The New 5 Ps of Marketing Strategy – You Should Follow Your Business
The 5 Ps of marketing are the key elements that are used in strategically positioning any business. The other name for these 5 ps of marketing is the marketing mix. These are the variables that business owners and managers control in order to satisfy the customers who are in their target audience. The elements also add value to your brand and help differentiate your brand from the competition.
Do you have a brilliant business idea and have considered all the strengths and weaknesses of your product? You could also be motivated and excited to see your business succeed. The only thing that you could be missing is marketing.
However, your marketing efforts cannot succeed unless you know the 5 ps of marketing. It is not about just creating a Facebook page or distributing a few flyers on the street. One of the best words to keep in mind is strategy.
The secret is getting to understand your target audience and know who they are. You also need to know where you can get them and their likes and dislikes. There should be no skimping on the marketing strategy. You need a comprehensive plan that outlines all the avenues that you can pursue to be able to reach your target audience.
The marketing mix comes into play at this point. You can use the 5 ps of marketing to market your products and services effectively. It is a sure way of growing your business to the desired standards.
What Are The 5 ps Of Marketing?
To succeed in business, you need a perfect combination of supplying the desired products, selling at an attractive price, choosing the right location, and using attention-grabbing promotional strategies. This narrows us down to the 5Ps of marketing which includes the Product, people, place, price, and promotion. You need to combine these 5 Ps of the marketing mix in the best way possible.
These tools will help you to increase the profits of your business within no time. The primary goal of all entrepreneurs is to maximize their sales and profits. When you implement these tactics in the best way possible, there is no way you will fail to achieve these goals. Here is a brief overview of each of these elements as used in the practice of marketing.
Literally speaking, the product is what you are selling as a business. It can range from cleaning services to bespoke furniture, and the list is endless. As an entrepreneur, you have to establish your product and make sure that you know it well.
Define The Purpose & Benefits Of Your Products
Define the purpose of your product and the role that it fulfils among your target audience. Some questions to ask include “Which furniture pieces and in high demand currently, and who will purchase them?” The other question could be, “How many households in the city lack time to clean their homes?”
After establishing the products and services that you should be selling, you should have a clear understanding of their benefits. You also need to know the things that differentiate it from your competitors.
You also need to take into consideration the overall functions of your product, including the packaging, appearance, branding, quality, warranty, and name. It has a critical role to play as you put together your marketing strategy.
Explain Why Customers Should Consider Your Products
There is a need for your target audience to understand the benefits, advantages, and features that they stand to enjoy when they purchase your product. Therefore, as you think about a product, consider the benefits, key features, and the wants and needs of your customers. Therefore, it comes top on our list of 5 ps of the marketing mix.
Suppose you own a bakery in one of the towns in India. You could be introducing a new cake line which is a mixture of angel food and red velvet. You should ask yourself why you are creating a new type of cake. You may want to introduce a fun and new thing that you believe your customers will love.
Analyze & Compare With Pre-existing Products
Go deeper to analyze why you think they should prefer this new cake over what they are already consuming. In your mind, the benefits could be that the cake is new and exciting. However, you should avoid using generic terms because the product is still unknown to your customers.
Your cake is delicious, yes, but this is the case with all the cakes in the market. Some descriptions are widely used in your industry and will not help you in grabbing the attention of your target audience. You need to get into the shoes of your customers.
Think of eating that cake and even sharing it with your loved ones. Let customers tell you about the cakes that take celebrations and make them more special. It is hard to move forward if you get it wrong at this point in the 5 ps of marketing.
You need to make a few considerations as you price your products. You need to analyze the production cost, transport, competitor’s prices, and your position in the market. The pricing element also encompasses the promotional offers you will run, free samples, and discounts.
Consider Adequate Profit Margin And More
You need adequate profit margins that also cover all the additional costs that you could be having like the delivery costs and advertising. You need to know how your pricing strategy will affect your customers.
Therefore, apart from the selling price, pricing decisions also include any price-matching services that you offer, credit terms, payment arrangements, and discounts. As you determine your pricing strategy, you have to determine the position of your business in the marketplace.
For instance, if your brand is publicized as a high-end supplier of electrical equipment, make sure your product pricing reflects that. Therefore, pricing is a great component when looking at the 5 Ps of marketing.
Let Your Product Decide The Price
You should never assume that your clients always want to pay less. In our cake example, deals are great but if the client’s perceived value of your product is higher than what you charge, you will significantly lose out on profits.
Besides, if you go to the market with a product that is unknown and at a price that is significantly lower than the competition, your target audience will look at the low price as an indicator of poor quality. The most appropriate price point won’t be very different from the products that are being offered by other bakeries.
However, you should also factor in the cost of the ingredients, equipment, and additional labour. You also need to look at how your close competitors handle their special products. In the end, the price of the cake should allow you to achieve the financial goals of your business. Your target audience should be more than willing to pay for your products. The same case applies if you are looking for the 5 ps of sports marketing among other products.
The place comes as number three in our list of the 5 ps of marketing. It basically refers to the location where your target audience will get your products. It could be at a storefront or online. You can also give your products to distributors like wholesales or supermarkets for display.
Right Place Returns Right Amount
You have to consider your audience and make sure that you showcase your products or services in the right place. If you don’t do so, you can be sure that they will not find you. Remember, this is the only means to get your products to your customers. Therefore, you have to use easily accessible distribution channels.
Therefore, the place is where your product or service is made, seen, distributed, or seen. In a real sense, place decisions are linked to the way of getting the product to the key customers that you target and the distribution channels.
Accessibility Of Your Product
Look at the accessibility of your product or service so that customers can find it easily. The product should be available to your target audience at the right place, time, and in the right quantity. You can provide the product in a retail store, over an e-commerce site, or through a third-party distributor.
For instance, as you market your new cake, keep off from the places that may create confusing or unfortunate associations. For instance, don’t hang a flier in a nightclub as the message will not likely resonate with people whose primary focus is to enjoy a drink with their friends and dance. Also, it won’t be viable to place the poster of your new cake close to a public restroom.
You can, instead, look for individuals who deal with special events such as baby showers, graduations, and birthdays among others. You can use your current customer base and the local community to spread the word about your new product. The other trick is to partner with a local restaurant to feature your new cake on their menu. You could also hang a new poster at a local party supply store or in your store window.
For your business to thrive, you need people, and these are the clients who buy your product or your employees. According to Richard Branson, employees and not customers come first. Just take good care of your employees, and they will give your clients the best service.
Right People, Right Product, Greater Profit
However, it does not imply that you ignore your customers completely. Rather, you need to hire staff that you are sure to have the capacity to take good care of your clients to keep them happy. Employees are ambassadors that present an attitude and appearance to the customer.
Therefore, you need people who are willing to lift up your business. You also need to know your customers as this will help you to deliver high-quality services to them.
In summary, people refer to salespeople, staff, and those who work for your enterprise. You have to centre all the people’s decisions around customer service when looking at the 5 ps of marketing. Think of how you would like your customers to perceive your employees. Treat your people with exemplary customer service by responding to their questions and catering to their needs. When you create the best customer experience, it will help you to enhance customer loyalty.
Promotion could probably be the most important P in the 5 ps of marketing. It basically refers to your sales and marketing efforts. After outlining the previous 4 ps of the marketing mix, it comes time to allow your people to know about the products or services that you are offering.
Define Your Promotional Strategy
At this point, you need to define your promotional strategy and also determine the PR activities in which you will participate. Also, look for the type of advertisement that will work and whether you will commit to any sponsorships. You should consider the element of costing and include them in your mark-up price.
Even though the marketing strategy is so crucial, we have so many small businesses that overlook it. The promotion puts together all the activities that make your brand widely known to your consumers. It comprises items such as public relations activities, advertising, sponsorship, and so on.
Assess The Cost Of Promotion
The costs of promotion can be substantial, and hence it is prudent to carry out a break-even analysis as you make promotion decisions. You need to understand the value of your customers and whether it is valuable to conduct promotions to be able to get them.
Don’t go for half-hearted promotional strategies, as they will sink your marketing efforts before launching. You cannot simply post an advert about the new cake on Facebook and hope it will get traction. You need to come up with a more comprehensive plan.
You can list the new cake as a limited-time offer and give those who want to try it a special discount. Putting discounts on various print marketing materials like newspapers to encourage clients to give it a chance and even promote the new product to their friends. Post it on social media and send an email campaign that announces the new arrival.
The 5 ps of marketing is a crucial business concept that you need to use to identify your positioning in the market and core structure. If you fail to outline these elements in your business, you won’t be able to run your business at an optimal level and attain success.