Marketing Basics
Marketing Basics Price Product Promotion And Place
4 P’s of Marketing
On a simple level basic marketing revolves around four elements: product, price, promotion, and place.
Now marketing tactics and channels may and will change, but they are the concepts everything else revolves around. Product, price, promotion, and price are principles that will not change.
Some models expand the 4 basic principles as 7 P’s or another variations. For simplicity, we’ll just refer to these four as it’s plenty to understand how marketing works.
As the example throughout the rest of the article, a kayak manufacturer will be used.
Product
This is what a business sells, either a physical item, a service, or both. From a marketing perspective, the following will need to be determined:
How many different product variations or product lines should be sold?
Our kayak manufacturer may have determined what kayak options they would bring to the market. Some variations may include: single or tandem (for two people), sit in or sit on, use of the kayak like fishing, rapids, seafaring. Colors, lengths and accessories can also fit into this category.
How should the product or service be packaged or presented?
Perhaps the manufacturer wants to market their kayaks for everyday families. So they make their marketing material relevant to families. While kayaks are generally long, they may have a specialty line for inflatable kayaks.
As a service, they may also offer credits for their customers if they want to upgrade their kayak and offer the returned kayaks as a demo for a more affordable price.
How will it be serviced?
The kayak manufacturer may have a warranty or satisfaction policy. They may also have an extensive website with detailed information on their kayaks and other products to allow their customers to understand every aspect of their kayak or accessories.
Sometimes marketers might have involvement in products are design and which features are included based on their market research.
Price
A product’s or service’s price isn’t just “how much stuff costs”. There is more to think about than that.
If marketing is all about driving profitable action, then prices need to be set at a level the market will support.
Here are some marketing considerations with prices that the kayak company will need to consider:
What is the market rate per unit of a product?
Pricing policies requires market analysis and competitive research to determine what is a fair price for a product while considering production costs and what consumers are willing to pay. If the kayak is sold at high prices, does it match with its perceived value
How should discounts be applied and timed?
The kayak manufacturer may have promotional activities and/or promotional pricing for its partnered retailers. Should the product be put on sale at certain times of year?
Does it make sense to give customers options for payments?
A retailer for the kayak may offer financing options through their website with the help of 3rd party payment processors or other payment plans.
However the kayaks and accessories are priced, as long as they are at the right price for the customer needs, they will be purchased.
Promotion
If a product is launched but no one sees it, does it exist? Technically it does, but only taking up space.
If there is a new kayak design or accessory, it needs to be marketed so customers know it exists.
Which channels will be used to promote the product?
A marketing channel the way the product or service is being marketed from the start at the company to end at the intended consumer.
This includes online and offline channels.
Some examples of traditional marketing include: print, television, and radio. For our kayak company, television or radio may not be optimal, but printed brochures or promotional displays at outdoor fitters may work instead.
Where will it be promoted?
Online promotions include social media and Google Ads for example, but are not limited to these. Offline promotions include the traditional marketing tactics that were previously discussed. It also includes in stores promoting and at relevant events.
What message needs to be communicated?
The text, images, and imagery that is used will to tell the audience what the product is all about, and encourage them to buy it.
Some examples of the promotion strategies may include, email marketing, content marketing, or advertising with local groups that have active families.
Place
The right product needs to be in the right place for customers to find it and purchase it.
Where is the product distributed?
Online then shipped or sold in retail locations.
As far as retail locations, will it be big box, like Cabela’s or Academy Sports.
Will specific locations get the product?
For example, the kayaks wouldn’t be sold in areas that are typically frozen year round. That wouldn’t make sense at all and would be a complete waste of time, money, and resources.
CONCLUSION
The marketing mix and the 4 P’s of marketing has been around since the 1950’s and has been updated and modified.
At it’s basic form, product, price, promotion and place will get any marketing strategy started and running smoothly.
