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What are 5 P’s of Marketing?

What are 5 P’s of Marketing?

5 P’s of Marketing elements are used to position a business strategically. The 5 P’s of Marketing are also known as marketing mix. Managers and owners control these variables to satisfy customers in target market to add value to their business and help to differentiate their business from competitors.

5 P’s of Marketing

The 5 P’s of Marketing are:

  1. Product
  2. Price
  3. Promotion
  4. Place
  5. People

Marketing Mix

ProductPricePromotionPlacePeople
FunctionalitySelling PriceSponsorshipDistribution ChannelsService Provided
AppearanceDiscountsAdvertisingTransporting of GoodsAttitude
WarrantyPayment ArrangementsPublic Relations ActivitiesService LevelsCustomer Service
QualityPrice Matching ServicesMessageLocationAppearance
PackagingCredit TermsMediaMarket CoverageEmployee Portrayal

 

Product

The services and goods offered by any business refer to product. Product decisions include function, appearance, packaging, quality, warranty etc.

Customers need to understand the advantages, benefits, uses and features that can be availed by buying services and goods. When thinking about a product, consider benefits, key features, needs and requirements of the customers.

Price

Price refers to your pricing strategy for a product or service. How the pricing is going to affect your customers? It does not include only selling price but it also involves discount coupons, refund policy, payment terms, payment methods and gateways, offers etc.

During pricing strategy, keep in mind your target market and audience. It is important to consider your business’s condition in market. For example, if you are focusing on quality and standards, your pricing should reflect that.

Promotion

Promotion is the way to make your business well known to consumers. It involves advertisement, public relations and sponsorships.

Break-even analysis should be conducted because promotional cost can be substantial. Promotions should be run only if they are going to benefit your business. You must understand your target audience and value of customer before spending money on campaign.

Place

Place refers to where you are going to manufacture your product or where you are going to work to provide service. It involves where product or service can be seen, used, sold etc. How products and services can be distributed and offered respectively.

Place is given importance to ensure availability of product or service in right time and quantity at right place to right customers. Because if you have quantity and right customers, but all of your customers are already equipped, it means time is not right. Similarly, if time is right, and customers are demanding your products and services but you are low in quantity, again you will face business loss.

For example, if you are targeting customers to sell online via eCommerce shops, you should target audience and areas only where you can ship products.

People

Employees of organizations refer to people. They may include sales staff, administration, suppliers etc. Their decisions must be centered around customer service. How do you want your employees to be perceived by customers. If your customer will be satisfied, you will gain business and profits.

Example of 5 P’s of Marketing

For example, Elise wants to sell shoes online in North America. Elise may consult 5 P’s of marketing in the following manner:

  • Product: She will be selling shoes to people online and provide after sales service or guarantee.
  • Price: If she wants to target only rich people and elite class, she can focus on branded shoes only. She can offer them 10% discount as compared to competitors if profit margin is available. She can offer discount to new buyers and provide first purchase coupon.
  • Promotions: She can use Facebook Ads, Google Ads and other digital and affiliate networks for marketing purpose. She can offer coupons and discounts in Ads.
  • Place: If she is targeting the people of North America, she should keep her warehouse and office in North America. It will not only reduce shipping cost but enhance trust among customers.
  • People: Staff should know English and they should be facilitating from placing order to shipping and even in after sales support.

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