4 P’s of Marketing: Product, Price, Promotion and Place

4 P's of Marketing

Regardless of how long you’ve been working in your industry of expertise, it is always helpful to brush up on what you know and learn about what you don’t. Every month our team attends numerous networking sessions as well as “learning sessions” so we can meet new people and brush up on our sales, marketing and social media knowledge.

As a part of this learning experience, last week I decided to attend Entrepreneurship 101 session on Marketing for Tech Startups at MaRS Discovery District; MaRS houses innovation and acts as a place where “science, technology and social entrepreneurship get the help they need. As I was watching the slides in the presentation I noticed that I had seen them before, yet they were being described and explained in a different way, proving there’s always something new to learn from revisited material.

The 4 P’s of Marketing are commonly used to break down the marketing cycle. For those who are new to the term, the 4 P’s of marketing represent: Product, Price, Promotion and Place.

Product

It is not just about knowing your product, but knowing the potential and lasting effects of your product. A customer could visit your company’s website and only understand your products (and/or services) at a high level. Although that is great for a quick read, you want to ensure that your prospects and customers understand where your products/services will get them and how they can not only use them but learn from them.

Price

Price is not just about numbers and cost, it’s about quality and time. Every company will have their own limitations when it comes to price adjustments, but it is important to be flexible in order to accommodate different types of customers. “One size fits all” doesn’t apply. In order for your customers to feel that you care about their business, you need to show them that you’re willing to meet their needs. Instead of implementing one cost for your service/product, tailor different packages to meet different company needs; a great way to enhance your sales efforts as well.

Promotion

Promoting your company/product/services is now a two way conversation – unlike traditional marketing where you are promoting AT your prospects, instead of conversing with them to find out what they need and want. Promoting your company is a big part of marketing, but lately there has been a lot of debate around the right methods and/or avenues to use (i.e. social media). The answer to all the questions of “Where do I marketing my product?” are simple: Find your customers and go where they are.

Place

The last part of the 3rd P (promotion) ties nicely into the 4th which is Place. Place can mean a multitude of things in marketing: Where are your customers? What regions/demographics are you targeting? How do you market your Products so they fall in line with your company objectives? Research. I cannot stress enough how important it is to research not only who you are targeting but research how your product is going to fit amongst the tens, hundreds or thousands of other companies who are doing something similar to what you provide. Find a place, make it your own and market your product effectively to keep your spot.

What is the Value Proposition?

Ever wonder what it would be like to take home a piece of mountain or glacier from Iceland? If you answered No, you are more likely not alone. If you answered yes, what value do you find in a piece of mountain? How long will it sit in your home until you decide to use it to hold your door open? The problem with this product (which our presenter at the event told us does exist) is that it does not have a value proposition. In order to put together a cohesive and effective value proposition, you must ask yourself the following:

  • What is the value of the product?
  • Who is it for?
  • Why do they want/need it?
  • What makes it special or unique?

Unfortunately, for the makers of a “piece of mountain or glacier in a can”, they didn’t consider any of these questions. Of course there are those impulse buyers who will purchase a product because of an instant gratification, but these are not the customers you should be looking for. You want to create a value proposition that makes people more inclined to purchase your product because of its long term value and eventually recommend you to others. You want your value proposition to have customers thinking long term instead of short term.

I would recommend the MaRS Discovery District Entrepreneurship 101 sessions to anyone interested in brushing up on their skill sets or for those interested in learning something new. They are held every Wednesday from 6-7 p.m. and the MaRS Discovery District building is easily accessible by TTC.

If you agree with what we think a value proposition should be but aren’t sure how to put it together, reach out to our team, we’re always around to talk.

4 P’s of Marketing: Product, Price, Promotion and Place