4PS Marketing Mix Theory

LOGOMarketingTheoryof4PsobjectivesIntroductionWhatisaProduct?Whatistheprice?Whatisplace?Whatispromotion?TheSignificanceandDisadvantageofthe4PsMarketingTheoryIntroductionIn1960s,4PstheorycameintobeingwiththetheoryofMarketingmixintheUnitedStates.In1953,NeilBordencreatedthetermof“Marketingmix”inhisinauguralofAmericaMarketingSociety,whichreferstothedemandofmarket,influencedmoreorlessbytheso-called“marketvariable”or“marketingelements”inaway.Enterpriseshavetoassembletheseelementseffectivelytomeetthemarketdemand,soastoexploreacertainofmarketreaction,andfinallygetthemaximalprofit.INactualfact,therearedozensofelementsforMarketingmix(theoneproposedbyBordenincluding12elementsatfirst).In1960s,JeromeMcCarthyclassifiedtheseelementsgenerallyinto4kindsinhisbook,“BasicMarketing”:Product,Price,Place,andPromotion,Knownasthe4Ps.In1967,inthefirsteditionof“MarketingManagement:Analysis,PlanningandControl,hisbestseller,PhilipKotlerfurtherconfirmedthatthe4Psmarketingmixmethod,namely:Product、Price、Place、Promotion.4PsWhatisaProduct?Decidingwhatproductsorservicestosellinthefirstmarket?Whatistheprice?Settingpricesthatareattractivetoparticulargroupsofcustomersandthatareprofitableforthecompany.Thiscartoonmakesfunofwhatisactuallyaveryseriousbusiness-knowingwhatyourcompetitorischargingandunderstandinghowtopricewithrespecttothatisoneofthetoughestdecisionsmadeinMarketing.Decidingapriceisthetoughestissueforacompany!Whatisplace?Findingsuitabledistributionchannel（分配渠道）toreachthesecustomergroupsWhatisadistributionchannel?awayofsellingacompany'sproducteitherdirectlyorviadistributorsThefunctionofdistributionchannelThemainfunctionofadistributionchannelistoprovidealinkbetweenproductionandconsumption.ItincludesInformationPromotionContactMatchingNegotiationPhysicalDistributionfinancingRiskTaking(transportingandstoring)Whatispromotion?Alltheactivitiesusedtosupporttheproduct-everythingfromsalesinformationtoafter-saleservice.thewaytopromoteisThefirsttimeamanlooksatanadvertisement,hedoesnotseeit.Thesecondtimehedoesnotnoticeit.Thethirdtimeheisconsciousofitsexistence.Thefourthtimehefaintlyremembershavingseenitbefore.Thefifthtimehereadsit.Thesixthtimeheturnsuphisnoseatit.Theseventhtimehereadsitthroughandsays,Ohbrother.Theeighthtimehesays,Here'sthatconfoundedthingagain.Theninthtimehewondersifitamountstoanything.Thetenthtimehethinkshewillaskhisneighborifhehastriedit.Theeleventhtimehewondershowtheadvertisermakesitpay.Thetwelfthtimehethinksperhapsitmaybeworthsomething.Thethirteenthtimehethinksitmustbeagoodthing.Thefourteenthtimeheremembershehaswanteditforalongtime.Thefifteenthtimeheistantalizedbecausehecannotaffordtobuyit.Thesixteenthtimehethinkshewillbuyitsomeday.Theseventeenthtimehemakesamemorandumofit.Theeighteenthtimeheswearsathispoverty.The19thtimehecountshismoneycarefully.Thetwentiethtimeheseesithebuysit,orinstructshiswifetodoso.In1885,ThomasSmithwroteabouthowadvertisingaffectsapotentialcustomereffect?InadditionSalesmanisAnotherkeytoasuccessfulpromotionPayattentiontothefunctionofdevelopment,askingfortheuniquesellingpointofproduct,consideringthefunctiondemandofproductinthefirstplace.ProductPricePlacePromotion4PscanbesummarizedasDrawupdifferentpricestrategyaccordingtodifferentmarketpositioning.Itistheenterprise’sbrandstrategythatdecidetheproductprice.So,payattentiontothevalueofthebrand.Enterprisesdonotdirectlytoconsumers,butpayingmoreattentiontothecultivationofsalesdealerandtheestablishmentofthesellingnetwork.Itisthedistributorthatconnectstheenterpriseandtheconsumer.Enterprisesfocusonbehavioralchangetostimulateconsumer,resortingtoshort-termactions(suchasprofit,buyonegetonefree,marketatmosphere,etc)topromotetheconsumptiongrowth,attractingotherbrandsconsumesorleadingtoconsumeaheadoftimetoboostsalesgrowth.4PsDistributionchannelDirectsalesIndirectsalesE-commerceIndividualcommunicationMasscommunicationBrandmanagementCorporateindentifyProductvariationProductdifferentiationProductinnovationProducteliminationCostrecoverypricingPenetrationpricingPriceskimmingProductPricePlacePromotionMarketingmixTheSignificanceofthe4PsMarketingTheoryItisthepromotionof4PsthatlaidthebasictheoreticalframeworkofManageMarketing.Takingsingleenterpriseasanalysisobject,thetheorybelievethattherearetwokindsoffactorsinfluencingtheaffectionofmarketingactivities:Oneisuncontrollable,suchaspolitics,law,economy,culture,geography.Allareexternalenvironmentthatenterprisesfacewith.Theotheroneiscontrollable,suchasproduction,price,distribution,promotion.Allaremarketingfactors,namedenterprisecontrollablefactors.Theessenceofenterprisemarketingactivitiesisaprocessofadaptinginternalcontrollablefactorswithexternalenvironment,thatthroughonproducts,andprice,andpointspin,andpromotionsofplansandimplementation,onexternalnotcontrolledfactorsmadeactivedynamicofreaction,thuscontributedtotradingofachievedandmeetpersonalandorganizationoftarget,withKotlerwordssaidisIfthecompanyproduceappropriateproducts,settingoutappropriateofprice,usingappropriateofpointspinchannel,andauxiliaryoftoappropriateofpromot