The 4P’s of Marketing: Product, Price, Place, and Promotion (American Marketing Association, 2022) are applied to increase brand equity and promote a brand. Depending on where a brand is in its life cycle, different strategies must be applied for effective results. This article will examine how three brands use the 4 P’s to increase consumer perception (Wheeler & Meyerson, 2024) and brand equity in their respective stage of the life cycle (Burtonshaw-Gunn & Burtonshaw-Gunn, 2008).
Brand Development Phase: Mighty Patch
How Mighty Patch applies each marketing mix element in their brand development phase with few competitors:
- Product: Basic version at market entry.
- Price: The market will pay an initial high price for new and innovative products (price skimming). Profits will be negligible and cash flow will be negative.
- Place: Introductory distribution is patchy.
- Promotion: Heavy promotion is needed to generate high brand awareness.
To increase consumer perception and brand equity at the development phase, Mighty Patch uses these elements to create brand awareness, show brand likability, charge a premium price, and earn satisfied customers and market share.
Brand Growth Phase: Zoom
How Zoom applies each marketing mix element in their brand growth phase with entry of competitors:
- Product: Product to be improved to earn larger share of customers.
- Price: After early adopters phase out, the price must be lowered to beat newer market entrants and maximize market share. Profits will peak and cash flow will be moderate.
- Place: Intensive mass-market distribution is needed to grow.
- Promotion: High promotion is needed to emphasize brand preference.
To increase consumer perception and brand equity at the growth phase, Zoom uses these elements to improve brand recognition, build credibility with an improving product, earn repeat customers, increase revenue per customer, and generate cash flow.
Brand Maturity Phase: Coca-Cola
How Coca-Cola applies each marketing mix element in their brand maturity phase with difficulty to gain market share:
- Product: Differentiation in the market to show unique features.
- Price: At its lowest price in the stages to retain customers. Profits will decline and cash flow will be high.
- Place: With now slow growth, intensive mass-market distribution is needed for high market competition.
- Promotion: Not needed with brand loyalists, will decrease in this phase.
To increase consumer perception and brand equity at the maturity phase, Coca-Cola uses these elements to draw familiarity saliency, show perceived quality, distinguish customer preference, prove customer loyalty and lifetime value, and dictate brand valuation.
By understanding which phase a brand is in, applying the 4 P’s of Marketing can effectively help companies to achieve branding goals.
References
American Marketing Association. (2022, July 12). The Four Ps of Marketing. American Marketing Association. https://www.ama.org/marketing-news/the-four-ps-of-marketing/
Burtonshaw-Gunn, S., & Burtonshaw-Gunn, S. (2008). The essential management toolbox : Tools, models and notes for managers and consultants. John Wiley & Sons, Incorporated.
Wheeler, A., & Meyerson, R. (2024). Designing Brand Identity (6th ed.). Wiley Professional Development (P&T). https://mbsdirect.vitalsource.com/books/9781119984825