Explanation of the Relationship Between Product, Price, Place and Promotion

The relationship between product, place, price and promotion is known as the marketing mix. This concept, which is a major part of your company's overall marketing strategy, was discussed in a 1964 publication by Professor Neil H. Borden. Borden noted that the correlation of these factors are important to building an effective marketing approach.

Marketing falls directly under the promotional "P" in the marketing mix, which is often referred to as the four P's of marketing. Ultimately, the messages you produce and the media you deliver them through carry significant weight in the marketing process. However, the other three elements of the mix must be incorporated into your message delivery. They all relate to the value perceived by customers in your product or service.

Customers seek value when they purchase products. For your product marketing to succeed, customers must view the value of your products favorably compared to competitors. This means the comparison between your product and price, which essentially equals value, must come through as superior to others. Quality product factors like high quality materials, durability, reliability and distinct attributes help distinguish your brand. A price that fairly matches your product is important as well.

The original idea behind the place component was that businesses offer products and services through locations. Part of marketing is letting customers know where they can find you and your products. Over time, though, place has given way to distribution, as people buy products through catalogs, the Internet, mobile devices and kiosks. Thus, developing a distribution process that meets customer demands for efficiency and convenience and promoting your ordering and fulfillment methods are also important.

Along with a general intent of selling value, your development of a marketing mix strategy helps you establish your position in a target market. This involves the development and communication of differences that make your product bigger or better than competitors. Distinguishing qualities are necessary when you promote your products because customers need to clearly understand what separates you from other options. In the long-term, customer loyalty comes when you have very strong qualities to offer targeted customers.