The 4 P’s of Marketing – Product

Marketing Monday – Episode 2 – The 4 P’s of Marketing – Product the First in a Four Part Series

Hi Everyone, it’s Michael Miller again with Mindwhirl bringing you a new episode of marketing Monday where we’re going to teach you the process of marketing your business, and making a lot more money.

Today’s episode is the first episode of four, and it’s entitled the 4P’s – product, which is also another way to talk about unique selling proposition or USP.

I’ve got a lot for you to think about in this episode so, let’s get going. 

Almost every marketing book talks about the 4P’s. The 4P’s stand for Product, Price, Place, and Promotion.

Effective marketing, answers questions about each of the 4P’s, and delivers each one of them in an exceptional way.

We are going to talk about “product” in this episode, but real quickly let me give you an overview of all of them.

Product – product is the thing that you sell. It could be a product or service, but there has to be a market for it, and an exceptional benefit it offers consumers.

Price – price has a more psychological purpose than the mere literal translation of value. The word value tells you that it’s a subjective term. Low price, high price – they affect the target market in different ways – understanding how they affect the market is the goal with price.

Place – place speaks to the target market that you choose to sell your products or services to. Product and place are inextricably tied together and really have to be thought of simultaneously. But place is the identification of the target market, the target consumer, and the media they prefer.

Promotion – promotion includes the tactics and strategies you will use to get awareness of your products and services and persuade the target market to purchase them.

In the upcoming episodes we’ll talk about the other three P’s, but in this episode we’re going to focus on product.

As with each of the 4P’s, the first one, product, alludes to more than the common meaning for the word. When you think of the word product, you think of a good that is sold to a consumer. But in actuality, product covers the business model, the service you give, the expertise and value you provide, as well as the features and benefits of the product or service you offer in exchange for money.

Let’s explore those little deeper
When I talk about the business model, the service you give, the expertise you have, and the value you offer, what I am really talking about is your unique selling proposition.

The term Unique selling proposition, or USP for short was first coined by Rosser Reeves in the early 1900s.

Rosser created the term unique selling proposition, because he recognized that the products that were selling extremely well, were the products that had a lot of value, and were of great benefit to the consumer. What he noticed was a certain brand of vacuum cleaner that actually had better suction, or a razor that actually shaved closer, or a toaster that made perfect toast every time. These inventions, or products, were exceptional and unique. He essentially reworked the old saying, “if you build a better mousetrap, the world will beat a path to your door.”

In the time between then and now, however, the term unique selling proposition has come to mean something more. Jay Abraham was the first to publicly state that the reason for a business to be in business is to provide some deeper value or service to the customer, or end-user. He calls his idea the strategy of preeminence. Jay believes that each business should strive to be the very best it can be, because consumers are naturally drawn to the best businesses.

I see in Jay’s version of USP, which again, he calls the strategy of preeminence, as a concept that people don’t really need choice — they need the best choice. That may sound like there would only need to be one product in the marketplace, but the best choice depends upon several factors such as price, speed, efficiency, value, quality, service, and more. Because there’s so many criteria, the best product to choose is determined by the situation.

For instance, While no one wants to pay $1,000 dollars for a camera when there is another camera with twice the features for the same price, someone will pay $500 for it because it meets their needs, and it’s not $1000.

So that means, the business model, the cost of innovation, the time to implement, the ease of production, the distribution channels, the branding, the packaging, and a whole slew of other necessary elements are extremely important factors to understand when determining the product, and the unique selling proposition of the product.

How each of these factors play together, and work against each other, helps you understand the target market and understand if you can make a profit or not.

For instance, can we sell clothes as luxury items? What is the size of that target market in our universe? That universe could be the local market, or it could be regional, national, or worldwide. We have to understand that there are cheaper clothes. There may even be more attractive clothes, but can we reach enough people who would buy our clothes, and still make a profit?

As you look at the options that providing choice for the end consumer gives you, you can start to see the segments, or submarkets, within each larger market. Research is going to tell you the size of each of those segments and if you can make money delivering products that meet the needs of those segments.

In this example, just 2 criteria, “wealth” and “tastes” give you four sub-markets, or market segments. As you add criteria, the sub-segments expand dramatically.

As you can tell, the term product in the 4P’s represents a lot of information. There’s a lot of thought that has to go into your product, including who your target market is, because remember product and place cannot be separated… But your product isn’t your product on its own, all by itself. Your product includes everything your business stands for, and the way your business is perceived by consumers.

Ideally, the product will serve a target market better than any other competing product. It can have more features, be quicker, have better quality, last longer, make the owner feel good about themselves for owning it, and more. It will provide the consumer the best choice in a specific category versus a range of categories. It will provide value to the consumer, and it will have a significant enough of a profit margin that it will allow the business owner to put money into innovation so they can refine the product and deliver even greater value to the consumer in the future.

Remember, questions drive marketing. So ask yourself as many questions as you can think of. Including this major question, “What value do you provide?”

This question presupposes a lot. Value, being the key word. Remember, you MUST provide value!

Well, that’s my time for this week. As you can tell, I could talk all day about PRODUCT and the 4 P’s. It’s a huge topic.

Thanks for watching! We appreciate your time investment and aim to give you great educational content and huge value in exchange.

If you need help with marketing your business, we have a range of coaching, training, and done-for-you marketing services to meet the needs of most business owners, and best of all, we offer guaranteed marketing results!

About Michael Miller

Michael Miller is the owner of Mindwhirl.com, a sales and marketing coaching and training company in Atlanta, Georgia.

Michael’s mission is helping small business owners understand, and organize their marketing so they can make money and grow.

Mindwhirl helps business owners plan and implement effective, profitable marketing campaigns and sales programs.

If you need more sales, we know how to get leads and grow businesses. Call us today at (404) 858-3105, or email me at mmiller@mindwhirl.com.

Leave a Reply