Strategic Implications of 4P

Question

Write a short description on the Strategic Implications of 4P's.

Answer 1

Strategic Implications of 4P’S:

The four Ps of marketing are respectively product, pricing, place and promotion.

• Product: the product of the firm must be right both for the firm and for the market. It should be easy, profitable and economical to produce and distribute from the point of view of the firm. Form the customers’ point of view, a product must satisfy their needs and expectations.

• Pricing: is a regulatory mechanism by which the seller and buyer come to mutually satisfactory understanding. It determines the sales volume and profit margins. Price structure affects the market share of the firm. Prices are important for the consumers as this will determine their purchasing power.

• Place: Place represents the location where a product can be purchased. It is frequently termed to as the distribution channel. It can comprise any physical store and also virtual stores on the Internet.

• Promotion: the need for promoting the product has increased due to stiff competition, widening market, rapid changes in consumers’ preferences and the growing distance between producers and consumers. The objective is to offer information, stimulate demand, and differentiate the product and stabilize sales.