5 Elements of Marketing
What are the five elements of marketing?
The five elements of marketing (product, price, promotion, place, and people) are the main marketing elements used to strategically position your business. The five elements of marketing, also known as the marketing mix, are determined by managers and owners to satisfy and add value to their target market customers. As a variable to control, it helps you differentiate yourself from your competitors.
Product:
A product is a product or service provided by a company. Product decisions include function, packaging, appearance, warranty, and quality. Customers must understand the features, benefits, and benefits that they can enjoy by purchasing goods or services. When considering a product, consider its main features, benefits, and customer needs and wants.
Price:
Pricing refers to the pricing strategy of products and services and how they affect customers. Pricing decisions include not only the selling price, but also discounts, payment terms, credit terms, and any price-matching services offered. When deciding on a pricing strategy, it is important to consider the company's position in the current market. For example, if the business is advertised as a high-quality provider of mechanical equipment, the product pricing should reflect that.
Promotion:
Promotion refers to the activities that make the business more known to consumers. It includes items such as sponsorships, advertising, and public relations activities. Since promotion costs can be substantial, it is essential to conduct a break-even analysis when making promotion decisions. It is important to understand the value of a customer and whether it is worth conducting promotions to acquire them.
Location:
Location refers to where you view, create, sell or distribute your company's products/services. Basically, positioning is about distribution channels and how products are delivered to target key customers. It's important to consider the accessibility of your product or service and make it easy for customers to find. The product or service must be delivered to the customer at the right time, in the right place, and at the right time. For example, a business may want to offer its products through an e-commerce site, retail store, or third-party distributor.
People:
People refer to staff, vendors, and people who work for the business. Employee decision-making typically revolves around customer service. How do you want your employees to be seen by your customers?
An example of the 5 Ps of marketing:
John wants to run a jet ski shop for travelers and tourists. To position his business, John can refer to the 5 Ps of Marketing as follows:
- Product: Hourly jet ski rental for short city breaks. A limited liability form is to be signed by service participants and a cash deposit in case of damage.
- Price: Cheap jet ski trips to meet the budget constraints of travelers and tourists. 10% discount on jet ski excursions with travel agency recommendation.
- Advertising: a Facebook page, an Instagram page, and Twitter to promote the business. Paid advertisements are also on travel agency websites.
- Location: A location that is easily accessible through existing transport systems.
- People: Friendly staff who are willing to meet travelers and provide exceptional customer service.