Either reaching out to your customers or increasing your profit, you need to capitalize on your brand’s marketing.
Once you develop your marketing strategy, you should follow the 5 Ps of marketing formula to reevaluate your business endeavors.
The 5 Ps of marketing is also known as the marketing mix, which includes the product, price, place, promotion, and people.
The concept lets businesses use a combination of strategies to entice the audience to buy.
In this article, we’ll see the 5 Ps of marketing in detail and how you can use them effectively in the real world.
Introduction to 5 Ps of Marketing
As a marketer, I’ve used a lot of different tactics to increase the profits of businesses.
And, believe me, I didn’t find any better strategy than the marketing mix.
I’ll try to uncover all the 5 Ps of marketing mix aspects to improve your strategies and outrank your competitors.
Without making you more anxious, let’s have a look.
A product can be anything like a physical product, a service, information, etc., that benefits and satisfies the needs of customers.
To begin with, you first need to tell your audience what your product is. And how your product differs from your competitors.
Before you showcase products to the prospects, you have to be clear and specific about the benefits you’re offering.
For that, you need to really ask some critical questions to yourself, such as:
- Is your product suitable for today’s market?
- How does your product solve a specific problem?
- Are there any physical attributes of the product that customers should know?
- Compared to your competitors, does your product offer more benefits?
Determining your product’s price is the most crucial part because it has a direct impact on your product’s success.
To standalone in the market, make sure you’re offering competitive prices and not undervalue the product.
You have to reexamine your product’s price continuously to validate that the cost is appropriate to the current market.
Below are some of the questions that you should consider before finalizing the price of your product.
- Does the price match the quality of your offering?
- What’s the ongoing price for the same product in the marketplace?
- What are the margins for everyone in the distribution channel?
- Are customers ready to pay for the extra benefits you’re providing?
- Are you generating enough profits to sustain in the market?
- Can you provide a promotional offer or discounts on your product?
Tip: Offering the best price value to both your customers and the company can grow your business exponentially.
The place is the location or channel where your product can be found. So, you should make your product more accessible and visible to the prospects.
Nowadays, your virtual place is more important than that of a physical location as people tend to buy online more.
To identify the ideal location for your product, you have to determine the following questions.
- What is the geographic location of your target audience?
- In how much time can you provide your product to customers?
- Is your product available on both offline stores and online platforms?
- Do you distribute products yourself or use third-party platforms such as Amazon?
Your product is top-notch, has the best location and competitive price, but without promotion, you won’t reach out to customers.
Start spreading a message about your company’s vision and values – the customer’s problem you’re solving.
The promotion may include various distribution channels such as offline marketing, sales promotions, telemarketing, online advertising, and more.
To craft the perfect promotional campaign, you need to figure out the following:
- Does your competitor do promotions?
- Can you promote your products more than the competitors?
- Do your promotional messages entice prospects to buy your product?
- Are you going to promote your brand everywhere (both offline and online)?
The final and most important P in the 5 Ps of marketing is People. To be successful in business, you always have to build relationships with your customers first and provide a great user experience.
You need to understand your customers concerning:
- Demographics – Age, Gender, Education, Occupation, and Life Events
- Geographics – Location segmented into cities, regions, states, countries, and continents Interests and Behaviors
Suppose you’re an owner of a vegan restaurant, then promoting it among the non-veg society will drown your business in no time.
That’s why understanding your people (or audience) is crucial.
While focusing on customers, don’t forget your internal people, as they are also essential to grow your business.
In many cases, businesses fail to grow because they don’t put the right people in the right position in the company.
How to Use 5 Ps of Marketing Effectively
By implementing the 5 Ps of marketing, you ensure that you reach the market with your product by the best practices possible.
It gives you an overview of what’s working for you and what’s not. So, you can plan your next move accordingly.
Moving a step ahead, you can further divide each 5 Ps of marketing mix as shown below.
Source: Corporate Finance Institute
Imagine you want to open a café in New York City, and you want to create the 5 Ps of marketing model for the same.
The model will be followed as:
Product – Firstly, you need to introduce a new dish that people haven’t experienced in New York City or nearby.
Price – The price should be affordable so everyone can try the dish once. The customer should feel worth paying the bills.
Place – According to your dish, your location can vary from nearby beaches to the workplace.
Promotion – You know the delicious and exciting taste of your dish, but you need to promote it like no one can experience the taste of the same dish in America.
People – You should make the customer’s experience worthwhile to enjoy the dish till the last bite.
Irrespective of your business industry, the 5 Ps of marketing will always help you to get your marketing base covered.
By practicing the 5 Ps of marketing, you can make sure you’re on track and accomplishing the best results possible.
It’s a must-have strategy for every marketer out there.
Don’t just invest in my words; instead, implement first, and if you find it worthwhile, then go for it.
Have you ever applied the 5 Ps of marketing for your business? Tell us in the comment section below.