You have probably heard about the 4 Ps of marketing, maybe from a friend, book, or in school. As an entrepreneur, it’s imperative you understand what it really means and how it affects your business.
The 4 Ps of marketing is a concept that summarizes the pillars of any marketing strategy. They include these:
Product: This is what you sell. It could be a physical good, service, consulting, etc.
Price: How much do you charge and how does it have an effect on how your customers view your brand?
Place: Where do you promote and sell your product or service? Where do your ideal customers go to find information about your industry/sector?
Promotion: how do your customers find out about you? What strategies do you apply and how effective are they?
Product
This is what the company sells. It might be a physical product or service. It could also be in electronic form. In a nutshell, the product is everything that is made available to the customer.
You need to understand what your offer needs in order to stand out from your competitors and please customers. Look for what makes your product unique, because that is exactly what would make you thrive and last long in the industry.
Find out the biggest problem you can help customers solve, the best marketing strategy, how to make your product better, and what you don’t like about your competitor’s products. This would help you create amazing products.
Price
This is how much you charge for your product or service.
It could be tough to come up with the right price for your product. While doing this, you are concerned about not only driving the number of sales but also drives the most profit. What people perceive your product to be is what they would want to pay for it.
You may think of charging a premium amount if you are in a new space or already a leader. You can as well, choose to charge cheaper if you are late in the market and the market is saturated.
These questions can help you when setting price:
- What would be the lowest price I am willing to sell this product?
- How sensitive to price are my customers?
- What would be the highest price that consumers are willing to pay for this product?
- What price do current leaders in this area charge?
- How does my price compare to the competition in the market?
Place
This basically means location. When choosing a location for your business, you have to pick a location where your customers are. It wouldn’t be wise to expect them to come to you, you have to go to them.
When choosing the right location for your business, you would need to identify your target audience and find out where they can be found.
Some questions that can help you find the right place include:
- Who is my Customer?
- Which outlets sell my products?
- Which distribution channels are working for me?
- Do I sell directly to businesses or consumers?
- Do I sell to end-users or use middlemen?
- Where are my competitors?
Promotion
Once you have given proper attention to the Product, Price, and Place, you can now promote your offer. This involves not just advertising your brand but generating revenue.
The aim of your promotion is to drive sales. When you consistently promote your goods and services you would get enough traffic on your web page which would subsequently be converted to sales.
When the 4 Ps are given adequate attention in a business then the business is positioned for growth and expansion. More revenue would be generated and the client base would increase.
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