Chapter Two

4Ps
Paul Hague
A business model for designing the marketing
mix Use this model to ensure that you have the right balance
of product, price, promotion and place.

The 4Ps is a simplistic model and memorable because each

component begins with a “P”. You must broaden the definition to
fit your circumstances.

• Product refers to your offer and could include a substantial

element of service.
• Place refers to the channel to market which could be through
distributors or direct.
• Promotion refers to all types of advertising, salesforce and
marketing that builds awareness and drives sales of the
product.
• Price is what you charge for your product and also how it is
valued by customers.

Think through the level of alignment you have with your target
market with your product, place, promotion and price.
YOUR TARGET MARKET
Complete these boxes
What type of customers (people who use your
products) are the most likely targets for your
offer?
Where are they (geographically); how many are
there?
What are their demographics, their behaviours,
their attitudes and their psychographic profiles?
How would they be described as a segment?
PRODUCT
Complete these boxes Rank of
importance
What benefits does the product (offer)
provide to the customer?
How do these benefits solve customers’
problems?
How do customers use the product?
How frequently do they use it?
How often and in what circumstances do
they replace it?
What would customers do if your product
wasn’t available?

What action is required to make improvements for

your target audience?
PRICE
Complete these boxes Rank of
importance
How do customers perceive value in your product
(offer)?
What are the key benefits that they value?
What monetary value is put on each of these
benefits?
To what extent do customers perceive the lifetime
value of your product (how long it lasts, the degree
of maintenance that is required, any resale value
etc)?
What are competitors’ prices for similar products?
To what extent is your product perceived to be
better or worse than competitors’ products?

What action is required to make improvements for

your target audience?
PROMOTION
Complete these boxes Rank of
importance
How many customers/potential customers
see your promotions? (Reach)
To what extent do your promotions stop
people in their tracks and capture their
interest? (Impact)
What is the relevance of your promotions?
How do the messages in your promotions
resonate?
What is the call to action?

What action is required to make improvements for

your target audience?
PLACE
Complete these boxes Rank of
importance
What are the channels that are most
used by the customer for this type of
product?
What penetration of the channels have
you achieved?
What are the opportunities for finding
new routes to market – i.e. alternative
channels?
What does each of the organisations in
the channel require in terms of margin
and service support?
How does your product stand out from
competitive products in the channels?

What action is required to make improvements for

your target audience?