Vintage Adidas Stan Smith

4 P

4P is a product centrically analyze for an offer or business model. Having said this one should understand that the method is quite engineering oriented and tend to focus on technical features.


As the title suggests the product is central in product management. Many inventors and engineers believe that if the product is good enough, it will sell itself – sad to say that is not the case. The product should match a need, be easily available both economical and geographical.


No matter how great a product is, it needs to be in the right place. For optimal results the product should be sold where an important market exist. For instance one should not start selling dessert sand in Sahara, since even if it can be done it is surely not the fastest way to success.


The right product in the right place is good, but not perfect. If the market and the customers do not recognize the product and its benefits, they cannot and will not try to find and buy the product.


A factor that is of quit important, is the price. It plays more roles than one might think. A low price is not always sending a purchase signal; it can very well make the product look inferior. In a world where the distances are shrinking, through for instance web shops, everyone has a competitor, and the customer has a clear view of what the price should be, to meet customer expectations.

The price is often much more than a number, which can be exemplified by the following: A Sales Manager is sitting in negotiations with a very ambitious Procurement Manager, who had a clear target; as low price as possible! The Sales Manager presented his offer, features and benefits – the counterpart did not listen and focused solely on the price.

The Sales Manager explained the basis of the price, and what important features of the offer that was part of this price. The counterpart wanted as low price per unit as possible. After a couple of rounds where parts of the offer was shredded to satisfy the notorious Procurement Manager they were coming to the end of the road, compared to the expected product. The counterpart has now started requesting a “rock bottom price” deep as the Mariana Trench. The Sales Manager thought it had gone a bit too far and gave in – he delivered a real “rock bottom price.”

The Procurement Manager shines up, signs the contract and asks “When can we get our first delivery?” “Delivery?” the Sales Manager asked, -“the price does not contain anything but price/unit and you can fetch the product from the tap on the tank over there.” “In what?” the purchaser asked. At this time the Sales Manager responded that this was not really his problem, since this part of the offer was of no interest for the Procurement Manager, only the lowest price possible. The purchaser’s case was not helped by the product being gaseous. The Procurement Manager understood that he might have done a bit too good job, and a round of more constructive negotiations was initiated.

Fact 21

We are glad to help you with this type of analysis, to determine if there are discrepancies in the offer. Soon as these are identified, an action plan is initiated to obtain a better balance in the offer. Contact us for more information on how we can support you: