The 4 Ps are a well documented set of tools frequently referred to as the marketing mix. They are used to provide a starting point and basic analysis to both established and new start-up businesses.
The 4 Ps stand for Price, Product, Place and Promotion although some of these words are frequently replaced in practice with descriptions more relevant to their particular functions.
Price
The price at which a product or service is sold still remains one the crucial influencers in the decision on whether to buy. Pricing goods at a significant premium to those of competitor’s products with no other obvious differences or features is unlikely to result is increased sales rewards.
Pricing decisions and contribution
Product
Product covers both the usefulness and demand for an item in general and also any specific features and benefits which accompany a business’s individual offerings.
Both real and perceived benefits of the product or service are counted in this category, hence a strong brand name might result in an unfounded belief that that business provides better quality products for the consumer’s money.
Place
The point of distribution, where customers can acquire the goods and services of the business is an important part of successful marketing. Once the decision to buy exists the enterprise must ensure that its offerings can be acquired both in the appropriate time and at an amenable outlet.
The location of "place" has changed significantly in recent years with the advent of the internet and online shopping. Place can now often mean home delivery following a purchase initiated through a computer browser.
Promotion
Promotion focuses on using the available marketing and specifically advertising budget in a useful way possible. An analysis of where and how to promote a product or service should enable the manager to conclude on the form, duration, media type, message and other salient aspects of the marketing campaign.