4P marketing Strategy

Are you starting a business? Master the 4P Marketing Strategy first

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4P Marketing Strategy – The primary strategy must be mastered and applied in business is the 4P marketing strategy. The 4p marketing strategy consists of four components: product, price, place, and promotion.

Have an idea to start a business? Don’t get stuck! Mastering some of the fundamental skills mandatory for a person in business, one of the essential things to master is a marketing strategy.

No matter how good the product is, if the right marketing strategy does not accompany it, the business will not run smoothly because the strategy for doing business will determine the Company’s success. Especially in this digitalization era, competition is getting more challenging because there are more and more types of strategies that you must consider.

The main objective of the marketing strategy is to make the business successful in creating more profit and providing satisfaction to customers who have purchased our products. Of the various marketing strategies, one primary strategy must be mastered and applied in business, namely the 4P marketing strategy.

This article will discuss in detail what the 4p marketing strategy is, its components, the importance of a marketing strategy, and tips for implementing it in business.

What is a 4P marketing strategy?

4P marketing Strategy

According to Philip Kotler, A marketing strategy is how the marketing function organizes its activities to achieve profitable growth in sales at the marketing mix level. A marketing strategy consists of a collection of business steps at the product introduction level that has been combined well to make consumers make a purchase.

It’s not just that consumers are interested or put in a shopping cart. Still, marketing strategies ensure that consumers recognize the products offered, make payments, or check out to repeat product purchasing activities.

In the 1950s, Neil Borden popularized the term “marketing mix,” which includes more than ten marketing elements. Fundamental among them is the 4p marketing strategy.

Then, in the 1960s, Jerome McCarthy designed the 7P model, perfecting the essentials of the marketing mix. Over time, much P has crystallized into 5P, 8P, etc.

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But the 4P marketing strategy is like the purest crystal at the core of developing a marketing model. Every other P-model is an extension or modification of the original 4P. Hence, it is the foundation of any form of marketing.

Borden defines a marketing executive as mixing ingredients to create the right recipe to market a product. Then, E. Jerome McCarthy, who designed the 4P marketing concept from Borden’s marketing mix ideas,

McCarthy has highlighted that the 4Ps, product, price, promotion, and place, are the initial control elements available to form a marketing plan.

The 4p marketing strategy consists of four components: product, price, place, and promotion. This marketing strategy can not only be used for large company-scale businesses. Still, you can also apply it even to MSME (Micro, Small, and Medium Enterprises) businesses.

Components of a 4P Marketing Strategy

The 4P marketing strategy consists of product, price, place, and promotion.

4 marketing strategy components, components of 45 marteing strategy

Product

When you first decide to start a business, the idea of having a product to sell is fundamental. Products are not only focused on tangible things but also essential intangibles such as organizations, opinions, services, etc.

Without a product, we have no price, promotion, or place. Hence, of all the 4 P’s, the product is the most elemental P.

It is important to understand the relationship between the product and the marketing mix here. A product mix is the entire range of products a company offers to its customers.

Decisions regarding the product mix will depend on many factors, such as:

  • design
  • Feature
  • brand name
  • Product Variation
  • Quality
  • Service
  • Packaging, returns, etc.

Here are some question tips that can help when defining a 4P marketing strategy for your product:

  1. What products or services do people need?
  2. What do people want from the products or services offered?
  3. What features does the product have?
  4. How the user will use it
  5. What is the shape, size, and color?
  6. How about the logo and brand?
  7. How is it different from other competitors?

Price

After the product, the marketing component that needs to be considered is price. Price is the value given by consumers to have a business product. This component dramatically affects product sales. Prospective buyers will compare outcomes with those of other competitors, so determining the price is very important.

Pricing decisions should be taken with extreme care, as this is a double-edged sword. If your product is overvalued, it may give the impression of being of high quality. At the same time, it will get your product placed in limited stores. So, marketers must know the art of using proper pricing.

Price mix decisions need to consider the following marketing variables:

  • Pricing method; pricing policy; pricing strategy
  • Benefits
  • Discounts and rebates
  • Payment period
  • Credit policy
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Your business pricing strategy must align with your organization’s overall goals to blend in smoothly. Whether you want to penetrate the market or skim it depends on your pricing strategy.

How do you determine the price of a good product? Here are some things to consider.

  1. – The value of the product or service
  2. – Earnings
  3. – Price comparison with competitors
  4. – Promos or discounts

Place

The next determining factor for business products is the choice of place or location. The right place or location will make the business even more smoothly. Choose a strategic location, meaning an area crowded with people or a place where people pass by. The goal is to attract potential buyers to visit the business and buy the product.

In addition, place or physical distribution relates to the transfer of product ownership from the manufacturer to the customer.

Your profit margin depends on how quickly you can deliver the goods. The sooner a product reaches the point of sale, the more likely it is to satisfy customers and increase brand loyalty. Therefore, the location factor is significant in ensuring the competitiveness of your product in the market.

The following are the distribution mix elements:

  • Distribution channel
  • Warehousing decisions
  • Product handling
  • Logistics
  • Inventory control
  • Order process
  • Scope

In addition to a strategic location, the right and proper location is also needed. For example, if the product being sold is Muslim clothing, choose an area close to the majority Muslim community or a place of worship for Muslims. There will be more opportunities to attract potential buyers.

Here are tips for questions that will help determine the right strategic place or location.

  1. Where will the buyer look for the product or service?
  2. How to access the correct distribution channel?
  3. What are the most frequently searched places to get the product or service? Supermarket, shopping mall, or online?

Promotion

One of these 4P marketing strategies aims to serve two purposes. First, tell potential customers about your product and persuade them to buy it.

The promotional strategy will thus include various ways that you can use to communicate with the target audience. A compelling promotion mix will ensure good sales, and marketers should strive to create a conducive environment.

The main elements of the promotion mix are:

  • Public relations
  • Direct marketing
  • publicity (social media, print, etc.)
  • Advertising
  • Private sale
  • Sales promotion

Promotion in a marketing strategy is the spearhead in introducing a product or service. Attractive promotions will increase sales significantly. The Company can do promotions offline or online.

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Offline promotion can be done by making company profiles, banners, brochures, and other equipment.

Meanwhile, you can do online promotion through campaigns on social media or paid promotions through influencers or social media platform programs.

In the era of digitalization, online media is a potent promotional tool because it can reach anyone and anywhere, You Must Understanding an Digital Consumer First.

To help determine business promotion activities, here are some tips for essential questions that can provide a clear picture of the type of business promotion being undertaken.

  1. When and where can the promotion be delivered to the target market?
  2. Does advertising online, in the media, on radio, on TV, or billboards reach the audience?
  3. How do competitors promote? Does it affect our choice of promotion activation?
  4. When is the best time to promote?
  5. What promotions can we provide to attract potential buyers?

An Example of Implementing a 4P Marketing Strategy

Let’s take one example of a large company for us to analyze its marketing strategy and a lesson for us to take tips and how to apply them to our business.

McDonald’s Products

As an F & B business, McDonald’s has food and beverage products. Some of their main products are fried chicken, hamburgers, salads, snacks, breakfast menus, snacks, drinks, and McCafe’. Food and beverage products are one of the most significant business opportunities because food and drinks are daily necessities, making it possible for customers to make repeat orders and businesses to continue operating.

At the same time, humans still need to eat and drink—especially young people who like to snack and try various things.

The tips we can take from this McDonald’s product are to choose products that meet people’s needs and allow for repeat orders.

Places

McDonald’s chooses restaurants, kiosks, and mobile apps to get most of its profits in sales. Some restaurants manage stalls to sell products with limited choices, such as desserts, sundaes, etc.

There are also temporary kiosks, such as those for specific events.

Price

The pricing strategy used by McDonald’s uses bundle prices and psychological prices (non-rounded prices). McDonald’s tries to provide food and product packages at discounted prices through package pricing strategies, cheaper than buying each item separately. psychological pricing strategies, for example, USD 9.99 rather than USD 10.00

Promotion

Some of the strategies used by McDonald’s are:

– Online promotion

– Public relations

– Advertisement

That’s complete knowledge of the 4P Marketing Strategy. Interesting, isn’t it? The right strategy will significantly impact the business that we will run. I hope it is helpful for you. Thanks

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