The 5 P’s Of Marketing – How To Use It Successfully
The 5 P’s of marketing is a popular and effective topic taught to Business Owners and Entrepreneurs looking to increase their sales, and close more clients.
But what are the 5 P’s of marketing?
And how can you utilise the 5 P’s of marketing correctly to ensure you successfully bring your product to the right audience?
In this article, you’ll learn what the 5 P’s of marketing are, and how to implement it successfully into your marketing strategy.
The 5 P’s Of Marketing – How To Use It Successfully
What Are The 5 P’s Of Marketing?
Put simply, the 5 P’s of marketing is a number of key ingredients required to position your business, product or service correctly in front of the right audience.
The 5 P’s of marketing stand for:
The 5 P’s of marketing is a guide to help you ask the right questions and focus on what you need cover to help you grow your business.
We’ll cover each of the steps in the 5 P’s of marketing below.
The first step in the 5 P’s of marketing is your product.
When you’re looking at the product category, you should focus on two key areas.
First – it’s crucial to understand what you are selling, how you will package it, how you will ship it, and of course how it will be made and consumed.
Although you may think that some of these answers may be common sense; by writing them out and documenting each, you’ll get clarity on system improvements you can make to not only save money, but also better serve your clients and customers.
Secondly; what are your customers or clients actually buying?
People don’t buy features and benefits; instead, they buy what it will mean once they own the product or service.
People are meaning making machines, and people buy what it will mean once they own your product or service.
What pain points does your products or service solve?
Getting clarity on this is crucial when marketing your product or service, and to be successful with your sales process.
Related article: The Psychology Of Sales – Tips To Increase Success
The second P in the 5 P’s of marketing is people; or who you will serve with your product or service.
Learning the demographics and psycho-graphics of those you’re serving is very important, because it’ll mean:
- Your messaging with resonate with your target audience
- The people who buy will be satisfied with your product or service
- You’ll save marketing budget and prospecting activity time focusing on the right people
People also have different buyer personas; by learning this, you’ll know how to identify and sell to them correctly.
Related article: What Are Buyer Personas – Are They Important?
The third step in the 5 P’s of marketing is promotion; and how you’ll successfully get in front of the right audience.
Promotion is also known as prospecting and can be done two-fold.
Inbound promotion or prospecting is the activity of setting up systems to bring potential clients to you and your business.
Examples of this can be digital advertising, print media, radio and podcasts, and of course television and PR.
When doing your inbound sales activities, it’s important to set up a sales funnel or something similar so you can maximise your efforts and sell efficiently.
Outbound promotion or prospecting is identifying your ideal customers and clients, and proactively reaching out to them either by phone, email, and social media.
Depending on your target market, this can be also very effective when done correctly.
The promotion aspect of the 5 P’s of marketing is important because if nobody knows you exist, you won’t be successful in business and sales.
Related article: The Two Types Of Sales Prospecting Methods For More Sales
The fourth step in the 5 P’s of marketing is pricing.
Pricing is very important, as it can be used as a strategy depending on how you want to position yourself in the market.
Of course, depending on your target market – pricing also needs to be correct on what your ideal client can effectively afford.
Luxury products are more expensive, and target people that are generally wealthy. Commodity products are usually cheaper and have a wider demographic net.
When brainstorming your pricing, also look into other aspects and verticals associated with the price.
These can include discounts, payment systems, payment terms, and price matching.
Last but not least; the fifth step in the 5 P’s of marketing is the place.
Where will your product or service be sold?
Do you potential clients like to buy online, or do they prefer to see what you’re selling in person?
Where do they hang out, and where do they visit online with credit card in hand – ready to make a buying decision?
Place and location are very important because even if you have the right product and the right promotion – if you’re not where your potential clients buy, they simply won’t buy.
When finding the right place, ensure you assess and look into it diligently. What does the rent cost, and how many people need to buy per month to cover the associated expenses and overheads?
What does the foot traffic look like, and how many of the people going past where your location is placed meet your target audience persona?
These are important to answer, as many businesses fail due to high expenses versus their overall and actual profit.
Final Thoughts On The 5 P’s Of Marketing
The 5 P’s of marketing are a great and effective framework to use when initially putting together your marketing plan, and sales targeting strategy.
As mentioned; you may mentally know the answer to a lot of the questions the 5 P’s of marketing are framed around – but by unpacking each and documenting your answers, you’ll not only get clarity, but learn better ways of doing business.
We recommend using the 5 P’s of marketing if you’re a Business Owner, Entrepreneur or in sales.