The 4 P’s: How to use the Marketing Mix

When you think of marketing, what is the first thing that comes to mind?

Most people think of an ad. While advertising and promotion are part of the marketing mix – they’re far from the whole story.

There are 4 P’s of marketing that businesses should consider for an effective marketing strategy. These are product, price, place and finally; promotion. We’re explaining the 4 P’s in detail and how they can improve your marketing.

What are the 4 P’s?

The 4 P’s, also called the marketing mix, is a concept created by Harvard professor Neil Borden in the 1950s and further expanded by E. Jerome McCarthy in the 1960s. The original idea featured more than 4 P’s, but over time these have been simplified to the ones most marketing experts know: product, price, place and promotion.

Product

The first P is really the most important – the product that your business offers. This product could be goods or services, which means the marketing mix can work across every industry and type of business.

Product must be your first P because it determines how the rest of the P’s will form. The type of product determines the price you can charge, the places you should sell it and how you go about promoting it. For example:

• You wouldn’t charge $50 for a coffee because the value is not there

• You wouldn’t sell snow shoes in Hawaii because there’s no snow

• You wouldn’t promote a new SUV to kids because they can’t drive

You need to spend the time defining and refining your product offering. Without this, you can’t move on to the rest of the marketing mix.

Price

The second P is price – how much consumers will pay for your product and where this places you in your market. Pricing is one of the hardest parts of business, but also the most essential. The best pricing structures consider the perceived value of your product. How much is the convenience worth to your consumer?

Pricing also goes hand-in-hand with your brand. Do you want to be seen as a luxury brand or an accessible one? Of course, the scale is not this extreme. There are many price points between cheap and expensive. For example; both Aldi and Woolworths are grocery stores but only one of them has made pricing core to their brand.

Place

The third P is place –   where and how people can buy your product. This could be physical store locations, geographic locations or even the section of a store that your product appears in. In the digital world – place has expanded to include online options such as apps, websites and marketplaces.

Place may also refer to where people see your product. You’ve probably heard the term product placement – this goes straight to your 4 P’s. Placing your product in popular TV shows, movies or even video games to build recognition and rapport for your brand.

Promotion

The final P, and one most people think of, is promotion. This is how you make customers aware of your product and desire it. Promotion can include online or offline advertising, PR, promotional events and more. When businesses work with marketing experts, it’s primarily the promotional stages they need help with. But, without a solid foundation in your other three P’s – your promotional efforts can fall flat.

How to use the marketing mix 

The 4 P’s help break down every aspect of a business and consider how it meets customer needs. Lagging sales or a lack of customer loyalty can often be diagnosed by examining your marketing mix. Rather than looking to only your promotional messaging – look at your product offering as a whole. Is it the right price point in your market? Is it in the most convenient places for consumers to access it? Does it solve a problem for your consumer?

As technologies and cultures change, you should take the time to review the 4 P’s and make sure your business is ready for the modern consumer. For example, many businesses adopted online shopping during the pandemic. Many did this out of necessity, but they also found that adding a new place to shop added convenience for their customer. Your business exists to provide value. Your marketing strategy should constantly be working on how to increase this value.

Sharing years of marketing knowledge and experience with you

Concepts like the marketing mix can be overwhelming for business owners. You didn’t sign up to be a marketing executive – but you can succeed with a bit of help.

Ebony & Salt have years of experience in marketing, communications, strategy and creative. We build simple and effective marketing strategies for businesses that meet commercial objectives. Contact us to find out how easy marketing can be.