The definition many marketers agree upon is this: Putting the right product in the right place, at the right price and at the right time. Successful businesses know how to produce an item at a price that represents value to the customer and to their bottom line.
Reviewing the marketing variables you have control over to help you reach your target market and financial goals is a good place to start. These variables are your marketing mix. The 5Ps of marketing is one of the most common mixes used:
- Product: What Are You Selling? Connect the features of your product to a benefit for consumers by addressing what customers want from the product or service, what need it satisfies, what sets your product apart and the featured benefits of the product.
- Price: What Should You Consider? Pricing really comes down to operating margin. You’ve got to add up what it costs you and what it costs for labor and fixed costs.
- Place: Where Will Your Product Be Sold? If you want your product available at brick and mortar retailers, which type? And will it be available online through your own website or another site? Consumer products should be available as widely as possible, while specialty products are better suited to select stores.
- Promotion: What Are You Communicating to Your Target Market? There are many options, from online marketing to billboards to event sponsorships. Whatever you decide, make sure you know how your promotional strategies help to meet your financial objectives.
- People: What Should You Consider When Hiring? Your employees are more important to your brand than customers. Hiring the right people and keeping them engaged is key to making the rest of the 5Ps work for you.
Now explore the 5Ps from the customer’s perspective:
-Does it meet their needs? (product)
-Will they find it where they should? (place)
-Will they pay the asking price? (price)
-Will the marketing channels you’re using reach them? (promotion)
-What is their buying experience? (people)
The 5Ps represent a tried and true formula for an effective marketing plan that satisfies the needs of the customer and the business owner.