Mastering the 4 P’s of Marketing

Marketing is one of those terms that members of the general public are quite familiar with, but may have a hard time understanding or expla...

Marketing is one of those terms that members of the general public are quite familiar with, but may have a hard time understanding or explaining in detail. This is because the process of marketing is actually a series of steps that must be expertly developed and coordinated in order to be effective. On the other hand, marketing professionals or recent graduates of a business management college can probably recite the universal definition of marketing:  put the right product in the right place, at the right price, at the right time – otherwise known as the four P’s of marketing.

Whether you’re pursuing a business career or taking accounting and payroll administrator courses, it’s important to have a general understanding of these marketing fundamentals, and how to apply them in practical terms. We’ll explain each “P” here, along with some simple tips for implementation:

Product or Service

The four P’s of marketing can only begin once a product or service has been created or established. During the creation process, there are many elements to consider and decisions to be made in order to get a clear grasp of the product’s purpose and market it successfully. Here is a list of the decisions to consider when building a product:

•          Brand name
•          Function
•          Style
•          Quality
•          Safety
•          Package
•          Repairs and support
•          Warranty
•          Accessories and service
•          Potential audience

It’s important to understand all of the characteristics and functions of your product or service before you can begin to market it to a particular audience of consumers.

Price

Once you’ve established a concrete understanding of the product or service, it’s time to start thinking about pricing. Consider speaking to someone with accounting training to calculate the minimum price at which you should sell the product in order to turn a profit. Some things to consider when developing pricing include value to the buyer, price setting, discounts and sales promotions, and competitor behavior.

Place

The next step in marketing should be to determine the distribution process of the product—what steps it will take on its journey to the consumer. The first thing to consider when contemplating the distribution of the product is your competition; investigate what your competitors are doing and try to find a more efficient way to place your product. When considering product placement, look for:

•          A place that is convenient for the customer and the business
•          A place that is accessible to the customer
•          A place that is reasonably priced for the business

This is an important step in the marketing process because it allows your customers to gain access to the product that you’re trying to sell them. After all, if they can’t get to it, they can’t buy it – and all of your subsequent promotional efforts become redundant.

Promotion

After you’ve successfully developed a great product with a competitive price and a place to make, store and sell it, it’s time to move on to the next and final stage: promotion. This refers to the steps you will take to raise awareness about your product and its value, while encouraging customers to make a purchase. Products can be promoted using various methods, some of which include traditional advertising, online advertising, sales promotions and publicity.

Which of the four P’s do you consider the most crucial?