Every business needs sales, revenues and profits at minimal costs. This goal can be attained by making effective marketing strategies for product or service. While making strategies, marketing mix is an important section that must be designed effectively. Marketing mix includes Product, Price, Placement and Promotion. This marketing mix tool helps a business to easily create demand and awareness among common people. The word "Marketing Mix" was first used in marketing by E. Jerome in 1960. Marketing mix is also widely known as 4 P's of marketing.
Below are the 4 P's of marketing that can make or break your business:
It is an intangible service or tangible good that can be marketed in consumer's mind. Tangible products may include things like toothpastes, soaps, watches, foods etc whereas intangible products can include services like airlines or train services and tourism industry etc. Product not only includes a product or main stuff, but it also includes packaging, quality of product, design, brand name, warranties, guarantees, product varieties, features and size of products. All these factors related to a product help a company to either get a competitive advantage or become a failed company. If a business are creating products that are unique and can satisfy a niche market then such type of products are usually successful with more demand in market.
It is the money that consumers pay for a product. A business must set a price after analyzing the cost benefit ratio. If perceived benefits are lesser than the set cost, people will avoid that kind of product by not buying it which can result in less demand which can results in bankruptcy of a business. Price can include strategies like seasonal pricing, price discrimination, credit terms, discounts and allowances etc.
It represents a place, location or region where particular product or service is placed for consumers to purchase. Placement also refers to a distribution channel. Place can be virtual (e-marketing, e-business or physical (stores, apartments). Placement is an important tool that must be analyzed properly, because placing a product in inappropriate place or region can affect and decrease your sales and profits. If a product is placed in a far located store or unreachable place, consumers may not buy it. So a business must conduct proper research and then place a product according to consumers, their types and preferences.
It is one of most important tool that a business must design and implement properly. Promotion for a product can make or break your business as it helps people to easily identify, recognize and buy products at physical or virtual store. There are different types of promotions through which a business can promote its product that includes Advertising, Personal selling, Public relations, Sales promotions.
4 P's of marketing are important for almost all kind of businesses. It increases awareness among potential customers, makes demand for a product and pushes people to use it. Properly designed marketing mix for a product can not only help a business to attain their goals, but it will also help to decrease cost and other expenses.