The 4 Ps of Marketing…
You've probably heard about it from a friend, a textbook, or even at school.
I know it sounds like a boring topic with common sense, but there's more to it than you think.
And no, not just for large companies. The smaller you are, the more important it is for you to use the 4 Ps.
Before we look at it, let's break down what they are.
What are the 4 Ps of Marketing?
The 4 Ps of Marketing is a famous concept that summarizes the 4 pillars of every marketing strategy: product, price, location and advertising.
It sounds simple and it really is (the more difficult part is the implementation, which we'll discuss later).
The idea behind the theory is that if you implement it, you will generate more revenue. But unfortunately nothing is that easy. : /
The concept, also known as the marketing mix, dates back to 1960 when McCarthy introduced it in his book Basic Marketing: A Managerial Approach.
I know that was a long time ago, but it is just as valid today.
Let's dive into every P …
The product is what the company sells.
It can be a product like a soft drink in the beverage industry or clothes in a clothing store. Or nowadays it's even software like Ubersuggest.
It can also be services such as advice or a paid lecture or even a therapy session.
In short, the product is everything that is made available to the consumer.
In the 4 Ps strategy, this means defining, understanding what your offer needs to stand out from competitors and attract customers.
In other words, what makes your product great or unique? Because if you don't stand out, it will be difficult to succeed.
For example, you know my Ubersuggest product, but you probably already know a handful of my competitors?
What is special about my product that stands out from everyone else?
I don't focus on functions. I don't have hundreds of reports. Instead, I focus on usability. My goal is to make Ubersuggest really user-friendly, especially if you are new to marketing.
On the other hand, my competitors focus on advertising agencies and really advanced marketers. I built something for a different target market even though I'm in a crowded market.
How to create a fantastic product that your customers love
I want you to do something simple … go to Hotjar, sign up for a free account and do a survey. Just like below.
I've been conducting surveys for a while now, but if you started, I'd ask open questions like:
- What is the biggest problem I can help you solve? (This gives you an idea of what your product needs to do.)
- What is your favorite marketing product and why? (You want to replace the word "marketing" with the industry you're in. This question gives you an idea of who your competition is and what they're doing right.)
- Why did you come here today? (Learn why people come to your website and what they're looking for.)
- How can we improve our product? (This is great if you already have a product because you get real feedback.)
- What do you dislike about COMPETITOR ABC? (Replace the competitor's ABC with the name of your contest. This question tells you where an opportunity is.)
I want you to pay particular attention to the last question. It really helps you to see how you can stand out from the competition.
Before building a product (or improving your product if you already have one), don't invest too much time and money without getting feedback.
For example, if I added a new feature to Ubersuggest, I wouldn't just create it. I would have it designed, show you first, get feedback and then customize from there.
That way, I won't waste months trying to develop a product that you don't want to use.
The price is simple and refers to how much you charge for your product (or service).
And although it is easy to understand, it is really difficult to find the "right" price. The one who not only achieves the greatest turnover, but also the greatest profit.
The real question is, how would you like to be perceived?
Amazon wants to be the place to get the best products from A to Z. And of course delivered quickly so that it is convenient for you.
Imperia Caviar, the company of my friends, offers high-end caviar at reasonable prices. He can get the same caviar that big brands demand for thousands of dollars.
You might think that he made his brand cheaper by a cheap price, but instead brought transparency to the market and educated people about how caviar is not really expensive … it is actually just a marketing trick.
I take a similar approach to Ubersuggest. I don't think marketing software and education should be that expensive. So I give away a lot for free or super cheap.
Do you think that made my brand cheaper or hurt? Let's look at the data:
I do not think so. 🙂
But on the other hand, would Ferrari be Ferrari if their cars were sold for $ 10,000? Probably not.
How to choose the right price for your product
I am by no means a pricing expert, so I don't want to tell you what price your product should be valued at. But I'm going to tell you to read the Price Intelligently blog. These people know how expensive they are, and they have dozens of articles that teach you exactly how to rate your product.
It is important to think about pricing, especially if you are in a crowded room. My rule of thumb is: if you are in a new room or are already a leader, you can calculate a premium amount.
On the other hand, you should consider a cheaper price (if not the cheapest price) if your space is full and you are late for the market.
Some questions you should ask yourself are:
- What would be the lowest price you are willing to sell your product?
- What would be the highest price consumers would be willing to pay?
- How sensitive are your customers to prices?
- What prices do current market leaders charge in your niche?
- What is your price compared to the competition?
"Location" is another word for location.
As marketing says, it's all about … location, location, location.
I once held a tech conference called Twiistup in Los Angeles.
It was a cool event with LA vibes and celebrities. I didn't create the event, I bought it years ago.
But, you know what? It went wrong.
It wasn't because the event wasn't good, but because I moved it to a terrible place.
I moved it from Santa Monica, the heart of the Los Angeles tech scene, to the valley an hour's drive from all tech companies.
In other words … place, place, place.
You need to choose a place where your customers are. Don't expect them to come to you, you have to go to them.
How to choose the right place
The web is this virtual world. And although the place (place) seems irrelevant, this is not the case.
Just imagine that. If I placed my company all over Tiktok, what would you say would happen?
Well, I would not generate new customers for my advertising agency because none of my ideal customers are at Tiktok.
Do you think 16- to 24-year-olds are looking for marketing services? If we offered services where we helped you get more social followers, sure … but we don't offer that.
Think about the platforms and places where your ideal customers are and be there.
This can be a specific website like Google or even an offline venue like conferences. Do not try to get your customers to you, but go where your customers are. It is much easier.
Here are some simple questions you need to ask yourself to find the right place.
- Where is your customer
- Which sales outlets (online and offline) sell your product?
- Which sales channels are currently working for you?
- Do you sell directly to companies or consumers?
- Do you sell directly to your end customer or do you need to contact intermediaries?
- Where are your competitors?
The customer should always be the focus of your decision, but it is important to include aspects of the other Ps that we discussed.
My favorite P … and the one I blog about most.
Once you've optimized the previous 3 ps, it's time to advertise your offer.
And to be clear, when I talk about advertising, I'm not just talking about launching your brand. I'm talking about generating revenue.
What's the point of advertising if you can't increase sales?
But with all the channels on the Internet, which one do you start with?
Well, I want you to go here and enter your competitor's URL.
When they are big, you see data about how much traffic they generate, what keywords they rank on Google for, what websites they link to and talk about, and even how much social share they generate.
If they are small, no data is displayed. You have to use a bigger competitor.
Another site you should use is Similar Web. Enter your competitor's URL and you will see tons of data about how he advertises himself.
The cool thing about today's web compared to my first time in online marketing is that there are countless tools that make your life easier. So use them to your advantage. 😉
How do you promote well?
I would like you to ask yourself the following questions first:
- Which channels does your audience use the most to consume information?
- What type of message is usually more effective in promoting your solutions?
- What is the ideal time to advertise your product?
- Are there seasonality concerns?
- How do your competitors plan and execute their advertising?
Again, you can use the tools mentioned above to get you started. Another thing I would highly recommend is that you take a look at Facebook's ad library.
It shows you the ads that your competition is showing, and especially the messages that they use.
Now I will not bore you to death because of advertising tips, because I already have countless blog posts about it. But I would start with these:
- online marketing
- Social media
- Google Ads
- Facebook ads
- Affiliate marketing
- Content marketing
The 4 Ps of marketing may seem boring, but they are essential.
How can you stand out from the competition without them? It's really important to get noticed.
Nobody cares about another I-to-company. We all want something unique, special … something we resonate with.
And how do you get that? You use the 4 ps.
How do you use the 4 Ps of marketing?
The post The 4 Ps of Marketing: A step-by-step guide (with examples) first appeared on Neil Patel.