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What is the 4P marketing theory?

The 4P theory is a marketing theory namely: Product, Price, Place, Promotion.Whichever is the first letter, it means product, price, channel, promotion.
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product

From a marketing point of view, a product is anything that can be offered to the market to be used and consumed by people and that satisfies a certain need of people, including tangible products, services, people, organizations, technologies, ideas, or a combination thereof.

In other words, broadly speaking, it is something or value that the customer gets.Can be understood as a general term for products and services.

Price

Refers to the price at which a customer purchases a product, including discounts, payment terms, etc.Price or price decision is related to the company's profit, cost compensation, and whether it is conducive to product sales and promotion.

There are three main factors that affect pricing: demand, cost, and competition.

The highest price depends on the market demand, and the lowest price depends on the cost of the product. Within the range between the highest price and the lowest price, how high an enterprise can set the price of this product depends on the price of competitors' products of the same kind.

channel

The so-called sales channel refers to the sum of the various links and driving forces experienced in the whole process of the goods flowing from the production enterprises to the consumers.

Promotion

Many people interpret Promotion as "promotion" in a narrow sense, which is actually very one-sided. Promotion should be a series of marketing behaviors including brand promotion (advertising), public relations, and promotions.

米国生活: The relationship between 4Ps is not a flat one-time relationship, but a three-dimensional cyclical relationship. For example, in website construction (Promotion), we need to understand the brand's product (Product), deploy specific keywords (Place) and submit it to Search engine, reach the specified customer and define the appropriate price (Price)/div>

"Marketing"

The 4p theory is based on a marketing theory, namely; Product, Price, Place, Promotion, whichever is the first letter.Chinese meaning is, product, price, channel, promotion.This theory was first proposed by Professor Jerry McCarthy in his Marketing (first edition, published around 1960).But as early as when he obtained his Ph.D. from Northwestern University, his advisor Richard Clewett had used the concept of "Product, Price, Distribution, Promotion. )” as the core theoretical framework.Jerry replaced "distribution" with "Place", making this theory the so-called "4P" theory.Everyone thinks that I have played a role in promoting the popularization of 4P theory, but I think my main contribution to this theory should be to explain that 4P is tactical and must be made after the strategic decision of STP. STP is market segmentation (Segmentation ), target market selection (Targeting), positioning (Positioning).

4P to 4C development

The 4Ps still provide a useful framework for corporate marketing planning.However, the 4Ps are from the standpoint of the company, not the customer.From this, 4P should be converted to 4C:

  1. product(Pproduct) - customer value (CuserValue);
  2. price(Price) - customer cost (Ccustomer Cost);
  3. Place(Place) - customer convenience (Customer Convenience);
  4. publicity(Promance) - customer communication (Ccustomer Communication);

The theoretical framework of the 4Cs illustratesCustomers want value, low cost, convenience and communication, not promotions.There are other marketing tools that have been proposed to enrich the 4Ps theory, including packaging, personal selling, and enthusiasm.But packaging can actually be classified as a product or a promotion, and personal sales and enthusiasm can be classified as a promotion.

米国生活It is believed that: improving the value obtained by customers can improve the production materials of customers, thereby improving social productivity; on the contrary, if the purchasing power of customers/people is reduced, and the development of technology does not substantially improve people's harvest, then, it is either a technological bubble or capital. The bubbles are funny.

Extended reading:

What is PR?

What is the definition of a brand and what are the characteristics of a brand?

How can SEO vendors improve customer brand value?

What is the key to brand marketing planning?

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