Understanding the 5 P’s of marketing is important if you are to position your business in a strategic way. The 5 P’s are as follows:
These are the five variables that owners and managers need to control in order to ensure their target consumer base is satisfied, their business is differentiated from the crowd, and that they are continually adding value to their company.
With that in mind, we are going to take a look at the five P’s in further detail, helping you to understand how they pertain to your business.
Firstly, we have people! This refers to the people that work for your business, including your salespeople and staff. You need to consider how you want customers to perceive your employees. After all, they are an extension of your brand.
This ‘P’ references where your service or product is seen, made, distributed, or sold. It’s all about your channels of distribution and how your product gets to your customers.
It is vital to think about how accessible your service or product is. You need to make sure that customers can find you with ease. The service or product also needs to be available to consumers at the right place and time, and at the right quantity.
Promotion refers to the activities that you engage in to make your company more known and visible. It includes the likes of PR activities, advertising, and sponsorships.
You will need to carry out a break-even analysis when you are making promotion decisions, as costs can be high. It is vital to understand the value of a consumer and whether or not carrying out promotions to acquire them is going to be worth it.
Next, we have the price, which is all about the pricing strategy you use for your products and services and how this will impact your customers. Your pricing decisions extend further than the selling price. They also include credit terms, payment arrangements, and discounts.
You need to think about your position in the existing marketplace when you are deciding on a pricing strategy. For instance, if your company is marketed as a high-quality provider of a certain product, then your pricing needs to reflect this.
Last but not least, we have the product. This refers to the products and services you offer. There are many product decisions that need to be made, including those regarding quality, warranties, appearance, packaging, and function.
It is vital that customers understand the benefits and features your product brings. This is why it’s so important to have a page on your website really explaining what you do, like this. Think about what issues your product solves and what would compel a person to purchase it.
So there you have it: the 5 P’s of marketing. Hopefully, you now have a better understanding of these factors and how they have an impact on your business in terms of growth, delivering value, and standing out amongst the competition.