Now let’s look at the final piece of the puzzle. The final P is actually an old-school holdover from the original Four P’s: Price.
- Price — Of course, Price is always a factor in customer decisions. If there’s no price and something is free, that’s a huge motivator, of course. If something is not free but provides good value, that’s great. Yet even if something is expensive or priced at a premium, customers will jump to get it if the perceived value is high enough or the experience is unique or the brand represents something important to customers — like prestige or value or quality. Why else do people go into five figure debt to buy certain cars, or kids save money to buy brand name jeans and sneakers?
Because Price is always a factor in customer decisions at some level, it has to remain in the Four P’s. And your first three P’s MUST justify your Price. Why else would you bother going through all the effort and time required to establish Proof, Presence and Persuasion? When customers buy into those three things, it justifies what they have to spend on Price. When they don’t buy into your Proof or you don’t persuade them effectively, you’re going to have a problem getting them to pay your Price.
And that’s why Price is the fourth P. It’s what you say, do and stand for that set up your Price. That create the demand for what you offer.
Yet it’s still an aspect to work with also. Customers can buy into what you stand for yet still not be willing or able to pay your Price. So you need to be able to construct different offers and target different customers with different value propositions in order to influence individual buying decisions.
Price is a timeless, traditional and important member of the Four P’s, yet always has contemporary meaning and relevance. That will never change.
Hope you enjoyed the series of posts on the New Four P’s of Marketing. Charge ahead with these new paradigms in mind.