Product:
The first of the 4 P's is product, the tangible product or service. It an item that satisfies the consumer's needs. Every product goes through a life-cycle that has five stages. The first stage is introduction, the second is growth, the third is maturity, fourth is saturation, and five is decline.
Price:
Price is the amount the consumer must pay in exchange for the product or service. The company must determine a price that is appealing to the consumers but also allows for maximum profit.
Place:
Place is the means of distribution and how the company gets it's products to a consumer. It is the process through which goods and services are moved to the consumer from the manufacturer.
Promotion:
Promotion is all the activities a company uses to inform consumers about their products and to encourage their purchase.
Companies need to make sure their product meets all four P's of the marketing mix in order for it to be successful. They need to sell the right product according to their target market, sell it at the right price, in the right place, and use the most appropriate and beneficial promotion.
For example, BMW cars are popular because of their high performance. Walgreen's stores use the convenience of location to help draw customers. Almost all companies use some form of media to promote their products or services. Bigger companies like McDonald's can afford multiple TV ads to promote all of their various food items.
As you can see, the marketing mix plays a very important role in how successful a business can be with their products or services.
The 4 P's - Product, Price, Place and Promotion make up the marketing mix. Each of these elements should be designed to meet the needs of the customer.
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