The 4 Ps

The Marketing Mix is based on the fact that price is not the only factor that decides whether customers will buy from you or not. In fact, in some cases people never buy the cheapest!!

Do you know anyone who has taken 3 quotes and then decided to employ, or buy, from the middle priced quote. The error many new businesses make is to assume that if they are cheaper than the competition then customers will buy - this is not necessarily so

For many new start businesses it is often better to consider an equal, or higher, price than the competition. Then, if you decide to lower the price, your existing customers will be happy - whereas if you charge too little and have to raise the price, your existing customers may leave you

Product

Is your product or service totally unique? Unless so, it's likely that someone else is servicing your potential clients already.

Understanding your product or service fully will allow you to promote it to potential clients more effectively - try to think of the reasons why your product would be the most important factor to your clients -

Is it new / different / unusual / designed to fill an identified need?

Do you provide more than the competition in terms of guarantee / quality / after care / finance?

Does your product answer a problem customers may have or fulfil a need that no-one else can?

Is what you provide, or sell, the most important reason people buy from you?

Price

Are you less expensive, or more expensive than the competitors? Some people will not buy the cheapest, assuming that cheap means inferior.

Look at your customer profile. If they want it cheap, and price is the most important factor to them, that's OK - but if not, then price advertising and promotion will not work.

A certain end of the motor vehicle market advertise on price - but look carefully - it's not the quality car market - you rarely see advertising that says

"all this Rolls Royce for just Ј .....!!"

Find out, from your customers whether they want it cheap or whether they would rather pay a little more for something extra.

Is the price you charge the most important factor in getting your customers to buy?

Promotion

To some people, image is everything and they would rather pay five times the price for something with a designer label or a quality reputation than pay less for an unknown brand.

There is a clothing manufacturer in the North of England who makes suits for many major retailers. The fact that the same jacket can be bought for a fifth of the price because of the lack of designer label (and slightly different buttons) is amazing - yet some customers would rather pay dearly for the image than modestly for the same quality.

If you go to the factory, personally, you can buy over-runs all at the same price regardless of the label inside!!

Is your service, or product, the type that could be aimed at this market - for instance high status crиches, fancy restaurants, quality car hire, interior designers.

The image that you portray can determine the client base (and consequently the price you charge). Is this the most important factor for your customers?

Place

Do you provide a service, or product, that people have to have now - or at short notice?

Do you have a level of stock which means they can have it whenever they want it?

Do you have the type of business where offering a 24 hour (or 2 hour) service means you can gain customers and charge more?

For example, printer cartridges for computer printers are often less expensive by mail order - but if you run out you are often willing to pay twice the price for the same product at a high street shop. Why? Because you need it now!

Is it convenient to reach you, in person or, on the telephone? Or are you the type of person who advertises your car for sale, then goes on holiday. How convenient can you make it for your customers to use you?

If this is the most important factor, then take action, make sure they can reach you!!

Marketing Tactics

There are 4Ps in marketing that are considered as the elements of marketing. The 4Ps are product, price, promotion and place.