4Ps of marketing is no longer an unfamiliar concept for businesses. The 4Ps stand for Product, Price, Place, and Promotions utilized when marketing products and services. This concept has been increasingly used when businesses create marketing strategies and plans to market to an audience segmentation effectively.
Though there are different marketing mixes, this 4P-of-marketing approach is the most foundational for businesses to build a great marketing plan. Learn more what the 4Ps of marketing are and how this strategy helps you on the following marketing endeavor or the significance of 4Ps of marketing.
4Ps are one of the marketing mixes
As mentioned above, the 4Ps of marketing are product, price, place, and promotion. Check out the following sections to better understand about these elements.
Product in the 4Ps of marketing is a tangible product or service that a business provides in the market. There are several issues to consider when making the strategy of product in 4Ps of marketing.
Products in 4P
The company's product names will affect the level of customer retention and motivation to buy.
Name products differently: Each product should be named differently. Accordingly, corporate reputation is not tied to the product and limits the brand risk between products.
However, each product that comes with a new brand needs businesses to make efforts and spend more money for consumers to recognize and trust the product.
For example, Tan Hiep Phat Company has launched many types of products with different names such as Tra Xanh Khong Do, Number 1, Dr. Thanh, etc.
Common names for all products: Naming helps customers remember product groups easily. Especially if the previous product of the popular product line is popular, the next new product will easily be welcomed because the customer already has a good impression of the product.
For example, Philips has a common name for all its product lines from TVs, irons, light bulbs, and more.
Naming by product line: This method helps businesses conveniently promote products of the same line. However, when brand issues occur, the impact will certainly apply to the entire product line.
For example, P/S has a line of oral care products, Pond's skin care line.
Product naming also affects the brand
Combination of product name and business brand: This naming method both uses the prestige of the business's brand and creates an impression for the product. In particular, when there is any problem with the product brand, the level of influence is also less.
For example, OPPO smartphone brand has named each of its products according to the formula OPPO + Smartphone name.
In order to have the right 4P marketing strategy for products, businesses need to understand the nature of their products and services. It is best to still tabulate the product feature set. Required features of the product portfolio:
Width: this is the information sheet that represents the product line. Usually the product line will have products that are related or share some criteria such as functions, features/constructions, and target customers.
For example, a cosmetic company offers product lines for acne-prone skin, dry skin, sensitive skin, and more.
A new business can only deal in one product, but to grow, the business will have to expand its product portfolio to have a better risk allocation.
The decisive factors for the expansion of the enterprise's product portfolio include:
One of the popular strategies developed by brands today is to launch high-end product lines first and then expand to lower product segments.
On the contrary, there are also some businesses that launch products in the low-end segment with rapid growth in order to increase market share quickly after entering the market.
Next, the enterprise implements additional products with more advanced features, in order to increase profits and develop the business. Some businesses combine product development in both directions: up and down, aiming to expand their presence throughout the market.
Some businesses conduct the expansion of product lines. Developing new products for the product line in order to increase profits will help consumers have more choices and increase competition for businesses.
Besides adding new products to the product line, businesses need to remove products with weak competition and not attract customers to focus resources on other products more effectively.
The second P represents the cost of the product in the 4Ps of marketing. Based on supply and demand, profits and costs, businesses can implement appropriate pricing strategies.
Another equally important step in the 4Ps of marketing is Place which can be understood as distribution. This element provides rotation, bringing products to consumers quickly. In addition, the policy of distribution intermediaries also affects corporate profits.
Important distribution channel with 4P
Whether the product is consumed or not depends largely on factors such as producer, customer/consumer and distribution intermediaries. The place in 4ps of marketing example is utilizing retail outlets, wholesale centers, online platforms or physical stores as the places for trade promotions and product placement.
The last P in the 4P model in marketing belongs to commercial marketing, playing an equally important role as the above Ps. Promotion helps promote buying and selling faster and stronger, giving businesses a position in the market.
Enterprises in stages decide on a strategy to combine promotions, in order to achieve sales and communication purposes.
Implement promotional strategies in marketing
Commonly used marketing tools include:
To develop an optimal marketing 4P strategy, each business needs to prepare specific steps so that it can effectively market its products and services to consumers.
See more: Marketing mix strategy: The leading solution in the 4.0 era
Every business needs to specify from the very beginning the unique selling points of its products and services. This is very helpful in having a solid foundation to reach out to your customers.
Businesses want to make offers with targeted customer insights. Accordingly, the marketing of services and products is also easier for businesses.
Some questions to help businesses identify their target customers well include:
See more: Market segmentation of Vinamilk
One of the next steps in building a 4P strategy in marketing is to research competitors to get the necessary information, help businesses objectively assess and match the actual needs of customers.
Research your opponent
Distribution channel is considered a place to help marketers research the channels through which businesses can reach target customers.
From there, businesses can consider better in choosing the form of marketing and choosing the appropriate distribution channel.
When setting reasonable prices for products, as well as identifying potential customer segments for businesses, you can implement 4P strategies in reasonable marketing.
The selected communication methods need to ensure the benefits and features of the product & service. In addition, it is necessary to attract a large number of customers to buy enterprise products.
After going through the steps in setting up a 4P strategy, you need to identify the four salient components of your products & services: product, price, location, and effective marketing. match or not.
The linkage between the main factors is the decisive factor for the success of the 4Ps of marketing.
A typical case study in successfully applying the 4Ps of marketing is Coca Cola. The brand has implemented its marketing strategy through 4 factors as follows:
Coca Cola's 4P strategy
Research data from Nielsen has shown that Coca-Cola has been the leading brand in the market for bottled water and soft drinks since 2020.
From the main product of carbonated drinks, the brand has developed its product portfolio to be more diverse with many different models, flavors and colors such as Sprite, Fanta, etc. These brands are widely developed in most countries around the world.
This beverage brand also constantly creates new products such as Samurai - energy drink, Joy - bottled water, to meet the tastes and preferences of Vietnamese consumers.
Price is also focused on Coca Cola because this is one of the decisive factors to the final purchase behavior of consumers, as well as affecting the profit of the business.
Unreasonable price adjustments can affect the number of loyal customers, as well as the net profit of the business.
Thanks to a diverse product portfolio, the Coca Cola brand has implemented a policy of adjusting prices in accordance with the market, suitable for many different audiences.
You may not know, but Coca Cola all implement completely different pricing strategies for each of its different product lines. The factor that has the biggest influence on the brand's pricing strategy is based on research with competitor Pepsi.
The beverage and bottled water market is often quite monopolistic, so brands participating in this industry will often enter into price agreements to be able to balance the prices of products listed in the market.
Coca-Cola products are often defined based on consumers' perceptions of value rather than focusing on costs from sellers.
In the world, Coca Cola is one of the favorite brands. The system of distributors of the brand is based on the distribution model of FMCG (fast-moving consumer goods).
Coca Cola's effective distribution network has almost completely conquered the existing market, including both medium and small points of sale.
A prime example of the success of this other award-winning brand is the case in the Indian market, where Coke is a popular name in the countryside of this country thanks to its wide distribution strategy, beating the brands. like Bovonto and Kalimark.
Coca Cola especially focuses on promotion strategy in 4Ps of marketing, which determines the success of the brand in the market. Coca has triggered demand by combining consumer behavior and lifestyle.
It is easy to see and recognize Coca Cola advertising based on the individuality of the consumer, especially on special occasions when the brand wants to promote good and good messages throughout the market.
In addition, one of Coca's successful strategies is the use of CSR (social responsibility) to hit consumers' thoughts and feelings.
In fact, not all businesses are successful in implementing the 4P model in marketing. Besides, this model has also seen many changes since the 4P was introduced in the 1960s. It is these existing changes that make many people wonder if this model is outdated.
A study conducted by Harvard Business Review spanning 5 years with the participation of more than 500 levels of management and guests, representing different industries in the B2B market to evaluate the 4P model has shown.
The 4Ps are overly focused on technology, quality, and product features. Marketers who focus on these factors argue that the problem is not about competitive advantage, only about the cost of entering the market.
Meanwhile, the management cannot stress the necessity of maximal solutions. The 4Ps of marketing cost marketers too much time to highlight real advantages.
The disadvantages of the 4P model led to the need for replacements, so the S.A.V.E model was born.
This model represents Solve (replacing Product), Access (replacing Place), Value (replacing Price), and Education (replacing Promotion).
In customer communication, businesses do not focus too much on the features or technology behind the line of products and services they provide.
Research experts said that customers today do not focus much on technical background, but mainly focus on whether products and services of enterprises solve customer problems.
In the digital age, the distribution model of traditional sales methods is gradually becoming irrelevant. The advent of digital solutions such as cloud computing software, laptops, and computers has helped employees do business everywhere.
Therefore, the focus is still on the speed of access and response to customer needs.
Access in S.A.V.E
Price is considered as a determining factor in consumer buying behavior. However, today's customers are increasingly making the right and informed buying decisions thanks to the correct appreciation of the specific values that the products and services of the business bring.
Modern customers tend to try and research products before making a purchase decision.
You therefore need to build trust in your customers by providing articles, videos and other materials to help them understand the solutions, problems and industries your business offers.
Above is all the information about the 4Ps of marketing. Now you know What are the 4Ps? and the steps to build the ideal 4P model. In addition to 4Ps, you can consider the S.A.V.E model - an alternative strategy for 4Ps. Thank you for reading!
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