Example of 4P Marketing Strategy Application – A product or service must be marketed with the right strategy. The goal is quite simple, namely to get the maximum profit. Various methods or marketing strategies are carried out, one of which is the 4P marketing strategy .
Marketing is done to make customers aware of a product or service, then buy it. Companies or business actors are willing to allocate funds to make marketing strategies. Marketing strategy is not only carried out by large companies, but also small businesses must have it.
One marketing strategy that is suitable to be implemented is the 4P marketing mix. The 4Ps marketing mix is a mix of many types or tactical marketing techniques. Meanwhile, the role of marketing executive is the right combination to produce excellent synergies between products and targeted audiences.
The role of the marketing mix is to synthesize visible and invisible product quality with the aspirations of clients who are the target market. The marketing mix is applied according to the product being sold. The marketing mix for a manufactured product will be different from a product as a service.
Launching from the Accurate.id page, the inventor of the marketing mix system was Neil Borden in the 1950s. Borden defines a marketing executive as someone who mixes ingredients to make the right recipe so that the marketing of a product will be right.
Then, it was E. Jerome McCarthy who sublimated the 4P concept of marketing from Borden’s marketing vision ideas. McCarthy highlights that the 4Ps consist of product, price, promotion and place. These four things become the initial control elements available as marketing planning.
Factors Affecting Marketing Mix
Every company has an exact offer for the product or service it sells. The brand has carefully calculated the production costs, marketing costs, profits to be gained, and other calculations.
If a company or business wants to use a mix system, at least the level of success is due to two factors, namely internal factors and external factors. Here’s an explanation of both.
1. Internal Factors
Internal factors consist of factors that exist within the organization or are related to the atmosphere within the company. Internal factors are good if you pay attention to four main things, namely the nature of the product; product stages in its overall life cycle; availability of funds; and company goals.
2. External Factors
External factors have a relationship with factors outside the organization. External factors consist of several aspects including the level of competition, channel efficiency, consumer buying behavior, and control from the government side.
4P Marketing Strategy Variables
The 4P marketing mix system consists of four elements, namely product, price, place, and promotion. Summarizing from the Jubelio.com page, here is an explanation of the four elements.
1. Product
Products are the main thing when deciding to do business. Products are the most important embodiment of a business. However, products do not only focus on tangible things, but also pay attention to intangible things such as organizations, services and ideas.
Before determining the right marketing strategy. You can start by developing a product first. One way is by asking customers for criticism and suggestions. Thus, it can be a reference for evaluating the product. At the same time, it becomes a benchmark for which parts need to be changed to suit market tastes.
Therefore, an understanding of the product as well as other marketing parts is important. You must also consider product elements in the 4P marketing mix strategy including features, quality, brand or logo, differences from competitors, product variations, and packaging.
2. Price
In the Big Indonesian Dictionary (KBBI), price is interpreted as the value of goods that is determined or represented by money; the amount of money or other equivalent means of exchange, which must be paid for products or services, at a certain time and in a certain market; honor (self); use (meaning, interests, news, and so on).
Launching from the Accurate.id page, price is defined as the monetary value that must be paid by customers to obtain or own a product from a company. Price is an important component in generating income.
Pricing must be taken with great care and calculation. This is about profit. If the product is set at a very high price, it will give the impression that the product being sold is of high quality. Meanwhile, one way to determine the right price is to look at the market price or calculate the cost of goods sold (PHP).
However, the products offered can only be placed in limited stores. Thus, marketers need to understand the right pricing strategy. The 4P marketing mix decision can be determined by considering several things regarding marketing variables including pricing methods, policies, strategies; profit; discounts, rebates; payment period; credit; price comparison with competitors; and the value of products and services.
3. Place or Distribution
Summarizing from the Accuret.id page, the place is also called physical distribution which is related to the transfer of product ownership from producers to customers. The profit margin that will be achieved depends on how quickly You can deliver the goods.
Strategic locations or places can be seen through the level of crowds of visitors or how many people pass by in the area. the goal is that prospective customers are interested in visiting stores or places of business established by companies or business actors
The faster the product reaches the point of sale, the more likely it is to satisfy customers and increase brand loyalty. Therefore, the place becomes one of the important factors in determining product competitiveness in the market.
The things that must be considered in the place or distribution element are distribution channels, logistics, warehousing decisions, product handling, coverage, inventory control, and the ordering process.
4. Promotion (Promotion)
Launching from the Kompas.com page, in product marketing, usually use flyers, advertisements on social media, banners in several strategic locations, and so on. By doing promotions there are at least two objectives to be achieved.
First, to increase brand awareness of the business being run while at the same time informing people about the business being run. Second, persuade them to buy or use the services offered.
The thing that is the focus of the 4P marketing mix strategy is the right way of communication to hook the target market. Not only that, to promote products, You can use various methods, from conventional to modern methods. For example by implementing Facebookads, Instragram Ads, Google Ads, and other platforms .
In the promotion there are several things that must be considered. Among them are the timing of the promotion, the promotional media used, studying competitors when carrying out promotions, personal selling, advertising, public relations, direct marketing, sales promotion, and publicity—social media, print, and so on.
Benefits of 4P Marketing Strategy
The 4P marketing mix strategy has various benefits. Summarizing from the Accurate.id page, here are some of the benefits of the 4P marketing mix strategy.
1. Creating Synergy
The 4P marketing mix strategy including product, price, promotion and place must be combined correctly so that it will create coordination that provides the right promotion for the product or service offered.
2. Brand Loyalty and Value
The 4P marketing approach has a focus on customer needs and satisfaction. So, these products will generate good loyalty and brand awareness in the eyes of consumers.
3. Bring Customers closer
With promotions, it will be well established between consumers and business organizations that You is running. Price, product, and place features provide a calculation of customer expectations. The promotion aspect contributes to giving customers the product or service offered by positioning the product or service better.
4. Enables Proper Integration
Planning a 4P marketing strategy requires critical thinking and perception. If the two are collaborated properly, the product or service owned by You will find a unique space in the hearts of customers.
5. Higher Sales Volume
When the level of customer satisfaction is high, it will affect a larger market share. This will have a good impact on increasing product sales.
6. Guidance in Making the Right Decision
The marketing strategy forms a state of interdependence and the overall nature of one element with another in decision making. For example, if the product price is high, then in promotional activities. Then it must target customers with high income demographics, and the product design must be based on quality. Distribution channels and locations, etc. Also will be guided by this decision.
Example of 4P Marketing Strategy Implementation
Launching from the Jurnal.id page, the following is an example of implementing the 4P marketing strategy from McDonald’s.
1. McDonald’s Products
As an F&B business, McDonald’s has a product mix consisting mostly of food and beverage products.
McDonald’s product mix has the following major product lines:
- Hamburgers and sandwiches
- Fried chicken
- Salad
- Snack
- Drink
- Breakfast Menu
- McCafé
2. Place
Restaurants are where McDonald’s generates most of its sales revenue.
Some restaurants also operate stalls to sell a limited selection of products, such as sundaes and other desserts.
There are also some temporary kiosks, as in the case of kiosks that are used in certain activities:
The 4P ( Places ) marketing strategy for McDonald’s is:
- Restaurant
- Stall
- Mobile App
3. Price
In McDonald’s 4P marketing strategy, it can be seen that the bundle price and the psychological price (unrounded price) are driving customers to buy more products.
Under a package pricing strategy, McDonald’s offers food and other product packages at a discounted price, as opposed to buying each item separately.
- The package price strategy is cheaper than the unit
- Psychological pricing strategy, for example IDR 49,900 instead of IDR 50,000
4. Promotions
Some of the promotional strategies undertaken by McDonald’s are:
- Advertisement
- Sales promotion
- Public Relations (PR)
The 4P marketing strategy can be applied in various companies, both large and small scale. Launching from various pages on the internet, the following is an example of implementing the 4P marketing strategy which can be used as a reference for determining the right 4P marketing strategy in a company or business that is being implemented by You.
- The first P stands for Product. For example, KFC’s chicken product would include a food display, a shiny red bucket with the smiling face of Colonel Sanders, words on a combo pack like “ Friendship Bucket ” or “ Triple Treat”.
- Second, the pricing strategy has been used by the Spotify company in Indonesia to get the best penetration. This has almost erased all physical tapes.
- The third P is Promotion, for example, Coca cola makes use of the 2010 World cup and the K’naan theme song in such a way that, Coca Cola and football have all become synonymous.
- Place or Distribution is the fourth P. Example: Apple iPhones are found easily in reputed e-commerce stores like Amazon and not in online stores selling building materials.
- The first P, namely the products offered by Burger King have a wide variety of food and drinks such as fried chicken, burgers, ice cream, various drinks.
- Price is a pricing strategy that is used for bundled products, such as the price of food packages being cheaper than the unit price and the application of psychological pricing.
- Place, a place used by Burger King in the form of restaurants, kiosks, and mobile apps. Kiosk like in a mall.
- The fourth P (promotion), promotion strategy carried out through social media, sales promotions such as discounts or price cuts, and public relations (PR).
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