This answer only explains the inequality
$$p^3 + 3p^2 + 3p + 1 ≤ p^3 +p^3 +p^2 +1$$
you said your book gives. I won't speculate on how they proceed from there to the full result and/or how you could have circumvented using this inequality altogether. (See some of the other answers for more on that last point.)
What they do is for each term on the left find a term (on the right) that is at least as big. So we really have 4 inequalities:
$$p^3 \leq p^3$$
$$3p^2 \leq p^3$$
$$3p \leq p^2$$
$$1 \leq 1$$
I guess the outermost two are obvious. To see why the other two hold, remember that $p^3 = p \cdot p^2$ and $p^2 = p \cdot p$.
UPDATE: the above explains why the inequality is true, but it dawned on me that perhaps your question is how they came up with the terms on the right hand site in the first place.
The answer is: they want, on the right hand side terms that 'look like' $p^3$ because $p^3$ is something they can handle. The reason for that is that the Induction Hypothesis tells us that $p^3 \leq 3^p$, so applying the IH takes us finally away from the world of $p^\textrm{something}$ to the desired world of $3^{\textrm{some expression in } p}$.
But in order to do that, we need our $p^\textrm{something}$ to be in the specific form $p^3$.
Hence replacing two out of four of the annoying terms on the left hand side by the more beloved (because appearing in the IH) $p^3$ is already pretty good. And I speculate that their next move will be to note that $p^2 + 1 \leq p^3$ (for $p \geq 3$)so that we can write:
[all the previous stuff] $\leq p^3 + p^3 + p^3$.
Now we are in a position to apply the Induction Hypothesis to obtain
[everything we talked about so far] $\leq 3^p + 3^p + 3^p$,
from which it is only a small step to the final answer.