The 4Ps marketing model is a tool “to help develop a package that will not only satisfy the needs of the customers with the target markets, but simultaneously maximise your organisation’s performance.” [Key Management Models, Steven ten Have et al].
The Ps stand for Product, Place, Price, and Promotion, and is often modified to Product (or service), Place (distribution), Price, and Promotion.
The model can be used to not only look outward to the customer, but also inward towards the business.
Product or service, or as I prefer, solution – are you producing a solution that anybody wants?
Place (distribution) – is your solution available in the right place at the right time and in the right quantities? Can you manage production, inventory, and transport costs effectively and efficiently?
Price – are your customers willing to pay what you are asking for? How does this price compare to the competitor’s prices? Is the price that customers are willing to pay sufficient to cover all your costs and provide your target profit?
Promotion – what is the most effective and efficient way to attract, educate, entice, and then transform prospects into customers?
Users of the model tend to add to the 4Ps, for example, People, Process, and Physical environment. In the end, it is only a tool, a prompt to help guide thoughts, behaviours, and outcomes.