of marketing that involves delivery of company, brand or product messages to target

customers. It also refers to the act of communicating the benefits and value of your product to consumers. It then

involves persuading general consumers to become customers of your business using methods such as advertising, direct

marketing, personal selling and sales promotion.

Traditional Media

Traditional mass-media advertising remains a prominent promotional tool for marketing. This includes paid

messages designed and presented through television networks, radio stations, newspapers and magazines.

Additionally, companies use support media in ongoing campaigns, such as billboards, directories, buses, aerial and

point-of-purchase displays.

Other forms of Traditional mass-media advertising;

1.Billboards- present large advertisements to passing pedestrians and drivers. Typically showing witty slogans and

distinctive visuals, billboards are highly visible in the top designated market areas.
2.Bus Advertising- is a medium commonly used by advertisers to reach the public with their message. Usually, this

takes the form of promoting commercial brands, but can also be used for public campaign messages.

3.A point-of-purchase or POP display is marketing material or advertising placed next to the merchandise it is

promoting. These items are generally located in the checkout area or other location where the purchase decision is

made. More commonly abbreviated to POP by retailers.

Digital Technology

The Internet and mobile technology have enabled use of a host of digital and interactive promotional tools. Online

and e-mail marketing are common elements of promotional campaigns. Social media and blogs offer additional

interactive tools that companies can use to reach consumers directly.

Personal selling is where businesses use people (the "sales force") to sell the product after meeting face-to-face

with the customer. The sellers promote the product through their attitude, appearance and specialist product

knowledge.

Events

Sponsoring major events and community activities serve as promotional opportunities for companies as well.

Small businesses often gain public favor by active involvement in local events. A presence at local fairs, non-profit

events and school functions can all improve your rapport and goodwill with the communities in which you operate

your business.

To conclude,I hope this quick overview of the 4 Ps of marketing provides some insight into a critical aspect of

successfully taking a product or service to market. Clearly defining product, price, place and time must all be

considered when developing a marketing strategy for any product or brand. Whether dealing with a startup or an

established business, balancing these four elements is the key factor to success.