The marketing field in a business cannot function strategically without its 5 Ps in it to do their respective roles – product, price, promotion, place, and people.
These elements are considered as the variables that the owners and managers of the businesses control to satisfy the customers of their targeted markets. These elements together constitute the marketing mix that is predominately associated with the 4P’s of marketing, the 7P’s of service marketing, and the 4 Cs theories developed in the 1990s. Not only does it help monitor the target market, but it also adds value to the business plan and helps differentiate the goals and brand of a business from its competitors.
The decisions of the product or service have to be in such a way that the customer will understand the benefits, features, and advantages that can be enjoyed upon the purchase of it. When thinking about creating the product, one has to consider the critical highlights of it and how it can be embedded in the needs and wants of the customers.
Pricing strategy is the second P of the marketing mix that will affect the customers regarding the products and services you want to provide. The determinations in it involve not only deciding the sales price of a product, but also discounts, credit terms, payment gateway arrangements, or any other price-matching services offered along with the actual product.
Determining the price of a product is essential to consider, as it will directly affect the company’s position in the current marketplace.
For instance, if a company is advertising as a high-quality electronics equipment provider, then the product pricing should reflect that or else the strategy will look dubious as compared to the kind of features offered in the product/service.
It is the marketing mix activity where the business is made more and more known to the consumers that are targeted according to the marketing funnel. One can promote their business through sponsorships, public relations, and advertising activities.
Since promotions make a substantial dent on expenses, it is necessary to conduct a break-even analysis target when choosing promotion channels.
Hence, it is vital to know the value of a targeted customer, and their purchasing power to tell whether conducting promotions to acquire them would be worth it.
Place in marketing applies to where will the stock/service be seen, manufactured, sold, or distributed during the operational activities of the business.
Decisions related to place, in essence, are associated with ways of getting the item to the customers in a targeted way through various distribution channels.
It is crucial to make the product accessible in a way that ensures the customers can easily find you anywhere and wherever they might need you.
The product should be displayed and positioned in a way that the customers get to attain it at the right place and at the right time. For example, a company can decide to store and offer its products through e-commerce sites, retails stores, or through a third-party distributor.
People are the core of the marketing mix since they are the ones who are staff, salespeople, and those who work for the business. People’s decisions are usually focused on customer service; hence, you can staff your company accordingly.
So, how do you want your employees to be perceived by the customers of your product?
An Example of the Marketing Ps
Siya is considering to open a designer boutique for bridal wear collection. To devise a strategic plan, she can work out how to infuse the Ps of marketing in her business as follows:
Product: She can give out rentals to the brides who live in the city for a short duration of time, such as to attend their own wedding events, parties, bridal showers, etc. A liability form can be signed by the women renting out the outfits and a monetary deposit in case of damages.
Price: Bridal wear that looks classy yet reasonable in looks, fabric, and stitching might come expensive. She can give a discount of 10-15% on the deposit if the customer provides full payment instead of installments of the rent.
Promotions: A WhatsApp group, Facebook page, Instagram profile, and a twitter account can help her promote her business. Also, paid advertisements, exhibitions can help make her reach go out far outside the cities as well.
Place: A high-end location that is surrounded by joints of refreshments such as cafes, restaurants. Women tend to wander off to window shopping during lunch hours.
People: People here refer to the Expert designers on the call for the latest fashion advice, interns in fashion designing, friendly staff who love showing the elegant dresses to the customers who come in without an appointment.
She can focus on offering refreshments during the shopping as women tend to go through one shop at a time for hours.