Other Related info about 4PS of Marketing

A marketing strategy is a plan for the best use of an organization's

resources to meet its objectives. Developing a marketing strategy involves
selecting and analyzing a target market and creating and maintaining a
marketing mix that will satisfy the target market.

Marketing strategy has two interrelated components: the target market and
the marketing mix.

The target market is a fairly homogeneous group of people or

organizations to whom a company wishes to appeal.

The marketing mix is one of two interrelated components of a marketing

strategy. Marketing mix strategy is choosing and implementing the best
possible course of action to attain the organization’s long-term objectives
and gain customer bonding and competitive advantage. Marketing mix,
more popularly referred to as the 4Ps of marketing is a set of controllable
and interrelated variables composed of product, place, price and
promotions that a company assembles to satisfy a target group better than
its competition.

What Are the 4Ps of Marketing?

The 4Ps of marketing is a model for enhancing the components of your

"marketing mix" – the way in which you take a new product or service to
market. It helps you to define your marketing options in terms of price,
product, promotion, and place so that your offering meets a specific
customer need or demand.
The marketing mix and the 4Ps of marketing are often used as synonyms
for one another. In fact, they are not necessarily the same thing.

"Marketing mix" is a general phrase used to describe the different kinds of

choices organizations have to make during the process of bringing a
product or service to market. The 4Ps is one way – probably the best-
known way – of defining the marketing mix, and was first expressed in
1960 by E. J. McCarthy in his book, "Basic Marketing – A Managerial
Approach." [1]

SOURCE

(1) https://gebexplain.blogspot.com/2017/02/understand-two-major-
components-of.html
(2) https://www.mindtools.com/pages/article/newSTR_94.htm

While today’s marketing environment has changed significantly since the 4

Ps were established in 1960. By continuing to focus on the 4 Ps and how to
use them within the framework of the digital age, marketers can be
successful no matter the circumstances.

The 4 Ps of marketing include product, price, place, and promotion. These

are the key elements that must be united to effectively foster and promote a
brand’s unique value, and help it stand out from the competition.
Jerome McCarthy first proposed the modern form of the 4 Ps in his 1960
textbook, Basic Marketing: A Managerial Approach. These elements have
since provided a standard method to describing marketing programs for
over 50 years.

But what makes the 4 Ps of marketing so important that they have

withstood the test of time, including the growth of the internet age? Below
we break down each.

1. PRODUCT

A product refers to any item that intends to satisfy the needs and wants of a
target customer. It can be a tangible good, such a clothing item or piece of
software, or intangible, like a service or experience (think legal services or
a cruise).

Marketers must always have a clear concept of what their products stand
for, and what differentiates them from the competition, before they can be
marketed successfully. Today, the internet can be considered either the
medium for purchase, via e-commerce, or the product itself, such as a
social media service. 

Some key questions that marketers need to answer include:

 What do customers want from your product/service? Does it satisfy

their needs? 
 What features of your product/service work to meet your customer’s
needs? Have you missed out on any features?
 How and where will the customer use it? 
  How will the customers experience it?

2. Price

The price of a product directly influences sales volume and, consequently,

business profits. Demand, cost, pricing trends among competitors, and
government regulations are crucial factors that determine pricing. Price
usually reflects the product’s perceived value rather than its real value. This
means that pricing can be increased to promote exclusivity or reduced to
create access.

Price not only refers to the monetary value of a product, but also the time or
effort the customer is willing to expend to acquire it. Determining this will be
a critical factor in revenue for the brand as it will impact profit, supply,
demand, and how much marketers should spend on a promotion or
marketing strategy. This, in and of itself, is why this ‘P’ is one of the most
important. If a product is priced too high or too low, the product – and brand
– could fail.

Some key questions that marketers need to answer include:

 What is the value of the product or service to the buyer? 

 How will your price compare to competitors? 
 Are there any possible established price points for the product/service
in this area?

3. Place (or Distribution)

Place involves choosing the place where products are to be made available
for sale. The internet age has introduced new challenges when it comes to
reaching your customers. Place refers to providing customers access to the
product, and it also calls into play convenience for the customer. Marketing,
through digital means or otherwise, is about putting the right product, in the
right place, at the right price, at the right time, in front of the customer.

Some key questions that marketers need to answer include:

 Where are target customers shopping?

 Are they using desktops or mobile devices?
 Are they shopping for similar products online, or in brick-and-mortar
stores?
 Where are they engaging on social media?

Even though transactions with your company may take place exclusively in-
store or online, customers likely interact with your brand or your specific
products in a variety of places. It’s important to consider how each of these
places influences the overall customer experience.

4. PROMOTION

Now, how to make an audience aware of the product? Within the

framework of the four Ps, promotion refers primarily to marketing
communications.

These communications use channels such as public relations, advertising,

direct marketing, email marketing, social media marketing, or sales
promotions; think of it as any way marketers disseminate relevant product
information to their target customers.

Promotion is the area that has arguably seen the greatest growth and
change as a result of the digital age. With the exceptional access offered
by B2C marketing solutions, marketers can now promote products easier,
more effectively, and with more personalization than ever before, thus
leading to greater outcomes and ever-increasing expectations.

The primary aim of promotion is to spread awareness about the product

and services offered by a company. It helps in persuading consumers to
choose a particular product over others in the market. Promotions have
four components called, Promotions Mix, as follows:

a.) Advertising: A means of selling a product, service, or idea through

communicating a sponsored, non-personal message about the
product. The goal of this is to effectively inform, persuades, and
reminds the target market.
b.) Public relations: Involves management and control of the flow and
matter of information from one’s organization to the general public or
other institutions. Its goal is to offer positive image of the company
and the brand.
c.) Selling: the art of persuasion, is defined as a one-on-one interaction
whereby a tangible or intangible item of value is exchanged for a
different item, usually with money in an amount of equal or greater
value of the item being sold. Selling is part of the promotional mix. It
is systematic, repetitive, and measurable. When properly analyzed,
 sales data will offer objections to overcome and help to predict sales
patterns and projections.
d.) Sales Promotion: is any undertaking by an organization designed to
increase sales or encourage the use or trial of a product or service.
Sales promotions take many different forms, but they all focus on
Sales promotions can be announced over free channels like social
media, email, or your website; or they can be the focal point of your
paid advertising campaigns such as with LinkedIn ads or Google Ads.
An effective sales promotion uses imagery, effective copy, and logic
to appeal to the needs, values, and emotions of your target audience,
and invites them to purchase your products or services with an
incentivizing offer.
e.) Merchandising as another component of promotion mix.
Merchandising aims to extend advertising messages at the point of
purchase by generating superior presence of the store.
Merchandising is the practice of promoting products that are available
for retail. It entails selecting promotional tools available to both the
manufacturer and the retailer – dubbed as a promotional mix.
Merchandising strategies include personal selling, sale promotion,
marketing strategies, creating coupons, and discounts. More broadly,
merchandising may refer to in-store or on-store promotion other than
personal selling meant to promote purchasing behavior.

Marketing strategy: Involves identifying the right target market and using
tools such as advertising to penetrate the said market. Promotion also
includes online factors such as determining the class of search functions on
Google that may trigger corresponding or targeted ads for the product, the
design and layout of a company’s webpage, or the content posted on social
media handles such as Twitter and Instagram.
Some key questions that marketers need to answer include:

 How will you reach your target audience? 

 Where will you send your marketing messages to your target
audience? 
 How does your competition promote their product? Does that
influence your own promotional activity? 
 When is the best time to promote?

For service industries, three additional Ps are added to further address the
higher degree of contact required by their target market to deliver the
intended performance or experience offerings.

5. Physical Evidence- this element relates to the physical properties of

the services and the tools used to market the service offer. With tangible
products the customer can actually touch the product, a physical object that
they can interact with before a decision has been made on whether it
meets their needs and ultimately should they purchase the item or not. With
services, and their intangibility, this is not possible. This can be particularly
problematic when dealing with a customer who has not used the service
before. The customer will use other physical signals as evidence in
evaluating the service providers offering. This also refers to everything your
customers see when interacting with your business. This includes:

*the physical environment where you provide the product or service

*the layout or interior design

*your packaging
*your branding.

6. Process- refers to the procedures, flow of activities, and other

mechanisms that deliver the intended experience. The process element
relates to how the customer accesses the product or service. ‘Process’ also
deals with delivering the service in terms of efficiency, this can have an
effect on time scales that an organization can use to improve on profits or
the number of people served in a given time. ‘Process’ provides a
framework for analysing the delivery of the service. Although developed
with service marketing in mind its importance has again become
recognized when marketing physical products.

One fundamental technique is customer journey mapping, where does the

target market start to interact with the product, what do they do next? This
exercise helps to identify customer ‘touch’ points’, places in the customer
journey where an organization can communicate with the user.

7. People- refers to all members of the team who contribute to the

delivery of the service and its brand promise whether in the front line or in
the back office, on-site or off-site; also includes other fellow customers if
onsite. In the process of meeting customer needs an organization’s staff
will directly or indirectly affect the quality of the service delivered. Often this
element relates to the direct contact with the customer in service marketing
and consumption. This makes this element a powerful tool of the marketing
mix in building a sustainable competitive advantage. The ‘people’ element
also considers the possibility of consumer-consumer interaction.
NOTE THAT

Product and Placement are considered as the strategic Ps of the marketing

mix since they cannot be changed overnight. Meanwhile, Promotions and
Price are considered as the tactical Ps of the marketing because these can
be changed more easily.

To the marketers, the interacting 4Ps attempt to influence the buying

decision-making process of customers at a level that maximizes profit.
Other factors that must be considered are the 4Ps of competitive brands,
customers’ background, and customers’ previous experience with the
product or similar products.

SOURCE

(3) https://corporatefinanceinstitute.com/resources/knowledge/other/4-
ps-of-marketing/
(4) https://emarsys.com/learn/blog/4-ps-of-marketing-importance/?
fbclid=IwAR3SfvRN280xvpyXDWxOENlNbJv8BUbvN9StlAg0U1yE2
Y2xW6YQuOioNbY
(5) https://courses.lumenlearning.com/boundless-marketing/chapter/the-
promotion-mix/
(6) https://courses.lumenlearning.com/boundless-marketing/chapter/the-
promotion-mix/
(7) https://corporatefinanceinstitute.com/resources/knowledge/other/merc
handising/
(8) https://www.cocoonfxmedia.co.uk/blog/marketing-mix-service-
extension-3ps
(9) https://www.business.qld.gov.au/running-business/marketing-
sales/marketing-promotion/marketing-basics/seven-ps-marketing

FACTORS THAT AFFECT BUYERS’ BEHAVIOR

A consumer’s buyer behavior is influenced by four major factors:

Cultural, Social, Personal and Psychological.

1) Cultural Factors. Culture is a set of values and way of life which

greatly influence attitudes and behaviors as well as preferences of a
specific group of people. These factors are generally accepted truths
or beliefs that are passed on from one generation to the next. Like,
culture and subculture, and social class. Culture includes race and
religion, tradition, caste, moral values, etc. Culture also include sub-
cultures such sub-caste, religious Sects, language, etc.
 Culture: It influences consumer behaviour to a great extent.
Cultural values and elements are passed from one generation to
another through family, educational institutions, religious bodies,
social environment, etc. Cultural diversity influences food habits,
clothing, customs and traditions, etc. For instance, consuming alcohol
and meat
 in certain religious communities is not restricted, but in certain
communities, consumption of alcohol and meat is prohibited.
 Sub-Culture: Each culture consists of smaller sub-cultures that
provide specific identity to its members. Subcultures include sub-
caste, religious sects geographic regions as South Indians, North
Indians, and based on languages etc. The behaviour of people
belong to various sub-cultures is different. Therefore, marketers may
adopt
multicultural marketing approach, i.e., designing and marketing goods
and services that cater to the tastes and preferences of consumers
belonging to different sub-cultures.
2) Social Factors. Involve peer or reference groups, one’s role or status
as well as family that influence a person’s decision-making process in
the context of the people around him and who he is in that group.
This includes opinion leaders whose expertise might be sought for
advice.
Reference Groups: A reference group is a small group of people such
as colleagues at
work place, club members, friends circle, neighbours, family
members, and so on.
Reference groups influence its members as follows:
- They influence members’ values and attitudes.
- They expose members to new behaviours and lifestyles.
- They create pressure to choose certain products or brands.
 Family: The family is the main reference group that may influence
the consumer behaviour. Nowadays, children are well informed about
 goods and services through media or friend circles, and other
sources.
 Roles and Status: A person performs certain roles in a particular
group such as family, club, organisation, and so on. For instance, a
person may perform the role of senior executive in a firm and another
person may perform the role of a junior executive. The senior
executive may enjoy higher status in the organisation, as compared
to junior executive.
 People may purchase the products that conform to their roles and
status, especially in the case of branded clothes, luxury watches,
luxury cars, and so on.
3) Personal Factors include many individual points such as lifestyle,
economic situation, occupation, age, activities and interests that
would dictate one’s buying behavior.
The personal factors of a consumer may affect the buying decisions.
The personal factors
include:
 Age Factor: The age factor greatly influences the buying behaviour.
For instance,
teenagers may prefer trendy clothes, whereas, office- executives may
prefer formal clothing.
 Gender: The consumer behaviour varies across gender.
 Education: Highly educated persons may spend on books,
personal care products, and so on. But a person with low or no
education may spend less on personal grooming products, general
reading books, and so on.
  Income Level: Normally, higher the income level, higher is the level
of spending and vice-versa. But this may not be always the case in
developing countries, especially in the rural areas.
 Status’ in the Society: Persons enjoying higher status in the society
do spend a good amount of money on luxury items such as luxury
cars, luxury watches, premium brands of clothing, jewelers, etc.
 Other Personal Factors: The other personal factors such as
personality, lifestyle, family size, etc., influence consumer behaviour.
4) Psychological Factors include perception, motivation, learning, beliefs
and attitudes. How consumers relate to a brand depends on what is
meaningful, necessary and interesting to them.
A person’s buying behaviour is influenced by psychological factors
such as
 Learning: It refers to changes in individual behaviour that are
caused by information and experience. For example, when a
customer buys a new brand and is satisfied by its use, then he/she is
more likely to buy the same brand the next time. Through learning,
people acquire beliefs and attitudes, which in turn influence the
buying behaviour.
 Attitude: It is a tendency to respond in a given manner to a
particular situation or object or idea. Consumers may develop a
positive, or negative or neutral attitude towards certain product or
brands, which in turn would affect his/her buying behaviour.
 Motives: A motive is the inner drive that motivates a person to act
or behave in a certain manner. The marketer must identify the buying
motives of the target customers and influence them to act positively
towards the marketed products.
  Perception: It is the impression, which one forms about a certain
situation or object.
A motivated person is ready to act. But the way or the manner in
which he acts is influenced by his/her perception of the situation.
 Beliefs: A belief is a descriptive thought, which a person holds
about certain things. It may be based on knowledge, opinion, faith,
trust and confidence. People may hold certain beliefs of certain
brands/products. Beliefs develop brand images, which in turn can
affect buying behaviour.

(10)http://www.shanlaxjournals.in/pdf/COM/V4N3/COM_V4_N3_020.pdf

Before a marketing mix program is formed, there must first be an analysis

and definition of target customers.

Marketing professionals must analyze what buyers are willing to pay, what
competitors are charging, and what the price means to the target customer
when calculating the product’s value. Determining price is almost always a
complicated analysis that brings together many variables. Once the target
customer(s) have been identified, the business will normally tailor the
marketing mix (4 Ps) with the needs and expectations of the target in mind.
This may involve carrying out additional consumer research in order to gain
deep insights into the typical consumer's motivations, purchasing habits
and media usage patterns.

1) In the macro level, market segmentation answers the question

“What are the groupings of similar customers?”
2) In the micro level’
 a.) Decision Marketing Unit (DMU) points to “Who purchase the
product?”
b.) Decision Making Process (DMP) answers the question “How,
where, and when is the purchase made?”
c.) Consumer motivation and preferences guide the marketer to
answer, “What do the consumers want and why?”
d.) Marketers must consider the more complex DMU’s that are
usually involved in the decision-making process (DMP) for most
products and services. The general characteristics of the firm’s
marketing mix are shaped by the target market’s preparedness
to adopt a product.

Marketers must consider the more complex DMU’s that are usually
involved in the decision-making process (DMP) for most products and
services. The general characteristics of the firm’s marketing mix are
shaped by the target market’s preparedness to adopt a product.

(11)https://courses.lumenlearning.com/suny-wmopen-
introbusiness/chapter/marketing-mix-introduction/

Product Value

Product value must be in sync with what consumers need, therefore, it

must be able to close the gap between what the customers have at the
moment and what they really need. Products may either be superior or
basic to those competitions. A superior product satisfies more needs and
wants of customers while a basic product satisfies minimum requirements.
Parity products satisfy the same customer’s needs in the same way as
competition.
Quality’s new definition is that which conforms to the customer’s
specifications, measured through indicators of customer satisfaction, rather
than indicators of corporate self-gratification. It is the customer who decides
on quality and not the company. The company simply produces products
catering to the needs and wants of their chosen market segments. To be
able to compete worldwide, however, higher quality products must be
produced at competitive price.

Products and Services that meet or exceed customer expectations result

in customer satisfaction. Quality is the expected product/service being
realized. Before a customer makes a purchase (exchanges money for a
product/service) he or she does a mental calculation: “Is the worth of the
product/service (as I perceive and expect) equal to the money that I am
about to exchange?”

(12)https://www2.nau.edu/~rgm/ha400/class/productservice/productservice
/textqual.html

Marketing Program

After product values is formulated and found acceptable to the target

customers, marketing programs are then assembled by identifying which of
the marketing mix components should logically be the main weapon and
which should be the support strategy.
A. Distribution-driven meaning their product must be available when and
where customers expect them to be. Their locations are the single most
important factor in their business.

B. Selling-driven is when products are only available through the

salesman.

C. Sales promo-driven are regularly or continuously offer marketing

activities to achieve short term objectives such to increase volume or long
term objectives like brand building.

D. Price-driven. Some companies choose to offer low prices to attract

the most number of price-conscious customers.

E. Advertising-driven. Some companies continuously pay for time and

space whether in TV, on print, outdoor, online or other efforts to achieve
and/or maintain their desired awareness.

Diagnostic Marketing Mix entails the matching of correctly defined

marketing problems with the proper marketing solutions.

MARKETING PROBLEM MARKETING SOLUTION

Low Awareness Level Advertising

Low Availability Placement

Low Trial Rate Pricing and/or Promotions

Low Repeat Purchase Product and/or Service Quality

The first step in marketing campaign is to make the consumers aware of

your brand and product. When an advertising campaign is effective,
consumers begin to look for what is being promoted. Hopefully, the
products are available in the stores, initial product trial will be generated,
and repeat purchase will follow when consumers are satisfied with the
product consumed as well as the purchase experience. Customer Loyalty
is attained when customers purchase the same brand repeatedly.

Competitive Advantage is secured by providing better or best value in the

perception of the customer, relative to all your competitors. A company’s
capabilities can become a true competitive damage if the following five
criteria meet:

1. It is valuable in the marketplace.

2. It is superior in the marketplace.

3. It is difficult to match or imitate.

4. It is difficult to substitute.

5. It is difficult to trade and gain.

Competitive advantage is not easy to attain and even harder to maintain.

Prof. George Day (1991) defined three-trends why competitive advantage
might be aggravated:

1. Accelerated changes in the complexity of markets;

2. Exponential growth in the volume of market data;

3. The imperative need for shared organizational assumptions about the

market to assure the coherency and timeliness of strategies that anticipate
rather than react to the market.
In the final analysis, what counts is not just what is learned (or knowing
behavior) but what is being done with what is learned (adaptive behavior)
to attain customer bonding and competitive advantage.