Product, Price, Promotion, Place Show
What are the 4 P’s of Marketing?The “4 P’s of Marketing” refer to the four key elements comprising the process of marketing a product or service. They involve the marketing mix, which is a set of tools that a company uses to influence consumers into buying its product. The marketing mix addresses factors such as:
History of the 4 P’s of MarketingThe individual who conceptualized the 4 P’s of Marketing was a Harvard University professor named Neil Borden. In 1964, Borden introduced the idea in one of his published articles called “The Concept of the Marketing Mix.” he mentioned that many companies could use the framework to increase the likelihood of their success when advertising their products. Marketing Mix1. ProductA product is any good or service that fulfills consumer needs or desires. It can also be defined as a bundle of utilities that comes with physical aspects such as design, volume, brand name, etc. The type of product impacts its perceived value, which allows companies to price it profitably. It also affects other aspects such as product placement and advertisements. Companies can change the packaging, after-sales service, warranties, and price range, or expand to new markets to meet their objectives. Marketers must understand the product life cycle and come up with strategies for every stage in the life cycle, i.e., introduction, growth, maturity, and decline. 2. PriceThe 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. Thus, pricing involves making decisions in terms of the basic price, discounts, price alteration, credit terms, freight payments, etc. It is also important to analyze when and if techniques like discounting are required or appropriate. 3. PromotionPromotion involves decisions related to advertising, salesforce, direct marketing, public relations, advertising budgets, etc. 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. Promotional efforts include the following:
4. Place (or Distribution)Place involves choosing the place where products are to be made available for sale. The primary motive of managing trade channels is to ensure that the product is readily available to the customer at the right time and place. It also involves decisions regarding the placing and pricing of wholesale and retail outlets. Distribution channels such as outsourcing or company transport fleets are decided upon after cost-benefit analysis. Small details such as shelf space committed to the product by department stores are also included. Extensions to the 4 P’s of MarketingNew marketers recommend expanding the 4 P’s of Marketing to include services as well. They include:
More ResourcesThank you for reading CFI’S guide to the 4 P’s of Marketing. To keep learning and advancing your career, the following CFI resources will be helpful:
What part of the marketing mix concerns the distribution channels used to get a product to the consumer multiple choice question concept place promotion?Place is where you sell your product and the distribution channels you use to get it to your customer. Much like price, finding the right place to market and sell your product is a key factor in reaching your target audience.
Which marketing mix concerns the distribution of products?Place (or Distribution) Place involves choosing the place where products are to be made available for sale.
What part of the marketing mix is distribution?The last element of the marketing mix is the place. Also called placement or distribution, this is the process and methods used to bring the product or service to the consumer.
What is distribution channels in marketing mix?A distribution channel represents a chain of businesses or intermediaries through which the final buyer purchases a good or service. Distribution channels include wholesalers, retailers, distributors, and the Internet. In a direct distribution channel, the manufacturer sells directly to the consumer.
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