Understanding the Tool

The marketing mix and the 4 Ps of marketing are often used as synonyms for each other. In fact, they are not
necessarily the same thing.
"Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the
whole process of bringing a product or service to market. The 4Ps is one way probably the best-known way of
defining the marketing mix, and was first expressed in 1960 by E J McCarthy.
The 4Ps are:

Product (or Service).

Place.

Price.

Promotion.

A good way to understand the 4Ps is by the questions that you need to ask to define your marketing mix. Here are
some questions that will help you understand and define each of the four elements:

Product/Service

What does the customer want from the product/service? What needs does it satisfy?

What features does it have to meet these needs?

Are there any features you've missed out?

Are you including costly features that the customer won't actually use?

How and where will the customer use it?

What does it look like? How will customers experience it?

What size(s), color(s), and so on, should it be?

What is it to be called?

How is it branded?

How is it differentiated versus your competitors?

What is the most it can cost to provide, and still be sold sufficiently profitably? (See also
Price, below).

Place

Where do buyers look for your product or service?

If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or
online? Or direct, via a catalogue?

How can you access the right distribution channels?

Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or
send samples to catalogue companies?

What do you competitors do, and how can you learn from that and/or differentiate?

Price

What is the value of the product or service to the buyer?

Are there established price points for products or services in this area?

Is the customer price sensitive? Will a small decrease in price gain you extra market share?
Or will a small increase be indiscernible, and so gain you extra profit margin?

What discounts should be offered to trade customers, or to other specific segments of your
market?

How will your price compare with your competitors?

Promotion

Where and when can you get across your marketing messages to your target market?

Will you reach your audience by advertising in the press, or on TV, or radio, or on
billboards? By using direct marketing mailshot? Through PR? On the Internet?

When is the best time to promote? Is there seasonality in the market? Are there any wider
environmental issues that suggest or dictate the timing of your market launch, or the timing of
subsequent promotions?

How do your competitors do their promotions? And how does that influence your choice of
promotional activity?

The 4Ps model is just one of many marketing mix lists that have been developed over the years. And, whilst the
questions we have listed above are key, they are just a subset of the detailed probing that may be required to
optimize your marketing mix.
Amongst the other marketing mix models have been developed over the years is Boom and Bitner's 7Ps, sometimes
called the extended marketing mix, which include the first 4 Ps, plus people, processes and physical layout decisions.
Another marketing mix approach is Lauterborn's 4Cs, which presents the elements of the marketing mix from the
buyer's, rather than the seller's, perspective. It is made up of Customer needs and wants (the equivalent of product),
Cost (price), Convenience (place) and Communication (promotion). In this article, we focus on the 4Ps model as it is
the most well-recognized, and contains the core elements of a good marketing mix.

Positioning is a marketing concept that outlines what a business should do to market its product or
service to its customers. In positioning, the marketing department creates an image for the product based
on its intended audience. This is created through the use of promotion, price, place and product. The
more intense a positioning strategy, typically the more effective the marketing strategy is for a company. A
good positioning strategy elevates the marketing efforts and helps a buyer move from knowledge of a
product or service to its purchase.

Target Market Analysis

The best start for any positioning analysis is gaining a thorough knowledge of a product or
service's target market. This is the group of people or businesses that will best benefit from
the use of the product or service. With a good idea of the wants, needs and interests of a
product or service's target market, a good marketing team can help develop a positioning
statement to help reach as much of the target market as possible.

Positioning in Advertisements
Advertisements are usually the first places businesses position themselves. A cosmetics
marketing department, for example, must determine who they are targeting and what

consumer need is being met. If the intended target is African American teenagers, what type
of need should the cosmetics fill? If the cosmetics line is trying to help teenage girls
overcome acne issues, the person in the ad might be one of a younger African American
physician who teaches girls how to battle acne with the use of these cosmetics. To note the
importance of positioning, this same type of advertisement might not work if the intended
audience of the cosmetics line was older Caucasian women trying to look younger.
Related Reading: Positioning & Differentiation Strategies of Marketing

Positioning in Sales Locations

Reaching the customer is not simply a matter of advertising, it is also a matter of choosing
the right channels for distribution. If a majority of your target market lives in an urban area
with only public transportation available to them, having your product in rural areas where a
private automobile is needed for transport would not equal sales success. Place or position
your product or service as close to the target market as possible. Create similar
advertisements in store as the ones seen out of store to create an overall identity for your
brand.

Positioning through Price

It should be noted that there is a large amount of research on the psychology of pricing in
marketing. Simply put, the price of an item tells the buyer more about the item than most
realize. Many associate a higher price with higher quality and the opposite with a lower
price. Additionally, if a product is positioned as a good alternative to high-priced brands, the
marketing department must price it in the middle of the market to avoid a comparison to the
cheapest end of the spectrum.

Brand positioning process

Effective Brand Positioning is contingent upon identifying and communicating a brand's uniqueness,
differentiation and verifiable value. It is important to note that "me too" brand positioning contradicts the
notion of differentiation and should be avoided at all costs. This type of copycat brand positioning only
works if the business offers its solutions at a significant discount over the other competitor(s).
Generally, the brand positioning process involves:
1. Identifying the business's direct competition (could include players that offer your product/service
amongst a larger portfolio of solutions)
2. Understanding how each competitor is positioning their business today (e.g. claiming to be the
fastest, cheapest, largest, the #1 provider, etc.)
3. Documenting the provider's own positioning as it exists today (may not exist if startup business)

4. Comparing the company's positioning to its competitors' to identify viable areas for differentiation
5. Developing a distinctive, differentiating and value-based positioning concept
6. Creating a positioning statement with key messages and customer value propositions to be used
for communications development across the organisation

Product positioning process

Generally, the product positioning process involves:1. Defining the market in which the product or brand will compete (who the relevant buyers are)
2. Identifying the attributes (also called dimensions) that define the product 'space'
3. Collecting information from a sample of customers about their perceptions of each product on the
relevant attributes
4. Determine each product's share of mind
5. Determine each product's current location in the product space
6. Determine the target market's preferred combination of attributes (referred to as an ideal vector)
7. Examine the fit between the product and the market.