The Four P’s Model of Marketing
The components of marketing can be identified using what is called The Four P’s model: product, price, promotion, and place. Companies have many procedures they must undertake to ensure their products or services are ready for selling.
The first stage is called the “ideation stage,” where the idea for the product or service is conceived. Before products go to the market, companies must decide what styles, sizes, flavors, and scents they should sell and the packaging designs they should use. Then, marketing departments usually test new product concepts with focus groups and surveys to ascertain interest levels among potential buyers and refine certain elements.
Price is also tested through focus groups and surveys. Companies must know the optimal price to sell their products to achieve maximum return. One way to determine price is to set it at a level comparable to competitors, as long the company can recover all associated product expenses and still make a profit. If the company is introducing a product that has never existed, they must determine how much the consumer is willing to pay for it.
Promotion pertains to information that companies give consumers through targeted campaigns to generate interest in their products. Campaigns can include different forms of media, events, and more. Promotions usually have two purposes: generate leads for sales reps or initiate actual purchases.
“Place” in The Four P’s of marketing refers to how and where products are sold. Consumer product companies, for example, sell to wholesalers who, in turn, sell to retailers. In the industrial market, the buying process is longer and involves more decision makers. Some companies also sell products or services on a local level, while others sell nationally and even internationally. Some companies only sell their products or services online. All distribution decisions are part of the overall marketing process.
Types of Marketing
Print, radio, and television campaigns are types of marketing, as are direct mail, email, and internet marketing. Companies that sell via the internet optimize their web pages, so they appear higher in search engines like Google and Yahoo. Newsletters, press releases, and articles are also forms of marketing used to generate leads and orders. Some companies also use referral marketing to increase business, where satisfied customers refer others to a particular business.
More recently, social media marketing is becoming something that smart companies can’t avoid when it comes to reaching potential buyers, whether it’s advertising on Facebook or Instagram or posting advice on Twitter with links to a website.