4 Ps of Marketing
The strength of the team is each individual member. The strength of each member is the team. This quote is by Phil Jackson which truly describes the power of working together not individual but in a team. A mixture of more than one component makes a dish go to the next level, let suppose we take Pasta (an Italian dish). Individual ingredients used in the pasta won’t even capture an eye but when you mix all the vegetables, sauces and pasta together in a proper ratio it becomes something unimaginably good. This is what marketing mixture is all about; it is a blend of four very important key factors which proves to be necessary for any company. Product, price, place and promotion are the marketing tools that are used to achieve the objective of marketing.
A product is a prime element of a company and the reason company is formed. It is formed to either sell a product or provide service to its customers.
Elements of Product
Type and size
A product can be durable or non-durable. It can also be intangible, something that is in a form of service provided by the company.
When a producer thinks of starting his business the first thing that should be keenly looked upon is the market demand. If the product or service is already trendy there is a high chance of making a profit but if the product is new in the market this doesn’t mean it would go to waste. Business is all about smart planning and as Thomas Edison once said: good fortune is what happens when opportunity meets with planning, and so does in sale and purchase.
The life cycle of Product
A product-first goes through the stage of production and if it finally goes through this then it is time to introduce it in the market. The newly introduced product then have to face market’s challenges as the demand and price both are low initially as well as the production.
The new product that got launched in the market with the expansion in the promotion the demand of the product increases. As the demand is high competitors soon step into the market and to step up with them the company has to upgrade the product with the passage of time and requirement.
The price of the product lowers down and the demands stabilize in the market. At this point, the company has to adopt more creative ways, work on promotion to keep their product in demand.
When the product is no longer needed or relevant to the market it has to be removed and a new product or service takes its place. The market goes on.
The price of the product is like a life and death situation for the company. The company’s survival is on the prices they allot for their products by using different pricing strategies. Demand pricing, also known as dynamic pricing which depends on the demand of the customer that helps in setting the price. The price is never fixed and fluctuates according to the conditions including geographical conditions, political and much more. Cost-plus pricing includes the cost of raw material and production with the profit margin of the product. It is a simple, profitable and justifiable method that makes it very popular. When the product is first introduced in the market the prices are lower down and once its demand increases the prices soars up as well which is known as penetration pricing. The price of the product is high when newly launched in the market but to maintain its level with the competitors the prices are lowered down also known as skimming. Price skimming can also prove to be a loss as when the price reduction is done late it can result in loss. Discount prices and price bundling are a way to give products to the customers at a lower price.
When deciding the price of the product, the cost involved in running a business should be kept in mind which includes fixed cost and direct cost. Understanding the psychological and economical condition of the customers plays a great role in the decision of the price. When a product gets launched in the market it soon has to face competitors, so it’s wise to check on them as well. Profit is something very important when deciding on the price of the product.
Place marketing can be known as the particular place where the product has been marketed. It can be a village, country anywhere. It is very important to analyze the place where the product has to be launched. There are a few things that should be kept in mind while choosing the place. Locals play a very important role and good standard local services are always a plus point while investing. Ease of doing business and the potential of doing business of that particular place or country always helps a lot in investing. Tourism is the backbone of the economy so the better tourism the more business opportunities.
Promoting a product means conveying it to the customer. Promoting does not always mean achieving high sales but also developing and then maintaining a good bond with the clients and the audience. It helps in developing a good image of the company which ultimately means winning the confidence of the customers.
As promotion is a very important thing it should be done through a proper plan. When a product is promoted it requires money and a suitable budget has to be prepared which won’t disturb other things including product development. Identifying the needs of the targeted clients helps with the promotion which results in building confidence with them. Adopting proper strategies and hiring responsible people results in good and vast promotion of the product.
McDonald’s is an international food franchise that has followed all 4Ps of marketing. Starting from the product development this franchise has all of its products suitable accordingly. From food to beverages it has all according to its targeted audience. Prices are highly affordable and the usage of the bundle technique makes it easier for customers to order more from them. McDonald’s outlets can be found in the most appropriate places which include parks, restaurants and even mobile apps. Their promotions are just on the point and it takes advantage of all techniques including promotions, sales promotions, public relations and direct marketing which is why it is so popular globally.