Marketing is a crucial component of any business. It encourages the brand to grow and achieve the heights of success. It will stand your brand out in the market. 5 P’s of Marketing is one of the elements of the marketing process.
5 P’s of the marketing mix is one of the most effective marketing strategies. It helps the brand to compete and grow exponentially. Applying the 5 P’s of marketing theory in your business will surely get extraordinary results.
In this article, we will discuss the deeper, effective and practical aspects of the 5 P’s of marketing to grow your brand to the extent you want.
Let’s begin !!
What are the 5 P’s of Marketing?
5 P’s of marketing are – Product, Price, Place, Promotion, and People. All these elements are prominently used to set up a successful business strategically. 5 P’ of marketing is also famous in the industry as a “marketing mix.”
Managers and owners of a serious company or startup work on these marketing elements to satisfy their targeted customers with upgraded products and other marketing-related stuff. This marketing strategy is very helpful in fighting against competitors.
To understand the concept of the 5 P’s of marketing and make the business model successful, let’s understand all the elements separately.
Product
As the name suggests, a product indicates a company’s offered product and service. Along with generating a high-quality product or service, you must consider its functionality, appearance, warranty, and packaging.
Price
Pricing decisions are typically tricky, as you must consider manufacturing costs, market average, advertisement cost, seasonal discounts, and credit terms and then finalize the pricing model for your products or services.
Place
Place refers to where, to whom, how and when you should sell the products to register the maximum profit. In the place, you also have to consider the right marketing channels and other ways of getting the product to your targeted customers.
Promotion
Promotion means spreading the business name and its products or services to the customer in the outside world via sponsorships, advertisements, and public relations activities to sell the products or services and earn money.
People
People mean the working staff, salesperson, customer support and all the company employees. They can treat the customers well, help them make purchases, and resolve all the issues even after the purchase.
Importance of 5 Ps of Marketing
The 5 P’s of marketing is one of the most effective marketing strategies in executing your core marketing goals and structuring them properly. That will help you regulate the entire business in your hands.
Here we have mentioned some situations to help you understand the importance of the 5 Ps of marketing in all the uncertain business factors.
- In the business, If you find out whether your customers are not satisfied with your products or services or are rating them badly. Then, you will understand that you have to focus on the “Product” side of the strategy.
- In the business, If you feel that people are not purchasing your products, then you will understand that either you have to focus on your “Pricing” or “Sales People.”
- If you find that you are not reaching enough people to generate enough revenue and build brand awareness, you will know that you have to talk to your “Promotion” department.
- In the business, If you find out that you are reaching enough people and a significant number of people are not your targeted customer, then you know that you have to focus on the marketing channels and other areas when you find your type of people. This consists of ” Place.”
All these factors indicate the importance of 5 ps of marketing. Therefore, you should follow this idea and establish an ideal concept.
5 P’s of Marketing Mix
5 P’s of marketing mix are the ideal concept for running a successful business, and there is so much to know about all these 5 P’s of marketing mix. Thus, in detail, let’s explore the 5 P’s of marketing theory.
Product
Products or Services are the base of your company that you are selling to spread brand awareness and generate revenue. Before entering into the marketing aspect, firstly, you have to dive into the product mix creation and create and offer high-quality and useful products or services to the customers.
After dealing with the functionality, appearance, warranty, and packaging of a product, now it is time to showcase your products or services in front of your targeted customers. For that, you need to run ads on social media and T.V., go for influencer marketing, and highlight your product’s or service’s top-notch features.
You should bring time-to-time updates in the Products area based on the user demand. If you do so, you will surely get remarkable growth. For example, people operating SLACK used to go on the Google Meet or Zoom Meeting for major discussions. Thus, SLACK has started offering the feature of direct meetings on its platform.
Price
Pricing is a crucial factor in offering any product or service, as it should be decided after considering the purchasing power of your targeted customers and the charging rate of your competitors.
In deciding the pricing, you should consider all the following elements:
- Internal Costs: You should try to lower the products’ manufacturing costs while maintaining good quality.
- Competitors: You should also do a healthy comparative analysis and figure out their charges and product or service quality.
- Accessibility: You should also ensure that your product or service is accessible to all.
- Purchasing Power: The buying of your targeted customer matters a lot. Because your product will succeed only if your pricing is affordable to all your targeted customers.
- Market Condition: The market condition of a product or service tells a lot about its growth and profit.
- Model: You should have a proper pricing model for your product or service (i.e., Monthly, Annually, Quarterly, Lump Sum etc.)
- Quality: Your product and service should deliver value for money to the customers.
Place
Place means where the business’s products or services are created, marketed, sold, or distributed. Simply put, place refers to all the elements from showcasing the product or service to the targeted customers to distributing them or supply channel management.
Here it would help if you made sure that customers find your products or services accessible at their place. Fundamentally, you should try to deliver your products or services at the right time, at the right place, and in the right amount.
In this factor, you should always try to ease the buying journey for your customers. Because most of the customers prefer to have an easy and smooth journey. Thus, it would help if you considered all the aspects like fast delivery
Promotion
Promotion refers to the various methods used in promoting the business’s name, products, and services. The main motive of the promotion is to build brand awareness and generate revenue for a business. Market test is one of the finest prastice to build brand awareness.
In the Promotion factor, you must create various marketing campaigns and advertisements to increase the brand’s visibility and reach new audiences. In the promotional factor, you should wisely select your narrowed targeted audience.
You can use several platforms for fulfilling the promotional goals:
- Sponsorships
- Banners/Catalogs
- Digital Advertising
- Public Relation Activities
- Promotion Messaging/Email
Therefore, you are ready to handle other business factors once you have selected your right targeted audience and media platforms.
People
People refer to the employees and customers both. They are the main components of any business. There are always smart people behind every successful business. This factor is later added to the 5 P’s of marketing theory.
Suppose you invest in your people (employees) and keep them happy and satisfied. Then, you will surely get extraordinary results. You can also provide training and motivational sessions to your employees. It will keep them calm, happy and satisfied.
That would help if you listened to your customer’s feedback and demands for a successful business. It will help you update your products and services and make them better. If you seriously work on these areas, you will see exponential growth.
5 Ps of Marketing Examples
Now, when you know the meaning of the 5 P’s of marketing and their exclusive benefits. Then, let’s look at real-life 5 Ps of marketing examples.
Here are some of the real-life examples below:
#1 Canva
Canva was launched with the fantastic vision of providing free graphic design controls in normal people’s hands. Gradually, people started accepting the platform. Then, they waited for the right time and offered some extraordinary features worth their price. Thus, it became a huge success.
#2 Mercaris
Mercaris is a fintech company. They have rectified a gap in their industry and created products focusing more on organic, non-GMO, and sustainable agriculture. They have analyzed the market well and entered the niche with minimal competitors. It created their segment in the marketplace.
#3 Warby Parker
Warby Parker has focused on creating affordable and quality sunglasses. Their properly analyzed pricing model has cut down many competitors. They have worked on “Pricing” and “Product” both very well. Thus, you will find their products extremely qualitative.
Final Words
These are all the benefits of the 5 P’s of marketing. We hope this article helps you dig deeper into the 5 P’s of the marketing mix and let you know everything you need to know.
From attracting new customers to finalizing the deal, these 5 P’s of marketing theories will help you.
Frequently Asked Questions (FAQs)
What Is Premium Pricing And Its Example?
The 5 P’s of marketing – Product, Price, Promotion, Place, and People – are a framework that helps guide marketing strategies and keep marketers focused on the right things.
Who invented the 5 Ps of marketing?
Neil Borden, a professor at Harward University, first introduced the Marketing mix in his article ”The Concept Of The Marketing Mix.” This idea was later adopted and popularized by a marketing professor at Michigan State University.
Why is the 5th P of marketing important?
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. The 5 areas you need to make decisions about are: PRODUCT, PRICE, PROMOTION, PLACE AND PEOPLE.