The 4 Ps of Marketing Explained: Simple Guide for Everyone

As a dynamic field, marketing constantly offers new approaches and tricks for business success. At the same time, the fundamental models have remained unchanged for decades. One such model is the marketing mix, also known as the 4 Ps of marketing. They are product, place, price, and promotion, the cornerstones of market positioning.

Whether you’re a small startup or a large, established company, knowing the basics is a must to develop offers that meet customer needs, stay competitive, and ensure business growth. So, what are the 4 Ps of marketing and why are they important? Keep reading to discover how mastering these elements can transform your business strategies from common to exceptional!

What you need to know about the 4 Ps of marketing

The 4 Ps of marketing or marketing mix is a classic marketing model featuring four main business elements on which all sales are built: product, price, place, and promotion. This approach allows companies to address and elaborate on every component affecting their success in the market. From product development and determining the optimal price to selecting the most prospective sales channels and delivery methods—by managing and aligning these areas, brands can achieve a comprehensive effect of marketing efforts and multiple increases in sales.

This theory first appeared in the 1964 article “The Concept of the Marketing Mix,” published by Neil H. Borden, an advertising professor at Harvard. With its help, Borden wanted to summarize and describe all the tools needed to create a marketing plan for a product launch. The initial marketing mix included plenty, such as pricing, advertising, branding, distribution, personal selling, packaging, service, etc.

Later, E. Jerome McCarthy, a marketing professor at Michigan State University, grouped 4 key elements of the marketing mix. This marketing model is a well-tested approach that has become an industry standard and remains relevant today. It covers all the essential product features that can be controlled and enhanced for efficient development. Next, we will review each of them in detail.

1. Product

The first thing to start working on the marketing mix is a product. It is what the brand offers to a market and audience. Products can be either physical goods or services. A successful product is always based on understanding and meeting the essential needs of the target market. When creating a product, it’s vital to identify what characteristics are necessary and desirable to potential customers and work out every aspect, such as design, specifications, packaging, and more.

Here are some decisions that need to be made at this level:

Branding: name, logo, and brand style
Product functionality
Product design and quality
Product assortment
Guarantees and service

Since these decisions determine whether the future product will succeed, ensure they are well thought out from all angles. A mandatory step is to analyze it from the potential user’s point of view. The following questions will help you with this:

What do customers expect from your product or service?
What needs does it address?
What product features do customers need?
How and where will customers use the product?
How does your offer differ from your competitors’ products? What makes your product unique?

2. Price

The second element in the 4 Ps of marketing is price. Setting prices requires a comprehensive analysis of the market and competitors, considering the cost of production and all related expenses, as well as other significant factors that affect pricing. When deciding on a price, it is necessary to balance ensuring the company’s profit and making the product accessible to customers.

This element of the marketing mix requires the following decisions:

Price strategy
Pricing for different sales channels
Discounts and promotions
Payment terms

Price is a core factor that determines the value of a product and can influence consumer behavior. To choose the optimal pricing policy that will be equally attractive to both your business and consumers, consider these questions:

How valuable is your product/service to customers?
Are there set prices in your industry?
What is the price of your product compared to competitors’ prices?
At what price level will revenue cover product costs?
What is the lowest and highest price you are ready to sell your product for?

3. Place

What is the meaning of “place” in the 4 Ps of marketing? It’s about the product distribution strategy. This element ensures your item or service is available to the target market. In other words, the product should be in the right place (where potential customers can see and buy it) at the right time (when consumers need it). This point describes the locations of a product, where it will be accessible to customers, and its delivery methods.

Common marketing choices at this stage:

Target markets
Distribution channels
Distribution strategies
Franchising
Logistics

A place can mean a physical store and a digital environment like your online store or marketplace. It also includes training salespeople, transportation and storage conditions, inventory management, and warehouse logistics. Answer these questions to make decisions regarding the place:

How will your product/service be sold: online or offline? Or both?
What is the geographic location of your target audience?
Where is the highest demand for your product?
Which location will provide the largest flow of customers?
Where will potential customers find and buy your product?

4. Promotion

Wondering which of the 4 Ps of marketing helps generate revenue? That would be promotion. You can think of all marketing channels used to attract consumers’ attention to a product, such as advertising, SEO, SMM, PR, direct marketing, and more. The purpose of promotion is also to raise awareness of a product, create a need to buy it, and encourage clients to make repeat purchases.

Here are decisions related to this component of the marketing mix:

Promotion strategy
Marketing budget
Marketing communication channels
Communication strategy
Participation in events

No matter how great your product is, you can only expect high sales if you communicate its benefits to your target audience. Promotion should smoothly convey the idea of how your solution can improve potential buyers’ lives. To ensure effective communication, think about the following points:

What communication channels will allow you to reach your target audience?
Which promotional activities are the most appropriate for your product?
How do your competitors promote their products?
Is your product seasonal? If so, what is the best time to advertise it?

Example of the 4 Ps of marketing

We’ll provide a real-world marketing mix example to help you better understand how to apply this model. We’ll take the Depositphotos AI Image Generator as a reference and briefly describe each of the 4 Ps.

1. Product

The product is the AI Image Generator from Depositphotos, an intelligent tool that creates high-quality visuals in seconds. This service was designed with the end user in mind, thus combining features such as an intuitive interface, a fast-generating process, and top-notch output. A unique characteristic of the AI Generator is that it provides commercially safe content suitable for any digital or print project.

2. Price

Prices for visuals generated with the Depositphotos AI tool are as affordable as images from the main library, starting at $0.13 per file. To access the generator, users just need to buy any plan for image downloads. With each purchase, clients get 50+ complimentary generations. Downloading a generated picture is equivalent to downloading an image from the Depositphotos stock library.

3. Place

The AI Image Generator is an online tool, which means users can access it anywhere on the planet and at any time. The only requirements are a suitable device and an Internet connection. In addition, our AI Generator is available in 29 widely used languages, which makes it even more comfortable for customers from different countries.

4. Promotion

The AI tool is actively promoted across all Depositphotos communication channels, from social media and newsletters to PR and industry events. Dedicated messaging focuses on the generator benefits, especially commercial safety, which not many similar tools can guarantee. Thematic communication also covers how the generator can expand the creative horizons of users. Such product-related articles are often featured in our blog: “Amazing Images Generated with Depositphotos AI: Collection & Tips to Craft Your Own” and “Job-Stealer” or “Co-Creator”? 5 Ways to Improve Design Quality with AI Safely.”

Other marketing mixes you can use

Nowadays, the 4 Ps of marketing concept is often not enough. Competition is growing, and businesses need new approaches to attract more attention to their products and drive sales. In response to this demand, new B2B-oriented marketing mixes have emerged. Most include the primary 4 Ps model, updated with additional elements depending on the business profile.

5 Ps of marketing

The first successor to the 4 Ps of marketing was the 5 Ps model. As the name implies, it has one additional component—people. It is about people who influence how the target audience perceives a product. They include:

employees who represent a company and a product;
customers who are opinion leaders in a particular niche or those who can bring significant sales;
manufacturers that affect the cost and quality of a product.

The most straightforward example of this element’s practical application is communication between a manager and a client, where personal interaction is everything. Another common use case is promoting a product with the help of bloggers and opinion leaders, which can create a real buzz around it.

6 Ps of marketing

This model was addressed to the B2B market and service sector—to meet their needs, the process element was added to the marketing mix. How well the interaction process between a consumer and a company is organized directly affects the choice of a partner. If you ensure a smooth client experience, people are more likely to return to your brand and become loyal customers.

An example of remarkable service is Amazon’s customer-centric policy. The brand shows that client satisfaction is a priority by offering seamless returns and refunds. No wonder its service has an excellent reputation.

7 Ps of marketing

This is an extended marketing mix model in which all the previous components are supplemented by physical evidence. It involves creating an environment that promotes a positive brand perception. This physical evidence can include the location where you provide your product or service (offline or online), the look of this space, branding, product packaging, digital presence, and more.

Think about customer interaction with Apple products. From store and website design to marketing communications and branding, each element reinforces the company’s identity and creates a unique experience that drives customer engagement. It visually represents the brand’s quality, value, and reliability.

4 Cs of marketing

The transformation of the 4 Ps of marketing resulted in the 4 Cs model. These marketing concepts differ in approach: in the first case, the brand is more focused on a product’s properties and its promotion on the market, while in the second case, the needs of the end customer are a priority. The 4 Cs model combines customer, cost, convenience, and communication elements.

Customer. This is the heart of the strategy. The wishes and needs of consumers are put first. Brands should provide customers with a value proposition throughout the entire sales process, from the first touchpoint to the sale and after-sales service.
Cost. This includes not only the price that consumers pay, but also other elements that may encourage them to eventually make a purchase. This stage also analyzes the obstacles that customers have to overcome.
Convenience. Customers should have easy access to your product. First, it is about a quality user experience, which can be manifested in convenient navigation on your website or high-value customer support.
Communication. The goal is to build strong relationships. Brands strive for two-way and personalized communication with their target audience through different channels, where social media plays a fundamental role.

SIVA

The SIVA model is another alternative to the 4 Ps of marketing that emerged in the noughties. In this marketing mix, the focus is redirected from the product to solving the consumer’s problem. This customer-centered approach includes the following elements:

Solution. Creating and promoting a product begins with finding the most appropriate solutions to meet the target audience’s needs.
Information. At this stage, a company has to find out whether the target audience is familiar with a product, whether they have enough information, what they need to make a purchase decision, which channels to use for communication, etc.
Value. Next, a company studies how valuable a product is to consumers. It is also crucial to analyze competitors, research analogs on the market, and calculate added value.
Access. This point involves creating consumer-friendly sales outlets. Companies strive to provide customers with access to products and services in a convenient place and at a suitable time for them.

How to apply the 4 Ps of marketing

1. Start with a unique selling point

A unique selling point (USP) is an outstanding factor that characterizes a product or service and strongly influences customers. It solves their problems and offers them value or benefits. From a consumer perspective, the USP demonstrates why a consumer should choose your product. For example, Patagonia’s USP is reflected in its mission statement: “We’re in business to save our home planet.” What does this mean for consumers? By choosing the brand, they are not just buying high-quality sportswear, but joining the movement for positive change.

2. Understand your audience

Audience analysis will help you determine all the elements of the marketing mix. At the product level, you need to understand what exactly people need. A successful solution should solve a specific problem of the audience and bring added value. Regarding price and location, research will help you determine where to offer your products to potential consumers and how much they are willing to spend. At the promotion level, you will understand which channels your audience prefers and focus your attention on them.

3. Analyze competitors

You can learn a lot from your competitors. Research their products and services, including features, quality, and pricing. This data will help you make your own smart business decisions. In addition to specific products, you can evaluate marketing and sales strategies to understand how competitors reach and connect with their target audiences. Competitive analysis is also a powerful tool for finding opportunities for differentiation and identifying niches in the market.

4. Consider your resources

Before you start developing a strategy based on the 4 Ps of marketing, you must determine how many resources your company has. Resources are not only money for advertising, but also technical data processing capabilities and people involved in the sales chain. If a strategy is developed for five sources of promotion, but the budget is only for two, you won’t be able to get desired sales. The same goes for people.

5. Set SMART goals

To achieve real results, follow a smart approach to goal setting. They should be specific, measurable, attainable, relevant, and time-bound. For example, a goal to increase product sales by 25% over the next six months can meet these requirements. It is also essential to constantly monitor the process and make adjustments as needed.

To sum up

Putting aside all the superfluous, the recipe for business success can be summarized as follows: If you offer a good product at a reasonable price and sell it in the right place with smart promotional support, you will never run out of customers. This is the essence of the 4 Ps of marketing. At the same time, remember that the marketing mix is a flexible concept, as evidenced by its many models. Review their advantages and choose the best option for your brand, which will help it become a niche leader.