Product, Price, Place, Promotion. In marketing, we like to call these the four Ps. These four strategy perspectives are a powerful way to examine any product or service and its marketing strategy. Whether evaluating someone else’s product or service or your own, by first looking at the existing strategy, you can then see where there is room for improvement.
Product is simply taking a look at what product or service is being offered. From the raw materials that go into it to the label on the box, examine what exactly the product being provided offers for the customer. Specifically, what value does it have. Looking at the value is especially important for the service industry, as they often do not have physical goods being provided. Their product is the value gained from their service.
Price may seem obvious, and it is. How much does the product or service cost? After asking yourself this question, it is important to then decide if the price set covers the costs of providing the good or service, as well as accurately accounting for the value. Later, when examining the competition, understanding your price is key.
Place is the strategy of determining where your product or service is being purchased. This part is key to learning where the audience for you product is. By determining where the items are going, you can better focus on providing value specifically to a more targeted audience, as well as advertising to that same targeted audience. You could also potentially see where your product or service is not reaching, that you believe it should reach. Then, you can adapt your marketing strategy to that audience.
Promotion – Finally, promotion has everything to do with advertising. Ask yourself, how are you currently advertising and promotion your product. Looking back then at product, price, and place, you may learn many ways to improve your advertising strategy.
The most important rule of the four Ps though is to always look at them in context, more importantly in context of the competition. These four ways to look at your marketing strategy are made even more powerful when used while also considering the competition in the market. Once you know your own product, price, place, and promotion and work to improve them internally, you can then look at the competition’s product, price, place, and promotion and improve externally.