Вы находитесь на странице: 1из 8

7/7/2019 The 4 Ps Definition

BUSINESS BUSINESS ESSENTIALS

The 4 Ps
REVIEWED BY ALEXANDRA TWIN | Updated Jun 25, 2019

What Are the 4 Ps?


The four Ps are the key factors that are involved in the marketing of a good or service. They
are the product, price, place, and promotion. Often referred to as the marketing mix, the four
Ps are constrained by internal and external factors in the overall business environment, and
they interact significantly with one another.

https://www.investopedia.com/terms/f/four-ps.asp 1/8
7/7/2019 The 4 Ps Definition

[Important: the four Ps collectively make up an essential mix needed for a company to
market a good or service].

Advertisement

https://www.investopedia.com/terms/f/four-ps.asp 2/8
7/7/2019 The 4 Ps Definition

Advertisement

CLICK
CLICK TO
TO PLAY
PLAY

1:38

Four Ps

Advertisement

Advertisement

Understanding the 4 Ps
Neil Borden popularized the idea of the marketing mix and the concept of the four Ps in the
1950s. Before the internet and greater integration between businesses and consumers, the
marketing mix helped companies account for the physical barriers that prevented
widespread product adoption.

https://www.investopedia.com/terms/f/four-ps.asp 3/8
7/7/2019 The 4 Ps Definition

Extensions of the Ps include people, process, and physical evidence as important


components of marketing a product.

How the Four Ps Work


The 1st P: Product
Product refers to a good or service that a company offers to customers. Ideally, a product
should fulfill a certain consumer demand or be so compelling that consumers believe they
need to have it. To be successful, marketers need to understand the life cycle of a product,
and business executives need to have a plan for dealing with products at every stage of their
life cycles. The type of product also partially dictates how much businesses can charge for it,
where they should place it, and how they should promote it in the marketplace.

The 2nd P: Price


Price is the cost consumers pay for a product. Marketers must link the price to the product's
real and perceived value, but they also must consider supply costs, seasonal discounts, and
competitors' prices. In some cases, business executives may raise the price to make a
product seem more like a luxury or lower the price so more consumers can try the product.

Marketers also need to determine when and if discounting is appropriate. A discount can
sometimes draw in more customers, but it can also give the impression of the product being
less exclusive or less of a luxury than when it is at a higher price.

The 3rd P: Place 


Place decisions outline where a company sells a product and how it delivers the product to
the market. The goal of business executives is to get their products in front of the consumers
most likely to buy them.

In some cases, this may refer to placing a product in certain stores, but it also refers to the
product's placement on a store's display. In some cases, placement may refer to the act of
placing a product on TV shows, films or web pages to garner attention for the product, but
this placement overlaps with the promotion.

The 4th P: Promotion


Promotion includes advertising, public relations and promotional strategy. This ties into the
other three Ps of the marketing mix as promoting a product shows consumers why they
Advertisement
need it and should pay a certain price for it. In addition, marketers tend to tie promotion and
placement elements together so they can reach their core audiences.

https://www.investopedia.com/terms/f/four-ps.asp 4/8
7/7/2019 The 4 Ps Definition

For example, In the digital age, the "place" and "promotion" factors are as much online as
offline. Specifically, where a product appears on a company's web page or social media, as
well as which types of search functions trigger corresponding, targeted ads for the product.

Key Takeaways
The four Ps are the four essential factors that come into play when a good or service are
being marketed to the public.
The four Ps are the product (the good or service), the price (what the consumers pays),
the place (the location where a product is marketed), and promotion (the advertising).
The concept of the four Ps has been around since the 1950s. Recent additions include
people, process, and physical evidence as important components of marketing a
product.

Compete Risk Free with $100,000 in Virtual Cash


Put your trading skills to the test with our FREE Stock Simulator. Compete with thousands of
Investopedia traders and trade your way to the top! Submit trades in a virtual environment
before you start risking your own money. Practice trading strategies so that when you're
ready to enter the real market, you've had the practice you need. Try our Stock Simulator
today >> Advertisement

Compare Investment Accounts

XM

Global broker with 2.5M+ clients, o ering forex & CFD trading on 1K+ instruments

LEARN MORE

Advertiser Disclosure

Related Terms
Marketing Mix
https://www.investopedia.com/terms/f/four-ps.asp 5/8
7/7/2019 The 4 Ps Definition

A marketing mix includes multiple areas of focus as part of a comprehensive marketing plan. The term
often refers to a common framework known as the four Ps. more

Everything Marketing Entails


Marketing refers to the activities of a company associated with buying, advertising, distributing, or
selling a product or service. more

Marketing Plan
A marketing plan is an operational document outlining an organization's outreach and advertising
strategy for a target market. more

Macromarketing
Macromarketing is the study of the effect that marketing policies and strategies have on the economy
and society as a whole. more

Merchandising Definition
Merchandising is any act of promoting goods or services for retail sale, including marketing strategies,
display design and discount offers. more

How Product Lifecycle Management (PLM) Works


Product lifecycle management refers to the handling of a good as it moves through the typical stages
of its lifespan: development, introduction, growth, maturity, and decline. more

Partner Links

Trade like a top hedge fund manager using


technical analysis and double your wealth...

Sign up for our daily newsletters

Learn to trade stocks by investing $100,000


virtual dollars...

Related Articles
BUSINESS ESSENTIALS
https://www.investopedia.com/terms/f/four-ps.asp 6/8
7/7/2019 The 4 Ps Definition

What Are the Primary Activities of Michael Porter's Value


Chain?

COMMODITIES
Commodity vs. Product: What's the Difference?

ALTERNATIVE INVESTMENTS
The Four Rs of Investing in Retail

STOCK BROKERS
How to Choose an Online Stock Broker

MUTUAL FUND ESSENTIALS


Trading Mutual Funds for Beginners

FINANCIAL RATIOS
AR & Inventory Turnover Is Key For These Sectors

About Us Contact Terms of Use


Advertise Privacy Policy Careers

https://www.investopedia.com/terms/f/four-ps.asp 7/8
7/7/2019 The 4 Ps Definition

Investopedia is part of the Dotdash publishing family.


The Balance | Lifewire | TripSavvy | The Spruce and more

https://www.investopedia.com/terms/f/four-ps.asp 8/8

Вам также может понравиться