Marketing is composed of 5 key elements that every business needs to have a full understanding of in order to drive sales within their organization. By understanding each of these elements, you can create … Please keep in mind, each element doesn’t fall into a specific order of importance.
The first P of marketing is Product. A product is considered a tangible or intangible product or service that adds value to a business or individual. Product is one of the most important P’s of marketing because without an actual product, the remaining P’s of marketing would not exist. So it is very important as a business to identify what your product or services are, what makes each product or service unique, what are the advantages or disadvantages of your product(s) because that will help you with identifying the remaining P’s of Marketing.
The second P of marketing is Price. After identifying the value of your product or service, developing a pricing strategy will help you determine the best way to capitalize on each product. Some of the determining factors of price is time, competitive analysis, industry, cost of production and experience. It is very important to identify a pricing range for your product or service because it will allow you to determine a pricing strategy that will allow you to penetrate into your market.
The third P of marketing is Promotion. Promotions is a marketing tool used to attract more potential customers for your business through discounts, giveaways and advertisements. It is very important to understand where your promotions will fit into your pricing strategy because that will affect your overall price of your product or service, especially if you are looking to make any profits.
The fourth P of marketing is Place. Where will you be looking to sell or distribute your product or service? Will you be placing your product or service on your own website, social media, in a store, magazine in order to build brand awareness around the product(s) offer.
The final P of marketing is People. Each product or service will cater to a specific targeted demographic, and it’s up to you to determine how your product or service will solve a problem that your ideal target audience is facing or how the product adds value to their life. Lastly, people who receive your product or service will be the best people to get more insight about your products in order to find ways to improve the product or services you offer, which then can lead to new products or services that will allow you or your company to add value to your target audience.
Examples of the 5P’s of Marketing
Zion owns a handmade bowtie boutique catering to fashion forward business men 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 business men and women