Buddhi Free
Enlightenment under the Buddhi Free
Marketing 101: Marketing Mix-The 4 Ps
Categories: Marketing 101

The term “marketing mix” was coined in 1953 by Neil Borden. Elements of the marketing mix are often referred to as the “Four P’s”, a phrase used since the 1960’s.

  • Product – It is a tangible good or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. To retain its competitiveness in the market, product differentiation is required and is one of the strategies to differentiate a product from its competitors. In our case, the product is Star Wars.
  • Price – The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product. The price in our example would be the ticket price.
  • Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Place would be cinema halls where the audience watches the movie.
  • Promotion – Promotion represents all of the communications that a marketeer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Trailers, poster all come under this.

Any organization, before introducing its products or services into the market; conducts a market survey. The sequence of all ‘P’s as above is very much important in every stage of product life cycle Introduction, Growth, Maturity and Decline.

The 4Ps play an important role in creating, communicating and delivering value to the consumer. The consumption of the product depends on how well the marketing mix is able to do all that.

Given below is a table which shows what each element from the marketing mix does in creating, communication and delivering value.

Create Communicate Deliver
Product Yes Yes Yes
Price Yes
Place Yes
Promotion Yes Yes
  • Product: As the most important thing, Star Wars, the movie, had to create, communicate and deliver value. It has to identify a certain need of the consumer, tell the consumer that it has identified that need, and then finally, fulfill that need.
  • Price: The audience should end up with the feeling that the monetary cost to them was adequately offset by the experience of the movie.
  • Place: As the space in which the consumer consumes the movie, the place is important in delivering value.
  • Promotion: In the movie industry, more than in any other industry, promotions need to create and communicate value. A movie is a largely untested commodity, and the interest of the audience needs to be piqued. The only way to do that is through promotions.