The American Marketing Association (AMA) defines marketing as a process that involves several key components. Although marketing frameworks can vary, the four major components often cited in relation to the marketing mix are known as the "4 Ps":
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Product: This refers to what the business offers to meet the needs of customers. It includes the quality, features, branding, and design of the product or service.
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Price: This is the amount of money customers must pay for the product or service. Pricing strategies can influence demand, profitability, and market positioning.
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Place: Also known as distribution, this component focuses on how the product or service reaches the customer. It encompasses the locations, channels, and logistics involved in delivering the product to the consumer.
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Promotion: This involves the communication strategies used to inform and persuade potential customers about the product. It includes advertising, public relations, sales promotions, and social media marketing.
These components are fundamental in creating a comprehensive marketing strategy. However, it's worth noting that the AMA also recognizes the importance of additional factors, especially in the context of services, which can lead to an extended marketing mix (7 Ps) that includes People, Process, and Physical evidence.