Why there should be 5 P’s of Marketing (instead of 4)

We have long heard about the 4 “P’s” of Marketing. I would argue that we have neglected possibly the most important reason for Marketing, THE PEOPLE!

So what is Marketing anyway?

I want to get down to the basics of what Marketing is, and conversely, what it is not so you can build a successful Marketing Plan for your business. Most people think of it as communicating sales and promotions. While there are aspects of Marketing that feed into Sales, there is more to it than just putting up a 25% off sign.

What are the 4 “P’s” of Marketing?

      • Product
      • Price
      • Place
      • Promotion

I’m proposing we add a 5th “P” of Marketing

      • PEOPLE

How I define Marketing: “Marketing is the management of exchange relationships to build trust and satisfy customers.”

If Marketing is the management of exchange relationships to build trust and satisfy customers, then why do we put so much emphasis on marketing the PRODUCT instead of the SOLUTION it provides for our CUSTOMERS (the people)?

Let’s go through the 5 “P’s” to determine what information you will need to gather before we begin to develop your Marketing Plan.

Your PRODUCT can be a good or service in this context.

PRODUCT Questions to ask yourself:

      • What is it that you provide to your customers?
      • How does your product provide a solution for them?
      • What features will they be most interested in?

The PRICE is the amount your customer will pay you to receive your product or service.

PRICE Questions to ask yourself:

      • What does it cost you to produce this product or service?
      • What percentage of that price is profit?
      • What is the most you would be willing to discount that product or service?

The PLACE is the sale and distribution of your product or service.

PLACE Questions to ask yourself:

        • Will I sell my product or service online?
        • Will I sell my product or service out of a storefront?
        • How will I deal with product fulfillment?
        • How will the product be delivered?

Your PROMOTIONS are strategic messages you will put in place to shorten the sales cycle. They encourage people to purchase your product or service now, rather than later.

PROMOTION Questions to ask yourself:

        • Will I offer a discount for first-time users?
        • Will I give out free samples?
        • How will I encourage repeat customers?
        • Will I offer a quantity discount?

Your PROMOTION are the tactics you will put in place to shorten the sales cycle and encourage people to purchase your product or service now rather that later.

PEOPLE Questions to ask yourself:

        • Who do I want to sell products or services to?
        • What are the customer’s demographics? (age /gender/education level/kids)
        • Where do they look to find product information?
        • How do they like to communicate?

Do you have personal stories of how having an exceptional Customer focus helped your company be more profitable? I’d love to hear it below in the comments!

Need help developing your Marketing Plan? Let’s chat! amy@amymoyer.wpengine.com