The 4P Marketing model (also known as the Marketing Mix model, first mentioned by E. Jerome McCarthy in 1960) is used by marketers as a tool to develop marketing strategies. The marketing department in the business often uses this method to generate the optimal response from the market by “mixing” the 4 elements in the most optimal way. It is important to understand that the principles of Marketing 4P are controllable elements.
No matter how perfect your marketing plan is, it is still necessary to review the marketing campaign regularly, some factors will need to be adjusted such as the product or service, or the market, the grow to adapt to the ever-changing competitive environment, or the changing needs of target customers.
1. What is 4P Marketing?
4P Marketing is also known as Marketing Mix or Marketing Mix, the term was coined by Neil Borden in 1953.
4P Marketing Model
This is a Marketing model made up of 4 elements including:
1.1 Product (product)
Products are the first foundation of every marketing strategy of business activities. It can be said that this is an important factor to meet the needs of consumers.
If the company’s product is not good, it will show that all efforts and efforts to develop the business are not highly effective.
1.2 Prince (price)
Price is the second element of the 4P Marketing model , which is the selling price of products to customers.
To determine the selling price, businesses need to know exactly all the costs to complete the product such as raw material costs, labor costs, space costs, transportation costs, etc. profit for each product sold. The profit usually accounts for 15-20% of the total product value.
1.3 Place (location)
Place is the 3rd P in 4P Marketing , which means distribution channel or place where customers come to buy products. Currently, distribution channels are divided into two types, including:
Direct distribution channel: Manufacturers can directly sell their products to customers without intermediaries. However, businesses need to have a sales website, a store and a sales team.
Indirect distribution channels: Products are distributed by manufacturers through intermediaries such as shops, restaurants, supermarkets, etc.
1.4 Promotion (promotion)
Finally, Promotion means marketing and communication. This is a form of business promoting a product to help users know about that product.
Popular tools of Promotion can be: Marketing (sending catalogs to customers, introducing products to their homes), advertising (advertising on the Internet, television stations, newspapers), public relations (press conferences). , exhibition), sales organization…
2. The role of 4P strategy in Marketing
4Ps in Marketing
4P is a very necessary strategy to improve the effectiveness of marketing activities of enterprises. Because of:
2.1 Promote businesses to create quality products
4P strategy in Marketing helps businesses promote research and better understand customer needs. Based on that, they come up with many creative ideas and create many products that meet users’ wishes.
The products launched later will be guaranteed in terms of quality, bring great benefits and can exceed all expectations of customers.
2.2 Increased benefits for users
Along with bringing benefits to businesses, 4P Marketing also plays a big role for users. In which quality products, competitive prices, good features will meet their needs well.
Surely any customer will be satisfied when spending a suitable amount of money to own a good product. Therefore, applying the 4P strategy to Marketing also helps businesses attract more new and potential customers.
2.3 Enhance the reputation and brand value of the business
Any business wants to make their business more developed, not only within a country but also the whole world.
When applying the 4P Marketing strategy , businesses will have more advertising and marketing activities to introduce products. This improves business efficiency and sells more products. At the same time, the image of the business has also become more popular and prestigious in the market.
2.4 Creating a fair and healthy competition environment
There are many businesses operating in the same field in the market. This further motivates the units to regularly research and innovate better products.
Besides, the price issue is inevitable from this competition and what each business needs to do is to come up with solutions to benefit itself. Fair competition will be a condition for businesses to develop more.
3. How to successfully apply the 4P Marketing strategy
4Ps in Marketing
To successfully implement the 4P Marketing strategy, businesses need to pay attention to:
3.1 Product strategy
- Understand the product in the market: It is necessary to understand the advantages and disadvantages of your product, what is different from other products.
- Brand building from product quality: The brand will be recognized from the color, style, taste and outstanding features of the product.
3.2 Pricing strategy
Build an effective pricing strategy
- Pricing according to product quality and market: The price should be consistent with product quality.
- Pricing by product segment: If the product is good quality, limited edition, then set the price higher than the basic price of the market.
Develop product pricing strategy
- Building promotion and support packages: When buying the main product, you will be given an additional product.
- Building product discounts: Apply to orders with a large total value, instant payment, large purchases …
The right place
Businesses need to choose a reasonable business location, which can be combined with other distribution channels to bring products to consumers.
Should have a specific store address, an attractive sales website to create trust for customers.
Widespread advertising tactics
Businesses need to choose the form of advertising that is suitable for their costs and products. In there:
- Traditional advertising in magazines, radio and television.
- Advertise on online channels or on the Internet.
- Organize press conference, exhibition or product launch event.
- Distributing advertising leaflets at commercial centers, supermarkets and shops.
- Direct marketing via Email, phone.