4P analysis refers to the four marketing elements with the initial letter P. The four
marketing
elements are:
- Product: What value does the product provide?
- Price: How much do you offer your product/service?
- Promotion: What kind of promotion are you doing?
- Place (sales route): What kind of sales route is it?
In 4P analysis, we analyze our own products and services based on the above perspectives. This is a very important analysis when considering sales strategies for products and services.
The four elements analyzed in 4P analysis are not independent, but are closely related to each other. Therefore, you will need to consider a comprehensive strategy depending on your goals. For example, when running a promotion to create a sense of luxury, it is necessary to increase the price and reduce the amount of distribution. It is also important to design products to appeal to wealthy people. On the other hand, if we want to promote convenience, we need to keep prices down, increase distribution volume, and encourage more consumption.
In this way, by performing 4P analysis on products and services, marketing measures can be implemented that are more in line with customer
needs
.
Related materials:
Differences from 7P analysis
7P analysis is an effective analysis method used in the service industry. Although 4P analysis is often used for products, it is not suitable for analysis of service industries, while 7P analysis is specialized for service industries.
7P analysis analyzes the following three elements in addition to the four elements used in 4P analysis.
- People: The proficiency and quality of the service provided by the staff providing the service.
- Process: The process from when a service order is placed until it is provided.
- Physical Evidence: Numerical results of services, etc.
Unlike a product, a service does not have an actual product, so the provider, the process of providing the service, and the service’s track record are the motivations for purchasing. When analyzing a service, you should not only analyze the elements of the 4P analysis, but also analyze the 3Ps mentioned above.
There are other analysis methods as well.
In addition to 4P analysis and 7P analysis, there are other analytical methods necessary for marketing. It is also necessary to analyze the market environment using
SWOT analysis
and
3C analysis
, and perform STP analysis in order to formulate marketing strategies. It is important to not only conduct 4P analysis and 7P analysis, but also conduct these analyzes before formulating a marketing strategy.
Reference article
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What are the 4Cs? Explains the meaning of 4C analysis, how to use it, and the difference between it and 5C and 4P analysis that you should know.
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Starbucks succeeded with 4P analysis/Explaining marketing mix, 4P, and 4C with examples
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What is the difference between 4P analysis and 4C analysis? Explanation of each method and specific examples
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What is marketing mix (4P)? Learn the basics of marketing execution strategy
