Four Ps

AAA

DEFINITION of 'Four Ps'

The categories that can be controlled in the marketing of a good or service: product, price, place and promotion. The four Ps, often referred to as the marketing mix, are all constrained by internal and external factors in the overall environment. Designs made in the "product" component determine the name, design and packaging of the good. "price" involves the cost of the good and if volume or seasonal discounts will be offered. "place" decisions outline where the product will be sold and how it will be delivered to the market. "promotion" involves advertising, public relations and promotional strategy.

INVESTOPEDIA EXPLAINS 'Four Ps'

The four Ps and the marketing mix were popularized in the 1950s by Neil Borden. Until the advent of the internet and greater integration between businesses and consumers, the marketing mix helped companies take into account the physical barriers that prevented widespread adoption of a product. Extensions to the Ps have include "people, "process" and "physical evidence" as important components in their models.

RELATED TERMS
  1. Comparative Advertising

    A marketing strategy in which a company shows how its product ...
  2. Law Of 29

    A belief held by some marketers that on average a prospective ...
  3. Marketing Mix

    Usually referring to E. Jerome McCarthy's 4 P classification ...
  4. Brand Management

    A function of marketing that uses techniques to increase the ...
  5. Product Placement

    A form of advertising (usually not involving ads) in which branded ...
  6. Negative Option Deals

    A dubious business practice that involves supplying a typically ...
RELATED FAQS
  1. How does the market share of a few companies affect the Herfindahl-Hirschman Index ...

    In economics and commercial law, the Herfindahl-Hirschman Index (HHI) is a widely used measure that indicates the amount ... Read Full Answer >>
  2. What should be included in a restaurant business model?

    The most important elements of a restaurant business model include the restaurant's unique value proposition, menu choices, ... Read Full Answer >>
  3. What do you need to know to create a business model?

    A business model lays out the idea for a business, along with the step-by-step plan for making the business profitable. To ... Read Full Answer >>
  4. What's the biggest sports endorsement deal ever signed?

    According to Forbes, basketball player Derrick Rose holds the largest endorsement deal as of 2014; the deal is for more than ... Read Full Answer >>
  5. What level of return on assets should an investor look for in the insurance sector?

    Marketing plays an important role to a company in the utilities sector. Many people fail to understand why utility companies ... Read Full Answer >>
  6. How does the always be closing (ABC) strategy benefit a salesperson's sales funnel?

    It is good practice in sales to always be closing, because it's common for a salesperson's sales funnel to be leaky. When ... Read Full Answer >>
Related Articles
  1. Professionals

    Advertising, Crocodiles And Moats

    Memorable advertising is a brick in the fortress that keeps competitors at bay.
  2. Professionals

    How To Target Ideal Customers

    Expand your definition of a lucrative client and uncover a new realm of possibilities.
  3. Entrepreneurship

    10 Breakout Ideas For Small Businesses

    If your business has hit a wall, we've got the answer to break through and increase sales and earnings.
  4. Professionals

    The Lucrative World Of Third-Party Marketing

    Hedge funds don't sell themselves. Marketing experts reel in the big fish.
  5. Personal Finance

    The Top 6 Companies Owned By Google

    Google owns an incredible number of companies. These are its top six acquisitions.
  6. Professionals

    Why Advisors Should Focus on Relationships

    Successful financial advisors share a secret: It's about the people, not the numbers.
  7. Investing

    A Look Into The Digital Advertising Industry

    Digital advertising has outgrown the internet.
  8. Personal Finance

    The Top 11 Companies Owned By Facebook

    These 11 acquisitions show how big, and how rich, Facebook has become.
  9. Fundamental Analysis

    Calculating the Herfindahl-Hirschman Index (HHI)

    The Herfindhal-Hirschman Index, (HHI) is a measure of market concentration and competition among market participants.
  10. Investing

    Do's & Don'ts Of Digital Marketing

    Digital marketing is not as scary or as complex as it is often made out to be, but there are certain best practices that you should follow to make it work.

You May Also Like

Hot Definitions
  1. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  2. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  3. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  4. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  5. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  6. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
Trading Center