Many companies wonder what are the 4 P’s of marketing? In short, the “4 P’s” stand for (P) Product, Price, Place, and Promotion. Marketing is a combination of these elements. Although there are several other factors that are important to marketing. The basic premise of marketing is to reach the consumer and have them purchase a product or service. There are four basic elements to marketing; product, price, promotion, and place.
A company may choose to market their product through a corporate outlet such as a store or retail outlet. They may also choose to market through various media including print and television. A marketer uses their resources such as advertising, word of mouth, website, and various promotional tools to reach out to the public. Most marketing is done to gain exposure in the marketplace. Most companies are in business to make money and therefore all of their marketing is geared toward increasing their profits. Companies must be able to identify their customer, target their audience, and design a marketing mix to reach their goals.
The first element of marketing is to identify their market. There are many ways to do this; through market research, demographic studies, surveys, target markets, and target markets identified through various channels. Once the market is identified, it becomes easier to develop a marketing plan. Marketers will determine what products will be marketed through which channel and at what price. Once all the necessary information is analyzed, it is easier to create a marketing strategy.
The second element of marketing is price. It is important to determine what the cost per item will be. This will dictate the amount of money available to market the product. Once this information is determined, it becomes much easier to set prices for promotional items to increase the sales of the product. The marketer will have a better idea of what price point is appropriate.
The third element of marketing is promotion. It is important to use all available resources to promote the product. Advertising, public relations, word of mouth, television, radio, direct mail, and other forms of advertising will help to increase sales.
The fourth P’s of marketing is to maximize return on investment. Marketing should provide value to the consumer. If the promotional product does not add value it will not be successful. A good example of this is a product that has an excessive level of advertising but offers very little benefit to the consumer.