Bachelor of Commerce (BCom)
Course ContentMarketing mix (4Ps)
Habari Mwanafunzi! Let's Master the Marketing Mix (The 4Ps)!
Welcome to today's lesson! Ever wondered why you choose to buy a bottle of Coca-Cola instead of another soda? Or why a new phone from Safaricom is launched with so much excitement and advertising? The secret behind these decisions is often a powerful strategy called the Marketing Mix. Think of it as the secret recipe or the "four main ingredients" that businesses use to make their products successful. We call these the 4Ps.
Today, we are going to break down this recipe, piece by piece, using examples you see every day right here in Kenya. By the end of this lesson, you'll be able to see the 4Ps in action everywhere you look, from the matatu you take to the shop you buy your airtime from. Let's dive in!
What are the 4Ps? The Core Ingredients
The Marketing Mix is a model that helps a business make key decisions. It's all about putting the right product, in the right place, at the right price, at the right time. At the very centre of this all is the most important person: the customer.
Here is a simple way to visualize it:
+-----------------+
| PRODUCT |
+-----------------+
^
|
+-----------------+ V +-----------------+
| PRICE |--->[ CUSTOMER ]<---| PLACE |
+-----------------+ ^ +-----------------+
|
V
+-----------------+
| PROMOTION |
+-----------------+
As you can see, all the Ps are connected and work together to satisfy the customer. Let's look at each one.
1. Product: The 'What' You Are Selling
This is the starting point. The product is the actual good or service you are offering to your customers to satisfy a need. It's not just the item itself, but also its quality, features, design, branding, and packaging.
- Goods: These are tangible things you can touch. Think of a loaf of Broadways bread, a bar of Menengai soap, or a Samsung phone.
- Services: These are intangible actions or benefits. Think of an M-PESA transaction, a ride in a Bolt taxi, or getting a haircut at a kinyozi.
Kenyan Example: Think about KCB Bank. Their 'Product' isn't just one thing. It's a collection of services: savings accounts, loans (like Vooma), the KCB App, and even financial advice. The branding (the green lion) is also part of the product, as it communicates strength and reliability.
Image Suggestion:
A vibrant, colourful image of a shelf in a Kenyan supermarket like Naivas or Carrefour. The shelf is filled with various well-packaged Kenyan products: packets of Ketepa tea, jars of Zesta jam, bags of Mumias sugar, and bottles of Tusker beer. The focus should be on the variety of branding and packaging.
2. Price: The 'How Much' It Costs
Price is the amount of money a customer pays for the product. Setting the right price is crucial! Too high, and you might scare away customers. Too low, and you might not make a profit or customers might think your product is of low quality.
Businesses use different pricing strategies:
- Cost-Plus Pricing: Calculating your costs and adding a markup for profit. (Very common for small businesses!)
- Competitive Pricing: Setting your price based on what your competitors are charging. (Think of Telkom, Safaricom, and Airtel data bundle prices).
- Value-Based Pricing: Setting the price based on how much value the customer gets from the product. (A designer suit costs more than a regular one because of the brand and perceived value).
Let's do a simple calculation for a small business owner.
Calculation: Cost-Plus Pricing for a Chapati Vendor
Imagine Mama Biko runs a small chapati business. She wants to figure out the selling price for one chapati.
Step 1: Calculate the Total Cost of Ingredients (per batch)
- Flour (2kg): KES 180
- Cooking Oil: KES 100
- Water & Salt: KES 20
- Charcoal/Gas: KES 50
---------------------------------
Total Cost per Batch: KES 350
Step 2: Determine the Number of Chapatis per Batch
- Let's say Mama Biko makes 50 chapatis from this batch.
Step 3: Calculate the Cost per Chapati
- Cost per Chapati = Total Cost / Number of Chapatis
- Cost per Chapati = 350 / 50 = KES 7
Step 4: Add a Profit Margin (Markup)
- Mama Biko wants to make a profit. She decides on a 50% markup on her cost.
- Markup Amount = Cost per Chapati * Markup Percentage
- Markup Amount = 7 * 0.50 = KES 3.50
Step 5: Calculate the Final Selling Price
- Selling Price = Cost per Chapati + Markup Amount
- Selling Price = 7 + 3.50 = KES 10.50
- She will likely round this up to sell each chapati at KES 15 to make a good profit and for easy transactions.
3. Place: The 'Where' Customers Find It
Place isn't just about a physical location. It's about how you get your product into your customer's hands. This is also called distribution. It’s the entire journey from the factory or farm to the final consumer.
Common distribution channels in Kenya include:
- Direct: Selling straight to the customer (e.g., a farmer's market, an online brand selling via Instagram).
- Retail: Selling through intermediaries like supermarkets (Naivas, Quickmart), kiosks (dukas), or chemists.
- Online: Using e-commerce platforms like Jumia, Glovo, or a company's own website.
Story Time: The Journey of a Rose FlowerThink of a beautiful rose grown on a farm in Naivasha. How does it get to a customer in Nairobi for Valentine's Day? That's 'Place' in action! The farm (producer) sells it to a distributor, who transports it in a refrigerated truck to the city market. A florist in town (retailer) buys it from the market, arranges it beautifully, and finally sells it to you (the customer). That entire chain is the 'Place' strategy.
4. Promotion: The 'How' You Tell People About It
You can have the best product at the perfect price, but if nobody knows about it, nobody will buy it! Promotion is all about communication. It's how you tell your target audience about your product and persuade them to buy it.
Promotional activities include:
- Advertising: Billboards along Waiyaki Way, TV ads during the news, radio jingles, and YouTube ads.
- Sales Promotion: "Buy One Get One Free" offers, discounts (like Black Friday on Jumia), and loyalty programs (like Naivas' loyalty card).
- Public Relations (PR): Getting positive media coverage, sponsoring events (like the Safaricom Marathon).
- Digital Marketing: Using social media (Facebook, TikTok), email marketing, and working with influencers to promote a product.
Image Suggestion:
A dynamic, wide-angle shot of a busy Nairobi street corner, like near the Kenya National Archives. The scene is bustling with people and matatus. Prominently visible are large, colourful billboards for major Kenyan brands like Safaricom, GoTV, and a local bank. The image should capture the energy and the variety of advertising methods in an urban Kenyan setting.
Putting It All Together: The "Java House" Mix
Let's use a brand we all know, Java House, to see how the 4Ps work together seamlessly.
- Product: High-quality coffee, a wide menu of food (breakfast, burgers, salads), a comfortable ambiance, and strong branding. The product is the entire experience.
- Price: They use value-based pricing. It's more expensive than a local cafe, but customers pay for the quality, consistency, and environment (e.g., free Wi-Fi, good service).
- Place: They have strategic locations in malls, airports, and major business districts where their target customers are. They also partner with delivery services like Glovo.
- Promotion: They use social media marketing (beautiful photos of their food on Instagram), loyalty programs (Java loyalty card), and promotions during holidays. Their well-branded cups are also a form of promotion!
Conclusion: You Are Now a Marketing Mix Detective!
Fantastic work! You've just learned the fundamental recipe for marketing success. The 4Ps—Product, Price, Place, and Promotion—are not separate ingredients; they are a mix that must be blended perfectly to attract and keep customers.
Your task now is to become a "Marketing Detective". As you go about your day, look at the businesses around you. Ask yourself:
- What is their core product?
- How did they decide on its price?
- Where (place) can I find it, and why there?
- How did I learn about it (promotion)?
You'll be amazed at how much you can learn just by observing. You've got this! Keep learning and stay curious.
Pro Tip
Take your own short notes while going through the topics.