In the fast moving world of marketing, understanding the fundamental pillars is key to crafting successful strategies which will resonate with your target audience and drive business growth. One of the most popular and well discussed concepts is the 5P’s of marketing, which makes up what is now known as the classic marketing mix. Each of the parameters can be easily adjusted to suit the strategy in place, and in this blog, we’re going to uncover what this means and how it happens.
What Are the 5P’s of Marketing?
As we touched on in the introduction, the 5P’s of marketing is a well renowned concept that creates the marketing mix which is adapted to create many of the most popular marketing strategies across the world. Each area helps you consider what actions you need to take to improve your business, meet your customer's needs and stand out from your competitors.
Although the origins can be traced right back to the late 40’s, the 5P’s of marketing were later popularised by “the father of marketing” Dr. Philip Kotler. Initially, the 5P’s were made up of 4, price, product, place and promotion, and later people was added to the mix, which we’ve broken down into a way which is easy to digest.
Product
Your product is the offering which your business services for your customers. This can either be tangible (a physical item) or intangible (like services or digital items). The areas in which you’ll look to consider the product in your marketing mix include the functionality, branding, service, quality and appearance.
A great way to decide what to write when considering your product includes the key features and benefits and how they meet the needs and wants of your customers. For example, if you sell custom jewellery, you might want to make note of the variety of colours, shapes and styles which could help you expand your range.
Place
This element showcases how you’ll get your offerings to the customers at the right place, at the right time and in the right quantity. When you think about the place side of your marketing mix, you’ll need to consider the distribution channels (such as physical and online stores), locations, logistics (how you’ll transport your goods/service), service levels and how big the market is in the area.
When considering the place element, you might want to consider how much market share you have in a specific area, or what your customer's browsing habits are online. These considerations will help you consider the best platforms to promote your goods, such as social media channels and websites, along with any new areas you can expand your physical business.
Price
No matter what type of business you operate, the price element of the marketing mix is going to be key to ensuring that your business succeeds as it refers to the way you set your pricing structure. When referring to price, you’ll want to consider your selling price, discounts in place, price to buy/create your offerings, sales volumes, credit terms and payment methods.
It’s key to note that pricing is going to be a big factor which customers will consider, so taking the time to correctly price your products in your marketing strategy will enhance your business's success. Great ways to make decisions on setting your price include evaluating your competitors, understanding the strength of your market and ensuring that the price reflects your brand proposition and placement in the market.
Promotion
Promotion often goes hand in hand with place, and you’ll likely find some overlaps between the two when considering your full marketing mix. To cut a long story short, promotion is the element which considers how you promote your product, from running ad campaigns on specific websites to how you can make more sales using roller banners.
When you deliberate your promotion strategies, you’ll want to consider every single way you’ll look to sell your product and how it will increase your revenue. Common promotion strategies you may want to consider include -
- Affiliate marketing.
- Social media marketing.
- Direct sales.
- Press launches.
- Email campaigns.
- Influencer strategies.
People
The final P which was added to the marketing mix was people. This element covers every single person who interacts with your business, including your staff and customers as they are what make your business either succeed or fail. Every solid marketing strategy heavily considers people, from their buying behaviour to the role they play in promoting your business.
When it comes to creating your strategies using the marketing mix, you’ll want to take a few steps back to think about how each person is going to ensure that your business succeeds. From the training opportunities you’ll offer your staff to who your target customers are and how you can meet their needs and wants, this is the most personal part of any good marketing strategy, so will likely need the most time and consideration to provide clarity to your whole plan.
Why Are the 5P’s of Marketing Important?
Using the 5P’s of marketing assists you with making strategic decisions and focusing on what you need to do to meet your main marketing objectives. Establishing a framework helps your business to identify the areas which require more attention, or what tweaks can be made to increase your levels of success. For example, it may help you realise that the price points you’ve got set don’t match your target market, or alternatively, your brand proposition may not align with your target audience.
Additional P’s
As time goes by and strategies evolve, some marketers have argued that there are additional P’s which need to be considered within the marketing mix for a successful strategy. Now known as the 7P’s of marketing, the additional P’s are -
Process
We know that to operate a successful business, you’ll likely have a number of processes you follow to ensure consistency throughout which is where the process element comes in. This part of the mix helps you consider the whole customer experience, from discovering your business right up to making a purchase and beyond.
We’ve all had varying experiences with businesses, from those who we felt went above and beyond right down to being frustrated on hold for long periods of time. By ensuring that your processes are regularly considered in your strategy building, you can be sure that you’ve got a laser like focus to create the best possible experience for customers which mirrors the positive experiences you’ve had in the past.
Physical Evidence
From a customer's point of view, it’s always a risk when you’re buying something new, or trying a service that you’ve never used before because there’s nothing to help you prepare yourself. This is where the physical evidence of the marketing mix comes in handy. Physical evidence helps you alleviate your customer's uncertainty by providing them with evidence so they can see what they’re parting their money with.
There are various ways you can implement physical evidence into your existing marketing to provide your customers with the information they need to make an informed decision including -
- Testimonials on your website or marketing materials from previous customers.
- Imagery and videos showcasing examples of the products in action.
- A clean setting which attracts the customer's eye, whether that be at your physical premises or homepage of your website.
- Free trials to allow customers to try the product/service before they buy.
In Conclusion
The 5P’s (or 7P’s) of marketing are key pillars to helping you build and define your marketing strategies going forward. By making the most of this framework, you can link all of the elements which work together to turn the cogs of your business, leading to building a foolproof strategy for success. You’ll notice that each of these elements connects with each other, for example, you can’t set a price without creating your product, meaning that by using the marketing mix, you’re able to frame a full picture for your marketing, giving you more ways to think outside the box.
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