The actual marketing strategy is for more than just large companies. Small companies must also have it, for example, the 4P marketing strategy (4P marketing mix). As the name implies, there are 4 critical variables in this marketing mix.
One of the marketing objectives is to ensure that the products or services made by the company are known to the public. Later, the company can give benefit from its sales transactions.
So it’s normal when a company is willing to spend a lot of money to make a marketing strategy.
The marketing strategy is for more than just large companies. Small companies such as SMEs must also have it.
In fact, the types of medium and small businesses must be aggressively creating and implementing marketing strategies so that SMEs become more developed.
What is 4 Ps Marketing?
The actual marketing strategy is for more than just large companies. Small companies must also have it, for example, the 4P marketing mix.
When you want to run a business, the term 4P marketing strategy (Marketing Mix 4P in marketing) is the basis that must be used as an initial benchmark.
However, the problem is that many still need clarification about applying the concept of marketing strategy, especially SMEs.
The Concept of 4 Ps Marketing
Each element of this strategy is mutually reinforcing and very influential on the development of your business, especially SMEs in Indonesia.
In fact, if only they want to apply and apply it properly, it will help their business to become more developed and advanced.
Usually, the concept of 4P marketing strategy is included in the material learned the first time in every lesson about marketing or marketing.
Even since the first, this marketing strategy remains relevant. But of course, in this digital era that makes business knows no boundaries, the plan must be more precise and on target.
For those who still need clarification about the 4P marketing mix, this article will discuss applying one of the marketing strategy concepts to a business.
Marketing Tools
The 4P marketing strategy (Marketing Mix 4P in marketing) is a set of tactical marketing tools consisting of:
1. Product
Products can be considered an essential part of a business. Still, products focus on the tangible and intangible, such as organizations, services, and ideas.
Before determining what marketing strategy is right for your business, you can start by developing a product first to make it better.
The trick is to ask your customers for suggestions or criticisms regarding the products you offer so that they are satisfied with the product.
Therefore you need to understand the product and other parts of marketing.
There are several decision factors in considering product elements in the marketing mix, such as:
- Feature
- Quality
- Brand or logo
- Difference with competitors
- Product Variations
- Packaging
2. Price
Apart from the product, you should also pay attention to an element of the marketing mix, namely, the price.
Price is the value that must be given by the buyer to have a product from a company, and this component affects product sales.
Usually, your potential customers will compare products to competitors first, and then they will make the price the benchmark.
Therefore, you must have a good pricing strategy to see the market price or calculate the cost of goods sold (HPP).
To set a price, you need to consider the following:
- The value of the product or service
- Price comparison with competitors
- Promotions or discounts
- Profit
3. Place
A strategic location means it is crowded with people, or usually, it is crowded with people.
The goal is for potential customers to feel interested in visiting your business, plus an easy-to-find location.
But besides a strategic business location, there are several components that you must pay attention to in choosing this 4p marketing mix, namely:
- Type of place
- Distribution channel
- Product handler
- Logistics
- Learn from competitors
4. Promotion
In promotional activities, you can achieve two goals: first, to increase brand awareness of your business and to tell people about your business.
Second, persuade them to buy the product or service you offer.
This 4p marketing strategy focuses on the right way of communication to communicate with your target audience.
Currently, to promote your product not only through conventional media, but you can also promote it via Facebook, Instagram, or Google ads.
Or take advantage of your business’s social media by providing informative, educational, and other content.
But before you do a promotion, to determine the suitable promotional activities you can pay attention to the following;
- Time to carry out the promotion
- Promotional media used
- Study competitors when doing promotions
A Closer Look Over The Company That Used The 4 Ps Marketing Strategy
Let’s take the example of a well-known company, McDonald’s, to study the 4P strategy in marketing.
McDonald’s Product
As an F&B business, McDonald’s has a product mix primarily consisting 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
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 booths used for specific events:
The 4P (Places) marketing strategy for McDonald’s is:
- Restaurant
- Stall
- Mobile App
- Price
In McDonald’s 4P marketing strategy, it can be seen that bundle prices and psychological prices (unrounded prices) drive customers to buy more products.
Price
Under a package pricing strategy, McDonald’s offers food and other product packages at a discounted price instead of purchasing 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
- Promotions
Promotion
Some of the promotional strategies carried out by McDonald’s are:
- Advertisement
- Sales promotion
- Public Relations (PR)