As a business owner, you will almost certainly have competitors. But how should you deal with competitors when they arise?
The 4 P’s of competitor analysis are a powerful marketing strategy you can leverage to better understand competitors’ businesses and improve your own.
So what are the 4 P’s?
What do the 4P’s Stand For?
The 4 P’s are:
- Product
- Price
- Place
- Promotion
In the next section, we will explore each one of these marketing mix aspects in some detail, with examples.
Product
Understanding what your competitor is selling is crucial. It can help you understand who the product or service is for and what makes it unique.
The type of product it is will affect pricing, placement, and promotion. Forming a marketing campaign begins with understanding the product itself.
Example 1:
A local roofing company offers emergency roof repair. Knowing this keyword helps them run Google Ads targeting searches like “roof leak repair near me” and “roof replacement cost.”
Example 2:
A small fitness studio offers guided group classes. This allows them to create Google Ads that promote “beginner-friendly classes” or “group training included,” appealing to people looking for more than just a standard gym membership.
Price
Price seems pretty self-explanatory, depending on the product’s real value and what people think it’s worth. A lot goes into this, though, with discounts and price changes being strategic to generate sales.
Determining discounts is important because the goal is to increase sales without decreasing the product’s perceived desirability. If a discount is too low, people may think no one wanted it in the first place and turn away.
Leveraging ad extensions for this on Google to showcase special discounts and offers directly in the ad makes it more compelling to the viewer.
Example 1:
A local home cleaning service sets its prices slightly higher than competitors and makes a point of “licensed, insured, and 5-star rated” in its Google Ads. The higher price signals quality and reliability to the customer, helping them feel more confident that the service is worth the price.
Example 2:
A local service business running Google Ads may promote a limited-time discount (such as “$25 off your first service”) to make the price feel more worthwhile and attractive to new customers, getting bookings quickly.
Place
Place is where the product should be placed. It means how the product should be displayed to put it in front of the most potential buyers.
Placement can also refer to the advertising used for a product to get attention from the target audience of consumers.
Marketing campaigns may use geolocation to market to specific groups of people,
Example 1:
A local plumber runs Google Search ads that appear when people in the local area search for “emergency plumber near me.” The ad is placed at the top of Google search results due to the local targeting, ensuring the business is seen first by customers who are most relevant for the service.
Example 2:
A local pizza restaurant makes use of Google Display Ads in its marketing campaign that show images of their daily specials on local news websites and blogs. The ads are placed in front of local residents, which helps to keep the restaurant on their mind when customers think about what to eat.
Promotion
How a competitor chooses to promote their product and what they use to make it look better than it is or to get it in front of the target audience is promotion.
Promotion is used to tell consumers they need a product and that it is priced accordingly.
Even where the product is located on a competitor’s website, or what sorts of searches it shows for qualifies for promotion.
Example 1:
A local HVAC company runs a marketing campaign with Google Search Ads using promotional language such as “$79 AC Tune-Up – Limited Time” and “Same-Day Service Available.” These promotions help to make the service appear urgent and valuable, encouraging homeowners to click and follow through with an appointment.
Example 2:
A small landscaping business uses Google Display Ads in its marketing strategy that highlight 5-star reviews, before-and-after photos, and a free estimate offer. By promoting special offers and credibility in its ads, the business appeals to more customers and makes the service seem worth the price through this promotion.
2 Examples of Using the 4P’s In Google Ads
Here are two Google Ads for the search “find a dentist near me.”:
Example 1: Zocdoc Ad — “Find a Dentist by Insurance”
Product
By analyzing the Google ad, we can determine that the product is easy online dentist booking.
- Offers “Search by Insurance” – this tells us that insurance us probably an important consideration for people looking for dental services
- Specific Features – The ad calls out some particular features people are likely looking for, including In-person or virtual visits, real-time availability, and in-network doctors
- Convenience and access – taking a closer look at this ad helps us to undertand that Zocdoc’s product is actually convenience and access
Price
Let’s look at the ad and analyze how Zocdoc is handling pricing.
- Low Risk – Zocdoc’s ad does not display a price, conveying low risk to the customer.
- Cost Savings – Emphasis on “in-network doctors” implies cost savings through insurance rather than discounts.
The perceived price in this Zocdoc Google ad conveys that “This won’t cost you extra.”
Place
Looking at Zocdoc’s ad, we can see that the place is relevant to local search and is targeted to “near you”.
- High Relevance – The ad appears at the top of Google search results when someone searches for a dentist.
- Attractive to Target Audience – This ad achieves placement well, as it reaches users at a high-intent moment (they are actively looking).
The placement of this Zocdoc Google ad is perfect for urgency-driven healthcare searches.
Promotion
Examining Zocdoc’s use of promotion in this ad shows how they appeal strongly to availability and security.
- Strong Promotional Elements:
- “Find a Dentist Near You”
- “Book now”
- Star rating (4.0 with nearly 4,000 reviews)
- Trust and Security – Signals trust and ease of use with wording that reduces friction for the customer.
Zocdoc’s promotion focuses on simplicity, speed, and trust.
Example 2: Opencare Ad — “Find Top-Rated Dentists Nearby”
Product
Opencare’s product is dentist matching with added incentives.
- Security: Insurance accepted, curated top-rated dentists
- Incentive: Reward for booking
Opencare’s product combines recommendations and rewards.
Price
Looking at the price for Opencare’s ad, we can see a few things motivating customers.
- Explicit Price-Related Incentives:
- “100% Free for Patients”
- “$50 Reward for Your Visit”
This frames the product as zero-cost, with an added bonus for non-patients, thereby increasing perceived value.
Place
Examining the place aspect of the Opencare ad, we can see it is also very targeted.
- Relevant – Also placed at the top of Google search results.
- Location Specific – Targets location-specific searches (“near me,” “Las Vegas”).
Opencare’s ad has strong local placement that is aligned with search intent.
Promotion
Opencare’s ad promotion uses common tactics to signal trust to the consumer.
- Aggressive Promotional Tactics:
- “Top-Rated Dentists”
- 4.9-star rating
- “$50 Reward”
- “1M+ visits in past month”
This ad’s promotion leans heavily on social proof and incentives to stand out and look credible and well-known.
Quick Comparison
| 4Ps | Zocdoc | Opencare |
| Product | Easy booking platform | Dentist matching + rewards |
| Price | Implied insurance savings | Free + $50 incentive |
| Place | Google search (high intent) | Google search (high intent) |
| Promotion | Convenience & trust | Social proof & incentives |