In marketing science, known as the 4 P elements or an abbreviation of the product, promotion, place and price. Product is something that will be sold. There are products that form the physical form of goods, like cigarettes, mobile phones or motorbikes. There are products in the form of services, such as savings services, telecommunications services, and spa body treatments.

Promotion is the step that needs to be done to introduce and also to persuade potential buyers to spend money to buy our products. The promotion mix is a combination of intangible promotion programs in the four key elements, namely the promotion through advertising, through publications, through sales promotion, and through personal selling.

Place is about distribution strategy we want to do. There are three models of distribution, exclusive distribution, selective distribution and intensive distribution. Exclusive distribution distribute only to market products and services on limited outlets in order to maintain the prestige and reputation of the products. Intensive distribution distributes products to all types of markets.

Pricing is related to our strategy in setting product prices. As mentioned above, for products with a strong differentiation, we can set a premium price, such as Harley Davidson motorcycle and Porsche. There are three types of pricing strategies. The first is the cost-based pricing strategy, in which marketers determine the price by calculating the costs, overhead costs, and then adding the desired profit margin. The second strategy is demand-based pricing strategy, or marketers to determine the price after examining the customer and ensure that the price range acceptable to the target market. The third one is a strategy based on the pattern of price competition. Here marketers determine the price based on the conditions offered by competitors’ prices. The price may be below the market, according to the market, or on the market, depending on customer loyalty, reputation, and competitive environmental conditions.