The principle of the 4P Matrix is that marketing decisions usually go into four detailed categories:
PRODUCT – PLACE – PROMOTION- PRICE
Positioning the product in each category will generate the greatest response from the target market.
“The 4P Matrix is the most frequently used marketing matrix because of it’s simplicity and it is also proven to works.”
The 4P matrix can help define marketing options, whether we’re planning to launch a product or evaluating an existing one and improve its sales performance.
Let’s look at each pillar individually.
The questions to ask when making product marketing decisions include :
What need does the product satisfy?
What problem does it solve, or what challenge does it help the customer overcome?
What will the customer gain by using the product? What features does the product have that help meet the needs of the end consumer ?
What is the product’s competitive advantage?
How is the product different from competitors? Why should the customer buy the product instead of the competition’s one?
Thinking about place:
Where will potential buyer look for the product?
Will it be found in a brick and mortar store, in a catalog, only on the web or a combination of one or more locations?
If the product will be sold in a brick and mortar store, what characteristic will the store have?
What is the plan for getting the product into the market.
Will it sell directly to customers or use a distributor or a sales team?
Considerations include: price strategy, discounts and profit margin
What amount does the competition sell the product for? Are we able to set and maintain a competitive market price? How will the price compare to your competitors?
Will discounts or buying advantages be offered ? Will a loyalty program or rewards program be in place ?
What is the lowest price set for the product while still maintaining the profit margin needed ?
Considerations include: marketing channels, marketing strategy and seasonality
Even the best products won’t sell if your customer doesn’t know about them.
By what means will the marketing message get to potential customer?
For example, using direct mail, billboards, the web, social media.
When will Promoting the product start and what is the rationale for promoting it at that time?
Is the product seasonal? If so, how will that impact when, where and how is going to be promoted?