The Ultimate Guide to the 4 Ps of Marketing: Product, Price, Place, and Promotion Explained

What is the marketing mix?

The marketing mix is probably the most famous marketing term. Its elements are the basic, tactical components of a marketing plan. Also known as the Four P's, the marketing mix elements are price, place, product, and promotion. Read on for more details on the marketing mix. The concept is simple. Think about another common mix - a cake mixes. All cakes contain eggs, milk, flour, and sugar. However, you can alter the final cake by altering the amounts of mix elements contained in it. So, for a sweet cake add more sugar! It is the same with the marketing mix. The offer you make to you customer can be altered by varying the mix elements. So, for a high-profile brand, increase the focus on promotion and desensitize the weight given to price. Another way to think about the marketing mix is to use the image of an artist's palette. The marketer mixes the prime colours (mix elements) in different quantities to deliver a particular final color.

Every hand painted picture is original in some way, as is every marketing mix. If you'd like to see the marketing mix applied to a real business - then take a look at our Ryan air marketing mix. Some commentators will increase the marketing mix to the Five P's, to include people. Others will increase the mix to Seven P's, to include physical evidence (such as uniforms, facilities, or livery) and process (i.e. the whole customer experience e.g. a visit the Disney World). The term was coined by Neil H. Borden in his article The Concept of the Marketing Mix in 1965.

Marketing decisions generally fall into the following four controllable categories: Product, Price, Place and Promotion.

1. Product Decisions 

The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made:

• Brand Name: The name and identity used to recognize and differentiate the product.
• Functionality: What the product does and how well it performs its core task.
• Styling: The product’s appearance, design, and visual appeal.
• Quality: The level of performance, durability, and reliability.
• Safety: Measures taken to ensure the product does not harm users.
• Packaging: The design and materials used to protect and present the product.
• Repairs and Support: Services provided for maintenance and problem resolution.
• Warranty: A guarantee covering defects or performance for a specific period.
• Accessories and Services: Additional items or services that enhance product use.

2. Price Decisions 

Some examples of pricing decisions to be made include:

• Pricing Strategy: Overall approach to pricing, such as skimming or penetration.
• Suggested Retail Price: Recommended selling price for retailers.
• Volume Discounts and Wholesale Pricing: Lower prices for bulk or trade buyers.
• Cash and Early Payment Discounts: Price reductions for prompt payment.
• Seasonal Pricing: Price changes based on seasons or demand cycles.
• Bundling: Selling multiple products together at a combined price.
• Price Flexibility: Ability to change prices according to market conditions.
• Price Discrimination: Charging different prices to different customer groups.

3. Distribution (Place) Decisions 

Distribution is about getting the products to the customer. Some examples of distribution decisions include:

• Distribution Channels: Paths used to move products from producer to customer.
• Market Coverage: Extent of distribution—intensive, selective, or exclusive.
• Specific Channel Members: Selection of wholesalers, retailers, or agents.
• Inventory Management: Planning and control of stock levels.
• Warehousing: Storage of goods until they are sold or distributed.
• Distribution Centers: Central facilities for sorting and shipping products.
• Order Processing: Handling and fulfilment of customer orders.
• Transportation: Movement of goods between locations.
• Reverse Logistics: Managing returns, recycling, or disposal of products.

4. Promotion Decisions 

In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:

• Promotional Strategy: Overall approach such as push or pull strategy.
• Advertising: Paid, non-personal communication through media.
• Personal Selling & Sales Force: Direct interaction between salespeople and customers.
• Sales Promotions: Short-term incentives to encourage purchase.
• Public Relations & Publicity: Building a positive image through unpaid media and relationships.
• Marketing Communications Budget: Funds allocated for promotional activities.

Summary of Marketing Mix Decisions

Product	Price	Place	Promotion
Functionality	List price	Channel members	Advertising
Appearance	Discounts	Channel motivation	Personal selling
Quality	Allowances	Market coverage	Public relations
Packaging	Financing	Location	Message
Brand	Leasing options	Locations	Media
Warranty		Service levels	Budget
Service or support

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