Knowing the basics is always essential and beneficial when doing business of any kind. May it be an e-commerce website or a steel manufacturing plant, understanding and applying key concepts and theories helps to better assess your operations and plan every step by properly analysing all variables and consistently making informed decisions.
One such basic concept is the 4 Ps of Marketing. It is a universal concept and applicable to any form of business when getting involved with the marketing and advertising part. When this concept is executed with proper strategy, it results in increased growth, higher transactions, increased profits and growing brand awareness of your enterprise. Here I will discuss in detail the 4 Ps of every marketing mix.
A product is something of need offered to a market and manufactured by an enterprise.
In the modern economic scenario, a product and services are almost the same thing with some key basic differences.
It is bottom-line of any business. All enterprises form around a product; without it there is no business and no concept of it at all.
The concept to a product to sell to the masses is the oldest and most basic concept of business and economy.
Now do you have a unique product you can build a business around? If no, then you need to rethink your entire plan. If yes, then let’s move further.
“Price is the sacrifice the customer makes to own a product”
After you have a product to sell, you need to decide on the remuneration you want in return for your efforts.
This is the trickiest part as you have to strike a balance where you don’t incur a loss and also have an estimate about how much the consumer is willing to pay for your product.
Deciding on the price requires extensive market research about consumer perception and demand and supply scenarios.
Do not decide on the price based only on your cost estimates and profit expectations, this will lead to rejection of your product on a wide scale and result in business failure.
After deciding on a price considering all significant variables the next important step is deciding on the geographical or virtual location where it will be best to sell your product at that price and you can benefit from greater and swift transactions and economic concepts like Economies of Scale. For instance, if you are selling perishable products then it is senseless to choose an outlet too far from your manufacturing unit; but, it will a good strategy to have small manufacturing units in those areas which are heavy consumers of perishable products.
Similarly, if you have a website which involves content publishing and marketing, then you have to target those online spaces where such traffic is high.
The final stage of this business concept is promotion.
It is the concept of increasing awareness and attracting customers towards your product through various modes like advertising, PR campaigns, Online Marketing etc.
With the cut-throat competition in the business world, it is quintessential for your business to have a robust and effective promotion strategy. When launching a product, discounts, trials and free packages and gifts are some methods of promotion coupled with intensive ad campaigns.
In case of online business firms, attracting customers involves method such as flash sales, wholesale pricing, affiliate programs etc.
Methods such as PR campaigns, press-releases, content marketing are used to create increased brand awareness keeping the customer in focus alongside reputation.
Other methods of promoting your brand involve extensive feedback requests in the form of telephonic or email surveys which also help in establishing customer loyalty and interaction along with providing useful data to use for further operations.
Therefore, promotion forms an integral part of your business strategy and essential for the growth and future of your enterprise.
A business starts when an idea develops and the people behind it think that it is marketable. It is then very important that they forge a system and learn to implement marketing strategies such as the one we discussed here and exploit them to their benefit.
A passionate Blogger and Digital Marketer