4P’s of Marketing

MBA Portfolio - Blog 3

  

Product, Price, place and promotion are the four factors of the marketing mix. Four P’s were introduced in 1950s.As marketing industry evolved, other Ps have been identified: people, process and physical evidence. This strategy can help you offer the right product in the right place, at the right time, and at the right price.

 Product :  - Marketing starts with understanding product, potential customers and reason why they need product. Differentiation of product – understanding what qualities of product makes it unique among other competitors.

 Price: - Price is the amount that customer is willing to pay for a product. Marketing decision maker may increase price of product to give it appearance of luxury or may reduce prices so that many customers try it. 

Place:  Place is location where product is made available to buy – store or online.

Example : - Luxury products are made available in outlets and not in Walmart or family dollar stores. Or family dollar store.

 Promotion:

The goal of promotion is to communicate to customers that they need product, and it is priced appropriately.

Promotion consists of content, communication, and messaging to persuade the audience to buy.

 Example of Pricing marketing strategy: $.99 Pricing Trick.

Reference - https://www.wsj.com/articles/the-99-pricing-trick-really-does-work-sometimes-11603570616

 Grocery stores have many items priced with $.99. When an item is priced at $2.99, the idea is that consumers will think of it as $2.00. That’s because the mind compares the left-most digits before it can round up the numbers. People look left first.