Uncovering the New P in Marketing
Product, Price, Promotion, Place . . .
Have you heard there is a new P in the Marketing Mix? Traditionally, there have been 4 unique elements that position a business strategically. For the savvy owner, highlighting their Product, Place, Promotion, or Price were the go-to-market strategies. Each element has the power to sway an audience into choosing their product or service.
Before we let you in on the newest secret, let’s walk through the current Ps of Marketing.
Product
This group refers to your business’s product or service. The product or service available for sale can change based on function, packaging, appearance, warranty, quality, quantity, etc. While many elements can influence the development of a product or service, this group is looking at how the product is presented or known to the audience.
Inside your marketing, being strategic about positioning the Product covers knowing the features and benefits, as well as the needs and wants of the customer. You’ll need to know and sometimes highlight the product features, meaning the attributes of the product like the technology package on a car. Other times it’s good to speak to the benefits, talking up how the tech in the car will make life more convenient or safer to the driver.
Price
Your Pricing strategy for products and services and how it will affect customers. This group includes not just product pricing, but also discounts, promotions, payment options, credit terms, price matching, and more. Whether you change price often or rarely offer discounts, pricing can have far-reaching effects on customers. Think strategically about ways to support customer growth with your pricing strategy.
When figuring out your pricing strategy, it’s important to think about your position in the current marketplace. Be clear about the value of your products or services, your customers will understand that your high-quality jewelry line is reflected in the pricing.
Promotion
Here is our favorite element, Promotion. This refers to all the activities that make your customers aware of your business. This can include partnerships/sponsorships, paid advertising, public relations.
Since promotion costs can be large, it is essential to track your break-even analysis or review your return on ad spend. With all the options available for promotion, it’s a good practice to know your average customer value, so you can determine whether the promotion track is worth conducting.
Place
The Place can refer to your location, where your products are seen, made, sold, or distributed. You can also think of this group as your distribution channels and the ways of getting your product to your customers.
Since Place can be a unique selling point for your product, consider how accessible your product is to the customer. It’s important to understand how easily your customer can find you and your product. Make it easy for your customers to find you. The product must be available to customers at the right time, in the right place, and in the right quantity.
We’ve covered the 4 Ps of your Marketing Mix. These elements make four cornerstones of your growth strategy and can influence your customers dramatically if aligned correctly. However, there is one more element that we believe has arisen to vital importance in the last several years.
The People
The People that make up your business are just as important to your success as any marketing. The people refer to your staff, sales members, administration, production, anyone that works for the business. Choosing the right people that fit how you want your business to engage with customers. This can include pulling in more product experts, or savvy salespeople, or high-energy adventurers.
In the early years of marketing, business owners recognized the importance of the people within their strategy – their attitudes, preferences, and behaviors. To truly stand out, brands must make customers — and their long-term satisfaction — the heart of everything they do.
So there you have it, the updated and modern 5 Ps of the Marketing Mix. These 5 elements are the cornerstones and centerpiece of the savvy business owner’s new growth plan. Do you want to learn more about these 5 elements?
Are you interested in how they can help grow your business?