Product, price, place and promotion are the 4 P representing the formula of the Marketing Mix expert signed Jerome McCarthy. It is a functional theory to businesses for marketing strategy. The concepts influence each other and therefore should be integrated and used with intelligence.
We see these tools in detail with the help of an authority in the field of communication strategy, Philip Kotler.
The product and its configuration includes the packaging, quality and performance, warranty, etc.. The price is defined by the evaluation of the product that relates to the cost, the deals and payment methods, such as for example by installments.
The store is connected to the facility: about places and distribution markets. Finally, for the promotion Kotler is the symbolization, how the product looks to the customer through advertising.
You can then modify the product by changing the shape or quality, lower market price with discounts or special offers, choose the ideal distribution to reach customers, who will be attracted by advertising and promotions.
All with the aim of selling and gain in the long term.
The 4 C’s of Laterborn
Robert Lauterborn, estimated figure in the field of marketing and advertising, suggested vendors to modify the marketing mix in the 4 C: customer value, the cost for the customer, convenience instead of the point of sale, communication.
Here is a customer-oriented Marketing Mix, on which the heads of sales techniques must reflect the beginning of work to locate the target and provide the appropriate service. After an evaluation of the 4 C’s, it is easier to establish the 4 P’s of the company and “hit” the target.
4P and 4C
Mixing P and C, the product will consist of basic utilities, necessary and additions. An example are the cookies Mulino Bianco, food made with ingredients “simple and genuine.” In the case of Mulino Bianco price becomes a factor in the secondary because the target is closer to the quality of the product.
The launch price may be lower than the cost of doing business as an incentive to purchase. But only in the short term, in anticipation of an increase to make ends meet in the company. Attention must also be directed to the costs that the customer has to bear in order to take advantage of the product: the compromise is worth the sale.
Do not forget the competition, another determining factor for defining the price. Even here comes the brand: Nike, for example, can afford a higher price than other brands of clothing because behind it has a relevant story we all know.
Supply and demand
When a company decides to enter your product in the market it needs the intervention of an effective communication; it gets to the heart of the people or in their bag when it comes to consumer goods sold in the supermarket.
The objective of the communication is to meet the needs of the application with the rewards promised by offer. The promotion that the firm chooses the product must be made by knowing the target, his needs, his tastes, his age and much more.
They come to the aid of market research firms, which identify characteristics of demographic (age, sex, level of education, social status, etc.) and psychographic (socio-cultural values and behavioral) of the reference population.
The point of sale
Not just a place to buy, but the set of procedures for purchasing specially chosen to reach the customer. And grant him the information he needs and to offer an adequate service. An example is e-commerce, innovation of a market easy to manage that saves time and money.
We quote Zalando and the screams of joy of customers, or Booking.com Facilities booking hotels. Just the world of the web has taken action to provide businesses, and then to marketing, important chance to test the popularity of advertising campaigns (also thanks to social) and to be at the service user at home.
The tools of the Marketing Mix are useful for businesses if used appropriately in the early stages of the life cycle of the product. Nothing is left to chance. Teamwork, pro professionalism and creativity are a valuable support to the marketing policies of the company and hence the economy.
To launch a product on the market, however, it is not enough to know how to use these tools. The ideas must be accompanied, if not prepaid, by careful research aimed at target. After determining this reference point, you can focus on ways and means to achieve the goal.
A goal that should not be focused on selling to make a profit, but about creating a precedent.
To ensure continued success, in fact, it is essential to the construction of an image, a story, a message, an identity that people will think when they see the color, feel, taste, wearing the product.
The strategy is to change your perspective, think with the mind of the customer, to live his emotion, feel the same needs.
What do you think of this theory?