The 4 levers of the marketing mix: knowing them to make the most of them
The 4 levers of the marketing mix are a very important topic and knowing them will help you make the most of them for your business.
The 4 marketing levers are also called the ‘4P model’. First devised by E. Jerome McCarthy in 1960 and later used as the basis for marketing planning and management.
This model describes the four fundamental levers that a company must consider in order to promote and sell its products or services: product, price, promotion and positioning.
1 The Product
The product is a key component of the marketing mix, as it represents the tangibility of your company’s value proposition.
The product includes both goods and services, which are offered to the market to solve problems or satisfy the needs of your customers.
In the past, products were mainly seen as a simple business transaction, but today the purchase has become much more complex and involves the delivery of brand value.
Customers do not simply buy products, but rather solutions to their wants and needs.
To develop an effective marketing strategy for your product, it is important to consider several key questions.
First, it is important to assess the quality of the product and ensure that it meets the needs of customers.
Secondly, it is important to consider the company’s warranty or return policy and how to handle any customer dissatisfaction.
Product packaging is another important consideration, as it is often the first contact customers have with the product. Packaging must communicate the right message and attract customers’ attention.
In addition, it is important to understand what problems or needs the product solves for customers and how it can help them improve their lives.
Finally, it is important to assess how your product differs from the competition and how it can be a more attractive option for customers.
All these questions can be analysed through a market study, which can provide valuable information for developing an effective marketing strategy for your product.
In summary, the product is a key element of the marketing mix that helps you solve customer problems and differentiate yourself from the competition.
Having a deep understanding of customers’ wants and needs, together with appropriate quality and effective product communication, are key elements of a successful strategy.
2 The Price
Price is another key component of the marketing mix, as it represents the economic value you charge your customers for the solution you offer.
Price is a key factor for the financial sustainability of your company, as it allows you to cover your fixed and variable expenses and generate profits.
For large companies, pricing and pricing targets are managed by dedicated teams.
However, if you are starting a business, it is important to get expert advice to ensure you have a competitive value in the market.
There are several key questions to consider when pricing a product or service, including:
Is your customer price-sensitive?
It is important to understand how customers perceive price and whether they are willing to pay a higher price for a higher quality product.
Is your customer very sensitive to offers and discounts?
It is crucial to understand whether customers are attracted by special offers or discounts and how these can be used to increase sales.
What is the value generated for your customers by buying your products or services?
By answering this question you will understand how much value customers attach to your product or service and how this affects the price they are willing to pay.
What is the price of your product compared to your competitors?
It is also important to understand how the price of your product or service compares to that of your competitors and how this can influence customers’ purchasing decisions.
In order to transform your brand from unknown to known, a communication and marketing plan is essential.
First, it is important to define your ‘buyer persona’, i.e. your target audience, to whom you intend to sell.
What is your value proposition?
How can you differentiate yourself from your competitors?
These questions are crucial to help you create a consistent and persuasive message.
Promotion can take place through different channels, such as advertising, public relations, direct marketing, events and promotions.
We have talked about Digital Advertising and how it can grow your business HERE
It is important to plan promotion activities effectively, because they can significantly affect product image and consumer perception.
In conclusion, to transform your brand from unknown to well-known, it is important to start with a well-defined communication and marketing plan.
Include everything you need to promote it: events, point-of-sale activations, content marketing and/or digital advertising, among others.
Define your buyer persona, identify the best channels to reach them. Identify the added value of your brand communication and create a coherent and persuasive message for your marketing campaign.
Promotion can take place through different channels, such as advertising, public relations, direct marketing, events and promotions.
Of the 4 levers of the marketing mix last, but certainly not least, is positioning.
The latter represents the choice of sales channels where your product or service can be purchased.
To sell or distribute your product, it is important to choose both a physical location and a virtual location.
The physical location can be a point of sale, while the virtual location can be a website/ e-commerce or a social page.
To start with, it is important to understand where your buyer persona is located and which places they frequent.
If you already have a shop, it is important to assess whether the location is strategic for your brand.
If, on the other hand, you are thinking of opening an online shop, it is important to understand which channels you will use for your virtual shop window and how you will handle the distribution and logistics of your products.
Positioning is crucial to be consistent with the needs of your target audience as well as to be competitive with your competitors’ positioning.
In general, McCarthy’s 4Ps model is an effective tool for analysing and planning business strategies, as it takes into account all the fundamental aspects that influence the consumer’s purchasing decision.
However, it is important to emphasise that not all levers should always be used in the same way and that, at times, it may be necessary to make strategic choices to optimise results
Tips for incorporating the 4 levers of the marketing mix into your strategy
To implement an effective marketing strategy and measure your return on investment, it is important to use the right tools and consider the following tips:
– Analyse the market and your target customers to understand their needs and preferences.
– Develop a product that meets these needs and stands out from the competition.
– Choose an appropriate price that is competitive but also allows you to cover production costs.
– Use different forms of promotion to reach your target customers.
Choose the most suitable distribution channels to make the product available to consumers.
Louis Vuitton: The 4Ps of the marketing mix
Product: Louis Vuitton is a luxury brand that offers a wide range of high quality products, including bags, luggage, footwear, jewellery, watches and clothing. All products are made from high quality materials and are characterised by elegant and distinctive designs.
Price: Louis Vuitton uses a high price strategy for its products, reflecting the quality and exclusivity of its luxury products.
Location: Louis Vuitton has shops in many cities around the world, in prestigious locations such as major malls and shopping streets. In addition, Louis Vuitton also has an online presence to reach a global customer base.
Promotion: Louis Vuitton uses a combination of television advertising, print, social media and launch events to promote its products and create a strong brand image. In addition, Louis Vuitton often uses celebrities and influencers to wear its products and increase brand visibility.
Zara: The 4 P’s of the marketing mix
Product: Zara is a fashion brand that offers a wide range of clothing for men, women and children, including dresses, T-shirts, trousers, skirts, jackets and accessories.
Price: Zara uses a strategy of
medium-low price for its products, offering its garments at an affordable price for a wide range of consumers.
Location: Zara has shops in many cities around the world, as well as online shops to reach a global customer base.
Promotion: Zara uses a combination of television advertising, social media and launch events to promote its products and create a strong brand image. In addition, Zara uses a ‘fast fashion’ strategy by launching new products every week to keep consumers’ attention.
Apple: The 4 Ps of the marketing mix
Product: Apple offers a wide range of high-quality consumer technology products, including the iPhone, iPad, MacBook, Apple Watch and AirPods.
Price: Apple uses a premium pricing strategy for its products, positioning its products as high quality and technologically advanced.
Location: Apple has shops in many cities around the world, as well as a strong online presence, to reach a global customer base.
Promotion: Apple uses a combination of television advertising, social media, launch events and referral programmes to promote its products and create a strong brand image. Apple also uses its reputation for design and innovation as a promotional weapon.
Autogrill: the 4Ps of the marketing mix
Product: Autogrill is a leading commercial catering company, offering a wide range of food and beverage products, including sandwiches, hot dishes, snacks, ice cream and drinks.
Price: Autogrill uses a low to medium price strategy for its products. It offers quality food at affordable prices for a wide range of consumers.
Location: Autogrill has outlets in many cities around the world, mainly located in airports, train stations, highways and shopping centres, allowing customers to easily purchase its products while travelling or taking breaks.
Promotion: Autogrill uses a combination of television advertising, social media and marketing initiatives to promote its products and create a strong and recognisable brand image. In addition, the company often uses special promotions and offers to attract customers and increase sales.
Microsoft: the 4Ps of the marketing mix
Product: Microsoft offers a wide range of products and services, including operating systems, office software, cloud services, game consoles, mobile phones and tablets.
Price: Microsoft uses a mid-to-high price strategy for its products, offering advanced technologies and features for a competitive price.
Location: Microsoft has a global presence, with offices around the world and a strong online presence through its sales platform.
Promotion: Microsoft uses a combination of television advertising, social media, launch events and strategic partnerships to promote its products and services and create a strong brand image. In addition, Microsoft uses a software licensing strategy to increase long-term revenues.
Toyota: the 4Ps of the marketing mix
Product: Toyota offers a wide range of cars, including sedans, SUVs, trucks and hybrid and electric vehicles. Its products are known for their reliability, safety and advanced technologies.
Price: Toyota uses a competitive pricing strategy for its products, offering good value for money compared to other high-end car manufacturers.
Location: Toyota is present worldwide with an extensive network of dealers and sales outlets. It also offers the possibility to purchase vehicles online.
Promotion: Toyota uses a combination of TV advertising, print, radio, social media and launch events to promote its products and create a strong brand image. In addition, Toyota focuses on safety and sustainability to promote its hybrid and electric vehicles.
BlackRock: the 4Ps of the marketing mix
Product: BlackRock is an asset management company that offers a wide range of financial products and services, including mutual funds, private wealth management, business consulting and investment management technology solutions.
Pricing: BlackRock uses a competitive pricing strategy for its products and services, offering flexible pricing to meet the needs of different clients and market segments.
Location: BlackRock has offices around the world and serves a wide range of clients, including institutional investors, corporations and private individuals.
Promotion: BlackRock uses a combination of traditional and digital advertising, networking events and public relations to promote its products and services and build its reputation as a global leader in investment management. The company has a strong social media presence and uses its online presence to build a relationship with its customers and create a strong brand image.
Amazon: the 4Ps of the marketing mix
Product: Amazon offers a wide range of products, including books, electronics, clothing, food, household products and many others. The product range is continuously expanding.
Price: Amazon uses a competitive pricing strategy to attract customers, often offering lower prices than competitors. In addition, Amazon uses technology to customise prices for individual customers.
Location: Amazon is an e-commerce company, so its location is online. However, Amazon also has physical shops in some cities.
Promotion: Amazon uses a combination of online advertising, email marketing and partnerships with brands to promote its products and attract customers. In addition, Amazon uses customer data to customise recommendations and promotions.
L’Oréal: the 4Ps of the marketing mix
Product: L’Oréal is a cosmetics company that offers a wide range of skin care, hair and make-up products for men, women and children. They include brands such as L’Oréal Paris, Maybelline, Garnier and Kiehl’s.
Price: L’Oréal uses a medium-high price strategy for its products, positioning itself as a luxury and quality company.
Location: L’Oréal has a global presence with shops in many cities around the world, and also an online presence to reach a global customer base. The company also has a strong presence in pharmacies and department stores.
Promotion: L’Oréal uses a combination of television advertising, social media, launch events, event sponsorships and collaborations with influencers to promote its products and create a strong brand image. The company also focuses on creating marketing campaigns that highlight the quality of its products and their skin and hair care benefits.
In conclusion, the 4 levers of the marketing mix are a fundamental tool for planning and managing marketing activities, but it is important to use them flexibly and to take into account market and product specificities.
Only in this way can you achieve maximum success in promoting your product or service.
Our experienced marketers are, as always, at your disposal.