Marketing Mix: The 4 P’s of Marketing
The marketing mix is the standard method for marketers to discover the real value of what they’re promoting. In this entry, we’ll learn more about this classic marketing strategy and how it’s still relevant today.
In today’s digitally dependent society, you have the world on one big platform. As of July 2020, there are over 4.57 billion active internet users worldwide, making up over half the global population. Businesses now have the means to connect with billions of people by leveraging the power of the web.
But, with the boatload of information that’s fed on people, your marketing message can easily get drowned out. So, how do you get your sales pitch heard when there are several other voices vying for attention?
Create your Marketing Strategy
The notion of promoting a product has become easier and difficult at the same time. On one hand, you get access to a larger demographic and gain the platforms to reach them. But, on the other hand, your competitors are also tapping those very same platforms, leaving the audience with a lot of choices.
Clearly, the challenge of modern-day marketing isn’t the lack of means to do it. Rather, it is the how’s of doing it that’s tricky. How should you promote your product? How do you stand out? And how can you effectively send out your marketing message?
You can start by looking into the principles of good marketing to narrow down what strategies work for your brand.
Marketing is a broad term. It covers a lot of activities related to promoting your products and services. But, all in all, its end goal is to boost sales. Your competitors are most likely leveraging every digital marketing means available such as social media, e-commerce websites, email marketing, etc. And with that, it can be tough to keep up with them. This is where classic marketing approaches such as the marketing mix come into play.
What is a Marketing Mix?
Marketing mix helps you tackle all the tactical components of a marketing plan. It lets you focus on the core areas of your marketing strategy to help you make strategic decisions. Let’s further study the marketing mix definition and how it’s applied.
The marketing mix is a standard method in creating a cohesive, well-defined marketing strategy. Introduced in the 1960s by author E. Jerome McCarthy, it has withstood the test of time and is still widely used by marketers today.
The idea of the marketing mix is summarized by its 4 P’s that stand for product, price, place, and promotion. The marketing mix serves to unify all these key elements to foster and promote the brand’s value.
Think of it as a checklist of items you have to examine closely to come up with a detailed report on your product. The 4 Ps of marketing mix serve as guidelines to better conceptualize a well-rounded marketing strategy.
The 4 P’s of Marketing Mix
Now that we’ve established what a marketing mix is, let’s learn how to apply it in today’s setting. The principles of this method still hold today but it also gradually evolved with the market.
The 4 P’s define a product as any tangible or intangible goods that cater to the market’s demand. Marketers should be aware of the product’s life cycle. Understanding the stages of a product helps the business in making major decisions on its price, promotion, expansion, and eventual phase-out.
The product itself is an effective marketing tool. People gravitate towards quality items. Hence, marketers need to ensure that the product or service offered by the company is performing as best as it should.
Here are the 4 stages of a product’s lifecycle:
- Introduction – the early stage when a product is gradually rolled out to consumers. This includes investments in advertising and marketing campaigns.
- Growth – after its initial release, the product then goes into further development. The business will increase production and expand its availability based on demand.
- Maturity – a product is deemed profitable when its production cost declines and it no longer needs intensive marketing to sell.
- Decline – finally, as competitors emerge after the product’s success, the demand will start to wane down. This means it will no longer monopolize its market share.
Early detection of issues within the lifecycle is important so the production team can immediately address it. Marketers have to familiarize themselves with these stages to come up with an accurate and honest sales pitch.
The product’s price will depend on the demand for it. In setting your figures, you have to consider that it can drastically affect the market’s perception of the product and its value.
An affordable price will make it accessible to a wider market, while a higher one promotes itself to those consumers seeking exclusivity. Whatever price is decided, it should be higher than the production cost to sustain the business’ profit.
One of the most effective marketing campaigns today highlights the price factor. It becomes a win-win situation when the cost of production declines and the price can be lowered so more customers can avail it. Big sale events drive in a lot of sales while also paving the way for a company to introduce new items.
Place has to do with how the product is distributed to the customers. It refers to the physical location or the digital one. Basically, anywhere the customers can learn about the product and buy it. While most business transactions are done online these days, the traditional store still holds its appeal.
Did you know that people spend $50 more when they visit physical stores compared to online ones? Virtual stores have yet to achieve the human experience of shopping that physical stores offer.
Regardless of whichever platform, marketers have to consider a lot of factors about the place. The decision as to where to put the product will heavily affect the rate of its distribution, its storage and maintenance cost, and the overall sustainability of staying there.
Lastly, the final P stands for Promotion. In the early days, only large corporations could avail of the dramatic influence of TV commercials, billboards, and magazines. But with modern time comes modern measures and digital marketing is taking over the stage. This doesn’t mean, though, that marketers should automatically forego the benefits of traditional advertising.
Millennials may be taking over the marketplace but the buying power of the baby boomers still counts. And the fastest way to reach the non-tech-savvy crowd is through the traditional means of advertising.
So, when it comes to the promotional aspect of the business, marketers need to weigh in the pros and cons of their mediums. Whether it’s launching a viral marketing campaign or hosting a business convention; these will all play a part in the company’s exposure.
Startup Marketing: How to get started
When it comes to running a business, marketing drives the wheels to success. A lot of startup owners suffer from the common misconception that a business can run on the product alone.
But considering the concept of the marketing mix, all 4 P’s go hand in hand. Your product is only as good as how it’s presented to its buyers. You have to invest in creative strategies to make your brand stand out among the sea of other companies.
Now, we all know marketing is no walk in the park. In a highly volatile industry, you’ve got to keep up with the trends to stay on top of your competitors. You’ll need people on your team that can research the trends and devise the strategy for it. And the actual execution of the plan also plays a crucial role thereafter. Get your hands on the right talents to create your marketing message.
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