Four Ps of marketing or marketing mix refers to the product, price, place and promotion. Some marketers have also included three other Ps (i.e. people, process and physical evidence) to the list and called it as seven Ps of marketing or extended marketing mix. However four Ps are very famous and are the important part of marketing subject. The explanation of the four Ps is given below.
All those things, which are offered to a market to satisfy human needs and wants, are called products. The concept of product is very broad i.e. it includes everything capable of satisfying a need. In this way product includes both tangible and intangible goods such as services, physical objects, events, etc. Here we should note that services are also included in the category of product because they can be used to satisfy human wants. Therefore services can be defined as the actions of individuals which can satisfy the wants of other people. For example service of a doctor, lawyer, mason, tailor etc. Basically services are intangible and do not result in the ownership of anything.
Price is the value of commodity expressed in terms of money. People rarely exchange goods directly against goods rather they use money as medium of exchange. Prices of commodities are determined by the forces of demand and supply acting in the market. Price is one of the important tools of marketing mix which is used to achieve the marketing objectives of an organization. Similarly price is the most flexible element of marketing mix and produces huge revenue whereas all the three elements generate cost. Consumer buying behavior is significantly affected by the prices of commodities therefore marketers have to be very careful in determining the prices of their products. They should coordinate the price decisions with product design, distribution and promotion decision in order to develop an effective marketing program.
Place is an important element of the marketing mix because it is the key factor in attracting customers. Place is often referred to as the distribution channel. A distribution channel is a set of interdependent organizations engaged in the distribution of goods and services to customers. Therefore it is very important for the marketers to analyze the process through which customers purchase final goods and services. Distribution channel helps the organizations to overcome the time, place and possession gaps that detach goods and services from end users.
Promotion refers to the process by which an organization communicates with the public in an attempt to influence them so that they buy the products and services of the organization. There are various promotion tools such as advertising, personal selling, sales promotion, public relations and direct marketing through which marketers promote their products or services. Marketers use difference methods for the purpose of advertising such as television, radio, magazines, newspapers etc. They also try to create relations with the public though press conferences, special events, newsletters etc. these tactics help the marketers to promote the products and services of organization and influence the customers to buy them.