4 Ps of Marketing – Definition
The four Ps are:
These are key factors or attributes to consider when marketing a company’s value proposition – generally a product. They are commonly known as the “marketing mix”.
A Little More on What are the 4 Ps
Product – This is a company’s value proposition – a product or service. The product should related to a recognized customer need or want.
Price – The price charged to the purchaser (distributor, retailer or end user) will relate to the customer demand and the available supply. Demand is related to the strength and value of the company’s value proposition to the customer. The marketer will consider available resources, competitors or substitute goods, and strategic positioning when determining a price.
Placement – This concerns where the company will offer its product or service. Placing a product or service in a given market requires resources. Physical placement in a store requires the greatest resources, while placement for sale on a website is far easier. In any event, the marketer will seek to first introduce the product or service into the market with the greatest potential return.
Promotion – This concerns the methods or strategy for presenting the value proposition to potential customers. It can include all forms of advertising and public relations efforts. For some businesses, the company’s brand and customer awareness is the strongest differentiating factor. For these companies, promotion is often considered the most important aspect of the marketing mix.
Some marketers expand the 4 Ps to include:
- People – Who is involved in delivering the value proposition. This generally includes anyone in the operational process.
- Partners – What or who are the relationships that allow for delivery of the value proposition.
- Physical evidence – The demonstrable assets and presence of the company.