Define in full detail the 4P`s of marketing. And what are the major forces driving the new economy? Additionally, what do these forces have in common?
The 4P’s of marketing include Product, Place, Price and Promotion. Other P’s have come up since McCarthy coined the marketing mix in the 60’s but these 4 elements comprise the essential spheres that marketing professionals make sure are carefully considered when doing successful business.
According to Kotler (1984), a product is defined as “anything that can be offered to a market for attention, acquisition, use or consumption; it includes physical objects, services, personalities, places, organisation services and ideas”. Product can either be something material and tangible like automobiles, houses or electronic gadgets. It can also be intangible such as services where the business is able to cater to the needs of the client such as car washing, home repair or facilitating travel.
Place relates to the accessibility of the product being marketed. Place in marketing has evolved from the usual tangible geographic setting of buying and selling of the products or service to the virtual global market place. This evolution has spawned creative marketing techniques that prove to have no borders of time and space. Product placement includes strategies and tactics that cost money and involve marketing risks.
Promotion is the P of the marketing matrix that helps the product move. By the many different way of promotion, possible clients become informed of the product and sometimes promotions can persuade the clients to choose the product as against another competitor’s. Awareness of the product is a concern of promotional activities.
Price is an essential element in the market matrix because it can determine the success or failure of the whole enterprise. The price holds all the components of the business in terms of financial elements such as direct or indirect costs, profit margins, risk and uncertainties and other resource constraints that affect the business as a whole.
Besides customer behavior and how fast businesses can serve their customers, another major player that is driving business marketing to its wits is the information age that has spawned new ways of delivering goods and services to new, emerging and developing markets never before have known. The knowledge based paradigms have also created goods and services that have never before promoted off-virtually.
Ultimately all these forces share the urgency to evolve together with the fast growing market. Businesses will fall should they stop to look into their market matrices and adapt it to the current available technology that has created more possibilities for the marketing professional.