You may have heard of the 4Ps of marketing from a colleague or friend, textbook, or in school. The 4Ps are referred to as the Marketing Mix and go as far back as the 1950s.
Although the 4Ps of marketing are associated with traditional marketing, it is a powerful concept that can help you grow, scale, and sustain your ecommerce business for many years.
The ecommerce world is ever-evolving and at a staggering pace. Customer expectations are changing and keeping up with the latest trends is becoming increasingly important.
Understanding this core concept of marketing can help you understand your customers, improve their shopping experience and improve customer retention in the long run.
Read on as we explore what the 4Ps of marketing are and how you use them in your ecommerce marketing.
The 4Ps of marketing are crucial factors that you need to consider when marketing a product or service. They are essential pillars of building a successful marketing strategy. These four Ps of marketing include:
Creating that marketing campaign all begins with understanding the product you are selling. What do you sell or offer? Is it a product or a service? How does your product stand out from your competitors?
As an ecommerce business owner, you need to clearly define your product, its qualities, and how you want to introduce your product to your customers. You also need to understand the lifecycle of your product and how to manage it at every stage of its lifecycle.
The first P is fundamental to determining the price of the product, where the product should be placed, and how to promote the product.
The price is how much your customers are willing to pay for your product and how it impacts their experience. To effectively price your product, you must connect it to the product's perceived and real value. You also need to consider things like supply costs, competitors’ pricing, and seasonal discounts. How you price your product determines your product positioning and your messaging. So, if you choose to place your price at the highest price on the market, you are positioning your ecommerce business as a luxury brand.
Where will your products be available? Online or in-store? What are the channels of distribution? When you’re trying to set the third P, you want to consider where your customers are. This is not just their geographic location but the kind of media your customers consume. Not every channel will work for your product. So, if your customer spends most of their time online, you will consider promoting your product using online marketing instead of television.
Think of advertising, public relations, and the media. Promotion involves the strategies and tactics employed to popularize your product. It involves all the strategies you need to employ to keep your customers aware of the products or services you offer.
The 4Ps of marketing go as far back as 1960 when it was first proposed by E. Jerome McCarthy. However, it didn’t become popular until 1964 when a Harvard professor, Neil Borden used the term Marketing Mix in his article "The Concept of the Marketing Mix."
Even with digitalization, the 4Ps of marketing have stood the test of time and are widely used by marketers all over the world.
The 4Ps of marketing are crucial for the success of your ecommerce business and here is how:
Now we understand what the 4Ps of marketing are, let’s dive into how you can use these 4Ps to promote your ecommerce business:
When it comes to implementing the first P in your ecommerce business, you need to consider certain factors. This includes the value of your product and the quality of your product.
To offer a product that your customers want to buy, it is important to define the value of your product. You want to ask questions like what problems your products are solving, why your customers should buy them, the unique selling point of your product, how to differentiate your product from your competitors, and how you can make the product better.
Providing answers to these questions is the first step to creating an effective ecommerce marketing strategy.
The quality of your product can set you miles apart from your competitors and boost conversions and sales.
Your customers should know the quality of your product before they buy it. Your product content should emphasize the benefits and quality of your product.
With your product content, you can let your customers know why they should buy from your ecommerce store. Your product content should be well-optimized to drive conversions and sales.
Here are a few ways you can optimize your product content to emphasize the quality of your product:
Overall, you want to create high-quality product content to drive engagement and increase conversions.
Price is simply how much your product or service costs. Price is a very crucial part of your marketing mix and can make or break your business.
When setting your prices you want to think of how you want to be perceived. For example, when you think of Amazon, you think of a place where you can get high-quality products at affordable prices.
The tricky part about setting product prices is that it needs to be competitive, favorable to your customers while being profitable.
In a world where customers have tons of options for the same product, you don’t want to set prices that are too high. On the other hand, setting prices that are too low can affect your profits. So, you want to find a good middle spot.
As you set your prices, you want to consider a few things:
The third P doesn’t just refer to a physical location but to all channels where you can reach your customers. So think of your website, social media platforms, online marketplaces, and more.
It is important to consolidate your presence on all channels. While one customer may shop on your website, another customer may want to shop for your product on Instagram. The key to successfully implementing “Place” into your marketing mix is to meet your customers where they are.
Here are a few things to consider as you pick the right placements for your ecommerce business:
Promotion is at the core of marketing. To turn your marketing efforts into conversions and sales, you need to promote your product, service, or brand. So how can you promote your ecommerce business and turn your leads into paying customers? Here are a few promotion tips:
The 4Ps of marketing may seem like an old concept, but they are at the core of creating a successful marketing plan. Without these 4Ps, it may be impossible to differentiate your ecommerce business and stand out from the competition. By considering all elements of the 4Ps - Product, Price, Place, and Promotion, you can create a holistic marketing strategy.
You can go through our article above to find out how you can leverage the 4Ps of marketing in your ecommerce business and drive profits.