A tree stands tall when its roots are strong. In the same way, a business stands longer when 4Ps of marketing are strong.
"The Four P's of marketing" is a well-known concept that most of us have heard from a friend, textbook, or Faculty. Marketing Mix revolves around these 4P's, which helps to derive effective market strategy.
No doubt, the product will reach its customer with high spending on marketing. However, it increases your cost for selling individual products. Eventually, expenses incurred in marketing will give you a low-profit margin. The owners incur a handsome amount to scale up marketing strategies. But how many of them get success with a high-profit margin?
Hence, build up the marketing strategy that gives you a high-profit margin.4 P's of marketing are the main ingredient to derive any strategic marketing of product or service. A company must focus on new innovations in the market and arrangements for staff and talents. Then a firm, keeping the 4 P's in mind, can test the competitive market in short bursts.
What are the 4 P's of marketing:
Let us understand the above points briefly.
Product refers to the object or intangible utility you offer to the consumer to satisfy their needs. It is a base through which you enter the market and play among your competitors. In other words, the product is what the company sells.
It can be any object like pen-paper, scissors, or services like financing, payroll, marketing, and consulting. In a nutshell, whatever you see around you, are products sold under the name of a specific brand.
Whether big or large, every firm establishes a product intending to satisfy the needs of the consumer.
What type of product amaze the eyeballs?
Due to high competition, it might be tough to gain a monopoly in this era. We can easily find a substitute in every niche we pick. So what do we do now?
Let's breakdown the solutions into points
Do you know why big fintech companies are ready to invest in startups? As startups are coming up with innovative solutions that can reduce redundant tasks. The big companies become the investor being interested in the idea.
If you have a unique idea that can positively impact a consumer's life, short burst in the market.
Uniqueness and creativity
Your product should have unique features that pull the customer towards you. These attractive features build an eternal position in the minds of people. Once your product has surpassed other substitute products in consuming utility, customers are prone to be your loyal customers.
Technology is looming in all operations. We are pretty sure robots will replace human tasks in the upcoming years.
Select the product that is irreplaceable or hard to replace. On the flip side, make use of technology while creating the product. And check whether it is helping you to cut the cost.
Place refers to the point or site where you make your product accessible to the consumers. You can choose an online or offline platform depending on where your targeted customers reside.
Let me ask you if you are opening a digital company.
Where will you place your company?
Who are your targeted customers?
What are your distribution channels?
All the four Ps are coherent with each other. And every "P" will have an impact on other P's. Hence, deciding on a place should be your 2nd priority. And so I have put on second in the list, right after the product.
Remember: When your market is saturated, don't wait for the customers to come to you. You go to the customers and chase them till the end.
Price refers to the amount you charge to customers for buying your products or services.Although it is easy to understand the concept, it is tough to pick the right price.
It all depends on how you want to position your product. For example, Macdonald's is known for delivering burgers at affordable prices and faster delivery. On another side, Starbucks is a coffee brand that charges a high amount, making it a luxurious brand targeting higher class audiences.
How to decide on the right price?
A Right price refers to the one that involves a higher profit margin with fewer expenses. It all includes what expenses you save and allot in the profit part. In short, the manager should focus on the higher profit margin to select the right price.
Your entire marketing strategy depends mainly on one factor, promotion.
We all know that promotion refers to communicating our products to the consumers. However, it is much more than communication.
It is about how many conversions you get after offering your product in the market. On average, your conversion rate should fall between 2 to 4 percent.
Let us again take an example of a digital company and understand the conversion rate. Suppose you have a client who owns a lipstick brand, Shine. You start running an ad campaign for lipstick on Instagram to generate sales. In that campaign, you receive 1000 clicks on the ad, and 20 purchases, where women make an online payment. Then, your conversion rate would be 2 percent.
If you get these conversion rates, your marketing strategy is on track. Hence, we can say that marketing strategy is directly proportional to conversions.
The 4P's are coherent with each other. Any changes in one will have an impact on other P's. It is all about choosing and offering the right product at the right price and in the right place to your consumer. Product, Place, Price, and Promotion are conducive to effective marketing strategy.
Freelance Content Writer, eveIT
Hemali is a freelance content writer at eveIT based out of Gujarat. She has been a keen technical and business writer for quite some time now. Her commitment to thorough research and integrity make her reliable in the content writing field.
Marketing Mix revolves around the 4P's, which helps to derive effective market strategy. Learn more about their role in business-