What is the 4 p’s model? How does it operate? Read our article to get the answers and learn why the marketing mix suits more for product brands.
The four P’S represents elements of the marketing mix. The 4 P’S model is considered as one method of the marketing mix. The four P’S represents price, place promotion, and product/service. The 4 P’s considers a product as any tangible object produced in masses. It also assumes it as an intangible service that is offered in large quantities. Some examples of tangible products include cars or bread, while examples of intangible products entail services such as hotel and tourism industries. The 4 P’S model is equally suited for both service and product brands oriented businesses.
Products are known to under a life cycle that involves growth, followed by a decline in sales when they reach their saturation stage. Therefore, for such products to be repositioned in the market, the firms have to employ the concept of differentiation of their products to continue selling in the market. This occurs when a firm adds extra elements to its product or service to give it a competitive edge over its substitutes. The marketing team has to ensure that the product meets the needs of the consumers, as highlighted through market research. In addition, they should ensure that their physical appearance meets the expectation of the market. Some methods that are used to enhance the appearance of the product include good packaging. Although services are not enhanced through packaging, the same effect may be realized by repainting their premises.
The marketing is not concerned by the concept that firms are adapting when producing their products, nor is it concerned by where firms source their finances. Its main duty is to ensure that the products produced meet the function and appearance of its customers. The marketing mix has to determine the product range and the way it is used. For instance, the marketing team can recommend the firm to broaden its range of products to match competition. Similarly, it can still advise the management to extend a certain brand due to certain tactical purposes such as catering for a seasonal flux. An example is when the marketing team of an ice cream company advises the management to extend the production of ice creams if the market research predicts a prolonged summer.
The price is another important aspect of the marketing mix. It represents the amount the customers are able and willing to pay for the product at any given time. It is perceived as the value of the product on sale. It is the only aspect that generates revenue of all the four P’S. Conducting good opinion research about the price of a product is a very important issue as it helps the management realize the value their consumers attach to its product, which is an essential aspect when pricing. It is noted that the price of an item varies from place to place, and also due to the prevailing circumstances. For example, the price of woolen garments is likely to be higher during the colds seasons than during the summers.
For service brands, the price is not very much affected by circumstances since the call rates during winters and summers are mostly likely to be the same for mobile phone companies. The main issue that can affect prices for service brands is the level of technology whereby the prices are higher, where the level of technology is low. The marketing mix should establish whether a slight decrease in the price of a product will enable it to gain big market share that translates into an overall profit, or whether a slight increase in the price will be imperceptible and reduce the market share which will result into an overall reduction in the sale and revenue generated.
The place is the third element of the four P’s. It symbolizes the physical destination where one can access a product or a service. It can either be assumed as a warehouse, supermarket, shop, or a virtue stone for e-business. It represents the distribution channels. It is the one that helps in taking the required product at the right location and at the appropriate time. The place gives a product to the utility of space. This is realized by transporting these commodities.
Promotion is the last element of the 4 P’S. Promotion involves creating awareness of a certain product or service. It represents the business of communicating with clients. Promotion is an expensive endeavor, but a well-executed advertisement has a long term advantage since it increases sales. Unless on rare occasions, it is usually exercised as a response to a problem such as in occasions where a certain brand is facing stiff competition from substitute brands from rival firms.
From the above discussion, it is clear that the four P’S model is equally suited for both product and service-based business brands.