The “4 P’s” of Marketing
The Marketing Mix includes the basic tools used by marketers to sell goods and services to target customers. They are the following: Product, Price, Place and Promotion.
Product (good or service) – is a package of benefits that is delivered to meet the needs of its customers. Product positioning strategies have been more finely tuned to customer needs and perceived benefits. The old approach was similar to the movie “Field of Dreams”: build it and they will come. No more. You need to determine what your customer’s needs are and design a product that meets those needs.
Price (Worth) – it is basically the amount that a customer is willing to give up to obtain a desired product or service. In today’s market, your pricing strategy will fall into one of the following categories: Everyday Low Prices, Price-Quality-Value, and Value Added. Wal-Mart is the perfect example of everyday low prices: that’s what they tell you. Mercedes Benz is a good example of the price-quality-value pricing strategy. The approach is that you will pay a little more, but you will get a better product. Nowadays, basically everyone uses some kind of added value to help distinguish their product. It is no longer an option, but a must. Examples would include: 24-hour support hotlines, 60 days after sale service agreements, trade-in clauses, extended payment options, no interest, etc, etc.
Square (coming) – the channels and/or locations sellers use to reach their buyers. Remember the “old” marketing phrase: location, location, location? Somehow it is still true. You just need to replace the location with the traffic: traffic, traffic, traffic. You have to put your product or service in front of your customers. Most likely, your customer base is made up of a global audience; therefore, this task becomes more complex. Developing a location strategy that focuses on 21st century technologies is absolutely necessary in order to successfully compete in today’s market.
Promotion (Marketing Communications): All the tools you use to communicate with your customers: advertising, personal selling, sales promotion, direct marketing, and public relations. With the advent of sophisticated multimedia opportunities, marketers have expanded their ability to communicate with their target audience. Fortunately, technologies have leveled the playing field. Anyone with an Internet connection can profitably reach a global audience. The key is to allocate promotional dollars only to your potential customers. How much does it cost you to acquire a target customer?
Regardless of the business model chosen, your success or failure will depend on how well you integrate the “4 P’s” into your daily tactics and long-term strategies.