What is 4P Marketing? Building a 4P Marketing Mix strategy

Have you ever wondered what makes a successful marketing strategy? The 4P model – including Product , Price , Place and Promotion – is the compass that helps businesses build effective marketing strategies .

What are the 4Ps in Marketing?

The 4Ps of Marketing is a classic model used to shape a business's marketing strategy, including Product , Price , Place and Promotion . This model helps businesses identify the most important factors to meet customer needs, thereby creating a competitive advantage in the market.

This concept was first introduced by E. Jerome McCarthy in 1960. Since then, 4P Marketing has become an effective tool for businesses to build effective business strategies, helping to analyze and orient their marketing activities.

Components of 4P Marketing

Product – What does the business sell?

Product in 4P is the product or service that the business provides to customers. To have a successful product, managers must ensure that it satisfies the needs and wants of consumers. Factors such as quality , features , design , packaging , and after-sales service need to be determined to ensure that the product is competitive in the market.

Businesses also need to study the product life cycle to have a reasonable marketing plan from the introduction stage until the product is withdrawn from the market . Understanding the product life cycle will help optimize other strategies such as pricing , distribution and promotion appropriate to each stage.

Price – What is the selling price of the product?

Price is the price that consumers are willing to pay for a product or service. This is one of the factors that directly affects the revenue and profit of a business. When determining the price, businesses need to consider factors such as:

• Production costs .
• Competitor prices .
• Ability to pay of target customers .
• Pricing strategies (skim pricing, penetration pricing, psychological pricing...).

An appropriate pricing strategy not only helps businesses dominate the market but also strengthens brand value in the eyes of customers.

Place – Where will customers buy the product?

Place refers to the channels a business uses to get its products to consumers. This is an important step in ensuring that the product is available at the right place and time when customers want it. Distribution channels can include:

• Retail store .
• Agency .
• E-commerce .
• Distribution partner .

A good distribution strategy will optimize the speed of goods turnover and increase customer loyalty to the brand.

Promotion – Promotion

Promotion is all the activities that are done to promote a product and attract the attention of target customers. Common promotional strategies include:

• Advertising (TV, newspapers, Internet...).
• Promotion .
• Public relations (PR).
• Content marketing .

The goal of Promotion is to convey a strong message to customers, helping them recognize and choose to buy the business's products.

The meaning of 4P Marketing strategy

Create synergy

When all the elements of the 4Ps are combined harmoniously, they create a synergy that makes the product more attractive. For example, a high-quality product at a reasonable price will be more easily accessible to customers when combined with an effective promotion strategy and a wide distribution system.

Brand loyalty and value

The 4P Marketing strategy helps build and strengthen customer loyalty . A high-quality, reasonably priced, easily accessible and widely promoted product will create strong brand value , helping businesses maintain their position in the market for a long time.

Decision making guide

The 4Ps provide a framework that helps businesses make strategic decisions . For example, if the product is priced high, the business needs to focus on building a premium and quality image in the eyes of customers.

Promote new product creation

From customer feedback, businesses can develop new product lines to meet changing market needs . This not only helps retain existing customers but also attracts new ones.

Enhance brand value

The 4P strategy helps businesses build a strong brand image through optimizing product , price , distribution and promotion .

Advantages and disadvantages of the 4P Marketing model

Advantage

• Easy to apply : The model is simple, easy to understand and can be applied to many types of products.
• Provide an overview : Helps businesses easily see and comprehensively evaluate their Marketing strategy.
• Enhance competitiveness : Optimizing each element of the 4Ps will help businesses increase their competitive advantage .

Disadvantages

• Limitations in the digital age : Traditional models may not fully reflect the complexity of today's digital environment.
• Not customer focused : The model focuses more on the product and business than on the customer experience.

6 Steps to Develop 4P Strategy in Marketing Mix

To build an effective 4P Marketing Mix strategy , businesses need a detailed and clear plan. Below are 6 steps to develop a 4P strategy to help businesses optimize the factors of Product, Price, Distribution and Promotion to achieve marketing goals and sustainable growth:

1. Identify the product's USP .
2. Listen and understand customers .
3. Research your competitors .
4. Consider distribution channels .
5. Develop promotional strategies .
6. Combine and test .

In 4P, which is the most important?

In the 4P model , the Product element is the most important because it creates the foundation for other elements such as price , distribution , and promotion . A quality product that meets customer needs will easily attract attention without too much promotional effort. If the product has no real value , no matter how good the pricing or promotion strategy is, it cannot bring long-term success. Therefore, an outstanding product will help other elements in the 4P work more effectively, creating competitive advantage and brand value for the business.

Case study of Coca Cola's 4P strategy in Marketing

1. Product – Product

Coca-Cola has developed a diverse range of products to meet the different needs and preferences of customers around the world. From the traditional Coca-Cola Classic to variants such as Coca-Cola Light , Coca-Cola Zero , and Coca-Cola Plus — each product has its own personality and is positioned to suit each customer group.

For example, Coca-Cola Light targets consumers who want to limit their sugar intake , while Coca-Cola Zero caters to those who prefer a strong taste but still have zero calories. This diversity helps Coca-Cola to meet the needs of the market and always be a leader in the beverage industry.

2. Price – Price

Coca-Cola applies a flexible pricing strategy to suit each market and different customer groups . Depending on location , time and occasion , Coca-Cola regularly adjusts prices to stimulate demand and optimize revenue .

For example, during major campaigns such as summer or sporting events, Coca-Cola often offers promotions , discounts or combo packs to encourage customers to buy more. Coca-Cola's pricing strategy not only helps them compete effectively with their competitors but also ensures profits from various segments.

3. Place – Distribution

Coca-Cola has a strong and widespread distribution system with millions of retail outlets worldwide, from supermarkets , convenience stores , restaurants , to entertainment venues and large events . This distribution network helps Coca-Cola ensure that its products are always available where customers want them.

In addition, Coca-Cola also focuses on expanding into e-commerce and online delivery channels , ensuring products are always available to customers at a fast pace, even in modern shopping environments.

4. Promotion – Promotion

Coca-Cola is known for its innovative promotional strategies , using a variety of media such as TV commercials , social media , and community events to create a strong impact . They often sponsor major sporting events such as the FIFA World Cup , the Olympic Games , and music activities to enhance brand awareness and engage with customers.

Additionally, campaigns like “Share a Coke” or “Taste the Feeling” are prime examples of Coca-Cola connecting emotionally with customers, encouraging them to interact and share their experiences with the brand.

Combining 4P and 7P strategies in Marketing

As the business environment evolved, the 4P Marketing model was expanded to meet new market challenges and demands . The 7P model was born, adding 3 more elements to the traditional 4P model: People , Process , and Physical Evidence . The combination of 4P and 7P provides a more comprehensive view, helping businesses not only create quality products but also deliver great customer experiences .

What is 7P?

7P is an expanded version of 4P Marketing , especially important for service businesses . 3 new elements are added to help address the weaknesses of the 4P model when not focusing on service experience and customer interaction . Here are the additional elements:

1. People : Focus on employees and business partners who have a direct impact on the customer experience.
   
2. Process : Relates to the service delivery process, how the product or service is delivered to the customer.
   
3. Physical Evidence : Are all tangible elements that customers can see or feel, helping them evaluate the quality of a product or service.
   

The Combination of 4P and 7P: What are the Key Differences?

While the 4Ps focus on product positioning and marketing strategy , the 7Ps broaden the scope and focus more on people and processes , aiming to create long-term relationships with customers. For service-providing businesses such as banks , hotels , or consulting firms , focusing on the additional 3Ps is necessary to optimize service quality and customer experience .

Vinamilk's 4P Strategy

1. Product – Product

Vinamilk is one of the leading dairy brands in Vietnam with a diverse product portfolio ranging from fresh milk, yogurt, powdered milk to special nutritional products for children and the elderly. Vinamilk has invested heavily in research and product development to create products with high nutritional value, suitable for the needs and tastes of domestic consumers.

• Vinamilk's main product lines include:
• Fresh milk .
• Yogurt drink .
• Milk powder .
• Special products such as milk for dieters or diabetics.

Vinamilk constantly innovates and develops new products to suit consumer trends and ensure the highest food safety standards. This helps them maintain customer trust and loyalty .

2. Price – Selling price

Vinamilk's pricing strategy is built on customer segmentation . They apply a flexible pricing model , including both high-end and low-end products to meet the needs of different target groups .

• High-end products : Targeting high-income customers, focusing on quality and health benefits .
• Popular products : Serving the majority at reasonable prices, aiming for wide market coverage .

Vinamilk's pricing strategy not only creates direct competition with international rivals but also helps the brand maintain its dominant position in the domestic market.

3. Place – Distribution

Vinamilk has a nationwide distribution system , including more than 240,000 retail outlets and more than 600 supermarkets . In addition, they also develop online sales channels such as websites and e-commerce , ensuring that products are always available and easy to access.

4. Promotion – Promotion

Vinamilk uses creative promotional strategies such as television advertising, promotional programs and community events. They emphasize the nutritional value and health benefits of the products, helping to build a reputable and friendly brand image with Vietnamese consumers.

How to apply the 4P model for small businesses

1. Identify target customers : Understand customers' wants and needs to shape the product.
2. Create the right product : The product needs to have superior value and meet customer expectations .
3. Choosing a pricing strategy : Determine the price not only based on cost but also must be appropriate to the market .
4. Develop distribution channels : Select effective distribution channels to maximize product exposure.
5. Smart Promotion : Use the right promotional channels to reach your target customers with a strong message.

Combining 4P and 4C strategies in Marketing Mix

In the modern world, 4P is considered a powerful tool for building a marketing strategy, but it still has some limitations when the business environment changes rapidly. To overcome this drawback, marketers have developed the 4C Marketing model — a customer-centric approach . Unlike 4P , the 4C model focuses on creating value for customers and meeting their expectations.

What is 4C?

4C Marketing is a marketing model developed by Robert F. Lauterborn in 1990, which includes:

1. Customer Solution : Instead of focusing only on the Product , businesses need to focus on solving customer problems and needs . The product must bring real value and be consistent with the goals that customers want to achieve.
   
   
2. Customer Cost : Price in the 4P model is replaced by the overall cost that the customer has to spend to buy the product, including time , effort , and buying experience .
   
   
3. Convenience : In the digital age, Place is not just the location of the store but any distribution channel that customers find convenient and accessible .
   
   
4. Communication (Two-way communication): Different from pure Promotion in 4P , Communication in 4C emphasizes two-way interaction between businesses and customers. Through communication channels such as social networks , live chat , businesses can build sustainable relationships and better understand customer expectations.
   
   

Why combine 4P and 4C?

Combining 4P and 4C helps businesses synchronize their strategies and create competitive advantages in a market that is increasingly focused on customer experience and satisfaction . While 4P helps businesses identify key product- related factors , 4C ensures that these factors are optimized for customers.

For example: When combining Product with Customer Solution , businesses not only create products but also ensure that the products solve specific customer needs. Or when combining Price with Customer Cost , businesses will focus on the total cost that customers have to pay, thereby adjusting the pricing strategy to be more reasonable.

Marketing Mix in the Digital Age: How the 4Ps Adapt to the New Environment

As digital technology and the Internet evolve, the 4P model must also adapt to fit the new business environment. Here is how each of the 4Ps has been adapted to fit the digital age :

Product (Digital product)

In the digital environment, products are not only physical goods but also include digital services such as applications , software , online courses , and digital content . Businesses need to focus on developing user experiences and product customization capabilities to meet the diverse needs of modern consumers.

For example, streaming services like Netflix and Spotify have shifted their product model from selling individual movies or songs to a subscription model , providing a convenient and continuous experience for users.

Price (Price changes)

In the digital age, businesses have more pricing strategies to choose from, including dynamic pricing based on customer behavior and perceived value . Customers can easily compare prices across online platforms, so businesses must be transparent and optimize prices to stay competitive .

For example, Amazon uses dynamic pricing to adjust product prices based on supply and demand , time of day , and user behavior to optimize revenue and profits.

Place (Digital Place)

Place in the digital environment is not only about physical stores but also online platforms such as websites , e-commerce platforms , mobile apps , and social media channels . Optimizing the online experience is extremely important to attract and retain customers .

For example, Shopee and Lazada are not just shopping places but also integrate elements such as games , livestreaming , and fast delivery services to create a comprehensive shopping experience .

Promotion (Digital Promotion)

In the digital age , traditional forms of promotion like TV commercials or billboards have given way to online advertising , SEO , content marketing , and social media . The goal is to engage and build relationships with customers through the content and communication channels they prefer.

For example, Coca-Cola has transitioned to experiential marketing by creating interactive online campaigns where consumers can design their own bottle labels and share them on social media .

Brand Manager – Specializing in Providing Comprehensive Marketing Services for Brands

Brand Manager plays a strategic role in developing and maintaining brand image through coordinating and optimizing the 4P Marketing elements . At Brandmanager.com.vn , you can choose to build a comprehensive 4P Marketing Mix strategy, from product to distribution , price and promotion . With the close combination of 4P , Brand Manager ensures that each campaign not only meets customer needs but also affirms the value and strengthens the brand's position in the market. A deep understanding of each element in 4P allows for adjusting marketing strategies to increase loyalty , optimize revenue , and differentiate in the eyes of customers.

Brand Manager is not only an image manager but also a strategic architect of the business, helping to create sustainable brand value . Brand Manager plays the role of brand image manager and is also a strategic partner of the business in implementing comprehensive marketing services .

With a deep understanding of the market and customer needs, Brand Managers ensure that each campaign is optimized to increase brand awareness , maximize revenue , and build customer loyalty .