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Definition: 4 Ps of Marketing (Product Mix)
The four Ps of Marketing (Product, Price, Place & Promotion) are also known as the ‘Product Mix’. The product mix is a crucial tool in determining a product’s offering to the customer. Let us look at each P one by one:
Product: The Product can either be tangible, which have independent physical existence (from needle to motor parts) or Intangible service (like in IT and tourism industry). Launching the right kind of product with appropriate number of variants is one of the critical decisions for marketing managers.
Price: The price of a product determines the offering which the customers are willing to give to buy that product. The price can neither be too low that the seller incurs losses, nor be too high that the consumers cannot afford the product. The price of a product or a service depends on its demand, which is determined by demand elasticity. A product is said to be elastic if raising its price reduces the demand considerably (example: coffee, people will switch to tea) and the product/service is inelastic if its demand is not affected even after raising the price. (Example: petrol)
Place: The market where the product is sold is known as place. The markets should be convenient for the consumers to access. Distribution network for a product determines its availability in shops/outlets
Promotion: The method of communication by which the marketer provides information about the product is known as promotion. It included advertisements, personal selling, word of mouth publicity etc.
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