Back to the Basics: The 4 P’s of Marketing

Marketing can be pretty sophisticated these days.  From Search Engine Optimization to Customer Loyalty Programs and Demand-Based Pricing.  It’s great to take advantage of new advances in the art and science of marketing, but there are some fundamental tenants that should underpin your marketing endeavors.

One of the most basic fundamental concepts of marketing is the 4 P’s.

When undertaking a review of your marketing strategy or the development of a specific marketing campaign, take a moment to consider the 4Ps and how they might affect your strategy or campaign.  To help center your thinking and discussion, make sure that you first define your ‘key marketing issue’.

Key Marketing Issue

Before considering the P’s, first look at your business to narrow down the key marketing issue.  Are you trying to rebrand your product or business?  Are you trying to expand your product into a new market segment?  Are you trying to respond to a new competitor or disruption in the marketplace?  Be specific in your identification of the key marketing issue.

The 4 P’s of Marketing

1. Product (or Service)
   Define the product that you are selling.  The product can be a very specific tangible product, or it can be a very general service offering.  It must be that ‘thing’ that your customer is receiving in exchange for their hard-earned cash.
2. Placement
   Consider ‘placement’ to be the level of convenience for your customer.  Place might be a physical place of business, but it also might be your website or 3^rd-party retailers.  Consider both the method and place of purchase, but also the method and place of use.  If you’re selling boats, the most important ‘place’ might be where your customer uses their boat rather than where they go to buy it.
3. Promotion
   How does your customer find out about your product or service?  Again, think broadly in terms of advertising, word-of-mouth referral, sponsored events, and online searches.  Your approach to promotion will need to evolve both with your brand and with the external environment.
4. Price
   Finally, consider the price of your product.  In addition to the cash-value price of your product or service, also consider the non-monetary price such as the time and effort your customers need to put into finding, purchasing and using your product.  You may have a low-cost option that is ‘expensive’ in terms of the time and effort your customers need to put into the purchase.

Historically, the 4P’s were very specific: your retail location (place), your sales events (promotion), your physical inventory (product) and your price.  The 4P’s are still very relevant, fundamental aspects of marketing, but they need to be more broadly considered to be effective.

Chris McPhee, MBA
Email: Chris.McPhee@Marketing-Matters.org