What are the 5 Ps of the marketing mix and how can they help you grow your business
What are the five Ps of marketing? The five Ps or elements of the marketing mix are product, price, place, promotion, and people. Originally coined by Jerome McCarthy in his book, Basic Marketing: A Managerial Approach, they provide a useful template for developing a marketing plan. Additionally, these are key components your business must focus upon to succeed.
1. Product
Understanding how your product solves your market’s problem in a way that is different from your competition is crucial. Many new businesses fall short when they fail to examine the value of their products or services in a way that is unique from their competitors. This often leaves them wondering why their business isn’t getting off the ground when they are making similar products or services available as the competition.
You should have a strong understanding of how your product solves a problem differently than your competitors.
2. Price
If you’re in business, then your goal is to sell a product or service for more than it costs. You know how much your product costs you to make, or how much it costs you to have someone else make it (in which case you want to add a reasonable profit margin on top of their cost). But you need to realize that merely setting your prices equal to cost is not good enough; you are competing against others who likewise decided that their products are either worth the cost or worth putting a profit on top of the cost. Depending on what kind of business you run, people will pay a different amount for your product. It might be a lot, it might be a little, it might be somewhere in between.
3. Place
Where do you plan on selling your products or services? Are you starting an e-commerce store? A brick and morter? Both? Thank about how you will connect and interact with your customer base and how you will deilver your product/service.
If you’re starting something online will only use your own website or maybe third parties like Amazon, Walmart.com, or Ebay? The main takeway away is creating the right experience for your customer whereever they are looking for your product/service.
4. Promotion
No matter how good your service or product is, someone has to know about it for you to get any business. But, how are you going inform people about yours? Are you going to generate word-of-mouth marketing in which your customers or clients tell their friends how great your products or services are? Or, are you going to send out a general mailshot blast mass mailing every Tom, Dick and Harry?
Whichever marketing channels you decide on, one thing remains the same. You need to clearly convery the value of your product by showing how it benefits the customer.
5. People
One of the most important investments you will make in your business is who you have help you and your sales team perform to their fullest potential. Salespeople and other employees are working hard every day for your business and they should be treated with respect. By providing a professional work environment, competitive compensation, and plenty of & training, you will reap the rewards of a positive team that produces excellent results.
This is the newest addition to the marketing mix. Previously it was referred to as the “4 Ps” of the marketing mix.
How to Use the 5 Ps of the Marketing Mix Effectively
Each of the five Ps has a particular role to play. Positioning relates to what you’re trying to accomplish in your marketing program, what you’d like that business to look like once you’ve finished, and who your target audience is. Remember that these Ps are all not just about making money – they’re about achieving your objectives!
Just like everything else in today’s digital age the 5 Ps of marketing are not static. Your 5 Ps should constantly evolve to fit your market. If your customers adopt a new way of shopping (think the growth of e-commerce) you should find ways to fit your offering to their appetite. Study the analytics of your business and monitor customer behavior with your business and in the entire market. If you are the first to uncover a new marketing channel or gap in the market you could b the first to capitalize on a lucrative business.