The 4 P's of Marketing

by: William Blochberger

Product

This is what you are selling. Every product is subject to a life cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales fall. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company's resources and how to configure the product mix so that each product complements the other.

Price

The amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival. When setting a price, the marketer must be aware of the customer perceived value for the product. The reference and differential value must be considered while setting the price.

Place

Refers to providing the product at a place which is convenient for consumers to access. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix.

Promotion

Advertising covers any communication that is paid for, from movie commercials, radio and Internet advertisements through print media and billboards. All of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, sales organization and sales promotion