The goal of marketing is to attract customers to your brand. As a result, marketing is an essential component of your business strategy. A good marketing strategy is also required for your business to succeed. But how do you make a good marketing strategy? That’s where the 5 Ps of marketing come into play.

The legendary Edmund Jerome McCarthy is the author of  the 4ps of marketing during your academic career. However, there is an important piece missing in his theory that would make perfect sense to include, people. And this is where the 5th “P” enters the picture.

Without the 5 Ps of marketing, your business strategy will not function properly. These components, also known as the marketing mix, comprise a strong marketing strategy.

But what exactly are these marketing mix? What are the 5 Ps of marketing? And how can they be successfully applied to a strategy? Don’t worry; we’ll cover everything in this article!

Explaining  the 5 Ps of Marketing

So far, we’ve covered Product, Place, Price, Promotion, and People. Some experts add Process and Physical evidence to the mix, transforming it into the 7 Ps. Let’s take them one at a time.

Product

The product is something you have that caters to the needs of your customers. It is either tangible (a physical item) or intangible (a concept) (like digital items or services). We are all aware that the product is what you are selling and marketing. So the question is, how does it relate to marketing strategy? You must evaluate your product and connect the dots to the needs of your customers. A desire that does not exist cannot be created as a demand. If the customer is unaware of what your product does, they will undoubtedly have a need or desire that your product addresses and to which you must connect.

Marketing may also necessitate a change in the product’s or its positioning, referred to as a pivot. Or simply a feature addition based on user demand. Many Slack users, for example, frequently use Meet or Zoom for their calls. This is now available in Slack’s own app.

This expands the scope of marketing to include things like product distribution, the context in which customers of this product directly think of the product, habits, and how frequently they need to come to your product. That is why, in this day and age, we believe the ‘People’ and ‘Positioning’ sections are just as important as the ‘Product.’

Pricing

Pricing is a major factor in a customer’s decision. A customer will frequently vet all options before selecting one, especially if your competitors are easily accessible. As a result, a marketing strategy requires you to price your product correctly, taking into account not only what your customers can afford, but also what your competitors are charging.

When it comes to determining a pricing model, the following factors must be considered:

 

Internal costs – The costs of producing a product or running a business.

Competitors – How much do competitors charge for the same product?

Accessibility – How accessible are competitors’ products?

Purchasing power – How much purchasing power does your customer profile have in order to pay for your product?

Market condition – Is the market conducive to charging a specific price?

Model – How will you charge for the product? (Lumpsum, monthly, annual, and so on.)

Quality – Does the level of service you provide correspond to the price you intend to charge?

There are also some psychological aspects to pricing that require their own article. To give an example, many vendors frequently use a plan’s pricing to entice users to upgrade to a higher-priced plan. For example, if you can get 10 packs of chips for $100 and 30 packs of chips for $200, the latter appears to be a better deal even if you don’t need all 30. There are numerous other strategies that you can research. We recommend that you begin by reading about Porter’s five forces analysis for analyzing an industry’s competitive landscape.

 

Place/Placement

This second P is discussed using both place and placement. It consists of both location and placement. Let’s start with the setting. Where does your intended audience live? If you are targeting a specific geographic area, you must consider several factors, including the area’s population, purchasing power, and spending habits. You could also replace it with the type of company if you’re in B2B. A prospect in a developing country will not have the same purchasing power as a prospect in a developed country. With digital marketing, the lines are becoming thinner as you go global, but geographic properties must still be considered when marketing.

When it comes to ad placement, where you put your ads is extremely important. Are you putting them in places where your buyer already has intent to buy and is looking for something you already provide? (For example, Search Ads) Or are you putting them somewhere where they aren’t actively looking for something? (For example, display advertisements)

The platforms on which you place them have a significant impact on the outcome of your marketing strategy. Different websites, platforms, and communities attract different types of buyers, which you should keep in mind.

Promotions

Placement and promotion are intertwined, and there are some overlaps with what we’ve already discussed. Promotion is the process of promoting your product.

Do you want to run advertising campaigns? Would you like to send out outreach emails? Do you want to promote your products to specific demographics? Do you want to promote any specific websites?

The promotion encompasses all of the strategies you employ to sell your product, and it is what connects to revenue. Inbound marketing, direct sales, and press releases are all part of the promotion.

People

People, this is a big brain moment for you. The addition to the list appears to be self-evident but should be mentioned nonetheless. People include both your employees and your customers, and they are the lifeblood of your company.

Every marketing strategy must take into account people – their behavior, fears, psychosocial elements, and everything else that connects a person to a business.

When it comes to staff, they are your coworkers and employees. Who you hire, what motivates them, how they work, and the overall atmosphere in your company will all influence how your company grows.

We also must not overlook the significance of positioning in the minds of your target audience. To quote Wikipedia once more, “Positioning refers to the place that a brand occupies in the minds of customers and how it is distinguished from competitors’ products and differs from the concept of brand awareness.”

You can guess what your audience would say if you asked them to name three popular soap brands. However, if you ask the same audience what the top herbal soap brands are, you will most likely get different answers. That’s how positioning works!

It will take strategic planning, authentic messaging, and product packaging to frame your position in the minds of your audience. What is the differentiator that you want to highlight as the primary driver of purchasing criteria and customer retention? Are you positioning yourself in a growing category?

DFM has great infographics that explain the 5ps of marketing

 

Adding the other 2 to make a total of 7 Ps.

Process – The delivery of your products and services to your customers is referred to as the process. How do you get them to them?

 

Physical Evidence – What physical proof do your customers have of your product? Can it be examined? Is there a free trial if it’s digital? Do you have any customer testimonials or reviews? What are customers saying about your product on review sites like Capterra? Do you have any customers you’d like to show off?

You can as well watch this video by Authors Level Up on youtube if you’re not the reading type

 

5 Ps of Marketing Examples

Zion runs a handmade bowtie boutique for fashionable businessmen and women. Zion can use the 5 Ps of marketing to position his company in the following ways:

 

Product: High-end images of each Bow-tie, very nice packaging, and a thank you card with the owner’s signature.

Price: He would charge slightly more than his competitors, but use promotions to entice the same high-end clients to shop with him.

Offer a 15% discount as a promotion.

Place: He can open an online retail store and a low-cost storefront in his city’s financial district.

People: High-end fashion-forward businessmen and women are targeted.