Marketers use the 4 P’s model as a basic marketing principle to bring a new product or service to the market. Also known as the marketing matrix, the 4 P’s are powerful marketing tool that helps define options in separate, distinct categories for a target audience. The key elements to designing a business model according to the P’s are product, place, price, and promotion.
If a marketing team can place the right product at the right place, right price, and right time, then potential customers will make a purchase. Each one of those components play a role in how the consumer perceives the product or service.
The 4 P’s of Marketing From a Consumer Perspective
The 4 P’s model is not just useful from a marketer perspective, but it is a powerful tool for consumers who want to detect deceptive and unethical marketing tactics. It is helpful for both sides alike; It helps both the buyer and seller analyze human buying decisions.
If you’re tempted to make a purchase and you break the process down into its components, you are able to see through the activities a company undertakes to promote the item within a target market.
- Product: This refers to an object or system made available to the consumer. It is anything that is offered to a market to satisfy the desire or need of the person who makes the purchase.
- Place: The location where the product is advertised, purchased, or consumed is what’s referred to as the place. This can be a physical locations, such as a grocery store, or digital distribution channels, such online websites.
- Price: The amount of money expected and required in payment is the price of a product. The price value depends on the perceived value or worth of the product.
- Promotion: Any activity that provides publicity to the marketing campaign is what’s called promotion. The goal of any publicity campaign for a particular product aims to increase sales or brand awareness.
An Example of The 4 P’s of Marketing
Let’s say, for example, you’re purchasing a new car at a dealership. Break the sales process down into the 4 P’s and you become aware of some of the marketing strategies their sales team might be using on you.
The product is the car itself, and as a part of the marketing process you might learn about the 0-to-60 acceleration time, fuel economy, or safety rating.
You found out about this vehicle in a Facebook advertising (promotion) and decided to take a look at it in person at a local car dealership, which conveniently is located near five other dealerships, in case you’d like to look at some more vehicles (place).
You then find out that the vehicle is being sold at a price under market value or you can get the vehicle at 0 percent financing.
If all four components of the marketing matrix check out then a purchase is going to happen. This P’s model is not just applicable to vehicle purchases, but for any product or service you can name. With the 4 P’s of marketing, you will be able to break the process down into its components and evaluate potential purchases with clarity, thought, and confidence.