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The 4 and 5 Ps of marketing

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The 4 and 5 Ps of marketing — you’ve probably heard about them from a friend, a textbook, or even at school.

The Marketing Mix 4 and 5 P’s is a significant tool to help you select and create the right marketing strategies for your business. It forces you to think about which areas of your business you can change or improve on, to help you meet the needs of your target market, add value and differentiate your product or service from your competitors.

Also Read: LinkedIn Marketing You Need This For Your Business

And no, it’s not just for large companies. The smaller you are, the more important it is for you to leverage the 4 and 5 Ps.

The 4 and 5 Ps of marketing

Although the 5 Ps are somewhat controllable, they are always subject to your internal and external marketing environments.

So before we dive into it, let’s first break down what they are…

What are the 4 and 5 Ps of Marketing?

The 4 and 5 Ps of marketing is a concept that summarizes the basic pillars of any marketing strategy.

The 4 P’s of Marketing are Product, Price, Promotion, Place, while the 5th P is People. They are key marketing elements used to position a business strategically. The P’s of Marketing, also known as the marketing mix, are variables that managers and owners control to satisfy customers in their target market, add value to their business, and help differentiate their business from competitors.

Understanding the 4 and 5P’s

What makes the 4 and 5 Ps of marketing so important that they have withstood the test of time, including the growth of the internet age? Below we break down each P and reexamine the ways that each has remained critical to marketing.

1st. Product

A product refers to any item that intends to satisfy the needs and wants of a target customer. It can be a tangible good, such as a clothing item or software, or intangible, like a service or experience (think legal services or a cruise). It entails Product decisions such as function, packaging, appearance, warranty, quality, etc.

Customers need to understand the features, advantages, and benefits of buying goods or services. Therefore, when thinking about a product, consider the key features, benefits, needs, and wants of customers.

The 4 and 5 Ps of marketing

As a business owner, you must always have a clear concept of what your products stand for and what differentiates them from the competition before they can be marketed successfully. Today, the internet can be considered the medium for purchase via e-commerce, or the product itself, such as a social media service. Because of this, it’s vital that you fully understand the product you are selling, how it meets the needs of your target customer, and what makes your product stand above the competition.

Some key questions that you need to answer include:

  • What do customers want from your product/service? Does it satisfy their needs?
  • What features of your product/service work to meet your customer’s needs? Have you missed out on any features?
  • How and where will the customer use it?
  • How will the customers experience it?

2nd. Price

Price refers to the pricing strategy for products and services and how it will affect customers.

Also, Read Google Market Finder, What is it and How it will Lead to Sales for Your Business

Pricing strategy is an art and science. It involves both market data and careful calculations, skillfully balancing between pricing that is too high or too low, and understanding how skewing, either way, might damage the brand.

Price refers to the monetary value of a product and the time or effort the customer is willing to expend to acquire it. Determining this will be a critical factor in revenue for the brand as it will impact profit, supply, demand, and how much marketers should spend on a promotion or marketing strategy. Pricing decisions do not include just the selling price but also discounts, payment arrangements, credit terms, and any price-matching services offered. This, in and of itself, is why this ‘P’ is one of the most important. If a product is priced too high or too low, the product – and brand – could fail.

When determining a pricing strategy, it is important to consider the business’s position in the current marketplace. For example, if the business is advertised as a high-quality provider of mechanical equipment, the product pricing should reflect that.

Some key questions that you need to answer include:

  • What is the value of the product or service to the buyer?
  • How will your price compare to competitors?
  • Are there any possible established price points for the product/service in this area?

3rd. Promotion

Promotion refers to the activities that make the business more known to consumers. It includes items such as sponsorships, advertising, and public relations activities.

Promotion refers primarily to marketing communications. These communications use public relations, advertising, direct marketing, email marketing, social media marketing, or sales promotions; think of it as any way marketers disseminate relevant product information to their target customers.

Promotion is the area that has arguably seen the greatest growth and change due to the digital age. With the exceptional access offered by B2C marketing solutions, marketers can now promote products easier, more effectively, and with more personalization than ever before, thus leading to greater outcomes and ever-increasing expectations.

Since promotion costs can be substantial, it is essential to conduct a break-even analysis when making promotion decisions. It is important to understand the value of a customer and whether it is worth conducting promotions to acquire them.

Some key questions that you need to answer include:

How will you reach your target audience?

Where will you send your marketing messages to your target audience?

How does your competition promote their product? Does that influence your own promotional activity?

When is the best time to promote?

4th. Place

Place refers to where the product/service of the business is seen, made, sold, or distributed. In essence, place decisions are associated with distribution channels and getting the product to targeted key customers.

The internet age has introduced new challenges when it comes to reaching your customers. Place refers to providing customers access to the product, and it also calls into play convenience for the customer. Through digital means or otherwise, marketing is about putting the right product, in the right place, at the right price, at the right time, in front of the customer.

It is important to consider how accessible the product or service is and ensure that customers can easily find you. The product or service must be available to customers at the right time, place, and in the right quantity.

For example, you may want to provide their products over an e-commerce site, at a retail store, or through a third-party distributor.

Some key questions that you need to answer include:

  • Where are target customers shopping?
  • Are they using desktops or mobile devices?
  • Are they shopping for similar products online or in brick-and-mortar stores?
  • Where are they engaging on social media?

Even though transactions with your company may take place exclusively in-store or online, customers likely interact with your brand or your specific products in various places. Therefore, it’s important to consider how each of these places influences the overall customer experience.

Also read: What Is Legendary Marketer, Things To Understand?

The above are the 4 PS of marketing, but the last P was added to make it the 5th P of marketing, which is basically the difference between the 4 and 5 Ps of marketing and the People.

5th. People

The people element refers to your customers, yourself, and your staff. You need to consider both your staff and customers if you’re thinking of growing your business. People’s decisions are usually centered on customer service – how do you want your employees to be perceived by customers?

It includes understanding your customers’ needs and wants, setting targets, and measuring your customer service levels to attract and keep loyal customers.

You’ll also need to consider staff training, so they have the skills to offer the best experience and meet customer expectations.

Also Read: Digital Marketing Understanding How It Works

Using the 4 and 5 Ps of Marketing

The marketing mix elements can be used to help you decide how to take a new offer to market or can be leveraged to help test your current marketing strategy. Follow these steps to define or improve your marketing mix:

  1. First, identify the product or service you want to analyze.
  2. Then, once you define your ideal marketing mix, try testing the overall offer from a customer’s perspective.

Here are some questions that can guide you:

  • Does it satisfy their needs?
  • Will they consider the price to be reasonable?
  • Where will they find this product/service?
  • Has your audience been targeted appropriately and reached by your marketing communications?
  • Continue to optimize your marketing mix by asking questions and making changes.
  • Review your marketing mix regularly to adapt to the constantly evolving market.

Flavor your marketing mix with the 4 and 5 P’s

Now that you know more about each of the P’s of marketing remember to balance them all together to build a delicious marketing mix that ensures you have a desirable product or service that your customers can find and buy at a competitive price.

The PS of the marketing mix is essential to creating a successful marketing plan. Without them, you can’t differentiate yourself from the competition.

No one cares for another me-too company. We all want something unique, special, something we resonate with.

How do you stand out from your competitors? First, you leverage the 4 and 5 Ps of marketing.

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