What is the marketing mix (4 P's of marketing)?

The marketing mix, also known as the four P's of marketing, refers to the four key
elements of a marketing strategy: product, price, place and promotion. By paying
attention to the following four components of the marketing mix, a business can
maximize its chances of a product being recognized and bought by customers:

 Product. The item or service being sold must satisfy a consumer's need or

desire.

 Price. An item should be sold at the right price for consumer expectations,
neither too low nor too high.

 Promotion. The public needs to be informed about the product and its

features to understand how it fills their needs or desires. 

 Place. The location where the product can be purchased is important for

optimizing sales.

Understanding the 4 P's: Examples and considerations

The four P's are linked and work together. While various marketing concepts have
been developed over time, the four P's are the basis for every successful marketing
strategy. The following is a breakdown of each P with examples.

Product

Products are commodities and services that solve problems and satisfy the needs of
consumers. A product can be tangible, such as a vehicle or a piece of clothing, or
intangible, such as a cruise or house cleaning service. A successful product either
fills a void in the marketplace or offers a unique experience that spikes demand.

Example. Before the iPhone was launched, most consumers did not realize the need
for a phone that would let them access everything at their fingertips. The way Apple
marketed its product compelled people to simplify their lives by carrying a
smartphone that could also serve as a GPS, calendar, search engine, flashlight,
weather guide and calculator. 
Questions to ask. Before marketing a product, it is important to understand it
intimately. This includes discovering details about the target audience and its
preferences.

The following are some questions to answer before developing a product:

 What is the product?

 Is it a specific product or a service?

 What does the product accomplish?

 Does the product fulfill a need or provide a unique experience?

 Who are the target customers for the product?

 What differentiates the product from the competition?

Price

Price is the cost of the product that the consumer pays. During product marketing, it is
important to set a price that reflects the current market trends and is affordable for consumers,
yet at the same time is profitable for the business. Price can fluctuate based on the supply and
demand and the product's sales cycle. While some businesses might lower the price to
compete with the market, others might inflate it -- especially if they are promoting a luxury
brand.

Example. Price points play a vital role in making a product successful. For example, if a
product is overpriced, only a few consumers will purchase it. Conversely, a product that is
priced too low can give consumers an impression of inferior quality, thus preventing them
from purchasing it.

Questions to ask. To determine the most profitable price for a product, it is important to
study the target audience and what they are willing to pay for that product.

The following are some questions to answer before establishing a product pricing strategy:

 How much do the competitors charge for similar products?

 What is the affordability and price range of target consumers?

 What is the lowest price that the product can sell for?

 What is the highest price that the product can sell for?

 What price is too high or too low for the target audience?

 What price is the best fit for the target market?

Place

This is where and how the product or service is purchased by the customers. It also entails
where the product is stored and manufactured. Digital information  has evolved how products
are sold online, small local shops or global producers. This marketing plan also considers
where the product is advertised and in which format, such as magazines, online ads, radio,
infomercials or film product placements.

Example. The place is where the product is marketed and distributed from. For example,
when targeting a product to seniors, it would be wise to not market it on TikTok. Similarly,
products targeting the younger generations would gain more attention if they were promoted
online and on social media platforms.                

Questions to ask. Not every place is suitable for marketing and distributing a product. As
such, it is important to distribute products and meet customer needs in a place that is easily
accessible.

The following are some questions to consider before deciding on a place to market a product:

 Which places or venues do buyers frequent for similar products and services?

 Where is the competition selling its products?

 What are the shopping habits of the target audience?

 Will the product placement and distribution require a sales team, the use of
Salesforce or will it be self-service?

 How can the right distribution channels be accessed?

Promotion

Promotion refers to reaching the target audience with the right message at the right time. It
gets the word out and is an effective way to conduct a sales promotion and connect with
consumers. A promotional strategy aims to show consumers why they would need a certain
product and the reasons for buying it over other products. The core of marketing
communications, product promotions push out specific and meaningful advertising through
popular channels: word of mouth seedings, social networking, Instagram campaigns, print
marketing, television commercials, email marketing campaigns, social media marketing and
more.

Example. Timing can play an influential role in promotional marketing. Take, for example,
the football season during which pizza delivery deals are targeted during games. This entices
consumers to try new products they may not have enjoyed otherwise.

Questions to ask. For a product to be successful, setting the best price or being a great
product offering is not enough. Promotion is the main ingredient in the marketing mix that
can distribute the product to the masses. Therefore, the promotional messages should always
cater to the target audience as well as to the distribution channels.

The following are some questions to consider when thinking about a promotional strategy:

 When is the right time to reach the target audience?

 Which channels or mediums will the target audience get their information from?

 What advertising approaches will be the most fruitful for the target audience?

 Which channels are the most cost-effective and efficient for product promotion?

 Which part of the target audience should be engaged?

 Where are the competitors spending their advertising efforts and marketing
revenue?

History of the 4 P's

The origins of the marketing mix date back to 1960, when it was first introduced in E. Jerome
McCarthy's best-seller Basic Marketing - A Managerial Approach. Later, Harvard professor
Neil Borden formalized the term marketing mix in his 1964 article, "The Concept of the
Marketing Mix." Borden explained his idea was inspired by his associate, James Culliton,
who compared successful marketers to professional chefs. Culliton's analogy was that great
chefs -- like successful marketers -- work off a recipe but are always willing to experiment
with new ingredients and make changes on the fly in response to market conditions and
customer demand. According to Borden, some of the forces that can alter a marketing mix
include consumer motivation for shopping, the competitive landscape and government
regulations. 

The four P's have stood the test of time, and despite the rapid digitalization, they still hold
value in the marketing world due to their strong foundational principles.

Alternative marketing mix models

A typical marketing mix is made up of the four P's. However, several newer iterations of the
four P's have been developed over the years.

Below are a few popular marketing mix alternatives.

Booms' and Bitner's seven P's. Professors Bernard Booms and Mary Jo Bitner presented the
seven P's of marketing in 1981. The seven P's are also sometimes referred to as the extended
marketing mix. They include the original four P's of marketing along with people, processes
and physical evidence.
Lauterborn's four C's. This approach, which educator and consultant Robert F. Lauterborn
suggested in 1990, presents a more customer-centric approach that showcases different
elements of the marketing mix from a buyer's perspective, rather than from a seller's
viewpoint. It is comprised of the following elements:

 Consumer wants and needs, which correspond to the product in the marketing mix.

 Cost, which corresponds to the price in the marketing mix.

 Convenience to buy, which corresponds to the place in the marketing mix.

 Communication, which corresponds to the promotion in the marketing mix.

Customer mix, or six C's. A fundamental overhaul of the traditional approaches, the six C's
aims to address the needs of modern and customer-focused digital marketing strategy, This
marketing mix consists of the four C's plus content and community.

Reaching the target audience is an integral aspect of the marketing mix. Learn how to craft
an effective multichannel marketing strategy.