What is 4P’s about? Jerry McCarthy was the inventor of this concept, which consist in evaluate, before starting any marketing plan, the product, price, place and promotion of the product that we want to introduce on the market. This technique has been very useful many years ago, and still now many companies use it for launching their products and set their strategy on the market. But the truth is that this 4P’s now a days are changing , because the market is saturated of all the products and communication that companies do of their products; everybody receives thousands of impacts and communication of companies every day, and their are tired of this. That’s why now a days, companies want not only to communicate with theirs costumers, but also they want to interact with them, so more and more, the 4 P’s will loose power.
Nevertheless the 4P’s is a very useful concept to provide differential value to customers through varying those four elements. It is useful on online and offline communication. And don’t forget what PR Smith calls the Eighth P of “Partnering”.
- Let’s see what means each part of the 4P’s!
The 4P’s have a logical order, that we can see on the fingers below, and it is very important to consider because for example, we can not fix the place in which we want our product to be if we don’t have the product yet.
- Product: That is the start point of the strategy. The company has to have a good, attractive and well done product, because if not, the rest of the plan will fail.
- Before creating the product we have to answer to this questions:
- Applying this on Online form: In this point we have to ask us if we can offer a different product range online? How can we add value to products through additional content or online services? That’s a interesting point, because via Online, people can not touch and “feel” the product, so we have to work hard and think on how people may feel attracted of something that they can’t touch.
- Price: This is also an important point, but not the most important one, even if many people think so. It is not so relevant, because if we have a good product, with good quality, which draws attention and people desire it, the price become not so important because people will buy it anyway; the point is to do a perfect product! Obviously, the price has to cover our costs.
- Applying this on Online form: We have to review our pricing and consider differential pricing for online products, because in online situation is easier to compare in a few seconds our price with the one of our competitors, so that’s why our product has to be the best one with a reasonable price, to make people choose us instead of the others.
- Place: This is a very important aspect to consider because is where our product is going to be placed, where we can find it, how is it going to reach the place where is going to be sold, how are we going to transport it (if is in a digital way or a physical way) and where is it made.
- Applying this on Online form: Identify our online distribution issues and challenges. Should we create new intermediaries or portals or partner with existing sites? We have to make our product visible and present in many sites, so maybe we can make some SEO or SEM strategies to make our product more viral.
- Promotion: This point is the last one on the logical order we said before, because once we have all the other points established, and our product is already on the market, now, we have to do promotion to make people aware of our product, and to encourage costumers to purchase it! One way of promotion for example is Advertising, but there are many others, like given some samples of the product…
- Applying this on Online form: In an Online point of view, there are many ways of promotion to be done. For example we can make special discounts if people sing up in our newsletter, we may want to include exclusive promotions to support the growth of different digital channels, like email, mobile, Facebook…
Here I let you some links for further information!
By Xenia Farré