Do you know how to differentiate your product or service from your competitors? Do you want to meet the needs of your target market? Are you familiar with the right areas of your business you should constantly improve on? Luckily, there’s a tool called the 5 P’s of marketing that answers all of these questions!
It helps you create the right marketing strategies for your business. It forces you to think about many business problems in a systematic way. It helps you provide more value to your customers, be a better employer, and drive more sales!
Some call it the 4 Ps of marketing, but we believe in an extra P. Also known as the marketing mix, here are the 5 P’s of Marketing – Product, Price, Promotion, Place, and People. We’ll discuss them one by one in detail below.
5 P’s of Marketing
Here’s the deal: If you want to position your business strategically, you’ve got to have a better product / service. It’s the thing people are going to use in the end. It’s that magic wand that solves the customer’s problem, and it is why they pay you the money. So the better product you have, the better positioned you are in crazy competition and the better you can be with the rest of the 5 P’s of Marketing.
Depending on your actual product or service, it can include function, packaging, appearance, warranty, quality, etc. It’s a good exercise to list out the different features and benefits of your products. For example, ask yourself these questions: What is it made of? What makes each product or service unique? What are the advantages of your product?
Whatever you do, don’t forget to address the needs and wants of your customers. Because in the end, it’s the customers who’ll be using your product or service!
Once you’re done studying your product to the bone, it’s time for a good, competitive price. Remember, the price can attract or repel many customers, so be mindful of how you choose a price.
A cheap price can attract lots of customers, but it may mean you have a low-quality product. On the flip side, a high price can make your product look premium, but it may repel lots of buyers. So, the key is to set it according to the position of your business in the market.
Think about how your customers see you. If you’re a budget decorating shop, your price should be way less than the more expensive products in the market. If you sell high-end jewelry, your pricing should reflect that choice. It’s also a good practice to look at your competitors.
Finally, don’t forget to include the overall cost, including the advertised price, discounts, sales, or other payment arrangements, in your price.
You have a good product. And, you have put a price tag on it that people are actually willing to pay. Now, look for ways to promote it.
The third P in our list of the 5 P’s of Marketing is Promotion, which includes all the activities and methods you use to promote your products/services. Be it ads, social media marketing, running your own website, or hiring influencers to promote it.
Now, promotion is not always free (unless you are willing to create all content by yourself and post it on your website, social media, etc. Side note: That’s going to take so much time to show results!).
So, you want to keep costs under check. A good practice is to conduct a return on investment analysis (ROI) when making promotion decisions. Remember, not everyone is your target audience. So don’t waste money on random people. Market only to those customers who need your product and are likely going to spend money.
Are you planning to build an e-commerce site? Or are you considering renting out a retail store? Or maybe, you want to avoid all the hassle and sign a deal with a third-party distributor. This P of marketing deals with where you’re planning to sell your products.
Here, your focus is to figure out places that’ll make your product seen, made, sold, or distributed. Think about different channels. Think of ways to get your product in front of your targeted key customers. Again, you want to make your customers’ lives easier, so make sure they can easily find you.
Consider distribution channels, logistics, market coverage, and levels of service. The goal is to reach the right people in the right place at the right time!
If we were asked to pick just one factor in this article, that’ll be people. The minute you realize that you’re in the people business, every part of your business is going to become better.
Think about it: Even if you’re selling robots, the makers and buyers of these robots are humans. Once you treat everyone with respect and think in terms of their advantage, you’re going to get far ahead in life.
Think about your customers’ needs and wants. Do things to make their lives a tiny bit better every day. Look for ways to improve your customer service level. That’s the only secret sauce to attracting and keeping loyal customers!
And don’t forget your employers, too! Get them the necessary training. Let them have flexible work hours. Don’t stress them with something they can’t handle. They work hard every day to satisfy your customers and grow your business. So treat them like your family!
An Example of the 5P’s of Marketing
Zion owns a handmade bowtie boutique catering to fashion forward businessmen and -women. To position his business, Zion may consult the 5 Ps of marketing in the following manner:
- Product: All high-end images of each Bow-tie, really nice packaging and a thank you card with the signature of the owner.
- Price: He would price it a bit higher than his competitors but use the promotions to entice the same high end clients to want to shop with him
- Promotion: Offer a 15% discount
- Place: He can open an online retail store and a reasonably priced store front in the financial district in his city
- People: Targeting high end fashion forward businessmen and -women
Contact a marketing specialist at WJJ Brands
Here’s the thing: The 5 p’s of marketing we discussed above may sound simple. But if you’ve never used them, they can be quite tricky because there’s so much thought that goes into each one of those p’s.
So your best bet is to work with an expert who will give you a personalized strategy that fits your business. For in-depth advice on how to best win your audience with breakthrough marketing, contact WJJ Brands today!