Marketing and sales are so closely intertwined that you can’t really have one without the other. What happens in marketing affects sales… and what happens in sales affects marketing.
With that in mind, it makes sense to explore the 4 Ps of marketing from a sales perspective. This framework can:
- give you new insight into the marketing-sales relationship
- spark new strategies for your sales process
- and help you build your sales toolkit.
The 4 Ps are a framework, or marketing mix, made of four key components: product, price, place, and promotion. While this framework has been revised and expanded over the years, these four components build a strong foundation. Together, they influence how customers see your product and company.
Let’s find out what it is, and then get into how you can apply it to your sales process in a practical way. (Or skip to the end to get right into how to apply it.)
The 4 Ps of Marketing
The four key components in marketing are product (what you’re selling), price (what it will cost the customer), place (where they find it and see it), and promotion (advertising strategies and the marketing message).
Some expanded marketing mixes also include people (any employees the customer will interact with), process (how customers receive the product), and physical (anywhere the customer interacts with the company, such as the storefront, website, or social media). This article will focus on the original 4 Ps of marketing, but if you are interested, there are many great online resources that go further in-depth about the additional components.
Product
Like its name suggests, product is the item or service that you provide for your customers. This isn’t just the physical product (such as a turnkey building), but also includes the features, benefits, and quality of the item or service.
You’ve likely thought of your own example of a product in the construction industry – buildings. Let’s break down buildings as a product.
The physical aspect of a building as a product is, of course, the materials and structure itself. But when we look at product as a whole, it includes far more. What are the features and benefits of a building?
Well, that depends on the type of structure and how it was built. A steel building with multiple bays and doors offers convenient access for many vehicles at once, while a post frame building with one large door offers easy access for one very large vehicle. A building provides shelter from the wind and rain. If it’s insulated, it also provides shelter from the cold or heat.
Another thing to consider is the services that you offer with the physical product. Do you offer design services? General contracting? Or do you specialize in certain aspects of the building process?
There’s no right or wrong answer. However, each aspect of your product is an opportunity to differentiate your business from the company down the street.
What impact does Product have on your customers?
Product fills some need or desire of your customers. If you want to make a sale, you need to make sure that you offer your product in a way that customers understand which need or desire they are filling by making the purchase.
These needs or desires could be a simple as a place to securely store equipment, or something more complex like a stress-free building experience (but that’s its own topic). Whatever it is, make it clear and concise. Short and to-the-point.
How can you leverage this in your sales process?
Keep it simple. Ask questions. Understand the customer’s needs. And then tell them how your product fills that need.
This is important to remember, because…
- no matter how good your pricing is…
- no matter how often they see your product….
…a customer won’t bite if they don’t have a need or desire for the product.
Different customers will need the same product to meet different needs. When you have a strong understanding of your product, you can tailor your sales pitch, speaking to their needs and building your value in the customer’s eyes.
Price
Price is the cost of product, based not only on the input costs, but the perceived value of the product, market demand, and competitors’ pricing.
For example, popular brand X with strong customer reviews has a higher perceived value than brand Z, even though they sell identical products. With a higher market demand, ie: more customers want their product, brand X can justify charging a higher price than brand Z.
But be careful! When the actual price is higher than the perceived value, most customers will have no qualms about switching to less popular brand Z, with a lower price that matches the perceived value.
What impact does Price have on your customers?
This is a tricky one to answer, because there are so many variables, including the economy, personal finances, where the customer is in the sales funnel, etc. etc. etc. However, here are a few general guidelines.
Increasing the price just a little…
This can sometime boost perceived value in the eyes of the customer, as they associate a higher price with higher quality.
Increasing the price by a lot…
This can quickly cause customers to lose interest, as the actual cost outweighs the perceived value of the product.
Lowering the price, or offering a discount…
This can encourage customers to take advantage of the discount and move them more quickly through the sales funnel.
Lowering the price too much or too frequently…
This can cause customers to question the quality or value of the product. However, you can avoid this by offering promotions at the right time – such as a harvest promotion for farmers during harvest season.
How can you leverage this in your sales process?
There are several ways you can leverage price in your sales process, though it may vary depending on your role in the company and your industry. Either way, here are a few options to consider.
Understand the customer’s hesitation…
We touched on this in our last article, Breaking the Barriers. You can read the full article on our Dealer Portal.
If the customer’s hesitation is due to lack of planned funds (they don’t value the product enough to justify the actual price), it’s the perfect opportunity to convince the customer of the value of your product. But if their hesitation is because of lack of actual funds, it may be worthwhile to consider a discount on the product. What future sale opportunities do you see for your company if you close this sale?
Reconsider your base pricing…
Are your customers consistently quoting price as a factor in their decision to use a competitor’s product? Especially when the market is struggling, it’s worthwhile to consider your pricing, comparing it to competitors with similar product offerings. It’s key to balance your actual price with the perceived value of your product.
Place
Place is anywhere your product is available to customers. This includes various channels like in-person sales, online quotes and orders, as well as the location (service area), logistics (how customer receive your product), and where you advertise.
For example, a post-frame building company aiming to sell machine sheds will likely be located in or near agricultural communities, and will be advertising where farmers look (like agricultural magazines).
In other words, your company should be available where your target customer would think to look for you.
What impact does Place have on your customers?
Showing up in the right place makes it easy for customers to find you, notice you, and trust you. Here’s why that matters:
- The easier it is to take the next step, the more likely it is to happen. When you show up where your customers are, you make it easy for them to take the first step and start asking questions.
- Showing up in the right place sends the message that your customers can trust you, because you understand their needs, their interests, and their community.
How can you leverage this in your sales process?
The easiest way to leverage place in your sales process is by focusing on simplifying access to your product. Make it easy for customers to find you, see what you have to offer, and get the product. Be available where your customers are.
Secondly, make your place inviting. Something as simple as offering a cup of coffee can make a customer feel at home, build their trust, and increase the perceived value of your product.
Are you starting to see how closely related these 4 P’s are?
Promotion
Promotion is all about the messaging you send to your customers, including where they see it. It varies from place in that the focus is on the message, not the product. Promotion is the message and where customers see it, whereas place is where customers find the product.
Promotion neatly ties together the other 3 P’s (product, price, and place), because it focuses on the message that tells customers…
- What your product is…
- Why the actual cost is balanced with the perceived value…
- And where they can find you – whether that’s in-person, online, or anywhere else.
What impact does Promotion have on your customers?
Without promotion, the other P’s of marketing will have little impact on your customers. Not having any kind of promotion is like having all your building materials on the jobsite but never putting the building together. It just doesn’t help much.
Before you get too concerned about promotion, remember that promotion is not the same thing as advertising. Promotion includes any form of communication with your customers – personal selling, sales promotions, word-of-mouth, etc. Advertising focuses on paid communication with your customers – through radio, flyers, video ads, etc. This makes advertising only one small part of promotion.
Effective promotion will influence your customers’ purchase decisions. It will make them want your product, buy your product, and share their experience with others.
How can you leverage this in your sales process?
Promotion is where you can have the biggest impact as a sales team. Customers aren’t just buying because of the advertising – they are buying because of you. Every sales conversation is an opportunity to further the promotion message by building trust. Here’s how you can do that.
- Be relatable and authentic. When customers feel that you really understand them, and that you are being the real you, they’ll trust you more.
- Keep your message consistent. When customers know what to expect, it reduces confusion and builds a foundation for long-term trust.
- Build a relationship. Even in the age of automation, people prefer warmth and human connection. Take time to get to know your customers and make sure they know that they matter to you.
Visit the Dealer Portal to read more about building trust with your customers in our Breaking the Barriers article from January 2025.
Key Takeaways
The 4 P’s of marketing is only one way to look at the sales and marketing relationship, but the fresh outlook that it offers makes it a rewarding perspective. Knowledge is a great place to start, but don’t let it stop there. Here’s a quick outline of how you can put it into action.
- Learn all you can about your product.
- Dig deep into your customers’ needs and desires.
- Make sure you can outline how your product fits those needs.
- Show up where your customers are.
- Build a relationship with your customers.
