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4P'S Of Marketing

Marketing can be defined as business action to promote and sell goods and services. One of the central aspects of marketing management is marketing mix which consists of 4p's that is a product, price, place and promotion. 4p's are formulated out of internal and external factors.

  • Internal factor - product and price.
  • External factors - place and promotion.

These internal and external factors are interdependent, so, we need to formulate strategies concerning each other. Formulation of marketing mix requires innovative and creative marketing manager in order to handle changing companies and environmental trends.


For the development of business as well as the product we need to have a well-planned marketing mix which helps the company to be dynamic in industry.

  • Product - First and essential element is a product. A product can be goods, services, ideas, information, etc. which is produced and offered to consumers in exchange for monetary benefits. The product can be tangible or intangible. Tangible products are those products which can be touched & has a physical existence, but intangible products can't be touched; they can be only sensed. So choosing the right kind of product is essential to stand out in the market.
    • The main aim of offering product should be fulfilling the needs and demand of customers and thereby generating revenue to the company.
    • The life cycle of a product is an essential point to be considered in the formulation of the marketing mix. As it consists of different stages through which product moves from time to time, and those stages are Development, Introduction, Growth, Maturity and Decline. At each step, we need to alter the strategies involved in 4p's.
  • Price - Price can be defined as the consumer of the product who is willing to pay for the product and we need to set a balanced price so that both seller and buyer can afford it. The factors to be considered in deciding the price is demand for the product, uniqueness of the product, availability of similar product and brand image of the company. Even we have some add-on to pricing like offer pricing, discounts, instalment pricing, credit policies etc.
    • Pricing strategies can be similar or different based on geographical area. Even selling price of the same product is different from company to company based on brand and the perceived value of the product by the customer.
  • Place - The place can be considered as an area where we want to launch our product. We have two things to decide first one is whether we want to begin our product domestic or in the international arena. The second thing is the distribution channel which aids the availability of the product to the selected place.
  • Movement of the product from the manufacturer to the ultimate consumer is essential. Here we need intermediaries, who help for the movement of products and they are distributors, wholesalers and retailers. One more non-human intermediary is an internet, as today it became one of the critical market places for all kind of products.
  • To create a large customer base, you need proper placement strategy, which in turn helps the company to acquire a significant market share and earn high revenue.

Distribution channel: Itis a path from where product moves to the ultimate consumer. We need to create a distribution channel based on the type of goods and service, that is, for consumer goods and business goods we need to have a separate distribution channel.

  • Distribution channel for consumer goods and services.
  • Distribution channel for business goods and services

Selection of proper distribution channel is a must to control cost and maintain good customer relation.

  • Promotion - It's a meaningful way to create awareness of the product among prospective buyers and create a market for the product. Through promotion activity, we provide information about the product (information consist of a feature of the product, uses, durability, uniqueness, availability etc.). It includes activities like advertising, sales promotion, publicity, public relations, etc.
  • Promotional strategies should be such that it should suit the product. For example, you can't go for an exhibition for service offered by the I.T Company instead you should choose a service demo.
  • One of the on-going trends in promotions is "brand tie-up" where company tie-ups with a leading company to promote its new or already existing product.
  • Thus, the success of the company, as well as product, depends on the formulation of the proper marketing mix. Significant things that must be considered are: Flexibility, Changing trend and constant monitoring.


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  • Development of a product.

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