4Ps OF MARKETING:

Marketing activities into marketing mix tools of four broad kinds, which is called the four Ps of marketing such as Product, Price, Place and Promotion. The 4 component of marketing mix are:

Product:

Product refers to what you are selling, including all of the features, advantages and benefits that your customers can enjoy from buying your goods or services. When marketing your product, you need to think about the key features and benefits your customers want or need, including styling, quality, repairs, and accessories.

You can use research and development to inform the development of new products in your business.

Example-

Starbucks

products are breakfast, lunch, cakes & cookies, muffins, pastries & doughnuts, fresh fruit, bottled soft drinks, tea, espresso beverages, filter Coffee, frappuccino blended beverages, refresha, and cold brew. Starbucks is famous for its expertly roasted and richly brewed coffee. It is also popular for a selection of premium teas.

 Price:

This refers to your pricing strategy for your products and services and how it will affect your customers. You should identify how much your customers are prepared to pay, how much mark-up you need to cater for overheads, your profit margins and payment methods, and other costs. To attract customers and retain your competitive advantage, you may also wish to consider the possibility of discounts and seasonal pricing.

Example-

 Premium, cost-plus, loss leader, and going-rate are some of the popular pricing strategies. Starbucks uses a premium pricing strategy.

 

Place:

Place is where your products and services are seen, made, sold or distributed. Access for customers to your products is key and it is important to ensure that customers can find you.

Marketer should know the appropriate location where the product should be placed which cover larger audience and has the capability to change potential customers to actual customers. Places includes the factors channels, coverage, assortments, location, inventory and transport.

Example-

Starbucks company operates in 76 countries and has over 31,256 stores. It also has developed a number of apps for busy customers who would like to walk in select stores and go straight to their coffee.

 

Promotion:

These are the promotional activities you use to make your customers aware of your products and services, including advertising, sales tactics, promotions and direct marketing. Generally, these are referred to as marketing tactics. All these factors are imperative part of promotion. The main aim of promoting a product is to reveal the customers what is the product, why they need it and what is the price they have to pay. Promotion should cover all relevant and materialistic facts about the product which need to be communicated to the customers. Marketer should be one step ahead of their competitors while promoting their product to the customers.

Example-

Starbucks spends $248.6 million on advertising in 2016, and $227.9 million in 2015. Its ad spending in the fiscal year ending in September 2019 was $254.7 million.

Starbucks has a customer loyalty scheme called ‘Starbucks Rewards’. As members, people can collect 2 stars for every $1 they spend in stores or online. Every 125 Stars they collect makes them eligible for a reward which is redeemable for a drink or food item.