Marketing is a complex process that requires careful consideration of the four Ps: product, price, place, and promotion. These four elements form the basis of the marketing mix, which is used to create marketing plans and strategies that effectively target the desired audience. Companies must analyze these four factors in order to design a successful strategy for introducing or reintroducing a product or service to the public. In the 1950s, the four Ps of marketing were first established as a fundamental principle.
In 1981, researchers expanded this model to seven Ps, adding physical evidence, process testing, and people to the mix. This version was tailored to service-based companies, as it takes into account unique considerations for them. By carefully examining and applying these marketing principles, businesses can make smarter decisions that will improve their chances of creating a valuable brand. The 7 Ps are also sustainable principles that prepare brands for long-term stability.
Product: The product is at the core of the four original principles of marketing. Companies must ensure there is strong demand for their product or service before introducing it to the public.
Price: Pricing strategy is critical to success, so businesses should optimize their pricing for their audience and niche. They should also be aware of uncontrollable elements that can change their circumstances, such as new developments or competitors in their niche.
Companies can set prices by starting with a higher price and seeing how it works before lowering it, or by setting lower prices if they have low overhead.
Place: Location is an important consideration for businesses that are not 100% online. Companies should be creative with where they sell their products in order to reach the right audience. They should also understand where their target audience likes to buy items and where they spend their time.
Promotion: This principle covers most of the strategies and tactics people think about when they think of marketing and advertising. Companies should use sales promotions to attract new customers, but make sure they don't make more discounts than they can afford. Promotion strategies vary depending on whether they are online or in-person; for example, selling on Instagram requires a social media marketing strategy while selling at trade shows requires a direct marketing strategy. In addition to these four Ps, companies should also consider people and processes when creating their marketing strategy. By staffing and configuring customer service processes, companies can reflect their brand's personality and provide the types of experiences their target audience wants and expects.
Streamlined processes help reduce costs, increase productivity, and provide a reliable customer experience that stays consistent for every customer.