The 4 P’s of Marketing | Marketing Mix

Lesson Notes

4 P’s of Marketing

Marketing Mix involves the 4 P’s of marketing which are Product, price, place and Promotions and these are the ingredients that come together to promote the special selling points of a brand/product that set it apart from its competitors.

In 1964, the concept of marketing mix gained popularity after Neil Borden published an article titled “The Concept of the Marketing Mix”. Over the years, Borden’s model ideas were refined until E. Jerome McCarthy came along and reduced it to four elements called “The Four Ps.” 4 P’s:

  1. Product (the good or service);
  2. Price (amount paid by the consumer);
  3. Place (selling location of the product); and
  4. Promotion (Communication with the customer).

1. Product

At the heart of a great brand is a great product that the company sells. It could be an intangible service (like a therapy session, legal services, etc.) or a tangible product.

Basically, everything that is offered to the consumer. Any product decision affects the other elements or the other 3 Ps of the marketing mix.

2. Price

The amount, a company is willing to charge for the product or service is referred to as price. A price point impacts everything from profit margins to supply to demand and also the marketing strategy.

The price of a product can be increased to make it appear like a luxury and exclusive offering, or it can be lowered for the benefit of more consumers trying the product.

This important element of a product depends a great deal on a lot of different variables. Because of its dependence on various factors, price is constantly updated.

3. Place

It involves determining the location where the product should be sold and the mode of delivery of the product to the market.

The responsibility of dealing with Elements such as locations, the channel of distribution (online and offline), coverage, logistics and transport Fall under the purview of place.

4. Promotion

The promotion element, which is a part of the marketing functions communication aspect, involves advertising, sales promotion, direct marketing, personal selling and public relations.

Irrespective of the channel used, promotion should be fitting for the product, the price as well as the targeted consumer.

Example of the 4 Ps of Marketing

Burger King – Product & Price

The American multinational chain of hamburger fast food restaurants, Burger King (BK), offers their most famous burger the Whopper at $4.99.

No wonder why the Whopper has been a staple on the menu for more than 60 years.

Others include

  • Triple Stacker King — $7.69
  • Bacon King -$6.89
  • Double Stacker King — $6.69
  • Double Whopper — $6.49
  • Bacon and cheese Whopper — $6.39
  • BBQ Bacon Whopper — $6.39
  • Impossible Whopper — $5.99
  • Double Quarter Pounder King — $5.89
  • Single Stacker King — $5.79
  • Bacon double cheeseburger — $2.99
  • Double Cheeseburger — $1.99
  • Bacon cheeseburger — $2.19
  • Cheeseburger — $1.29
  • Hamburger — $1.00

Did you Know?

The only Burger King franchise to operate under a different name is Australia’s, Hungry Jack.

Burger King – Place

Burger King offers the following options

  1. Dine-in
  2. Drive-Thru
  3. Home Delivery.

There exist 18,800 Burger King restaurants throughout the world. Out of the 7300 Burger King restaurants in the US, over 6,500 have drive-thrus.

In the pandemic, with indoor dining banned or restricted, delivery and drive-thru have been crucial for burger kings business in the US. In the US, compared to 67% of total sales last year, drive-thru sales made a whopping 85% of total sales during the pandemic.

Burger King – Place (Strategy for COVID)

Burger King revealed a new touch fewer restaurant designs keeping in mind the current covid scenario. With a physical footprint 60% smaller than the traditional Burger King restaurant building, new designs will provide multiple ordering and delivery modes.

The blueprint of the reimagined restaurant emphasizes:

Drive-In

Guests can park their cars under solar-powered canopies of the drive-in area. They can place orders through the BK app by scanning a QR code at the parking spot and have food delivered to the cars.

Curbside Delivery

Orders placed in advance through the mobile app will have curbside delivery in dedicated parking spots.

Upon arrival, Customers can notify the restaurant team through the app.

Pick Up Lockers

With the food coming straight from the kitchen, into the coded pickup lockers, Mobile orders can safely be picked up from there without any contact.

On-Premise Dining

For guests who prefer dining on-premise, a shaded patio replaces traditional indoor dining for an outdoor seating experience.

Drive-Thru

Drive-thrus will have newly added digital menu boards and merchandising. Multi-one ordering and pick up will expedite the process.

Suspended Kitchen

A suspended kitchen and dining room above the drive-thru lanes will make it ideal for urban cities by reducing the building footprint. There will be a conveyor belt between the suspended kitchen and the pick-up points.

Burger King – Promotion

Additional to the generic modes of advertising like online, TV and print media, Burger King uses promotions like coupons, etc through its website and mobile app.

They build customer loyalty through dunking on rivals like McDonald’s, keeping up with the latest pop culture moments and driving app downloads through smartphone-centric campaigns.

Recent Focus

With its continuous campaigns requiring mobile apps, Burger King made its app stickier for repeat users. Many of these app-powered marketing techniques have tapped geolocation to further personalise their connection with the consumer based on their physical location.

Burn That Ad’ campaign

In Brazil, Burger King ran a mobile campaign that let app users virtually “set fire” to the ads of its fast-food rivals. When the user set virtual “fire” to a rival brands advertisement, the receiver a coupon for a free Whopper.

This was created exclusively for Brazil users to promote BK express, which allowed customers to pre-orders and avoid lines. This genius campaign turned the media investments like billboards magazine ads etc, of its main rival into ads of their own.  This never before the attempted campaign was created and developed by David SP.

#WhopperDetour

Burger King’s Whopper Detour promotion used geofencing technology to reportedly mark 14,000 McDonald’s locations across the US.

Unlocked when users came within 600 feet of a McDonald’s restaurant, all they had to do was download BK’s app, drive to McDonald’s and automatically receive a mobile coupon for a 1-cent Whopper.

The campaign resulted in

It resulted in 1.5 million app downloads, generating 3.3 billion impressions, equating to $37 million in earned media. Mobile sales tripled during the promotion with more than 500,000 Whoppers redeemed (more than 40 times Burger King’s past digital-coupon-redemption record).

Burger King’s app rose to #1 in the US Google Play and Apple app stores in 48 hours. After the promotion, Burger King continued to sell twice the amount through its app compared to sales before the campaign.