The 4 P’s —
Jamey Gentry, Director
All marketers should know the 4 P’s: product, price, place and promotion. They were created by E. Jerome McCarthy in 1960. The 4 P’s are the cornerstone of the marketing mix and focus on a company’s internal concepts.
Product: Products are the goods and services your company offers for sale to customers. It’s critical to understand a product’s features and benefits so a unique selling proposition can be derived and properly positioned in the marketplace.
Price: Price is the amount of money a customer will pay to purchase your product. Price is driven by the perceived value customers have of your product. Pricing strategy may be influenced by competitors’ prices as well as supply chain costs.
Place: Place can also be referred to as access. It’s the location, distribution or methods used to get the product to customers. Placement strategy may include storefronts, direct mail catalogs, the internet and/or distributors — whatever is best suited for the product.
Promotion: Promotion is all about communicating the benefits and values of the product to consumers. This might include advertising, sales, special offers and public relations. Converting an interested consumer to a customer may involve direct marketing and personal selling as well.
What you may not know is there are three more P’s that address service-based products. Continue reading here to learn more.