TheMarketing Mix5 Ps is asignificanttool to help you select and create the rightmarketingstrategies for your business. It forces you to think about which areas of your business you canchange or improve on, to help you meet the needs of your target market, add value anddifferentiate your product or servicefrom your competitors. The 5 areas you need to make decisions about are: PRODUCT, PRICE, PROMOTION, PLACE AND PEOPLE.
Although the 5 Ps are somewhat controllable, they are always subject to your internal and external marketing environments. Read on to find out more about each of the Ps. 
PRODUCT/SERVICE
The product or service element refers to what you are offering as a whole to your customers. Product decisions include functionality, branding, packaging, service, quality, appearance and warranty terms.
When thinking about your product consider the key features, benefits, and the needs and wants of customers. For example, if you are a food manufacturer you may decide to add some new flavours to extend your range.
PRICE
The price element refers to the way you set prices for your products or services. It should includeall the parts that make up your overall cost, including the advertised price, any discounts, sales, credit terms or other payment arrangements.
Your pricing will also depend on yourbusinesses position in the market, for example, if you advertise your business as a budget car rental service, your pricing should reflect that choice. Or if you are a premium food product then your price should be at a premium to lesser quality products to reflect the better packaging and quality of ingredients you offer.
PROMOTION
Promotion refers to all the activities and methods you use to promote your products/services to your target market. It includes sales, public relations, direct marketing, advertising, sponsorship and social media.
Since promotion costs can be substantial, it is sensible to conduct areturn on investment analysis (ROI) when making promotion decisions. Firstly, you need to establish who your target market is, what media do they consume, what the cost of that media will be, how many more sales you need to cover your investment and how you will gather the information that shows how the promotion has worked.
PLACE
The place element refers to how you get your product or service to your customers at the right time, at the right place, and in the right quantity. It includes distribution channels (e.g. via a shopfront, online or a distributor), location, logistics, service levels and market coverage.
For example, if you’re thinking of expanding your business online, you’ll need to think about how your customers use the internet, if they would feel comfortable purchasing your goods online and if they would be willing to pay shipping costs for your products.
If you’re looking to grow your business, you might consider changing or expanding the way you sell your products and services. For example, if you’re a homewares distributor, you might think about setting up a new store in a different location or offering franchises.
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. It includes understanding what your customers’ needs and wants are, setting targets and measuring your customer service levels so that you 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.
Want to know more about using the Marketing Mix 5 Ps to develop a comprehensive marketing plan?
Wherever you are and whatever your business, we can apply the 5 Ps of marketing to help your business succeed. We are happy to have a chat – just send us a message on info@inhousemarketing.co.nz.
We also invite you to check out our marketing plan toolkit services, which can include training and guidance, or a more do-it-for-you approach.
I'm an experienced marketing professional with a deep understanding of the concepts and strategies involved in developing effective marketing plans. Over the years, I've successfully implemented the Marketing Mix, specifically the 5 Ps, in various business scenarios. My expertise extends to product development, pricing strategies, promotional activities, distribution channels, and customer-focused approaches.
Now, let's delve into the concepts mentioned in the article about the Marketing Mix 5 Ps:
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Product/Service: The product or service element involves comprehensive considerations such as functionality, branding, packaging, service, quality, appearance, and warranty terms. To make informed decisions, one must analyze key features, benefits, and understand the needs and wants of customers. For instance, in the context of a food manufacturer, the decision to add new flavors is highlighted as a strategy to extend the product range.
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Price: The price element covers the entire pricing structure, including the advertised price, discounts, sales, credit terms, and payment arrangements. Pricing decisions are influenced by the business's market position. For example, a business positioning itself as a budget car rental service should reflect that choice in its pricing, while a premium food product would command a higher price to align with superior quality and packaging.
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Promotion: Promotion involves various activities and methods to market products/services, including sales, public relations, direct marketing, advertising, sponsorship, and social media. The article emphasizes the importance of conducting a return on investment analysis (ROI) for promotion decisions. Identifying the target market, understanding media consumption, and evaluating costs are crucial steps in effective promotional strategies.
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Place: The place element focuses on product/service distribution, considering factors like channels (shopfront, online, distributor), location, logistics, service levels, and market coverage. Expansion considerations, such as moving business online, require an understanding of customer online behavior, comfort with online purchases, and willingness to pay shipping costs.
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People: The people element addresses customers, staff, and self. Considering customer needs, setting targets, and measuring customer service levels are essential for attracting and retaining loyal customers. Staff training is highlighted to ensure that they possess the skills necessary to offer the best customer experience.
These concepts collectively form the foundation of a comprehensive marketing plan, and applying the Marketing Mix 5 Ps can contribute significantly to a business's success. If you have further questions or need assistance in developing your marketing strategy, feel free to reach out.
