You know your business needs to take advantage of Marketing Strategies. But where do you start? Increase your knowledge by familiarizing yourself with the five P’s of marketing – product, price, place, promotion, and people – also known as the marketing mix.
The Marketing Strategies Mix or Best 5 P’s are significant tools to help you choose and create the right marketing strategy for your business. It forces you to think about which areas of business you can change or improve, to help you meet needs and satisfy your target market, add value and differentiate your product or service from your competitors. The 5 areas you need to make a decision are PRODUCT, PRICE, PROMOTION, PLACE, AND PEOPLE.
The Marketing Strategies Mix concept is a combination of tactics that companies use to influence consumer purchasing decisions. It was first introduced by American marketing professor E. Jerome McCarthy in the 1960s. McCarthy developed the original 4 P’s to help marketers reach new customers and grow their business. Over the years, a fifth P, namely PEOPLE (person) has just been added to better reflect modern business practices. The marketing mix is very important because it provides the business owner with a framework for promoting their product or service to the market.
While the 5 P’s can be controlled, the 5 P’s are always subject to your internal and external Marketing Strategies environment. Read on to find out more about Marketing Strategies each P.
5 Marketing Strategies to Fuel Your Business Growth
The product or service element refers to what you offer your customers in their entirety. Product decisions include functionality, branding, packaging, service, quality, appearance, and warranty terms.
When thinking about your product, consider the main features, benefits, and needs, and wants of the customer. For example, if you are a food producer, you might decide to add some new flavors to expand your reach.
Customers need to understand the features, advantages, and benefits that can be enjoyed by purchasing your goods or services.
Pay close attention to the products (or services) you sell. Be specific about the benefits you offer. You’re not just selling a product or service; You’re often selling peace of mind, increased confidence, time savings, or other benefits to your customer’s life.
Next, more importantly, think about how customers will see your product. Determine the crux of the problems you are helping them solve because that’s what matters most: Helping people solve real problems. How does your product or service do it?
Think about the way the Dyson vacuum cleaner was marketed. A common vacuum cleaner solves a problem: it helps people keep carpets clean. But Dyson has found very specific problems and pain points like the maneuverability of the vacuum cleaner. In this case, Dyson has been able to make product differentiation from similar products owned by existing competitors.
In addition, you must pay attention to whether your product answers the needs of today’s customers.
The price element refers to how you set the price for your product or service and how that affects the customer. This must include all parts that make up your overall costs, including advertised prices, discounts, sales, credit terms, or other payment arrangements.
Your prices will also depend on your business position in the market, for example, if you advertise your business as an economical car rental service, your prices should reflect that choice. Or if you are a premium food product then your prices should be at a premium for a lower quality product to better reflect the packaging and quality of the ingredients you offer.
To compete, you need to know the typical price points in your market. When researching it, look at the value you provide. How is it different from what others have to offer? Will the customer pay more for your solution? To determine your price, you need to know how your product compares to competitors. You should also think about how much you have to wear to compete with other businesses while also covering your expenses.
When you go to a convenience store, for example, you see the Paseo brand tissue right next to another, cheaper brand. Some consumers are willing to pay more for the Paseo if they think it means an increase in quality.
Use humanity and proper business ethics in pricing. You don’t want to kill the market price or take advantage of the odds by boosting sky-high prices because the items you sell are scarce.
Promotion refers to all the activities and methods you use to promote your product/service to your target market. This includes sales, public relations, direct Marketing Strategies, advertising, sponsorship, and social media. The bottom line is in all activities that make your business better known to consumers.
Since the costs of promotion can be very large, it makes sense to do a return on investment (ROI) analysis when making promotional decisions. First, you need to determine who your target market is, what media they consume, how much that media costs, how many more sales you need to cover your investment, and how you will gather the information that shows how the promotion works.
Right now, the place you live in may not be a traditional shop window or an office building. But your virtual place still matters. Consider your target audience and where they are looking for solutions to their problems. Try to find places where your customers might seek help. For example, someone might search for “green transportation” online via google, and if you sell electric scooters, you might have a website where they can make a purchase. What matters most is that it is easily accessible, easy to find, and where your market is located – whether online or in an app or in a physical store.
Usually, to attract consumer attention, business people will provide promos such as discounts, buy one get one, and so on, which lure people to come and buy products.
Another meaning of promotion is COMMUNICATION. Promotions are not always hard-selling, but also soft selling, such as sending email newsletters every month, updating social media fans pages, Facebook and Instagram. This is how companies communicate by providing updated information to their target market.
The place element refers to how you deliver your product or service to the customer at the right time, in the right place, and in the right quantity. This includes distribution channels (for example through storefronts, online, or distributors), location, logistics, service levels, and market reach.
Place refers to where a business’s products/services are viewed, made, sold, or distributed. In essence, the placement decision is tied to the distribution channel and the way of delivering the product to the targeted key customers. It is important to consider how easy it is to access your product or service and ensure that customers can easily find you.
For example, if you are thinking about growing your business online, you should think about how your customers use the internet, whether they will feel comfortable buying your goods online and whether they are willing to pay shipping costs for your products.
If you want to grow your business, you might consider changing or expanding the way you sell products and services. For example, if you are a home appliance distributor, you might think about setting up a new store in a different location or offering a franchise, or through an e-commerce site and through a third-party distributor.
You believe in your product and have worked hard to find the right price and place. How will you make customers aware of it? Start by creating messaging – Marketing Strategies communications that describe your company and the value you offer – around the problems you solve for customers. For that electric scooter retailer, messaging will likely inform customers that they will reduce their carbon footprint by using this product. Once you have done this, use your target market understanding to promote where your customers are.
Some common, but effective ways to promote your product are through online advertising, your website, social media pages, brochures, and sign building. But don’t be afraid to get creative. Iams, a popular pet food brand, prints their logo on a frisbee that is shaped like a weight to show that their food makes dogs stronger. They distribute frisbees at the dog park.
Once you start attracting customers, provide a great customer experience to turn past customers into babbling fans who tell their family and friends about your product.
The people element refers to your customers, yourself, your staff, salespeople, and those who work for your business. You need to be considerate of your staff and customers if you are thinking of growing your business. This includes understanding what your customers need and want, setting targets, and measuring your level of customer service so that you attract and retain loyal customers.
You also need to consider staff training so that they have the skills to offer the best experience and meet customer expectations.
Make your business profitable by recruiting the right people, training your employees to develop skills, and retaining capable staff.
The PEOPLE element is usually centered around customer service – how you want your employees to be perceived by the customer,
Building strong customer relationships is one of the best things your business can do. Focus on providing a great customer experience (for example, providing excellent customer service, meeting customer needs, and offering personalized service).
When you are customer-focused, don’t forget to involve your internal people too; happy employees generate successful business. Domino’s Pizza, for example, uses photos taken by their own employees to promote their pizza on social media rather than using professionally staged and captured images. It’s an effective way to promote their product while showing they value the people who keep the company going.
It’s not an exact science, but do your best to make sure everyone who comes into contact with your business feels heard and appreciated.
Marketing Strategy Example
Imagine that you are a bakery in the small town of North Dakota. You are introducing a new line of cakes that is a mix of red velvet and angel food.
Ask why you made a new type of cake. Maybe you want to introduce something new and fun that you hope your customers will like? Think deeper: Why should they choose this over the cake they already enjoy? In your mind, the benefit is that it’s new and exciting. But for the customer, it is not known. Avoid using generic terms. Of course, your cake is “delicious,” but so are any other cakes. Descriptors that are so commonly used in your industry that being cliché won’t help you grab the attention of your target market.
Get your customer’s position. Think about the experience of eating the cake and sharing it with friends and family. Talk to your customers about a new type of cake that needs celebration and makes it even more special.
Don’t assume that your audience always wants to pay less. Offerings are great, but if the customer’s perception of the cake is higher than what you are wearing, you could lose out. What’s more, when you go into the market with an unknown product at a much lower price than your competitors’ prices, your audience may think that the low price is an indication of poor quality.
The corresponding price point will likely be similar to other products your bakery already has. Don’t forget to factor in the cost of labor, equipment, or additional materials, if applicable. Then, look at the closest competitors to see how they handle that particular product. Ultimately, the price of the cake should allow you to reach your financial goals, be a figure your target audience is willing to pay, and fit the image you are trying to project (a premium cake or an affordable new cake worth giving a try).
When Marketing Strategies your cake, stay away from places that might create unprofitable or confusing associations. You wouldn’t, for example put up a flyer in a nightclub where your message is unlikely to be received by people who focus on dancing or having a drink with friends. You also wouldn’t put up advertising posters for your new cake near public restrooms, for obvious reasons. Instead, you can choose to look for people during special events: graduations, birthdays, and baby showers, perhaps. Take advantage of your local community and current customer base to spread the word about your new product. Consider partnering with a local restaurant to feature cakes on their menus. Or, make a new poster to hang in your shop window or at your local party supply store.
A half-hearted promotion strategy will drown your marketing efforts before you launch. Simply posting an announcement about your new cake on Facebook, hoping to gain traction won’t work. Instead, you have to make a more comprehensive plan. Consider listing the cake as a limited-time offer and get a special discount for those who want to try it. Put this discount in the newspaper or other print marketing material to encourage customers to give it a chance and promote it to their friends. Introduce it on social media, and consider sending an email campaign announcing the arrival of a new product. Create a message like “Something new” for a new banner on your website.
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When you’re excited about a new product, it’s easy to just focus all your messages and launch plans on your business and how great this new product is. However, instead of talking about how you have revolutionized baking or that your bakery is the leader in the market, think about your community. More than you want a sale, you want them to enjoy your food buying experience, from the moment they decide to visit your bakery until the last slice is done. Treat them well with good customer service and by meeting their needs or questions. By creating a good experience with your bakery, you are creating loyalty.