In doing business the role of a marketing strategy is very important to the success of the business you are running. One of them is by applying a deep concept known as the 4P marketing strategy.
Then, what is the actual 4P marketing strategy, what examples of implementation, and how is this strategy developing in the present? Friends BFI, let's discuss one by one in the following description.
1. What Is The 4P Marketing Strategy?
The 4P marketing strategy, also known as the marketing mix, are 4 important elements used by a business to achieve sales success. In simple terms, this strategy can be interpreted as the basic principles that need to be followed by companies or business actors to be able to influence the demand for products, so as to produce the desired response from the existing target market.
This strategy was first introduced by Neil Borden who was inspired by James Cullington in the mid-20th century. Initially, this basic principle or concept only consisted of 4 main elements such as product, price, place, and promotion. However, over time, the marketing mix has changed to 7P and even 10P.
The letter P in this strategy means the first letter in each existing category, such as product, price, place, and promotion.
2. 4 Important Elements of 4P Marketing Strategy
In the 4P marketing mix or marketing strategy there are 4 important elements that you need to know. Are as follows.
2.1. Product
Make sure the product or service offered is in accordance with the needs and desires of consumers. Ensure that existing standards and quality have been adjusted in such a way. You can also explain the advantages of existing products compared to competitors. Other terms are known as Unique Selling Points (USP).
One example of implementing a good product, for example, is UMKM (Micro, Small, and Medium Enterprises) called Unique Hampers, which offers a variety of hampers for weddings, Eid, and so on. In the process of making existing hampers, Unique Hampers uses a selection of good quality goods, both food, and goods. In fact, customers can determine what kind of hampers they want.
2.2. Price
Determine the right price for each product and service made. Consider production costs and prices set by competitors.
An example of its implementation, UMKM Unique Hampers offer various hampers prices starting from IDR 25,000 for the filling of one type of pastry with a greeting card. As for hampers by request or hampers that are tailored to the wishes of the customer, the price depends on the type of product selected.
Prices for other hampers have been included, so it will be easier for buyers to choose the hamper they want.
2.3. Place
Place in the 4P marketing strategy includes the place for managing and distributing goods or services from producers to consumers. Choose a place that is suitable and meets security, safety and ease of access standards, whether selling offline or online.
An example of its application is the UMKM Unique Hampers choosing a production site in a location close to production needs, thus facilitating the process of making hampers and being able to reduce the existing budget.
In addition, to facilitate the existing marketing process, Unique Hampers UMKM sells it offline and online, so that this product can be more easily reached by customers from various regions.
2.4. Promotion
An important step to reach target consumers that affect sales revenue. Use a strategy with good effectiveness and according to your target. For example social media, brochures, TV commercials, and so on.
Still using the same MSME example, namely Unique Hampers, the promotion carried out by Unique Hampers is by utilizing social media presence and ad features found on social media and marketplaces.
In addition, Unique Hampers also implement other promotional strategies that are no less interesting by implementing word-of-mouth or word-of-mouth promotions. So that existing customers can come from anywhere. It also broadens the reach of the existing target market.
3. 4P Marketing Strategy Experiencing Adjustments
As previously mentioned, along with the development of technology and changes in consumer behavior, the 4P marketing strategy is undergoing adjustments that are now increasingly complex.
This adjustment has created the 7P's and 10P's marketing strategies. For more details, let's look at the information about both of them in the following description.
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3.1. 7P Marketing Strategy
The 7P marketing strategy is the development of the 4P marketing strategy with the addition of three other elements, namely People, Process and Physical Evidence. The hope is that the 7P marketing strategy can accommodate broader marketing aspects.
1. Process
The process plays an important role in showing a series of steps or journeys carried out in marketing, starting from the initial planning until the product reaches the buyer.
With this concept, the seller or business actor can find out the existing marketing performance and find out which gaps need to be repaired, so as to increase the number of purchases and customer satisfaction.
2. People
Apart from aiming to increase sales, marketing or promotion is aimed at increasing brand image or other terms known as brand awareness. Therefore it is important to train staff or people involved in marketing to be able to provide good service so that potential customers are interested in buying your product and become regular customers.
To be able to succeed in this one concept, good training is needed for staff and regular evaluations are carried out from time to time. You can also implement a feedback system for customers, asking directly how their experience is with the services provided by existing staff.
3. Physical Evidence
One of the challenges that arise when offering intangible products is how can you as a business actor be able to trust potential customers to be able to buy the products offered.
The reason is, not a few people are reluctant to buy something that is intangible or they can't try it. Therefore, a marketing strategy in the form of physical evidence is needed here. Because the presence of physical evidence can build a positive image of the business you are running.
For example, if the product you offer is in the form of services or services such as website hosting, you can help customers make sure they choose your product by collecting positive testimonials from previous customers, as well as providing an overview in the form of video reviews or tutorials that prove a product is indeed worthy of purchase. tried.
3.2. Marketing Strategy 10P
Like the 7P marketing strategy which has added 3 other elements from the previous 4Ps, the 10P marketing strategy is not much different either. There are 3 additional elements that are quite relevant to current marketing developments.
1. Partnership
The first additional element is a partnership where businesses or trademarks can collaborate with other trademarks, thus creating a valuable product with a good level of sales.
Even so, before any collaboration or collaboration takes place, it is important to ensure that the parties invited to collaborate have the same goals or core values.
2. Permission
Permissions are closely related to inbound marketing where customers give their approval to be sent promotional materials in the form of various attractive offers owned by businesses.
Inbound marketing can be in the form of short messages or SMS, email, and other notifications sent to customers.
3. Purple Cow
Have you ever heard the term purple cow or purple cow? The tenth element in the last 10P marketing strategy is the purple cow, a theory that comes from a book written by Seth Godin with the same title.
In his book, Godin explains when a company or business actor must be able to create a product that is different from competitors or existing markets.
In practice, although this theory is quite clever and interesting to apply, in fact, this theory is still being debated by many people because it is considered not very effective in the marketing process.
Even though there have been various changes, the 4P marketing strategy is still relevant today. This is because the strategy which is often called the marketing mix is a basic reference in understanding consumer desires, determining the value of a product, determining the right and efficient method of product distribution, and how to promote the appropriate product. These 4 basic things are still the main key to achieving success in marketing.
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