The Market Mix 5P is a tool that will help you choose and implement the best marketing strategies for your business. This enables you to think about the areas in your business that you can improve or change to meet your target market's needs, increase value, and differentiate your product/service from others. You must decide on
PRODUCT PRICE, PROMOTION PLACE, AND PEOPLE.
The 5 Ps can be controlled, but they are still subject to the marketing environment. Learn more about each
Your customers will be able to see the product or service component as an entire offering. The product decisions include branding, packaging, quality, appearance, warranty terms, and functionality.
Think about the benefits and key features of your product when you are thinking about it. For example, if you're a food manufacturer, you might add new flavors to expand your product range.
Price is the way that you price your products and services. It should contain all components contributing to your total costs, such as the advertised price, discounts and sales terms, or other payment arrangements.
Pricing will also be affected by your business's market position. For example, if your business is a low-cost car rental company, your pricing should reflect this choice. If you're a premium food product, your pricing should be higher than lower quality products. This is to remember the quality packaging and ingredients.
Promotion uses all activities and methods to promote your products/services in your target market. This includes direct marketing, advertising sponsorship, sales, public relations, and other promotional activities.
Promotion costs can be high, so it is a good idea to do a return-on-investment analysis (ROI). First, determine your target market, what media they use, the cost of those media, how many sales you need to cover the investment, and how you plan to gather the information necessary to show how successful the promotion was.
The place element is how your product or service gets to your customers at the correct time, place, in the right quantity. It covers distribution channels (e.g., via an online shopfront or distributor), location logistics, service levels, and market coverage.
Let's say, for example, that you are considering expanding your business online. You'll need to consider how your customers use the Internet, whether they feel comfortable buying your goods online, and if shipping costs are an option.
You might think about changing how your products and services are sold if you want to grow your business. If you are a distributor of homewares, you might consider opening a new store or franchise.
Your customers, your employees, and yourself are all part of the people element. If you want to grow your business, you must consider your customers and staff. This includes understanding the needs and wants of your customers, setting goals, and measuring customer service levels to retain and attract loyal customers.
Training staff is also an important consideration. This will ensure that they can provide the best customer experience and exceed customer expectations.