Hey there, fellow marketers. Professor Wolters here, and today we’re in Vicenza, Italy. And today we’re gonna talk about is probably one of the most key elements of marketing. And that is the marketing mix, the four P’s of marketing: product, price, place, promotion. And each one of these things are key to any marketer, understanding their market, what they’re going to do, how they’re going to succeed.
And so let’s go through these four kind of basic topics to get started.
Now, you first off you have your product, right? Now, your product captures value. It’s something that people really want. And the thing is a product isn’t just a thing.
It’s not just, you know, a phone or something like that. It could be a service. It could be an idea. Any of these things that people feel is valuable, that’s creating it. That’s something, people that is something they want.
Whether it’s, I want a hot dog or I want some bigoli pasta here in Vicenza. There’s something that people want to have and there’s things we can do to kind of increase the value that we create with our products. I mean, think about it. If you have kind of a basic car, you know, a two door car, that’s really tiny that doesn’t have a lot of power, you don’t expect to spend a lot of money on that, do you? No.
But if you have a car with nice seats in it and a good stereo and all kinds of stuff like that, like yeah, I like this a bit better. That’s creating more value from it. I really want this more. And so you can do those things. Think about services.
If you’re a better company at delivering a good service, aren’t you willing to pay more money for a restaurant that gives you good service, than a restaurant that gives you bad service? So we can create value that way. So that’s your product, okay. Now the next thing we look at are the prices and price is actually how we actually capture value. What does it actually represent?
How much should people value these things that we’re doing? And the thing is how many of you have been inspired to buy something because of the price? Oh, buy one, get one free. Sure, I’ll get that. Or it’s 50% off, sure, I’ll buy that.
Price is really an important thing. And as a marketer, you can use that to market your products. Hey, we’re the dollar store, hello? You have these kinds of things. You have that.
And so when you’re looking at price, you gotta realize is price is different things. Like there’s actually a price that people pay, right? There’s the manufacturer suggested retail price, we might look at that. But really price depends on how people value that product, okay. Because I may feel something’s worth $10 and you might think it’s worth $5.
We have different values for those things. So we gotta find the right price that captures that value for people. Because if you think about it, if I say, hey, I’ll give you a two-week trip to Italy for $2,000. You’re like, wow, that sounds like a great deal. Well, yeah, if you’re flying from Illinois to Italy tomorrow, yeah, 2000 bucks, that’s just going to be your plane ticket, let alone a hotel and eating and stuff like that.
But the thing is, if you’re living in Padova or Venice, which is like, you know, 40 minutes away, you’re like, why would I spend two grand to go to Vicenza when I could stay at my own house? There’s no value there for me. So you really have to think about it in a perspective kind of thing, all right. So think about that. Also, when you think about prices, you want to think about how people think about prices.
Historically speaking, I mean, ask a college students what their parents said when they told their parents what the tuition bill was like, oh my God! When I went to school, it was only a couple of hundred dollars, or a couple thousand dollars, and now it’s like a couple hundred thousand dollars. Well, yeah, over time, historical prices do change.
So that’s something you got to think about. And another thing you gotta look at is capturing that value with price is sometimes you look at it in terms of, you know, quantity, quality, these kinds of things like yeah.
If you’re gonna be flying here to Italy from the US, yeah, you can fly economy, no problem. You can find nonstop Chicago to Venice, easiest pie, but you’re gonna pay more than if you fly to Paris first and then fly to Venice, okay.
So we realized that, hhm, people value that direct flight more than taking a connector flight, so we can charge more for that. Okay. So you see those things out there.
Also, people are willing to pay more money for business class or first class. Cause they get, you know, maybe better service or better food or more leg room, so I have plenty of space. So I get here and I feel relaxed. So we look at those things, okay. When you’re looking at capturing those values, okay.
Now the third P we’re looking at is place, that is delivering the value. How are we gonna deliver that value? Well, you think about it, think about the retail places you’re going to sell your product in. Won’t that influence how it’s perceived? If I’m selling it at a cheap store, it’s gonna be perceived as cheap.
If I sell it at a high end store, it’s gonna be seen as a higher end, more quality product. And so we have those. Think about your website. Do you buy stuff from a website that looks kind of shady? Heck no, you don’t do that.
And you’re like, it’s gotta look legit for me to give them my credit card. That’s also part of delivering the value. But also how do we deliver the value of a good night’s sleep at a hotel, right? We have to think about that. What goes all into that?
Oh, having good beds, nice pillows, quiet walls, maybe not near a street, or thick windows to block the sound. We have to think about all those things that we need to do in order to deliver the value to people, to that place, okay. And then the fourth P is promotion. We need to promote our goods, right? We need to promote our products and promotion is communicating that value.
We need to let people know. I mean, think about it. Has there ever been a concert you heard about after the concert happens. Or a friend of yours was in town that you found out after they posted their pictures on Instagram. Like, wait, you were in town?
I didn’t even know. Well, the same problem happens for companies. We’ve got to communicate that value. Let people know when the concert is, let them know what kind of food we have at that restaurant.
Because if people don’t know what Bob’s restaurant has they probably won’t go there because they don’t know what Bob’s is serving.
And the thing is that fourth P, that promotion, is probably the most common thing people think about when they think of the four P’s of marketing, when they think of marketing in general. They think of more the advertising side of things, right. We’re communicating to the customer. We’re promoting to the customer. But the thing is, market is much more than just advertising.
Marketing is creating those new products, right? We’re trying to figure out what to make. So the first P. We’re also trying to figure out how we price things for pricing kind of stuff, capturing what it’s really worth for people. We have that.
Deciding where we’re gonna sell and how we’re going to sell things.
That’s that place thing, delivering the value. All these things go together to make our marketing mix. And what you need to realize is all these are important for when you’re trying to sell your products or promote your products. Whether it’s ads or stuff like that.
So I hope this gives you like a nice, basic idea of what the marketing mix is, what those four P’s are. If it does give you a good idea, hey, give me a thumbs up, so I know we’re doing a good job.
If it doesn’t just leave a comment down below or something like that, so we have an idea there. But I hope this does help to give you an idea of the four P’s of marketing. If you wanna learn more about marketing hit that subscribe button.
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Read More: Session 2, Part 1: Marketing and Sales