Product, price, place, and promotion | How to use them successfully
The so-called 4 P's of marketing are one of the basic frameworks of any good marketing strategy. They are primarily used to help make key decisions regarding, for example, the introduction of new products or services to the market, as well as establishing better contact with customers.
The origins & why they matter that much
The concept of the 4 Ps dates back to the 1950s. Professor Neil Borden introduced the term “marketing mix,” and later E. Jerome McCarthy formalized it in the form of the now familiar four Ps.
For those who want to explore the topic further, we recommend the information contained in the book Basic Marketing: A Managerial Approach from the 1960s.
The main idea behind this concept is that companies not only sell products/services, but also decide what to sell, at what price, where, and how to promote them. Each decision is interrelated and must be tailored to the target customer profile, specific situations, and market requirements.
Breaking down the 4 P’s
Here’s a look at each “P,” what it means, and how companies use it:
| P | What it means | Key considerations |
|---|---|---|
| PRODUCT |
The first “P” refers to what you offer in terms of a product or service. A strong product is not just something we can sell, but above all a solution to a problem faced by our customer. When thinking about a product, we ask ourselves the following questions:
|
Mainly understanding customer needs: planning the product life cycle (launch, growth, maturity, and decline), making decisions regarding after-sales support services or warranties |
| PRICE |
The price we set is the second “P” and should reflect the value of the product on the market. A high price can signal luxury and exclusivity, while a lower price will attract people who are more cost-sensitive or looking for a bargain. When setting the price, we should take into account aspects such as: production and delivery costs, brand position, competition, and realistic customer expectations. |
The strategy may be based on value, cost, or competitive pricing. TIP: It is also worth remembering pricing tactics: discounts, psychological pricing, e.g., $49.99 instead of $50, as well as various payment methods. |
| PLACE (Distribution) |
Place. This refers to where and how we make our product available. It includes distribution channels, inventory, logistics, and online and offline availability. In short, it's about being in the right place at the right time. |
Let's consider not only the physical location, but the entire process of how the product reaches the customer. The point is to make it available where customers are actually looking for it, i.e., in terms of time and convenience. When planning distribution, let's consider: customer convenience, reach, distribution costs, partnerships, and sales channels. For digital products, such as Canva templates, sales platforms, delivery methods, and website readiness are key. |
| PROMOTION | How you communicate with potential customers and persuade them. Advertising, PR, content marketing, social media, sales promotions - all of this sits under promotion. |
Brand consistency – visual identity and communication tone must be consistent. Target channels – choose the media your target group uses (social media, email, content marketing, influencers). Cost effectiveness – monitor CPM, CPC, CPA, and select channels based on ROI. KPI and optimization – track CTR, conversion rate, CAC vs. CLV, test campaigns (A/B testing), and make adjustments in real time. |
Example of the 4 P's Marketing strategy
How each "P" influences the others
What we already know is that the 4 Ps cannot be treated in isolation, because these elements overlap and interact with each other. It's a bit like a Petri dish containing a whole mixture of factors influencing the market - one component changes the environment and automatically affects the others.
If you change the price, you have to think about how it will affect the perception of the product and the promotion channels. If you introduce a new distribution channel, you have to adjust your communication and often your offer as well.
A few examples:
- Product design often dictates a specific pricing policy. If you invest in unique design or higher quality, the natural consequence is a higher price that signals PREMIUM.
- An exclusive price, in turn, leads to selective distribution channels (Place) - those that match the prestigious image of the brand.
- The method of promotion (Promotion) must go hand in hand with the other elements. A luxury product will more easily build authority through advertisements in industry magazines or presence at closed events than in a Facebook campaign.
What about adaptations & extensions
Because of how the business world has evolved (especially with digital & services), many marketers extend the original 4 P’s. Some popular additions include:
-
People - the human factor (staff, customer service, influencers)
-
Process - how processes (logistics, delivery, customer journey) enhance or hinder experience
-
Physical Evidence - especially for services: the environment, packaging, website, the “look and feel” that assures customers your offering is real and high quality.
These extra elements can be useful, especially in service industries or digital-first businesses. Still, they’re not as widely adopted or universally recognized as the original 4 P’s. If you’re just starting out, it’s best to begin with the classic framework and only later explore extensions once your core strategy is solid.
Why the 4 P’s still matter
Even after decades, this framework continues to prove useful:
- It gives structure - a checklist so you don’t miss important decisions.
- It forces companies to think holistically, not just about what they sell but how it’s sold, and how it’s perceived.
- It’s flexible - whether you sell physical goods, digital products, services, or are operating globally, you can adapt each “P” to your context.
In summary
The 4 P’s - Product, Price, Place, Promotion - are a timeless marketing mix. They define what you offer, what you charge for it, where customers find it, and how you tell them about it. Use them together. Revisit them often. Adjust as your market, customers, or competition shifts.
When you get the balance right, your strategy moves from “trying things” to “making things work.”
