This article takes a quick look at Neil Borden’s theory of the four P’s which has become a fundamental foundation for all business today. At the very end of the article, you can download an example of a marketing mix for Coca Cola. But first of all:
Marketing can be simply defined as sales promotion measures with the intention of promoting or selling products and services. This includes analyzing the market and advertising.
What is marketing?
Marketing of businesses requires an overarching goal to which the marketing strategy can be aligned. In order to best be able to formulate such a marketing strategy, it is necessary to familiarize yourself with the basic concepts of marketing and sales. That’s where the 4 P’s come into play. Good marketing involves more than just communication with potential customers.
Before we take a closer look at the four P’s, we need to note two things: Firstly, it is useful to know that this same concept is sometimes referred to as “the five P’s”. Then a P is added so that the list reads as follows: Product, price, impact, place (distribution) and staff.
Secondly, it is important to be aware that the four P’s are part of an overall strategy definition that can be used for all kinds of online marketing. This means that marketers must know the four P’s regardless of the type of marketing measures they wish to use.
Examples of some of the most common forms of marketing on the internet are: Content marketing, inbound marketing , outbound marketing, dialog marketing and event marketing. Towards the end of this article, you can download an e-report with an example of how Coca Cola has used the four P’s to gain a competitive advantage in the market.
Most mentioned examples of types of digital marketing fall under the umbrella term “interactive marketing” ( source )
What are the four P’s?
The four P’s are a basic model for marketing where the means of competition are divided into 4 categories;
- Product – What is sold? How high is the demand? The level of competition?
- Price – Costs? Market price? Offers and discounts? Profit basis?
- Space – Availability? Distribution? Customer contact?
- Promotion – Marketing strategy? Advertising? Contact network?
The four P’s correspond to the overall business strategy of a company. Appropriate marketing requires strategic adaptation of each of these four means of competition in relation to each other. We refer to the adaptation as the business’s market mix.
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The four P’s are used, among other things, to identify fundamental questions such as:
- What kind of expectations do consumers have of the business?
- How is this need met by the business?
- How are the products or services viewed in Norway?
- How do your P’s differ from their competitors?
- How do your P’s interact with customers?
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How do the four P’s work?
Based on these problems, you can shape a strategy for your company. A well-developed strategy for marketing goes hand in hand with the business’ overall goals. It should form a good basis for building up a solid reputation for the products or services you sell. Furthermore, your chosen strategy plan makes it easier to find the right target group so that the chance of sales and the product’s life cycle is maximized.
A concrete way to develop the company’s brand is to find or develop a couple of good ideas that explain and reinforce the company’s vision. This means that the company’s products can be sold better in the context of your company. Successful online businesses usually have a good answer as to why they deliver the products or services they do. It should always be closely linked to the company’s brand and vision.
Read more about establishing vision and marketing strategy!
The definition of a product is: An item or service that seeks to fill a need in a market.
Ideally, these should fill a demand in the market, or be so innovative that they create a new need. It is important to understand the product’s life cycle, as well as how sales should be adapted to the different phases of the cycle. In many industries is
it is also important to have continuous product development so that the product constantly adapts to market changes.
In product marketing, the focus is on the product. The product is then marketed in relation to specific target groups. Many companies use this form of marketing when launching products to collect data that can be used in further development of the product line.
Taken
Price is the cost a consumer pays for a product. To establish the right price for the product, one must consider:
- Supply and demand
- Cost price (expenses associated with putting the product up for sale)
- Is it natural to have discounts linked to the season?
- Competitors’ pricing
Lowering the price is a well-known method for companies that want to establish a competitive advantage. The disadvantage is that a lower price can give the impression that the product is not of the same high standard. Such a strategy is often called a generic business strategy .
Place in the market (distribution)
Distribution can be defined as the process by which a product or service is made available to an interested party (consumer).
How will the product be delivered to the market? The aim of the company will always be to reach out to the consumers and target groups who are most likely to make a purchase. Again: If you specialize in a niche, to be able to give this limited group in the market a better offer, we are talking about a generic business strategy.
PromotionPromotion involves what is brand architecture: definition and what is it for advertising, utilization of contact networks and marketing strategy. The business must communicate to potential customers why they need the product. Then the price must be justified.
Personnel (When the term is extended to “the 5 p’s”)
The fifth p’ takes account of the competence of those who work in the company. Key factors that are taken into account when the marketing strategy is formulated will be the employees’ level of customer service, product knowledge, market understanding and the ability to generate sales.
GenerallyIn contrast to traditional physical marketing, where advertising posters and newsletters by post were important driving forces, direct marketing has gained a completely new impact in the digital arena ( source ). It allows the design of differentiated marketing in a far more seamless way ( source ). The goal on the internet is primarily to build digital authority , which in turn affects how visible your websites are on the Internet.
Like all forms of external marketing, the four P’s apply to online marketing as much as physical marketing. They are four basic principles that should always be kept in mind during the start-up of new online stores and marketing campaigns. Without these as part of the strategic planning, it becomes more difficult to form nuanced strategies aimed at more specific customer groups.
The video below very briefly and succinctly explains the role of the four P’s in business operations. In addition, some good illustrative examples are given.
How to use the four P’s in practice?
Simply put, the four P’s are the essence aqb directory of all marketing. It’s about promoting the right product at the right price , at the right place and time. You can find out how to achieve this by taking a closer look at Content Marketing Guide’s post: Formulate a marketing strategy .
Let’s look at some brief examples of the four p’s here.
If you have a product that few or no one has access to, you have a competitive advantage in relation to the product. For example, let’s say you’ve decided to sell handmade and eco-friendly clothes made from bamboo viscose.
You then negotiate a great deal with the suppliers of these clothes. Then you can sell them at a price that no one else can match. Thus, you have already acquired two competitive advantages: A product that few have access to, and a price that competitors struggle to match.
Perhaps you will be able to get a retail outlet at Youngstorget in Oslo, where you are the only store that offers environmentally friendly clothes made from bamboo viscose. Then you will have a big advantage in relation to placement (distribution). As no one else sells such clothes where you are, you will have a “monopoly” in this area. This can lead to increased sales.
Because people are talking about the bamboo clothing you sell, you may not need promotion . Advertising in the vernacular can be both effective and cost-saving for the company. Nevertheless, you realize that the clothes are popular enough that you decide to invest money in promoting them online.
Download example of marketing mix – Coca-Cola
Below you can download an e-report that shows in detail how Coca-Cola has chosen to make its market mix. The reason we have chosen to use Coca-Cola as an example is because everyone knows the company. It will therefore be easy to understand how the example relates to the theory in this article.
SUMMARYThe four P’s describe the most fundamental pieces in each strategy for marketing, both online and among offline companies. Online businesses that think through these carefully from the start will lay a solid foundation for further operations. This, in turn, will strengthen each election and each campaign formed thereafter. This is how a solid brand and a clear vision is established from day one. Therefore, never forget to consider your products, price, impact and space!With marketing on the internet, niche products , good location of the store and good prices , you have made it possible for the company to do as well as it can. All the success you experience depends on how well the four p’s are adapted to each other and your specific competitive situation.
