Marketing is one of the core components of an organization that is a major revenue driver. An effective marketing refers to selling the right thing at the right time and place to the right person. Marketing is all about meticulous planning and perfect execution. The elements whose presence is indispensable in the marketing plans are the product which is to be sold; the price at which the product is to be sold; the channel of distribution of the product and the techniques of promoting the product to be sold.
The 4P’s, namely, product, price, place and promotion together form a perfect marketing mix and these are interrelated to one another. Any change in one P affects another. Here’s a look at 4 Ps and their
1. Product Concept
The product concept is a combination of planning, producing and developing the product or service to satisfy the ultimate need or want of the customer. It includes both tangible and intangible elements:
- Product range
- Warranty against defects
- Size and design of the product
- Packaging and Labelling
- After sale services
2. Price Concept
Price concept is a very important element of the marketing mix as it relates to the policy, price and strategies associated with the product. It is dependent on the standard of living and the power of purchasing of the customer. The price of the product is determined by:
- Firm’s Objective
- Cost of Production
- The demand of the customer
3. Place Concept
It is common for the product to be transported from the producer to the customer. Therefore, place concept contains two things- physical distribution and the channel of distribution.
Physical distribution is associated with interrelated activities like storage, control and movement of unfinished or finished goods for their timely availability at the required place.
Channel of Distribution is the path through which the goods will be transferred from the place of production to its consumption.
4. Promotion Concept
It involves informing the consumer about the product and influencing him/her to purchase the product. The flow of communication can be both personal and impersonal.
For the most effective promotion of products, one must keep in mind that a number of promotional activities must be used simultaneously so that if one is ineffective, the other can take its place. As the business environment is dynamic, so should be the techniques. Therefore, you need to choose them wisely.
The major elements of promotion are:
- Sales Promotion
- Personal Selling
Significance of 4Ps of Marketing
- Once the needs and desires of the customer are verified, the 4Ps together helps the firm in shooting up its revenues.
- As the business environment changes, so do the needs of the customer. The 4Ps forms a balance between the firm and the market.
- Since the 4Ps are interrelated to one another, an integrated approach towards marketing is formed.
- 4Ps together lead to customer-oriented marketing as a link is formed between the firm and customer.
Since a marketing strategy is incomplete without an even mix of 4Ps, we emphasize on these concepts. The candidates who pursue PGDM or PGDBA in Marketing Management from MITSDE are accustomed to these concepts so that they turn out to be proficient marketing managers.