The “famous” Marketing 4P’s are nothing but the basic Marketing Mix factors to focus on when analyzing or developing any marketing action.
These simple and basic factors are:
- 1. Product
- 2. Price
- 3. Promotion
- 4. Place
Certain economic sectors would have to regard some other factors in addition to these 4, but never less.
These first P may be the least understood from all the 4 P’s.
It is not just describing your “product” as you would like the customer to regard it, but deeply defining what are you really selling to your customers:
- The experience.
- The features.
- The quantity.
- The alternatives.
- The complementary products you offer.
We bet you have ever been into a McDonald’s.
- It is one of the most valuable brands in history, employing 1.7 million people.
- Their restaurants are always full of happy children… and not only children.
How did they “do it”? Well… First of all, don’t just think about their burgers:
Think about the experience they sell; what people feel when visiting a McDonald’s:
- The children have a “Toy” when they order a Happy Meal.
- All the smell you love when entering a McDonald’s.
- The memories you have playing with your friends.
- You may bring your children since you associate it with nice moments.
- Moreover, the taste of their hamburgers has not varied since you were a child.
They sell this; an Oasis where you can remember good old times.
Lot of things in your life may have changed, but you know that the taste of a Big Mac will remain the same, as well as the child-friendly feeling you find at McDonald’s.
As we explained on “Marketing Strategy”, it is important to focus not just on the “price-number” itself, but in the Real value your product has.
You must take into account:
- Competitor prices.
- Alternative products you may find in the market.
- Your Marketing Strategy:
- High or low perceived prices and their Real value.
All these factors must be taken into account simultaneously, since you must ensure coherence while designing a Marketing Strategy.
Imagine, you propose a “Profitability Strategy” (check the “Marketing Strategy” page) by powering your brand name, increasing the prices, while there are numerous alternatives within the market that are much cheaper:
- You would fail miserably.
We’ll follow with the McDonald’s example, focusing now on their price policies: