Right product in the Right place for the Right price at the Right time. You would have heard of this phrase. This is used by marketers and academicians alike & has emanated from the 5 P’s of marketing model.
Don’t you want to learn one of the most relevant models in marketing?
Iam sure you would want to
5 P of Marketing-Marketing Mix
Marketing Mix is a set of 5 decisions that need to be taken before launching any product. These 5 Variables become the basic building blocks for the strategic decisions which will help in selling the product.
So what are these basic building blocks 5 Ps?
Basically these are of 5 types
- Product – What is the company manufacturing?
- Price – What is the pricing strategy of the company?
- Place – Where is the company selling?
- Promotions – How company promotes its products?
- People-How does your employee service, expertise and skill come into selling of the product
Now let’s understand each of these in detail
1.Product:-
Any business needs to have a product to start with & So this is first variable in 5 P’s of marketing .Product is basically an item that satisfies customer’s needs or wants.it can be tangible in the form of goods or intangible in the form of services. In an ideal scenario, a product need to meet a certain consumer demand, or must be so compelling that consumers believe they need it. There are certain product decisions that need to be taken before making any marketing plan
- What are features of your product?
- What would be the quality of your product?
- How the product features are different from the market?
- What will be the product range, product mix & product line?
- How will you package the product?
- What is the USP of the product?
- Whether the product will be branded as sub brand or completely new?
- What are the secondary products which can be sold along with primary (Warranty, services)
- Is there a return for product & how they will be managed?
- How will you deal with product in each stage of the product life cycle?
Based on these questions several decisions need to be made. These decisions will also affect other variables of the mix.
For Example: – if you decide to launch a high quality chocolate then basis the product all the other variables will get impacted
But if you find out that the product you want is not fitting into overall marketing mix, then you need to rework on the product so that it fits in the mix
2.Price:-
Once you have an understanding of the product, price comes into the mix. Price is the amount customer pays or is willing to pay for the product. Major consideration in pricing is the costing of the product, the advertising and marketing expenses, any price fluctuations in the market, distribution costs etc. Another important factor is the competition pricing. All of these change dynamically & hence pricing would need to factor the same. Also Pricing would affect the targeting & positioning of the product. Also sales promotions would need a different strategy in form of discounts. Below are some of decisions that you would need to make here
What is the current price in market for same product?
Is customer willing to pay a premium if more features can be added?
What is the cost & margin allowances in pricing structure to make desired margin?
What are the margins for distributors, retailers at different levels in distribution channel?
What are the payment terms for the product?
3.Place:-
Place refers to the place where customer gets access to your product. This is basically the distribution channel of the product. There are a lot of decisions that need to be taken here
How wide you want the product to be distributed?
Is it a product that need to be in select stores?
How fast should material reach customer?
What should be inventory level?
How will material be transported?
Which channel will distribute your product to the customer?
Do you want to deliver product yourself or you want to franchise?
What is the ideal lot size of packets that trade needs in case of FMCG products?
Distribution does affect the profitability to great extent .In case of a telecom company dealing with paper recharges, an increase in transport cost will bring in drastic changes in profitability. Hence a vital logistics & supply chain is a must to ensure optimal distribution & correct pricing
4.Promotion:-
Now that we have got right product at right price in the right place, it’s time to promote the product to the customer
This P in the marketing mix includes the complete integrated marketing communications which in turn includes ATL , BTL advertising, sales promotions and digital media advertising. This P is dependent on the Ps of product and pricing . There are lot of decisions that needs to be taken here
What is the message that needs to be communicated?
What is the right media mix that needs to be taken up?
How much frequency should communication go to reach the target audience?
What is the budget for marketing communication?
What stage the product is in?
This P in the 5P’s of marketing model also decide the segmentation & positioning of the product. The right mix of promotions affect Other 3 Ps –product, place and price. Ideally if promotions are successful in positively impacting the brand equity of the brand then you may be be able to subsequently able to increase the price of the brand. Promotions is also considered an operational cost & will affect the costing of the product
5.People:-
The 5th P of Marketing. This refers to how your level of service, expertise and skill of your team sets you aside from the competition. The decisions to be taken at this level are:
Is your team more skilled?
Do they have more years of experience?
Do you offer better customer support? If it’s better, know exactly what makes you better or different than your competitors.
Does your team need training to serve your customers?
How do your employees make customers happy?
5 P of marketing-Examples
Kids Preschool-5P of marketing example
Imagine you have a Preschool catering to Kids. your go to market strategy with the 5 P’s of marketing model would be as follows:
- product – An excellent Preschool for kids
- price – Competitive or high end depending on facilities provided
- promotion – advertisements in nearby residential areas,lamp posts,newspaper inserts
- place – location close to and suited to busy, family lifestyles
- people – staff that are friendly and accommodating to the needs of parents and children.
Bakery-5P of marketing example
Imagine you have a Bakery catering to Teens. your go to market strategy with the 5 P of marketing model would be as follows:
- product – Product mix which is low cost as well as engaging like milk shakes
- price – Competitive compared to nearby shopd
- promotion – Advertisements in nearby colleges,
- place – location close to and suited to Colleges, Youth Hangouts.Vibrant Music & great youth Imagery at the location
- people – staff that are friendly and accommodating to the needs of Teenagers
Once you have worked out the 5 P of marketing for your business,you are on the way to establish a great brand in the minds of your customer