GUEST BLOG: The four P’s of marketing

By Paul Teahan, master franchisor for TheBestOf Ireland

Marketing your products or services can seem a bit daunting at first, with many business owners not knowing where to start, but there is one definition to stand by: ‘Put the right product in the right place, at the right price, and at the right time.’

It sounds simple, and it is, once a bit of research has gone into what customers want and identifying how and where they will hear about your company. As well as this, business owners need to focus on their price point and when they should promote certain products. For example, there’s no point promoting a new textbook after the start of the new school year.

Marketing is fundamental to the success of a business, large or small, when its prime focus is on quality, customer value and client satisfaction. A tool often referred to as ‘marketing mix’, focuses on four variables known as the ‘Four P’s’ of marketing: product, place, price and promotion.

THE FOUR P MODEL

The ‘Four P Model’, first communicated in 1960 by EJ McCarthy, needs to be deeply considered to produce the wanted results in each specific target market, whether you’re a multinational or a local, family business.

Product – Products include goods and services that a business provides to its target market to fulfil a want or need of consumers. Whether it is a dog grooming service or selling organic chocolate, it’s vital that the company has a clear understanding of what the product is and its unique selling points before marketing it.

When a business is contemplating introducing a new product or promoting an existing product to a new target market, they should consider the following questions:

• Who is the product aimed at?
• What benefit will customers expect from it?
• Why will it be better than competitor products?
• How does the company plan to position the product to the market?

Place – This element of marketing relates to where the product is made, where it’s kept and how it is distributed to the consumer. Factors to consider include the location of the business, shop front, distributors and logistics. The online element is another aspect to think about, as although for many businesses, the actual transaction doesn’t happen online; the initial place potential clients are engaged and converted is through social media and/or websites.

It’s important to evaluate what the ideal locations are to convert potential customers into paying clients. The ideal place will be:

• Convenient for both the client and the business
• Easily accessible to consumers if it is the place where the product is sold
• Within budget for the business

Price – Once a concrete understanding of the product is established, pricing decisions come into effect. There are plenty of pricing options, all of which will determine the impact on profit margins, supply, demand and overall marketing strategy. A product is only worth what customers are willing to pay for it, and so the decision of price point will depend on the product’s features versus competitors as well as the target market’s budget.

Promotion – Having a potentially successful product means nothing unless the benefits and value of it are promoted clearly to the target market. Promotion includes any activity that increases knowledge of the product or to encourage customers to use it and includes elements such as advertising, public relations, social media marketing, email marketing, search engine optimisation and video marketing.

The following factors will affect how a company chooses to promote its product:

• Promotional campaign purpose
• The budget for the promotional campaign
• Legal rules about what you can promote and how
• The target market for the product
• The marketing environment in which the business operates

Within the marketing mix, TheBestOf.ie is most involved in helping SME’s promote their goods or services to the public. With all the factors associated in bringing a product to market, it can be overwhelming to have to consider all the promotional options, and so we have gone from strength to strength by promoting the best local businesses and events in each area using a variety of online and offline tools.

It’s important for companies to keep asking questions and making changes to the marketing mix until they feel comfortable and ready to progress. Reviewing the Four P method frequently is vital, as some components will naturally change over time to adapt in an ever-changing competitive environment.

Photo above: alainalele