The 5 P’s of Marketing – Product, Price, Promotion, Place, and People – are key marketing elements used to position a business strategically. The 5 P’s of Marketing, also known as the marketing mix, are variables that help differentiate your business from your competitor’s.
Product refers to the products and services offered by a business. Product decisions include function, packaging, appearance, warranty, quality, etc. Customers need to understand the features, advantages, and benefits that can be enjoyed by buying the goods or services. When thinking about a product, consider the key features, benefits, and the needs and wants of customers.
Price refers to the pricing strategy for products and services and how it will affect customers. Pricing decisions do not include just the selling price, but also discounts, payment arrangements, credit terms, or any other price-matching services offered. When determining a pricing strategy, it is important to consider the business’s position in the current marketplace. For example, if the business is advertised as a high-quality provider of mechanical equipment, the product pricing should reflect that.
Promotion refers to the activities that make the business more known to consumers. It includes items such as sponsorships, advertising, and public relations activities. Since promotion costs can be substantial, it is essential to conduct a break-even analysis when making promotion decisions. It is important to understand the value of a customer and whether it is worth conducting promotions to acquire them.
Place refers to where the product/service of the business is seen, made, sold, or distributed. In essence, place decisions are associated with distribution channels and ways of getting the product to target key customers. It is important to consider how accessible the product or service is and ensure that customers can easily find you. The product or service must be available to customers at the right time, at the right place, and in the right quantity. For example, a business may want to provide their products over an e-commerce site, at a retail store, or through a third-party distributor.
People refer to the staff, salespeople, and those who work for the business. People decisions are usually centered around customer service – how do you want your employees to be perceived by customers?