Anyone who has studied business and marketing is familiar with the 4 P's of marketing: product, price, location and promotion. The model was considered as a form of control, both simple and educational. Businesses market to consumers. Products are created for their defined value and characteristics, prices are set, and market areas are selected for sale. The company's products and services are promoted through advertising programs, public relations, direct marketing and other similar forms aimed at meeting the public. Ultimately, it is the company that controls the message. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay Every business now competes in two worlds: a physical world (marketplace) and a digital world (“market space”). The future is here, and most products and services are now sold in the market (Tapscott, 2000). Pandora Radio has launched a music project that encompasses the 4 Ps of marketing and provides an overview of understanding the marketing mix. History of Pandora Radio A new music discovery project was launched in 2000. Tim Westergren created the Music Genome Project with the idea of ​​approaching and analyzing music analytically. The project analyzes the structure of a song and identifies similar songs that listeners might also like. Westergrens' original company was called Savage Beast. The concept created a database that took five years and involved more than 30 music theory experts. As of 2006, their library contained over 400,000 analyzed songs from 20,000 contemporary artists (Joyce, 2006). Pandora Radio has grown to become the radio app included in almost every compatible device. In 2010, the radio application was integrated into TV devices such as Samsung, Sony, Roku and others. A growing number of tablets like BlackBerry and Barnes & Nobel have started to implement the app and even in-car apps on BMW/Mini, Toyota, Ford and Hyundai. There was even a Wi-Fi enabled refrigerator from Samsung (Hampp, 2011). Founder Tim Westergren said: “Smartphones have truly transformed Pandora into an anytime, anywhere service without us having to do anything. » The company grew from 40 million to 75 million users in a span of 12 months in 2010. During that time, Pandora had more than 40 strategic content partners across more than 400 different devices and was considered only as a start (Hampp, 2011). ). While the company was in a phase of exponential growth, it became one of the most powerful music discovery platforms. Pandora achieved this by connecting artists and fans across multiple devices. The history of Pandora Music has had a huge impact on the music industry. Now well on its way, the company must develop the next area of ​​the 4 Ps; price. Pricing strategies are a vital marketing function for short and long term profit. Pandora Radio's media discovery platform competes with such major companies as Apple Inc., Microsoft, Facebook, Twitter, Netflix, Amazon.com and Spotify. In 2016, Pandora added Ticketfly, a ticket distribution service that would target local concerts. on the user's musical preferences. In 2017, the company added Pandora Premium allowing users to specify songs to play instead of creating a station with a limited number of skips. They also increased the number of skips with ads and now offer offline access.According to The Motley Fool, in 2016 Pandora had around 78 million active users and by 2020 they aim to increase this number to 110 million. Advertising revenue per 1,000 hours of viewing in 2016 was $58 million. In 2018, 2019 and 2020, their revenues are expected to reach $60, $70 and $80 million, respectively. A consolidated view of the company's business model for 2020 can be seen below (DiPietro, 2017): Metrics (in millions of dollars) Core Radio Premium Ticketing Consolidated revenues $2,400 $1,300 $300 $4,000 Costs of content $1,160 $850 N/A $2,010 Ticketing costs N/A/A $180 $180 Other revenue costs $115 $15 N/A $130 Gross margin 47% 34% 40% 42% Operating margin 18% 10% 15% 15% According to Reuters.com, Pandora Media's revenue and earnings per share in 2016 were $392.6 million and in 2017; $395.33 million. Although Pandora Media has faced increased competition and declining user numbers in recent years, its business plan focuses on new methods to target its customers and hopefully achieve its goals. for 2020. Location The term “marketing mix” was coined by Neil Borden. The “mix” constitutes the fundamental elements that make up the 4 Ps of marketing refined by E. Jerome McCarthy (PurleyBranded.com, 2018). When combined, the 4 Ps drive Pandora's unique selling points and differentiate it from its competitors. The next “P” of marketing is promotion. Promotion includes things like advertising, social media marketing, search engine marketing, public relations, email marketing, and video marketing. The Pandora brand must be well positioned to truly maximize its return on investment. In 2015, 10 years after Pandora launched, the company rolled out its largest brand marketing effort. The multi-channel campaign was used to further distinguish it from competitors like iHeartRadio, Spotify and Apple Music. The marketing director at the time, Simon Fleming-Wood, says the company was finally at a point where it had the capacity to invest in marketing. This was driven by 67% revenue growth from its local advertising revenue. The closest thing Pandora had to a brand campaign before was the digital-only “Thumbs Moments.” Pandora begins its new campaign by releasing a video ad online and then moving to television later. The advert promotes the slogan "The Next Song Matters" which celebrates the anticipation of knowing which song is next. Fleming-Wood manages 5 teams; a growth marketing and analytics team; a business development team, focused on “getting us into cars and the next generation of places where music listening will happen,” and Pandora One, its subscription business. He also oversees a public relations and communications team. In its first year, they launched a campaign called “Now Playing,” used to measure impact across different loyalty segments. This led to “Thumbs Up” and “The Next Song Matters” (Rooney, 2015). In recent years, after the exit of Fleming-Wood and the entry of the former owner and CEO, Tom Westergren, the company, in addition to its traditional Internet service, has expanded its services through applications aimed at users of mobile devices, including Apple's iPhone and iPad, Blackberry, and Google's Android operating software. Pandora uses display ads on its landing pages and has launched a program that allows advertisers to sponsor free streaming of new albums before they are released., 2017).