The 4Ps of marketing and their evolution
In marketing, the 4Ps are a basic concept that has been applied for many years. But do you really know what it is and how it has evolved? We'll tell you about it here!
People in marketing-related roles, and even in business in general, may be familiar with the 4Ps of marketing. This is because it is a basic and long-standing concept that has been used as the basis for creating a marketing plan for any business.
However, as time goes by, consumption models and customer needs change, and with them the way marketing works within a business. For this reason, in this post, we tell you about the origin of the 4Ps, what they consist of and how they have evolved.
What are the 4Ps of marketing?
Defining a marketing strategy is essential for any business, and a first step can be to define the 4Ps of marketing, so let's see what they are!
The 4Ps of marketing: Product, Price, Point of Sale and Promotion, are a concept introduced by Professor E. Jerome McCarthy
In 1960, Harvard professor E. Jerome McCarthy introduced the concept of the 4Ps of marketing. These four variables aim to explain how marketing works in a holistic way within a company or business, what is known today as the marketing mix. In other words, the 4Ps of the marketing mix help us to define the way in which we can launch a product or service to the market.
But we will not stop with this concept. Let's take an in-depth look at each of the 4Ps to find out what they are and how they work.
The 4 P's of marketing in the marketing mix
The most important element of any strategy is the product. When we talk about a product, we are talking about the tangible or intangible value that a company offers to satisfy the needs of its customers. Therefore, it is vitally important that we define the concept of that product, its functions, its name and what it can bring to the target audience. All of this will help us to obtain a solid value proposition that will differentiate us from the competition.
As the name suggests, price is the monetary amount that the customer must pay to purchase the product. We know that setting the price of a product can be complicated. That is why we recommend conducting a market study to take into account how much consumers are willing to pay for the same or a similar product. It is also important to consider the profit margin we want to obtain with each sale in relation to the cost involved in the production and communication of the product.
- Sales point
This is the means by which the product reaches the customer, for example: a physical shop, e-commerce, marketplaces, among others. To choose the most appropriate point of sale, it is essential to know where your target audience is located and what their consumption habits are. We must also consider some of the costs involved in placing our product on the market, such as: shipping costs, distributor or storage costs, among others.
This is the variable that allows the product to be known. For this, both offline methods (radio, television, billboards and press) and online media (social networks, e-mail marketing, programmatic advertising, among others) can be used. In order to define the channels through which we will make our product known, we must take into account our target audience and their preferences. All this in order to impact them with our marketing in a more optimised way.
Evolution of the Marketing Mix
As mentioned above, both the world and the markets have been constantly evolving. With the advent of new technologies, there has been a new focus on the customer rather than the product. For this reason, new marketing models have emerged to replace or complement the 4Ps. On the one hand, the 4Cs are focused on the consumer rather than the product. On the other hand, the 4Es have been created with the aim of increasing customer satisfaction.
This model is more focused on the consumer and less on the product, incorporating these four variables:
The 4Cs model has evolved into the 4Es, which focuses more on the consumer experience when purchasing or using a product. It is mainly based on the following variables:
These changes in the marketing mix have come about as companies and retailers have become increasingly aware that they need to focus not only on their products, but also on the consumer and his or her real needs.
And you? Do you already have your marketing mix model well defined?