The four P’s of sales strategy (product, place, price and promotion) cover the essential implementations of sales strategy and tactics. Sales strategy, in turn, is a combination of marketing tools that are used to satisfy customers and company objectives.
The concept of the four P’s was first expressed by E. J. McCarthy in 1960, and NetMBA.com indicates these concepts are still strong and viable. Price is indicative of revenue for a business, while product, place and promotion are all expenses.
The four P’s are variables that can be used to satisfy consumers in targeted markets. Sales managers need to thoroughly understand how to leverage the four P’s to appeal and connect with consumers, test ideas and beliefs before applying them to the sales process, and make adjustments as needed.
A good sales strategy can guarantee a market ready for the goods and services you'll provide, address supply-and-demand factors, and keep your business competitive and successful. Once you have a good sales strategy, the right product offered at the right price, the right location and the right promotional strategy, you'll need to continue to stay on top of market changes and adapt your sales approach as necessary.
Product involves the manufacture of a tangible product, as well as of services. You need to think about the needs and wants of consumers, market conditions, and how to keep production costs down and the quality of the product/service you are providing high. Aspects to be considered in this phase include brand name, functionality, styling, quality, safety, packaging, warranties and accessories.
Place involves getting the product to the customer and defines the location where the product/service is to be sold. This category covers distribution channels, market coverage, inventory management, transportation and warehousing. Details that need to be addressed include areas where buyers would look for your product, as well as how can you access the right distribution channels and differentiate yourself from your competitors.
Pricing your product involves research, determination, planning and careful consideration. This category also needs to ensure all expenses incurred in the manufacturing process will be covered by a significant financial margin. Facets that need to be evaluated include pricing strategy, suggested retail price, volume discounts, wholesale pricing, seasonal pricing and price flexibility.
Promotion represents the various aspects and tactics of marketing communication. This category involves commitment, enthusiasm and respect in getting your marketing messages to your targeted audience. Decisions will include promotional strategy, advertising, public relations, publicity and media. Information about the product/service you're providing needs to be communicated with the goal of generating positive customer response.