You too may have heard people talking about how good the kinh doanh strategy of X company/organization is. But what are they referring lớn by using the term marketing strategy?

Marketing strategy, in general terms, is associated with strategy formation by companies to lớn fuel the process of buying và selling a good or service. Though it holds true to some extent that is not all.

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Marketing involves some key elements that take place in between the demand for a product & its supply.

We are referring lớn the 4Ps of kinh doanh when we talk about the key elements involved in the marketing of a good or service.

The 4Ps of sale areProduct, Price, Place, and Promotion. It may be sounding familiar now. This is a concept that has been in use since the 1950s.

A good sale strategy, that we mentioned earlier, involves efficient use of these four elements lớn sell a hàng hóa or a service, & a good kinh doanh strategy is not patented for big companies. The smaller your firm is, the bigger is the role of these 4Ps.

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To understand the role of these 4 Ps of sale we will start with the definition of the term Marketing Mix because it all starts with this term.

What is meant by marketing Mix?

Marketing mix is defined as the phối of tools or tactics adopted khổng lồ promote a hàng hóa or a service in the market, in order to lớn sell it. It is often referred khổng lồ as the integration of the four Ps.

Marketing is a process by which companies create, communicate, và deliver the value for their product to their target customers.

Marketing mix is all about developing a product, communicating about it, và selling it at the right place, price và time.

Neil Borden, an advertising professor at Harvard University, popularized the idea of sale mix that was later reckoned as the four Ps. In 1964, Borden in his article “The Concept of the kinh doanh Mix” discussed the ways in which companies could use advertising to lớn engage with their customers.

Working on the book by Borden, E. Jerome McCarthy, marketing professor at Michigan State University, came up with the concept of 4 Ps.

From then, it became widely popular và is being used extensively across companies to size the best kinh doanh strategy for a hàng hóa or a service. They leverage the components of the kinh doanh mix và decide on the best ways khổng lồ promote their product.

Marketing Analytics has also emerged as a tool for companies that help them to khung better kinh doanh strategies. However, the traditional concept of 4 Ps can not be left at a bay.

Let’s dive deep into the meaning & applications of these kinh doanh mix components, the four Ps.

1. Sản phẩm in Marketing

Product in marketing mix refers to the good or service produced to lớn serve the consumers of a company.

A hàng hóa can be tangible in the khung of any finished good or intangible in the form of any service.

“The first step in kinh doanh is the manufacturing of a product”, this statement is debatable in itself as some may argue about the role of the R&D department of an organization. Nonetheless, it is true when we only talk about kinh doanh mix.

Every product goes through a certain lifecycle that has three stages: the growth phase, the maturity phase, and the sales decline phase.

Marketers have lớn take good care of the fact that a hàng hóa should not enter the last phase too quickly và even if it does, immediate kích hoạt is sought khổng lồ reinvent the product và stimulate more demand.

It is the quality of a hàng hóa or service that increases the brand value of a company. If there is no product there would be no company because we recognize a company by the services or the products they offer.

A product is not always brand new. As we have mentioned above, when a sản phẩm reaches the sales decline phase, it is needed lớn be reinvented.

The R&D department of an organization goes among the customers khổng lồ discover the reason behind the decline in demand for a product. The introduction of technology like Big Data Analytics has made the research work easy for the R&D department.

One thing that should be brought to your attention is that companies also come up with new products that have an additional value as compared to the original product.

For example, Amul Masala Chach was launched after the company discovered that its customers preferred lớn have masala added to their Amul Chach.

2. Price in Marketing

Price in marketing mix refers khổng lồ the value we pay in exchange for the product và services offered by a company.

Price is considered a vital element of the marketing mix because it dictates a company’s survival and profit.

Pricing of a product plays an important role in determining the success of a company. Several factors lượt thích list price, competitor’s price, discount, terms of sales, etc., are taken into consideration before deciding on the price of a good or service.

Even a little fluctuation in the price of a hàng hóa can heavily impact its demand in the market. This sensitiveness of demand against price change is reckoned as the Price Elasticity of Demand (PED).

The vice-versa also holds true. The price of a good is also determined after looking at the demand elasticity of the product.

Companies should keep a check on the price of a sản phẩm because an overpriced or underpriced product does not attract customers.

For example, a discount on a particular hàng hóa can sometimes draw more customers but it might also give an impression of the hàng hóa being less exclusive. Thus, marketers have lớn be careful when and if discounting is appropriate.

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4 Ps of Marketing

3. Place in Marketing

Place in sale mix refers khổng lồ the geographical location in which the company sells its products và provides its services.

It is said that location is one of the most important parts of marketing strategy.That is why, a smart consumer will research opportunities that are accessible to them locally, & then proceed lớn making a payment.

Where you sell your products is important because the location must have your target customers. There is no sense in selling products to lớn people who are not interested in your product or service.

So, a firm should position & distribute its hàng hóa in a place that is easily accessible to its potential buyers/customers.

Place does not always refer to the store location. It also refers lớn the placing of products inside a store.

Generally, companies like P&G demand their products lớn be prioritized in the planogram for a store. This would mean that their products should be placed in a manner where the products meet the eye-level of the customer walking inside the store.

Nowadays, when everything is shifting towards digital platforms, it becomes necessary for firms khổng lồ place them on those digital platforms và leverage digital marketing.

So in some cases, placement may also refer to lớn the act of including a sản phẩm on television shows, in films, or on web pages in order to seek attention for the product.

This increased placement of more và more firms on digital platforms has led khổng lồ a rise in e-commerce sector.

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4. Promotion in Marketing

Promotion in the kinh doanh mix refers lớn the communication that aims at promoting a product, activity, or a brand among the target customers; in order lớn drive sales, & involves both buyer and seller.

However, promotion can also aim at building the reputation of the organization rather than just increasing sales. We refer to this type of promotion as public relations.

Promotion is an essential component of the kinh doanh mix because without communicating about a product, a company can not attract customers. It is also used to influence customers to lớn buy a product or choose a particular brand.

Promotional activities can involve spreading awareness about a hàng hóa or the brand or also an activity. There are different tools that are leveraged for the purpose of promotion.

The seven tools of Integrated sale Communication (IMC) are:

Advertising

Public Relations

Digital Marketing

Direct Selling

Personal Selling

Sales Promotion

Event Marketing

One or more than one tool of IMC is used at a time to promote a product. For example, if a company is advertising for a product, it must ensure that the advertisement is backed by a report in the newspaper that talks about the product.

Importance of 4Ps of Marketing

Promotes synergy

The 4 kinh doanh P"s once mixed properly generatecoordination, offer a proper pitch khổng lồ the product, becoming a powerful force together as opposed to individually.

Brand loyalty và value

With the focus primarily being on the needs & requirements of the consumers as well as ensuring theirsatisfaction,the sản phẩm earns theloyalty và trust of the consumer through these 4Ps.

Links the consumer và organization

The features, place, and pricing of the sản phẩm are settled with the objective of satisfying the customer"s expectations, while the product"s promotional aspects help in better positioningthe product. As a result, a link is established between the consumer và the organization.

Guides decision

Our 4Ps play an integral role in guiding our decisions. For instance, if a sản phẩm is based in a remote location, the promotion of the product will be carried out accordingly. Accordingly, the pricing of the product và its chất lượng will be determined.

Higher sales volume

The more enhanced the customer satisfaction & the better the market scale, the more product sales would be boosted through the 4Ps.

The 7 p Model

As the market has evolved over the years, the concepts also needed an upgrade. The concept of the 4 Ps has been in use since the 1950s, but it seemed to lớn miss some key elements.

The 7 P model talks about the three additional elements apart from the 4 Ps: People, Process, và Physical Evidence.

The term People in marketing refers to the employees working for a company. They play an important role in the success of an organization as they are the ones who deliver the services lớn clients. It is important to manage this resource and People Analytics helps a lot in managing people.

Process refers khổng lồ the business process through which the service is provided to lớn the clients. It becomes necessary lớn keep a regular check on the process so that any sort of mistake can be avoided.

Examining the process means assessing aspects such as the sales funnel, payment systems, distribution procedures, & customer relationships management.

Physical Evidence in kinh doanh means lớn maintain evidence/proof that service or purchase took place and proof or confirmation of the existence of the brand.

It can either be a receipt, or an invoice, or a brochure, for product delivery confirmation while for brand validation, it can be the company’s website, brand logo, business cards, etc.

Conclusion

The 4 Ps of sale have been in use since the 1950s. E. Jerome McCarthy came up with this concept và transformed the way kinh doanh was done.

With time, this concept too started khổng lồ seem as outdated & forced marketers khổng lồ include three more Ps namely, People, Process, and Physical Evidence.

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As Heraclitus said, “The only constant in life is change”. This 7 P model would also evolve further over the course of time.