What are the 4 Ps of Marketing? - Definition & Examples

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  • 0:00 The 4 P's of Marketing
  • 0:27 Product
  • 0:59 Price
  • 1:57 Place
  • 2:58 Promotion
  • 3:52 Lesson Summary
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Lesson Transcript
Instructor: Sean Kennedy

Sean has 8 years experience as a supervisor and has an MBA with a concentration in marketing.

The 4 Ps are an essential part of the marketing process. In this lesson, we will discuss the importance of product, price, promotion, and place in marketing.

The 4 P's Of Marketing

The 4 P's of marketing are product, price, place, and promotion. Why are the 4 P's of marketing so relevant to a business? The 4 P's of marketing, also known as the marketing mix, are essential in helping a company to make necessary decisions in order to launch a successful product. Think of the 4 P's like this: promoting the right product at the right price and in the right place!

Product

The product is what the company is trying to sell to consumers. The first step is to determine what product does the company want to sell that consumers will want to purchase. The product should be unique and different from what the competition is offering. The company must come up with different features to help make this product innovative. Determining the quality and how the product will be made will help determine what type of market the product will be in. The product is the center part of the marketing mix because without the product, there would be no reason to use marketing.

Price

The price is how much the company should charge for the product. There are many variables that come into play when deciding on the price of an item. The price depends on how much it costs to make the item as well as advertising costs, distribution costs, overhead costs, competitor pricing, etc. Price is not something that will be set in stone, because costs of goods may change or competitor pricing may change. It is vital to have a set price but be prepared to change the strategy if there is a fluctuation in the market.

For instance, you own a company that creates cases for cell phones. You have developed different prototypes for the most popular phones and are distributing them to a few different retail companies. After taking into account advertising costs, production costs, etc., you will be selling them to retail stores for a price of $4. However, once a new cell phone version is developed, you will have to lower the price because your product will not be in as much demand, and the retail companies will not need as many to be displayed.

Place

Another important variable to the success of a product is the place, which involves determining where the product will be available for consumers to purchase. It is important to be aware of who your target audience - the group to whom you want to sell your product - is, and where your product can best capture their attention. The place will depend on the type of product being produced. If the goal is to sell the product to as many consumers as possible, then you are going to want to place the product in as many stores as possible. However, if the product is meant to be exclusive, it may just be distributed to a few different retail outlets.

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