How the 4 P’s of Marketing will Make Your Business Thrive
By: Marissa Adamo
Since a young age, I have always dreamed of pursuing entrepreneurial success. In high school, I put in tremendous work in my business classes. I put in even more work into getting a jumpstart on my collegiate education, including studying for the SATs, writing several drafts for my college essay, applying to several scholarships, and signing up for three entrepreneurship programs.
One entrepreneurial program in particular, How to Launch a Business, at Syracuse University was faculty-led. Students worldwide were placed in groups based on a personality test to create a business and pitch it to investors within two weeks.
My junior self, going to be a senior in high school at the time, was panicking. My first thought was, how am I supposed to create a fully established business and a pitch with people I just met, in only two weeks?
The key takeaways I got from this experience are the difference between having a business and having a successful business. What sets those two apart is implementing the 4 P’s of Marketing, and doing so effectively.
This article will teach you what the 4 P’s are, and with that understanding, you will be able to create a successful business.
What are the Four P’s of Marketing?
The four P’s of marketing are elements found in the “marketing mix,” which is the foundation for businesses to advertise their products to engage customers in four ways. The “marketing mix” was first created by Neil Broiden, a famous advertising professor at Harvard University, in the early 1950s.
The 4 Ps help businesses determine what products their customers want, what current strategies are working and are failing, how to mold their brand according to customer perception, how to stand out among competitors, and how to interact with their customers to upkeep customer loyalty.
The Four P’s are Identified as:
- Product
- Price
- Place
- Promotion
Product
The product can either be tangible or intangible, is what the company provides and sells to the public. Businesses determine what types of products sell based on analyzing overall trends in the company’s specific industry, and what goods and services customers demand the most. Additional outside factors also contribute to what businesses sell, such as social, historical, and political changes in the world.
For instance, at the faculty-led program, my group and I spent the first few days writing down lists of what we felt was missing in our daily lives. We later picked three ideas from the list in deciding which market is the best for the business ideas to thrive. We conducted surveys to the public to determine what the residents at Syracuse University wanted and needed.
Residents felt that they had unsatisfactory experiences finding and having roommates, so we came up with an app called “Mates.”
Price
It is easy for businesses to form and thrive with modern technology and the increased usage of social media. Customers now have full control behind the wheel when deciding which brand is best for them, and the main decision factor is the price of the products. Businesses strategically look at what costs their competitors are using so that they remain competitive and in line.
Companies also have to understand their target market and base their prices on their customer’s income levels to sell.
My group researched our competitors Roomi, Roommates, Roomsters, and Craig’s List, how they were providing their services, and for how much. We also based our prices on our target market, which were college undergraduate and graduate students. We decided the app will be free, and to get additional benefits from the app, users must purchase a subscription.
Place
Place refers to either where the business will sell its products geographically, where to distribute the products, or where their brick and mortar retail establishment will be.
For the app “Mates,” we wanted to keep our services remote solely. We decided to create a website in conjunction with the app. In addition to increasing awareness of the new company, we were going to partner with Syracuse University housing services so incoming students are introduced to the app.
Promotion
A business cannot sell their products unless they are keeping their customers engaged. The promotion element is the business’s communications side: how the company is interacting with its customers by showing them what their brand is about, their mission to serve their customers, and showing them their unique features and benefits among other competitors.
For example, a clothing company will create discount new customer purchases at 20 percent, so the customer will want to return and repurchase more. Or, grocery stores send out coupons in the mail to use next time you take a supermarket trip.
We added other features to the app than just finding a roommate. Our app design was tinder inspired where users create profiles and enter their living preferences and any interesting, relevant facts. Students can swipe right or left, and instant message them. Students can also hunt and purchase off-campus apartments and room furniture at a 20 percent discount if they are a Syracuse student.
Conclusion
The 4 P’s of marketing are essential to any business. Product, Price, Place, and Promotion discuss each area of how a company delivers to the customer and, when applied correctly, keeps your audience around. If you are looking to start or work for a business, you must understand your 4 Ps to keep your brand and voice consistent to your customers.
