Marketing products instead of services is one of the basic essentials that any business must do in order to maintain and develop its growing company model. So the problem 4P strategy in marketing is the concern of many domestic and foreign businesses when they want to position themselves trademark or compete in the market. Johnson's Blog Please share information related to the marketing strategy that many people are really interested in and looking for.
What is the 4P strategy in marketing?
4P in Marketing is a set of marketing tools including 4 elements: Product (product), Price (price), Place (distribution), Promotion (promotion). Each P has its own method of implementation and its own advantages and disadvantages but cannot be separated but must be combined to create a successful marketing strategy. 4P Strategy used by most businesses when launching new products.
>>>See more: Find out Empathy Map what? How to create and use empathy maps effectively
Elements of 4P marketing
The 4Ps of marketing refer to the four key elements that make up a successful marketing mix: product, price, place, and promotion.
- Product: Product or service offered by a company and sold to customers. This includes features, design, packaging and branding.
- Price: The cost of the product or service and how it is positioned in the market. This includes factors such as production costs, competition and target.
- Place: The delivery and availability of the product or service. This includes channels such as physical stores, online platforms, and distribution networks.
- Promotion: Marketing activities used to communicate the value of a product or service to customers. This includes advertising, sales promotion, public relations and personal selling.
By considering these four factors, companies can develop a marketing strategy comprehensive approach to effectively reach the target audience and achieve their business goals.
In 4P marketing strategy, Products are tangible things or services that businesses provide to users, so when setting product strategy, marketers will make decisions related to brands, product lines, current issues. product modernization…
In each aspect of the 4P product strategy in marketing, the strategy for each product needs to pay attention to three issues: the core part, the specific part and the incremental part.
- The core part must satisfy the needs of customers and bring different values of the product, and at the same time, marketers need to discover the hidden needs of the potential customer group.
- Specific parts are the tangible elements that enable customers to touch, try, taste or distinguish from the products of the brands. trademark customers to achieve core benefits.
- The incremental part gives customers the best shopping experience and increases their chances of competing with other brands.
Price (product price)
This is one of the criteria of 4P marketing strategy Effectively based on cost, supply and demand level and profit to be able to build a pricing strategy for the product. Businesses can rely on strategic pricing factors for products such as high price, low price, or low price pricing strategy skim off.
Especially, the market entry pricing strategy will determine the impact of the product, which will cause most businesses to offer cheap products compared to the common ground to accept initial capital losses to create pressure on prices. hinder when the competitor join the industry. After a period of time, the enterprise raises the price of the product to make a profit after having increased its stable position.
Place (distribution location)
This is one of the most important steps when perform marketing mix strategy 4p. Not only does the product flow to consumers, but place also creates an intermediary distribution policy that affects profits.
The actors involved in the product distribution process are the manufacturer, the dealers, and the customer. When building a distribution channel structure, businesses need to pay attention to the strategy of direct or indirect length and the strategy of width when dual distribution to expand many points of contact with consumers.
This is also one of the important fundamental factors contributing to the marketing strategy 4p that almost every business focuses on investing to promote buying and selling activities to build and strengthen the brand in the market.
Enterprises building promotion marketing mix need to master five important tools that are advertising, promotion, personal offering, PR and direct marketing. Depending on the characteristics of the industry and distribution channel, businesses can implement a pull strategy, a push strategy, or apply both pull and push strategies. In order to stimulate demand for products to reach consumers or through intermediaries and distribution channels.
Benefits of 4P marketing
The 4Ps of marketing provide a number of benefits as a framework for creating a marketing strategy overview:
- Clear and simple: The 4Ps provide a clear and simple framework that marketers and businesses of all sizes can easily understand and apply.
- Comprehensive rangeThe 4Ps cover the key elements of the marketing mix and provide a comprehensive view of the marketing strategy.
- Focus on customers: By focusing on the customer and the customer experience, the 4Ps help marketers create a marketing strategy that meets the needs and expectations of the target market.
- Align with business goals: By looking at product, price, place, and advertising together, the 4Ps help ensure that the marketing strategy aligns with the overall business goals and objectives.
- Improve decision making: By looking at the 4Ps together, marketers can make more informed and effective decisions about the marketing mix and make adjustments as needed.
- Flexibility: 4P can be tailored and adapted to meet the ever-changing needs and requirements of different products, services and markets.
By using the 4Ps of marketing, businesses and marketers can create a comprehensive marketing strategy that effectively reaches and convinces their target market, while supporting goals and objectives. their overall business.
Limitations of 4P marketing
Although the 4Ps of marketing have been widely used as a framework for creating a comprehensive marketing strategy, there are several limitations to this model:
- Narrow center of gravity: The 4Ps focus on the marketing mix and do not take into account other important factors that influence the success of a marketing strategy, such as customer behavior and market trends.
- Consider cultural limitations: The 4P does not consider cultural differences and the impact of cultural factors on the success of marketing strategies.
- Lack of innovation consideration: The 4Ps focus on the marketing mix and do not consider the importance of innovation in product design, pricing strategy, distribution channels and advertising tactics.
- Too dependent on price: Focusing on price in the 4Ps can lead to over-reliance on pricing strategies to drive sales without considering other important factors, such as product quality, customer service, and price overall value.
- Lack of sustainability consideration: The 4Ps do not consider the impact of the marketing strategy on the environment and other sustainability factors.
How to use 4P marketing in marketing strategy
The 4Ps of marketing provide a framework for creating a comprehensive marketing strategy. Here's how you can use each of the 4Ps in your marketing plan:
- Product: Start by defining what your product or service is, what it does, and what makes it unique. Consider the features, benefits, and target market for your product. Use customer feedback to refine and improve your product.
- Price: Define a pricing strategy that aligns with your overall business goals and target market. Consider factors such as production costs, competition, and target when setting your price. Experiment with different pricing models to find the one that works best for you.
- Place: Decide the best distribution channels to reach your target market. Consider factors like accessibility and convenience for customers, as well as the image you want to maintain. Choose a mix of direct and indirect channels to effectively reach your target audience.
- Promotion: Develop an advertising strategy to communicate the value of your product to your target market. Use a combination of advertising, promotion, public relations, and personal selling to reach your target audience. Consider your target audience, the nature of your product, and your overall business goals when choosing an advertising tool.
What are some examples of 4P marketing?
4P marketing can be applied to many different types of products and services. Here are some examples of 4Ps in action:
- Product: Apple iPhone. The product is a premium smartphone with advanced features and capabilities, such as a high-resolution camera and touchscreen interface.
- Price: Apple iPhone. The iPhone's price is premium, reflecting its premium features and status as a luxury item. Apple uses a premium pricing strategy to maintain its image as a leader in innovative technology.
- Location: Apple iPhone. The iPhone is available through physical stores, Apple's online store, and through authorized resellers. Apple uses a mix of direct and indirect channels to reach its target market.
- Promotion: Apple iPhone. Apple uses a multifaceted promotional strategy, including advertising, public relations, and personal selling, to build awareness and interest in the iPhone. Apple's ads emphasized the innovative features and sleek design of the iPhone, while public relations focused on Apple's brand image as a technology leader.
Here is another example:
- Product: Coca-Cola. The product is a carbonated beverage with many different flavors.
- Price: Coca-Cola. Coca-Cola uses a mass-market pricing strategy that keeps prices low and accessible to a wide range of customers.
- Location: Coca-Cola. Coca-Cola is widely available through physical stores, vending machines, and restaurants. Coca-Cola uses an omnichannel distribution strategy to reach the target market.
- Promotion: Coca-Cola. Coca-Cola uses a multifaceted advertising strategy, including advertising, sales promotions, and sponsorships, to build awareness and interest in its products. Coca-Cola's advertising focuses on the brand's heritage and emotional connection with customers, while promotions encourage customers to try its products.
These examples show how to use the 4Ps of marketing in different ways to create effective marketing strategies for different types of products and services.
When does 4P become 7P?
The 4Ps of marketing were first introduced as a framework for creating a comprehensive marketing strategy in the 1960s. Over time, the model evolved and expanded to include additional elements, resulting in 7 Ps of marketing.
The additional Ps are:
- People: Refers to employees and stakeholders who represent the company and interact with customers.
- Process: Refers to the systems, procedures, and processes that a company uses to provide its products or services.
- Physical evidence: Refers to the tangible elements of a product or service, such as packaging and store design, that contribute to the overall customer experience.
The 7 P's of marketing provides a more holistic view of the marketing mix and helps companies better understand the different factors that impact customer experience.
The extension model has been widely adopted by marketing practitioners and researchers and is widely used as a framework for creating effective marketing strategies. However, the 4Ps continue to be the most well-known and widely used element in the marketing mix and are often used as a starting point for building a comprehensive marketing strategy.
Why should you choose the 4P strategy in marketing?
Because this is one of the most popular and sustainable basic marketing strategies in the world and in Vietnam. 4P Strategy used to develop the core business and as a model in the marketing mix.
In fact, every problem 4P marketing strategy All have very separate implementation methods when businesses want to carry out marketing campaigns for new products or introduce their services.
4P strategy in marketing is the basic strategy of many types of marketing in the future, including the four basic elements of product, price, distribution, and promotion. Johnson's Blog bring to readers. Businesses should note that these factors cannot be separated but must be mixed depending on their marketing goals or brand positioning.