Product, Price, Point of Sale and Promotion. These are the four basic elements with which the American accounting professor E. Jerome McCarthy defined the concept of marketing in 1960. These four variables, known as “the 4 P’s of marketing”, have the ability to explain optimally how marketing works in an integral and complete way, which connects with the concept of the marketing mix.
Do you want to know more about these 4 variables? Next, we’ll reel them!
Product: the element on which everything turns
We will agree that the product is the main element of any marketing campaign. True? And we will not be exaggerating if we affirm that, in one way or another, all marketing actions revolve around this.
It is a very broad concept, since the product covers everything that is placed in a market for its acquisition and that, in some way, can satisfy a need or a desire of the consumer. On the other hand, the product does not have to be something tangible, since it also includes ideas and values. But there is more!
In every marketing strategy it is necessary to define the product as best as possible, so that it can be very useful to answer the following questions:
- What do I sell?
- What needs does my product satisfy?
- What features does my product have? What are the benefits obtained from each of them?
- What added value does my product provide?
Price: the difficult task of fixing the most appropriate
The concept is very clear and simple: it is the amount of money that the consumer must pay to have access to the product or service. However, setting the right price, following marketing criteria, is one of the most complex and important issues of a campaign. In fact, it is undeniable that the price is the first thing that we see the vast majority of consumers. Or not?
To set an optimal price for our product is necessary, among other actions:
- Conduct studies on how much consumers are willing to pay.
- Study comparatively the prices set by the competition for the same or similar products.
- Calculate very well the net benefits that we will obtain with each price.
- Find the right answer to questions such as:
- What value does the product have for the customer?
- Are there standard prices established or strongly assumed by consumers for our product or for similar products?
- If we lower the price of the product, will we really achieve a competitive advantage in the market?
Point of sale: how are we going to distribute our product?
The point of sale or distribution is the process by which the product or service reaches our customer, who can be wholesale or final. It is a fundamental issue that will significantly influence our profit margin and consumer satisfaction.
In the distribution there are multiple variables that must be analyzed exhaustively. Take note!
- Operation times.
- Shipping costs.
- Channels that I prefer to use: direct sales, distributors, online stores, etc.
Promotion: the multiple ways to make it known
The promotion includes all those media, channels and techniques that will make our product known. With the emergence of the online universe, the possibilities of a good promotion are many, affordable for any budget and very different in concept and philosophy. Find yours!
Currently, to traditional media (outbound), such as billboards or radio or television ads, we must add inbound marketing strategies. These are much more friendly and less intrusive, based on elaborated and well-argued content and, above all, with added value for potential customers.
In any case, it is necessary to assess all the possibilities and, finally, to select which is the best way (normally it is a combination of several) to reach our target audience, studying aspects such as: age, population, sex, needs and habits .
The definition of the 4 “P’s”, besides being one of the basic points of marketing that allows to obtain a panoramic vision of everything you want to cover, has a very practical utility: they can be used to prepare a list of actions and most basic analysis or studies to be done before launching a new product or service to the market. Get going!
What do you think about this article about the 4 big marketing variables? Do you think it is possible to incorporate other “P” (some authors point to “person”, “process” or “presentation”)? Go ahead and give your opinion in the comments section!