Marketing Mix: 4Ps (With Real World Examples) | From A Business Professor

hello everyone welcome to business school 101 marketing mix is a general phrase used to describe the different kinds of choices organizations have to make during the process of bringing a product or service to market a marketing mix often refers to the four ps product price placement and promotion it was first expressed in 1960 by dr edmond jerome mccarthy an american marketing professor since then marketing mix is widely considered one of the most fundamental frameworks in the marketing discipline so what are the marketing mix and four ps how can we use them to analyze or design

a company's marketing strategy in this video i will discuss these questions with you section one four ps of marketing the four ps of marketing are the key factors that are involved in the marketing of a good or service they are the product price place and promotion of a good or service so let us discuss each of them individually first p product product refers to a good or service that a company offers to customers ideally a product should fulfill existing consumer demand or a product may be so compelling that consumers believe they need to have it

and it creates new demand 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 cycle 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 many of the most successful products have been the first in their category for example apple was the first to create a touchscreen smartphone that could play music browse the internet and make phone calls

in 2021 apple hit the milestone of selling two billion iphones second p price price is the cost consumers pay for a product marketers must link the price to the products 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 give the product the appearance of being a luxury alternatively they may lower the price so more consumers can try the product marketers also need to determine when and if is counting is appropriate a discount can sometimes draw in more customers but

it can also give the impression that the product is less exclusive or less of a luxury compared to when it was priced higher for example in 2017 burberry the upmarket british fashion label destroyed unsold clothes accessories and perfumes worth 28.6 million pounds to protect its brand the reason they are doing this is so that the market is not flooded with discounts burberry doesn't want its products to get into the hands of anyone who can sell them at a discount and devalue the brand luxury firms including burberry destroy unwanted items to prevent them from being stolen

or sold cheaply third p place place refers to where a company should sell a product and how to deliver the product to the market the goal of business executives is always to get their products in front of the consumers that are the most likely to buy them in some cases this may refer to placing a product in certain stores but it also refers to the products placement on a specific stores display in other cases placement may refer to the act of including a product on television shows in films or on web pages to garner attention

for the product for example the 1995 movie goldeneye was the 17th installment in the james bond movie franchise it was the first bond movie not to feature an aston martin car instead the british actor pierce brosnan got into a z3 by bmw although the z3 was not released until months after the film had left theaters bmw received nine thousand orders for the car the month after the movie opened fourth p promotion promotion includes advertising public relations and promotional strategy the goal of promoting a product is to reveal to consumers why they need it and why

they should pay a certain price for it marketers tend to type promotion and placement elements together so they can reach their core audiences for example to build a prestigious brand image in sports goods nakey has contracted a large number of professional and celebrity athletes some of the sportsmen signed by nike include michael jordan lebron james and tiger woods in addition to further increase its products awareness nakey manufactures and provides kit uniforms for a wide range of teams around the world some of the most important clubs and associations nikki sponsored include national football league nfl national

basketball association nba major league baseball mlb and brazil national football team section two starbucks corporations four p's starbucks corporation is an american multinational chain of coffee houses and roastery reserves headquartered in seattle washington it is the world's largest coffee house chain as of 2021 the company had more than 30 000 stores in 80 countries starbucks is one of the most recognizable brands in the world their brand recognition has reached epic heights thanks to the strength of their marketing and their commitment to keeping their brand consistent here i would like to use the 4ps framework to

analyze starbucks marketing success first products the main categories of starbucks products include coffee tea baked goods frappuccinos smoothies and other merchandise starbucks coffee company's product is a result of years of business innovation for example the company added the frappuccino line after it acquired the coffee connection in 1994 the business also has an ongoing product innovation process that aims to offer new products to attract and keep more customers especially because the business must attract a diverse population of customers in the international market thus beverages foods and merchandise are carefully selected and designed to meet the needs

or preferences of target consumers worldwide second place initially starbucks sold its product solely through coffee houses starbucks coffee houses always boast about creating the third place the idea of creating that third place is to build a warm and welcoming place outside of homes and work spaces where people connect and build community besides coffee houses some of starbucks merchandise items are available through selected retailers such as walmart target costco and sam's club in addition starbucks also create mobile apps that allow customers to place their orders online so they could get their food and drinks more conveniently

all these efforts show how starbucks adapts to changing times technologies and market conditions third promotions starbucks uses diverse platforms and channels to promote its brand and launch new products including social media tv spots and store ads for example recent business research found that customers are 2.4 times more likely to perceive user created content is authentic compared to content generated by brands therefore starbucks encourage their customers to take photos of their starbucks beverages and coffee shops and upload them on social networks to exchange information on deals referrals and other starbucks relevant events starbucks retweets these and

utilizes them in campaigns their capitalization on social media allows them to establish brand ambassadors for both men and women that boosts trust between the brand and potential customers motivating higher sales fourth price starbucks uses a premium pricing strategy its pricing strategy takes advantage of the behavioral tendency of consumers to purchase more expensive products based on the perceived correlation between high price and high value starbucks coffee products are more expensive than most competing products such as mcdonald's premium roast through this pricing strategy starbucks maintains its high-end specialty image still the company strives to develop and provide

high quality products and a satisfactory customer experience in its coffee houses this part of the marketing mix directly relates to starbucks corporations generic competitive strategy in helping the business maintain its premium brand image all right that's all for today's topic so what do you think about the marketing mix in the four ps framework please leave your thoughts in a comment below i hope that you guys have enjoyed this video and if you did make sure you give it a thumbs up and subscribe to my channel thanks for watching and i will see you next time