The four P’s of marketing also known as the marketing mix are marketing tools that provide advantage to companies in the market place. These are very important tools especially when launching a new product or a business. It consists of an in depth study of certain variables that can help companies gauge the competition in the market for a particular product and based on observations and study of other products provides understanding as to what strategy shall be devised to launch a product in a successful way. The four P’s of marketing are product, price, promotion and placement.
This is the first P of four P’s of marketing, it is a thorough analysis of the price from manufacturers to retailers and in addition it also consists of the study of buying processes of consumers. It must consist of in depth analysis of variables that are likely to affect a product’s price. Distribution channels, location of distribution and retailer’s price are some of the variables that are likely to affect price of a product. It should also gauge competitor’s price.
This is the second P of the four P’s of marketing and it determines the uniqueness of the product being launched. In what ways it is different from other similar products. What are the benefits it is likely to offer to the consumers? What features it consists of that other products do not have? These are some of the questions that one must ask before launching a product. A thorough analysis of the competitor’s product is also required. A market survey can provide numerous ideas as to what people really demand and how the demand is met through launching a product that is going to fulfill the needs of the consumers.
This is the third P of the four P’s of marketing. How is the product going to be promoted? What are the appropriate channels that should be used to promote the product such as traditional advertising, web promotion or other tactics? There must be a clearly defined strategy because failure to do so can result in revenue and waste of time.
This is the fourth P of the four P’s of marketing, what place can be effective in selling the product? There should be a well devised strategy as to what place can be most beneficial to sell the product according to the needs and requirements of the people? There must be an exit strategy in order to pull out if the product does not do well and there should be alternate channels that shall be used for the placement of the product.