The Four Ps of MarketingBDI3C

The Four Ps The success of any marketing strategy

depends on whether or not the entrepreneur has planned the right combination of marketing elements

These elements are referred to as the marketing mix, or often as the Four P’s of marketing

The elements are product, place, price and promotion

Product (or service) Is the product or service something customers

will want to buy? Will it be of benefit to them? Will it meet their needs?

Place How will the product or service get to the

customer? What channels of distribution are needed? When should the product or service be in

stock or ready? Where will the products or service be made

available?

Price How much are customers willing and able to

pay? What is the best price to charge to earn a

maximum profit?

Promotion How will customers be made aware that the

product or service is available? Which of the following promotional activities

will be best for this venture: advertising, personal selling, publicity, sales promotion or e-marketing?

Target Market Those people who have a particular need or

want for a product/service The type of consumer most likely to purchase

your product/service A product or service may have a primary

target market in addition to one or more secondary target markets

Market Segmentation When a product or service is targeted toward

groups of people who share common characteristics, the group is called a market segment.

Market segmentation helps entrepreneurs match their products and services to the needs of a specific group.

Demographics People may be grouped together based on

common characteristics: Age Gender Income Family life cycle Culture/ethnicity Geographics Psychographics

Example What would be the demographic profile of the

target market for: A Toyota mini-van A Rolex watch Lululemon yoga pants