Of the four “P”s, “people” are the most important. Without good people, good processes and good products only do so much. Simply put, the “right” people are effective while the “wrong” people can destroy a business. And what’s “right” for one business may not be for another. Furthermore, you can’t just look at someone’s résumé or college transcripts and tell that he or she is the right person. Sure, you can judge qualifications, but effectiveness is something businesses will pick up on (or not) in person, when they interview a job candidate interview and see how he or she interacts.
How well does a business develop and deliver the processes that make it run? Assuming a business has hired the right people, the second element necessary for success is having processes that make sense. Neither should they be needlessly complicated. Suppose you’re in the publishing business. Your product may be books, but the processes that go into turning outlines into drafts into manuscripts into proof copies have an enormous bearing on how efficient and effective creation of those books is. In most businesses, processes must adapt with the times, or the business risks being left behind by competitors.
In many cases, a company’s product is a tangible item: a tool, software package, article of clothing, or food product. But sometimes the product is a service, such as tax accounting, legal advice, or cleaning services. A great product alone isn’t enough to make a business successful, but it is essential, because people simply won’t buy irrelevant or inadequate products (or services).
Your customer will rate how important price is to them when looking at your competition. If you bring much more value to their needs, price will not be a very big factor. But if it's hard to discern the difference between your business and your competition, their price will become a factor.