The Marketing Mix 5 Ps is a significant tool to help you select and create the right marketing strategies for your business. It forces you to think about which areas of your business you can change or improve on, to help you meet the needs of your target market, add value and differentiate your product or service from your competitors. The 5 areas you need to make decisions about are: PRODUCT, PRICE, PROMOTION, PLACE AND PEOPLE.
Although the 5 Ps are somewhat controllable, they are always subject to your internal and external marketing environments. Read on to find out more about each of the Ps. 
PRODUCT/SERVICE
The product or service element refers to what you are offering as a whole to your customers. Product decisions include functionality, branding, packaging, service, quality, appearance and warranty terms.
When thinking about your product consider the key features, benefits, and the needs and wants of customers. For example, if you are a food manufacturer you may decide to add some new flavours to extend your range.
PRICE
The price element refers to the way you set prices for your products or services. It should include all the parts that make up your overall cost, including the advertised price, any discounts, sales, credit terms or other payment arrangements.
Your pricing will also depend on your businesses position in the market, for example, if you advertise your business as a budget car rental service, your pricing should reflect that choice. Or if you are a premium food product then your price should be at a premium to lesser quality products to reflect the better packaging and quality of ingredients you offer.
PROMOTION
Promotion refers to all the activities and methods you use to promote your products/services to your target market. It includes sales, public relations, direct marketing, advertising, sponsorship and social media.
Since promotion costs can be substantial, it is sensible to conduct a return on investment analysis (ROI) when making promotion decisions. Firstly, you need to establish who your target market is, what media do they consume, what the cost of that media will be, how many more sales you need to cover your investment and how you will gather the information that shows how the promotion has worked.
PLACE
The place element refers to how you get your product or service to your customers at the right time, at the right place, and in the right quantity. It includes distribution channels (e.g. via a shopfront, online or a distributor), location, logistics, service levels and market coverage.
For example, if you’re thinking of expanding your business online, you’ll need to think about how your customers use the internet, if they would feel comfortable purchasing your goods online and if they would be willing to pay shipping costs for your products.
If you’re looking to grow your business, you might consider changing or expanding the way you sell your products and services. For example, if you’re a homewares distributor, you might think about setting up a new store in a different location or offering franchises.
PEOPLE
The people element refers to your customers, yourself and your staff. You need to consider both your staff and customers if you’re thinking of growing your business. It includes understanding what your customers’ needs and wants are, setting targets and measuring your customer service levels so that you attract and keep loyal customers.
You’ll also need to consider staff training so they have the skills to offer the best experience and meet customer expectations.
Want to know more about using the Marketing Mix 5 Ps to develop a comprehensive marketing plan?
Wherever you are and whatever your business, we can apply the 5 Ps of marketing to help your business succeed. We are happy to have a chat – just send us a message on info@inhousemarketing.co.nz.
We also invite you to check out our marketing plan toolkit services, which can include training and guidance, or a more do-it-for-you approach.
they always told me about 4Ps never about the 5th P people kindly write more on this! What marketing strategies can we make for ‘people’ (our customers). 2. is customer experience part of that?
Hi Nauman, that’s right ‘People’ are key to any marketing strategy. People are complex beings with multitudes of attitudes, beliefs and values, sometimes conflicting inside themselves. In marketing we would recommend strategies that aim to connect with people at the human level. Who are our customers, what type of people are they, what do they care about? Then we can connect our marketing and business practices emotionally as well as rationally to meet their values and needs. It is also important to consider strategies for your people inside the organisation, and those in your supply chain, for they all make a difference too. What is the culture like within your organisation? Do people enjoy their work? Do they interact positively with customers and the community? Do they represent the company’s values? This is very important as it will shine through in your brand (how your business is perceived by the world), so both internal and external ‘People’ strategies are important. Good luck with your studies 🙂