What you didn’t know (and now you do) about the Marketing Mix and the 4Ps of Marketing

We all know that good or bad marketing decides the success of a product, but have you ever wondered what the best definition of marketing is and what the essential elements are for a strategy to be successful? Today, I want to help you refresh these basics by telling you everything you didn’t know (and now you do) about the marketing mix and the 4Ps of marketing. Let’s go!

What is the marketing mix?

A definition of marketing that I like is “putting the right product in the right place at the right price at the right time.” Each of these points seems simple, but it hides a lot of work behind it. And for the product to work, you need all of them to be on point: a single misplaced element can be a disaster for your brand.

The marketing mix is a concept that we use to refer to the entire set of decisions that organizations must make to bring a product or service to market. There are different ways to classify these decisions. The 4 Ps is probably the best known and most useful, but there is also talk of the 7Ps (an expanded version of them) or even the 4Cs (from the consumer’s point of view).

The 4Ps of Marketing

As we’ve just seen, the 4Ps are a simple formula for identifying and working on the core elements of the marketing mix. Although it is not new at all (it was first proposed by E. J. McCarthy back in the 60s), it is still a most advisable classification to quickly clarify the central points of your marketing strategy. It is based on four different elements:

1# Product or Service

The product or service is at the root of every marketing strategy, since it is the means through which the needs of the target audience are satisfied: what can we offer them?

From the point of view of modern marketing, it is preferable to define the product from the needs and motivations of the customer and the benefits it provides, rather than from the “objective” characteristics or attributes.

Within this P of marketing we must define the company’s product portfolio, what its life cycle is and how they differ from the competition. Image, branding, packaging or after-sales services also fall within this key element.

2# Point of sale or distribution (Place)

Distribution is responsible for defining and managing the channels for a product to reach consumers. Strategic marketing points can range from an e-commerce site to a distribution chain with physical stores in several countries.

The purpose of the distribution strategy is both to facilitate customer access to the product or service and to help sales by providing a good brand experience.

Within this P, we have all kinds of decisions regarding storage, inventory management, transport, location of point of sale, offline and online order processes…

3# Price

The final price of our product or service is one of the most complex marketing decisions, as it involves a lot of factors:

• The costs of manufacturing the product
• The trading margin we expect to achieve
• The company’s economic objectives
• The demand for our product or service in the market
• Competitors’ prices and possible substitute products
• Consumer purchasing power
• Trends and tastes
• Product positioning:  Sometimes it is interesting to raise the price to give a higher quality image

When setting the price, we must also take into account factors such as payment methods or discounts. In the end, only customers can decide whether the price of the product seems right to them or not.

4# Promotion

And last but not least, we find promotion: all the communication actions we carry out to publicize the characteristics and benefits of our products and services to increase sales.

This P is a real “catch-all” in which many different forms of communication fit: advertising, public relations, personal selling, direct marketing… Today, digital marketing influences all of them. No matter how “traditional” your product or service is, you need to be up to date with trends, news, and marketing news.

What questions should to ask yourself with the 4Ps

As you can see, each of the 4Ps contains a lot of factors to consider, so you may feel overwhelmed when making decisions. To make the task easier for you, I have created this macro list of questions that you have to ask yourself to clarify each of the 4Ps.

1# Questions about the product or service:

1. What does the consumer want from my product or service?
2. What are the benefits it offers?
3. What needs does it satisfy?
4. Are there other ways to meet the same needs? If so, what advantages and disadvantages does it have concerning them?
5. What are the characteristics of the product or service? Is it possible that there is one missing that can improve my offer? Am I including any that are costly, but do not provide enough value?
6. How and where will my product be used? Are there several different usage scenarios?
7. What does it look like? Are there different sizes, colors, etc.?
8. How is it complemented with other products or services, from my company or others?
9. What will the consumer experience be like when using it?
10. What’s your name? What will be the brand?
11. What will make it different from the competition?

2# Questions about the point of sale or distribution:

1. Where are customers going to look for my product or service? Some ideas: specialized stores, supermarkets, online, through catalogs…
2. How can I access the right distribution channels?
3. Do I need a sales force? Attend fairs in my sector? Send samples to catalog companies? Are you in contact with online sellers? Set up my online distribution site?
4. What is my competition doing, and how can I learn from or differentiate myself from them?

3# Questions about the price:

1. What is the cost of manufacturing my product or service?
2. What trading margin do I need to earn?
3. What is the value of my product or service to the consumer?
4. What are the typical prices for products and services similar to mine?
5. How price-sensitive is my typical customer? Is it possible for a small decrease to win me a lot of customers or for a small increase to go unnoticed?
6. Can I offer discounts and promotions at specific times, or for certain types of customers?
7. How is my price compared to the competition?

4# Questions about the promotion:

1. Where and when can I get my message out to the right audience?
2. Which of these options are right for me: banners, search engine advertising, social media marketing, radio, print, television, billboards, direct marketing, public relations, email marketing…?
3. When is the best time to promote? Does my product or service have a seasonal component?
4. What are my competitors doing, and how should that influence my decisions?
5. What KPIs will I use to measure the result of my promotional actions?

Use the 4Ps of Marketing.

I hope all this information has helped you organize your ideas, but don’t forget that there is still the most important step: getting started! Whether you’re looking to launch a new product or rethink your current marketing strategy, the 4Ps have a lot to offer you. This step-by-step plan will help you get the most out of this classic marketing formula:

1. Identify the product or service you need to analyze.

2. Answer the questions in the list in the previous section. As much as possible, try to base yourself on objective facts. If you have doubts or feel that you do not have the right information, it is time to invest in a good market study.

3. Once you’ve defined your marketing mix with these questions, it’s also a good idea to take a look at it from your consumer’s point of view:

1. 1. Does it meet all your needs? (Product or service)
   2. Will you find it at the points of sale you usually go to? (Distribution)
   3. Do you think the price is right? (Price)
   4. Will the brand’s messages reach them to motivate them to buy? (Promotion)

4. Create hypotheses by turning your answers around with “why?” and “what if…?” For example, what would happen if I raise the price by 5%?” “What if I put more sizes on sale?” “Could I benefit from selling through my e-commerce?” “What happens if I move 25% of my investment from Facebook Ads to Twitter Ads?”

5. Time to take action! Test the hypotheses in the previous section, measure the results, and incorporate the changes that prove worthwhile into your strategy. Finally, don’t forget to establish regular checks on your entire marketing mix strategy, as market circumstances are changing faster and faster.