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The classic marketing mix, as established by Professor of Marketing at Harvard University, Prof. James Culliton in 1948 and expanded upon by Jerome McCarthy, incorporates Product, Price, Placement, and Promotion into a theory of marketing that has been important to the industry for more than 70 years. Since then, the theory has been expanded into the 7 P's of marketing. Which are: Product, Price, Promotion, Place, People, Packaging, and Process.
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Today, we refer to these interchangeably as the 7 P's or as the Marketing Mix. Here, we will discuss this concept, its components, and answer some common questions about the marketing mix and its applications.
Marketing mix is a selection of marketing tools that include several areas of focus that can be combined to create a comprehensive plan. The term refers to a classification that began as the 4 P’s: product, price, placement, and promotion, and has been expanded to Product, Price, Promotion, Place, People, Packaging, and Process.
The 4 P’s marketing mix concept (later known as the 7 P’s of marketing) was introduced by Jerome McCarthy in his book: "Basic Marketing: A Managerial Approach". It refers to the thoughtfully designed blend of strategies and practices a company uses to drive business and successful product promotion. Initially 4, these elements were Product, Price, Place and Promotion, which were later expanded by including People, Packaging and Process. These are now considered to be the “7 P’s” mix elements.
It can be difficult for a small business owner or marketing manager to know how to establish a unique selling proposition or to reach the right customers, especially on new platforms like the internet, with digital marketing.
Fortunately, the 7 Ps of marketing give you a framework to use in your marketing planning and essential strategy to effectively promote to your target market.
You can also take into consideration elements of the mix in your day to day marketing decision making process with the goal to attract the right audience to successfully market to through your marketing campaigns.
The 7 elements of the marketing mix include the following:
Your customer only cares about one thing: what your product or service can do for them. Because of this, prioritize making your product the best it can be and optimize your product lines accordingly. This approach is called “product-led marketing.” In a marketing mix, product considerations involve every aspect of what you're trying to sell. This includes:
There are five components to successful product-led marketing that are important for product marketers to take into consideration:
Many factors go into a pricing model. Brands may:
Consider what you're trying to achieve with your pricing strategy and how price will work with the rest of your marketing strategy. Some questions to ask yourself when selling products:
Promotion is the part of the marketing mix that the public notices most. It includes television and print advertising, content marketing, coupons or scheduled discounts, social media strategies , email marketing , display ads, digital strategies , marketing communication, search engine marketing, public relations and more.
All these promotional channels tie the whole marketing mix together into an omnichannel strategy that creates a unified experience for the customer base. For example:
Here are the ways you can use these channels together:
Where will you sell your product? The same market research that informed your product and price decisions will inform your placement as well, which goes beyond physical locations. Here are some considerations when it comes to place:
People refers to anyone who comes in contact with your customer, even indirectly, so make sure you're recruiting the best talent at all levels—not just in customer service and sales force.
Here’s what you can do to ensure your people are making the right impact on your customers:
A company's packaging catches the attention of new buyers in a crowded marketplace and reinforces value to returning customers . Here are some ways to make your packaging work harder for you:
Prioritize processes that overlap with the customer experience. The more specific and seamless your processes are, the more smoothly your staff can carry them out. If your staff isn't focused on navigating procedures, they have more attention available for customers—translating directly to personal and exceptional customer experiences.
Some processes to consider:
If you get more than one customer complaint about any process, pinpoint what's going wrong and figure out how to fix it.
Understanding marketing mix and the 7 P’s can bring up a lot of questions. Below, we’ve answered some frequently asked questions to help you identify and establish your own marketing mix.
A good example of the marketing mix might be a convenience store. In this instance, we might consider a chain of convenience outlets that provide a wide range of products including fresh and packaged food, tools, household, and kitchen items, novelties, magazines, etc.
Here, we will consider the customer experience as the opportunity to access simple food items, snacks, and a range of useful products for home, recreation, and more.
Another example might be a streaming service. Here our 4 P's are as follows:
Here, the customer experience is appealing, long-form video content primarily in the form of popular TV, films, comedy specials, and more with an emphasis on convenient home viewing.
In reality, there are as many types of marketing mixes as there are functioning businesses in the world. To make things simpler, we might try to make our model fit within one of 7 common, established marketing mix types as listed below.
As you can see, making a given company's value proposition and promotional needs fit into one of these categories might not work well. Our convenient store example might fit into the service mix since convenience is the primary value we would be offering. But our streaming service might also be called a "service mix,” or even a "product mix."
In most cases, it is best to generate an original marketing mix that describes the marketing needs of a real life organization.
The 4 P's are Product, Price, Place, and Promotion.
The marketing mix and the 7 P's of marketing are a guide to drafting and creating an outreach campaign for any given commercial enterprise. They are guidelines that help us cover all of our bases when it comes to brand outreach. It should be borne in mind that branding considerations are not covered in the concepts covered by these promotional frameworks.
The elements of these guidelines work together to create a functional framework for the creation of a complete marketing plan.
Develop your marketing mix and integrate it into your marketing essentials. As you develop your marketing mix, consider how each element affects the rest to create a unified brand experience for your consumers, from the user experience to the perceived value of your product. Think about how a product's price changes its promotion strategy, how specifications will contribute to pricing, and how your people carry out processes. Ensure that your people and the tools they use can communicate with each other, and use the right tools to reach the right people.
The marketing mix is a familiar marketing strategy tool, which as you will probably know, was traditionally limited to the core 4Ps of Product, Price, Place and Promotion. It is one of the top 3 classic marketing models according to a poll on Smart Insights.
It's an essential part of a marketing plan structure that defines the tactics to be used to implement the marketing strategy.
The traditional 7Ps of marketing consist of:
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The 7Ps marketing model was originally devised by E. Jerome McCarthy and published in 1960 in his book Basic Marketing. A Managerial Approach.
We've created the graphic below so you can see the key elements of the 7Ps marketing mix. More details are provided in the next visual.
The 4Ps marketing mix was designed at a time when businesses were more likely to sell products, rather than services. The 4 Ps represented an early focus on product marketing, when the role of customer service in helping brand development wasn't so well known.
Over time, Booms and Pitner added three extended ‘service mix P’s' : Participants or People, Physical evidence, and Processes. Later 'Participants' was renamed as 'People' - the marketing mix covering marketers, customer service reps, recruitment, culture, training and remuneration.
Today, it's recommended that the full 7 elements of the marketing mix are considered when reviewing competitive strategies - across product, customer service and more.
The 7Ps helps companies to review and define key issues that affect the marketing of its products and services. A popular marketing model, the marketing mix is can also be referred to as the 7Ps framework for the digital marketing mix.
In Dave Chaffey's book: Digital Marketing: Strategy, Implementation and Practice , this model was refreshed and applied to online channels to give a practical approach which works well for multichannel businesses. An eighth P, ‘Partners’ is often recommended for businesses to gain reach online (first mentioned in Digital mMarketing Excellence by Dave Chaffey and PR Smith although some would argue it's part of Place).
Although it's sometimes viewed as dated, we believe the 4Ps are an essential strategy tool to select their scope and is particularly useful for small businesses. For startups reviewing price and revenue models today, using the Business Model Canvas for marketing strategy is a great alternative since it gives you a good structure to follow.
Companies can also use the 7Ps model to set objectives, conduct a SWOT analysis and undertake competitive analysis. It's a practical framework to evaluate an existing business and work through appropriate approaches whilst evaluating the marketing mix elements.
Take a look at HubSpot as an example, which was founded in 2006; Hubspot now boasts over 86,000 total customers in more than 120 countries. Comprised of Marketing Hub, Sales Hub, Service Hub, CMS Hub, and a powerful free CRM, HubSpot adds value for customers in every aspect of the 7Ps.
This is a top-level overview; you would take this into greater detail and ask the following questions:
1. Products/Services: Integrated toolset for SEO, blogging, social media, website, email and lead intelligence tools.
2. Prices/Fees: Subscription-based monthly, Software-As-Service model based on number of contacts in database and number of users of the service.
3. Place/Access: Online! Network of Partners, Country User Groups.
4. Promotion: Directors speak at events, webinars, useful guides that are amplified by SEO. Social media advertising, e.g. LinkedIn.
5. Physical Evidence: Consistent branding across communications.
6. Processes: More sales staff are now involved in conversion.
7: People : Investment in online services.
8. Partners: Hubspot looks to form partnerships with major media companies such as Facebook and Google plus local partners including Smart Insights who it is collaborating with on research in Europe.
When using the 7Ps as a model to conduct a marketing audit, I look at each of the Ps. It’s unwise to ignore an area unless it is completely outside your control.
We are now seeing AI and machine learning techniques informing more developed Marketing Mix Modeling techniques such as regression and forecasting. Note that this is different to the different elements of the marketing mix described in this article and focuses more on the mix of budget investment in different media.
As the scope of marketing continues to develop, so does the marketing mix. Since 2007, Larry Londre's 9Ps of marketing has included:
Original References and sources of 7Ps marketing mix
Bitner, M. J. and Booms, H. (1981). Marketing Strategies and Organization: Structure for Service Firms. In Donnelly, J. H. and George, W. R. (Eds). Marketing of Services, Conference Proceeding s. Chicago, IL. American Marketing Association. p. 47- 52.
McCarthy, E. J. (1964). Basic Marketing . Richard D. Irwin. Homewood, IL.
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Annmarie Hanlon PhD is an academic and practitioner in strategic digital marketing and the application of social media for business. Dr Hanlon has expertise in the strategic application of social media for business and the move from digitization, to digitalization and digital transformation for business. Her expertise spans consumer touch points, online customer service, the use of reviews, the role of influencers, online engagement and digital content. You can follow her update on Twitter https://twitter.com/annmariehanlon
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The marketing mix is a term to describe the multi-faceted approach to a complete and effective marketing plan. Traditionally, this plan included the four Ps of marketing : price, product, promotion, and place. But the exact makeup of a marketing mix has undergone various changes in response to new technologies and ways of thinking. Additions to the four Ps include physical evidence, people, process, and even politics.
Component | Description |
---|---|
Definition | The Marketing Mix, often referred to as the 4Ps, is a strategic framework used by businesses to plan and execute their marketing strategies. It involves the consideration and coordination of four key elements: Product, Price, Place, and Promotion. These elements are adjusted and aligned to meet the needs of a target market and achieve marketing objectives. |
Development | The concept of the Marketing Mix was first introduced by marketer Neil Borden in 1949. However, it was popularized and refined by E. Jerome McCarthy in his book “Basic Marketing: A Managerial Approach” in 1960. The 4Ps framework has since become a cornerstone of marketing theory and practice. |
Key Concepts | – : Refers to the goods or services offered by a company. Product decisions include features, design, quality, branding, and packaging. – : Involves setting a price that reflects the product’s value, production costs, and market demand. Pricing strategies can range from premium to discount pricing. – : Focuses on distribution channels and how products reach consumers. Decisions include channel selection, logistics, and retail locations. – : Encompasses all marketing activities aimed at promoting and selling products. This includes advertising, sales promotions, public relations, and digital marketing. |
Product | – : The product element of the Marketing Mix refers to the goods or services that a company offers to meet the needs and wants of its target market. It encompasses both tangible and intangible aspects, such as features, quality, design, brand identity, and customer experience. – : Product decisions involve defining the product’s features, benefits, and specifications. It also includes branding, packaging, and positioning in the market. – : Metrics for the product component may include sales volume, market share, customer satisfaction, and product quality ratings. – : A well-defined product strategy can lead to increased customer satisfaction, loyalty, and market differentiation. – : Neglecting product development or failing to meet customer expectations can result in reduced market competitiveness. – : The product component is crucial in industries ranging from consumer goods and technology to healthcare and entertainment. |
Price | – : The price element of the Marketing Mix pertains to how a company sets the monetary value for its products or services. Pricing decisions directly affect revenue generation and profit margins. – : Price decisions involve determining the initial price, pricing strategies (e.g., cost-plus, value-based, penetration pricing), discounts, and pricing models (e.g., subscription-based, freemium). – : Metrics include pricing elasticity, gross profit margin, break-even point, and average transaction value. – : Effective pricing can optimize revenue, attract target customers, and enhance brand perception. – : Poor pricing strategies can lead to lost sales, decreased profitability, or perceptions of overpricing or underdelivering. – : Pricing is a critical consideration in retail, e-commerce, software licensing, and service industries. |
Place | – : The place component of the Marketing Mix involves decisions related to the distribution and availability of a product or service. It focuses on making products accessible to the target market. – : Place decisions encompass channel selection (e.g., direct, retail, e-commerce), logistics, inventory management, warehousing, and supply chain optimization. – : Metrics for place include distribution efficiency, lead times, inventory turnover, and channel performance. – : Effective distribution ensures products reach the right customers at the right time and location, improving market reach and accessibility. – : Poor distribution strategies can lead to stockouts, overstocking, delivery delays, or missed market opportunities. – : Place is particularly relevant in industries such as retail, logistics, e-commerce, and manufacturing. |
Promotion | – : The promotion element of the Marketing Mix encompasses all communication and marketing activities used to promote and sell a product or service. It aims to create awareness, interest, desire, and action (AIDA) among consumers. – : Promotion strategies involve advertising, public relations, social media marketing, content marketing, sales promotions, and personal selling. – : Metrics include brand awareness, click-through rates, conversion rates, return on investment (ROI), and customer acquisition cost (CAC). – : Effective promotion drives brand recognition, customer engagement, and sales. It helps build and maintain brand reputation and loyalty. – : Ineffective or misleading promotion can damage brand credibility and result in customer backlash. – : Promotion is relevant across all industries and is tailored to specific target audiences and communication channels. |
Metrics | – : Metrics within the Marketing Mix are quantifiable measurements used to evaluate the performance and effectiveness of each element (product, price, place, promotion). Metrics provide insights into whether marketing strategies are achieving desired objectives and help in making data-driven decisions. – : Selecting appropriate metrics depends on specific marketing goals. Examples include return on ad spend (ROAS), customer lifetime value (CLV), customer acquisition cost (CAC), net promoter score (NPS), and market share. – : Metrics enable marketers to assess the impact of marketing efforts, allocate resources effectively, and refine strategies for better results. – : Overreliance on single metrics without considering the overall marketing mix can lead to suboptimal decisions. – : Metrics are essential in digital marketing, e-commerce, advertising campaigns |
Table of Contents
While many understand marketing as “putting the right product in the right place, at the right price, at the right time,” few know how to implement this in practice.
Identifying the individual elements of a marketing mix and then creating robust plans for each allows a business to market accordingly.
It also allows a business to market to its strengths while minimizing or eliminating its weaknesses.
At the very least, a marketing mix should include the four Ps of marketing :
This can include a tangible good or an intangible service.
Businesses must understand their product or service in the context of the problem that it aims to solve.
If the product does not seem to address any problem, then the potential profitability of the product should be re-analyzed.
The target audience, or those who will buy the product, must also be identified.
Price has a direct impact on how well a product will sell and is linked to the perceived value of the product in the mind of a consumer.
In other words, price is not related to what the business thinks the product is worth.
Thus, it is important to know what the consumer values and price it accordingly.
To a lesser extent, price may also be influenced by rival products and value chain costs.
Promotion includes all marketing communication strategies, such as advertising, sales promotions, and public relations.
Irrespective of the channel, communication must be a good fit for the product, price, and target audience.
Place describes the physical location in which a customer can use, access, or purchase the end product.
Determining where buyers look for a product or service may seem simplistic, but it has implications for marketing and product development.
For example, place determines which distribution methods are most suitable.
It also dictates whether a product needs a sales team or whether it should be taken to a trade fair to be sampled and advertised.
Conventional marketing mixes are product-centric, but services and other intangible goods are also commonplace for many businesses.
People, process, and physical evidence are three more Ps that these businesses should implement.
People refers to the staff who are directly and indirectly involved in marketing the brand.
Employing the best people for the job is crucial since people shape the direction of the brand and therefore the goals and values of the business.
Process covers the interface between business and consumer, otherwise known as customer service.
Process is important because customers often give feedback on their service, which enables a business to improve its systems across the board.
Effective processes should make purchasing pleasing and simple while simultaneously increasing brand equity.
Physical evidence describes anything that consumers see when interacting with a brand. Physical evidence can take the form of packaging, branding, and even the physical layout and design of retail spaces and shop fronts.
Physical evidence also extends to how staff dress and interact with customers and the possible impact that this has on sales.
Marketing mix modeling (MMM) is a statistical method for evaluating marketing campaign effectiveness.
The method quantifies the impact of multiple marketing inputs on market share or sales which then determines how much to spend on each.
Marketing mix modeling uses statistical analysis to analyze the past and future impact of different marketing tactics on sales or profit.
The approach is based on the popular 4 Ps marketing mix theory.
In essence, the purpose of MMM is to measure the past performance of a campaign and improve future marketing return on investment (MROI).
Conclusions drawn from the statistical analysis then determine how resources can be better allocated across various tactics, products, segments, and markets.
Marketing mix modeling utilizes the multi-linear regression (MLR) statistical technique to assess the relationship between dependent and independent variables.
The dependent variable is normally market share or sales, while the independent variable could be price, distribution, or ad spend for different channels.
Each MMM project has four distinct phases that we have explained in detail below.
In the first phase, the business collects data on the products to be analyzed, the desired timeframe, and the markets to be modeled.
The sales performance metric should also be quantified at this point.
Will it be volume, units, sales, or some other metric?
Brand margin rates and marketing spend should also be determined so that the MROI can be calculated later on.
MMM also requires the business to use data that will yield the best results. In other words:
Before moving to the next phase, key project stakeholders should also hold a review session to ensure data integrity.
In some cases, data will have to be aggregated or cleansed before moving forward.
In the second phase, brand managers must collaborate with their internal analytics staff to discuss statistical details, specifications, and methods.
We noted earlier that a multi-linear regression is commonly used, but other methods such as time-series regression are also used.
Ultimately, the method chosen will depend on the organization’s goals, data quality, and in some cases the entity providing the statistical analysis on behalf of the client.
Once the statistical analysis has been performed, it will produce output data that measures how each tactic impacts sales.
The data must also answer or address the overarching purpose of the project, with many organizations choosing to frame project purpose as questions such as:
Most MMM projects will also feature a pie chart showing the decomposition of sales where sales volume is broken down according to each tactic.
These charts separate two types of tactics:
Once a decomposition of sales has been performed, the organization can calculate three important metrics:
In the final phase, MMM outputs are transformed into inputs for future marketing campaigns.
Simulations help the organization model the impact of a new tactic before it is used in a real-world scenario.
They also enable teams to determine the best combination of tactics that will enable them to achieve campaign goals.
In the past few decades, marketing mix modeling has been adopted by several Fortune 500 companies such as Kraft, The Coca-Cola Company, Pepsi, AT&T, and Proctor & Gamble.
While there has been particular interest from consumer packaged goods (CPG) companies, others now use MMM because of the increased prevalence of companies providing these specialist services.
Indeed, marketing mix modeling is popular in the retail and pharmaceutical industries because firms like Nielsen can provide syndicated data on stores, product categories, geographic markets, and distribution channels .
What’s more, the increased availability of time-series data has also seen MMM incorporated into industries such as telecommunications, financial services, hospitality, and automotive.
However, in these industries, it is acknowledged that marketing mix modeling is still in its infancy and will require further standardization to be effective.
Facebook (now Meta) is one of several modern platforms that offer a family of services and apps that have dynamic and nuanced advertising needs.
Since consumer preferences are in a constant state of flux, this makes it difficult for brands to assess the impact of Facebook advertising compared to traditional channels such as television and print.
A standard marketing mix modeling project assesses data from two or three years. But for online social platforms, data over this time span may become outdated.
To counteract this tendency, Facebook recommends advertisers analyze data over a 6 to 12-month period.
They should then adjust their methods to account for the statistical power that is sacrificed when analyzing a shorter time frame.
Professional services company Accenture ran multiple MMM analyses in 2021 for disruptor brands requiring a reliable and cost-effective system to optimize their promotional efforts and produce actionable and granular results.
How was this achieved?
Tailored data was first sourced from Facebook, Instagram, and Audience Network, which considered standard engagement metrics such as clicks but also paid impressions.
Data were then integrated with machine learning techniques such as the Bayesian belief network to analyze potential synergies between multiple channels.
This involved analyzing the relationship between six independent variables (video, display, Facebook app, organic search, Instagram, and paid search) and their dependent online and offline channels.
The results of the analysis showed how various marketing channels could drive impacts across other channels. A few of the more significant results are listed below:
In summary, Accenture found that disruptor brands that focus their resources on social, organic search, and offline channels could better impact paid search and, ultimately, increase their web traffic.
How does Amazon balance product, price, promotion, and place to create and sustain its competitive advantage?
Let’s delve into Amazon’s marketing mix below.
Amazon offers a diverse selection of products to maintain its status as the foremost company in online retail.
These products support the company’s mission and vision and, thanks to continued expansion, can now be found in industries such as cloud infrastructure, database services, content production, artificial intelligence, gaming, and pharmaceuticals.
Amazon’s core product remains its eCommerce platform where the company sells private-label and third-party items to consumers across categories such as consumer electronics, art, home appliances, sports and outdoors, car accessories, jewelry, and home improvement.
Through its highly successful Amazon Prime membership program, the company offered free expedited delivery and discounted priority and residential express delivery.
Prime members also receive access to exclusive discounts and Amazon’s video, music, and e-book platforms.
Amazon primarily uses market-oriented pricing to attract customers to its eCommerce platform.
Prices for the company’s private label Amazon Basics range are based on similar products sold by competitors.
As a retailer with a near-global presence, Amazon also uses the price discrimination strategy to vary prices for identical products according to region.
For example, the price of a Samsung television in Spain may be different to the price offered to consumers in the USA.
This enables the company to adjust prices based on local market conditions, consumer preferences, and perceived product value.
More generally speaking, Amazon uses technology to set and adjust prices based on the time of day, season, and competitor activity.
It also cleverly prices its Prime membership option to attract customers who want to take advantage of deals and discounts.
In addition to marketing to broader audiences, Amazon also markets to individuals by analyzing their shopping habits and purchase behavior.
Using this information, it strives to turn one-time visitors or buyers into repeat, high-value, long-term customers.
To attract repeat purchasers, the company frequently promotes its fast delivery.
Amazon promotes is various products and services with ads on other websites, newspapers, billboards, television, and social media.
The Amazon Affiliate Program – one of the largest in the world – is also a vital promotional channel for the company with around 1.235 million affiliate sites advertising or reviewing products on the Amazon website.
Amazon is primarily an online business that reaches customers on Amazon.com and its various region-specific derivatives.
However, the company does operate in the real world to some extent. Its acquisition of Whole Foods Market in 2017 allowed it to establish a bricks-and-mortar supermarket presence.
Amazon also operates several Amazon Fresh and Amazon Go stores, with the latter a chain of convenience outlets without cashiers where consumers pay for goods using an app.
In August 2021, Amazon announced it would open several new physical retail stores to extend its reach across electronics, home goods, and clothes.
Many see this move as a way for the company to own as much of the retail industry as possible.
The four main elements of the marketing mix are:
The 7 P’s marketing mix is an extension of the traditional marketing mix. In a 4 Ps marketing mix, you get Product, Price, Promotion, and Place. In a 7 Ps marketing mix variation, you get three other elements:
A marketing mix is critical as it enables companies to structure an effective marketing strategy by understanding the main channels that can be leveraged to build a viable business.
In some instances, some channels will be more critical in a marketing mix strategy .
Over time, it will be critical to balance out various channels as part of the marketing mix to build a solid business model.
Account-Based Marketing
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Bullseye Framework
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Push vs. Pull Marketing
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The marketing mix is an essential tool in building and implementing an effective marketing strategy . It should be used to show prospects why your product or service is different and better than your competitors.
In this article you’ll learn what a marketing mix is, why it matters, and the 10 steps to follow for building the perfect marketing mix for your business.
The marketing mix refers to the various elements of your company’s offering in the market.
It is a varied “mix of ingredients” used by your business to achieve its objectives by marketing its products or services effectively to a particular customer group.
The marketing mix, also referred to as the 4 Ps, is comprised of four main pieces – Products, Price, Promotion and Place. The 4Ps describe what marketers can control and are the most critical elements when building your marketing strategy.
Image Source: bbc.co.uk
Product is concerned with developing the right product or service for your target market. Your product or service must satisfy a specific consumer need.
This first P is made up of two core components:
Kaffeine , a London-based coffee shop, attracts customers by branding their business and products as hassle-free and friendly. They use their shop design of crumbling brick walls and comfy wooden crate benches to create an image visitors can easily align with their brand.
Image Source: www.cosycoffeeshops.co.uk
When setting a price for your product, you must consider competition in your target market place, and the cost of the total marketing mix.
Also estimate customers’ reactions to possible product prices.
Thegymgroup.com offers a great pricing incentive. Unlike other gyms, they don’t bind you to an expensive contract and you receive 3 free training sessions.
Image Source: http://www.thegymgroup.com/
This involves all the decisions in getting the right product to your target market’s environment.
Placement decisions, such as accessing the right distribution channels, should take into consideration where customers would expect to find a product or service like yours.
Part of the place decision is also the layout of your store or shop. It should pull customers into your shop, making it easy for them to locate merchandise.
Nakedwines.com have created their whole marketing strategy around the element of place.
Customers can fund independent winemakers and receive exclusive access to wines at wholesale prices, and it’s all available online.
Source Image: https://www.nakedwines.com/
This is about telling your target market about your product or service. It involves direct communication between sellers and potential customers.
ITC Luxury Travel uses various means of communication with their customers and promotion for their services. They’realso active on social media sites, including Twitter, Instagram, Facebook and Google+. Their Newsletter sign-up offers yet another opportunity for product promotion.
Source Image: https://www.itcluxurytravel.co.uk/
If the 4Ps seem outdated to you, try R.F. Lauterborn’s 4Cs and decide if his take on the marketing mix is a better fit for your business.
Image Source: marketingmix.co.uk
In your day-to-day business activities it’s difficult to turn your attention to the big picture, especially when you’re putting out fires left and right.
Your marketing mix provides a roadmap for your business objectives. It keeps you on track, while keeping your target market in the forefront of your mind.
Your marketing mix will help you make sure your business is marketing the right product, to the right people, at the right price and time.
Use these 10 steps to assist you in building your perfect marketing mix for a successful product offering.
To create the right marketing mix you must first clearly define what you want the end result to be – more customers, brand awareness, higher sales, etc.
Every marketing plan has its own marketing goals. Also ensure you have set a specific time frame in which to achieve your goals.
How much money are you willing to spend on product innovation, consumer research and product promotion?
Describe the benefits users will experience from using your product or service. What unique problem are you solving better than anyone else?
For example, Tom Shoes gives a new pair of shoes to a child in need for every pair you purchase.
Image Source: Toms Shoes
In order to communicate effectively with your audience, you need to know who they are and how they prefer to be communicated with.
Create an in depth profile of your ideal custome r. Make sure you’ve gathered enough consumer data to develop a complete picture of your ideal buyer.
Use their answers and the language they used in your marketing material. You’ll appear more relatable and approachable to your audience.
Take your time describing the specific qualities and value of your product. Look for the unique features that show your product’s worth.
Identify the places your product will be marketed – which distribution channels you’ll make use of.
Your choice of distribution channel will influence your pricing and your promotion decisions.
Depending on your audience and product your main options will be:
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You need to discover clever ways of differentiating your product on price. Research your competitors and make sure you’re not overcharging your customers.
You will also need to consider what your target audience might be willing to pay and what it costs to actually produce your product.
Your target audience needs to be made aware of your product offering.
Successful promotion of your product includes various elements, like:
The 4Ps of marketing creates the basis of your marketing strategy, but inbound marketing also plays a vital role in developing your marketing mix.
An effective inbound marketing mix should include:
Image source: marketectinc.com
A well-developed marketing mix will help you develop products and services that better serve the wants and needs of your target market.
Done right, your market mix will help your customers understand why your product or service is better than those of you competitors.
Although the 4Ps should remain core to your marketing mix, inbound marketing should also form part of your overall marketing strategy . Use these 10 steps to help you develop your perfect marketing mix.
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So, you’ve got an idea and you want to start a business —great! Before you do anything else, like seek funding or build out a team, you'll need to know how to write a business plan. This plan will serve as the foundation of your company while also giving investors and future employees a clear idea of your purpose.
Below, Lauren Cobello, Founder and CEO of Leverage with Media PR , gives her best advice on how to make a business plan for your company.
Build your dream business with the help of a high-paying job—browse open jobs on The Muse »
According to Cobello, a business plan is a document that contains the mission of the business and a brief overview of it, as well as the objectives, strategies, and financial plans of the founder. A business plan comes into play very early on in the process of starting a company—more or less before you do anything else.
“You should start a company with a business plan in mind—especially if you plan to get funding for the company,” Cobello says. “You’re going to need it.”
Whether that funding comes from a loan, an investor, or crowdsourcing, a business plan is imperative to secure the capital, says the U.S. Small Business Administration . Anyone who’s considering giving you money is going to want to review your business plan before doing so. That means before you head into any meeting, make sure you have physical copies of your business plan to share.
The four main types of business plans are:
Internal business plans, strategic business plans, one-page business plans.
Let's break down each one:
If you're wondering how to write a business plan for a startup, Cobello has advice for you. Startup business plans are the most common type, she says, and they are a critical tool for new business ventures that want funding. A startup is defined as a company that’s in its first stages of operations, founded by an entrepreneur who has a product or service idea.
Most startups begin with very little money, so they need a strong business plan to convince family, friends, banks, and/or venture capitalists to invest in the new company.
Internal business plans “are for internal use only,” says Cobello. This kind of document is not public-facing, only company-facing, and it contains an outline of the company’s business strategy, financial goals and budgets, and performance data.
Internal business plans aren’t used to secure funding, but rather to set goals and get everyone working there tracking towards them.
As the name implies, strategic business plans are geared more towards strategy and they include an assessment of the current business landscape, notes Jérôme Côté, a Business Advisor at BDC Advisory Services .
Unlike a traditional business plan, Cobello adds, strategic plans include a SWOT analysis (which stands for strengths, weaknesses, opportunities, and threats) and an in-depth action plan for the next six to 12 months. Strategic plans are action-based and take into account the state of the company and the industry in which it exists.
Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you’ll make money).
A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage.
Every business plan is different, and the steps you take to complete yours will depend on what type and format you choose. That said, if you need a place to start and appreciate a roadmap, here’s what Cobello recommends:
Before writing your business plan, you’ll want to do a thorough investigation of what’s out there. Who will be the competitors for your product or service? Who is included in the target market? What industry trends are you capitalizing on, or rebuking? You want to figure out where you sit in the market and what your company’s value propositions are. What makes you different—and better?
The purpose of your business plan will determine which kind of plan you choose to create. Are you trying to drum up funding, or get the company employees focused on specific goals? (For the former, you’d want a startup business plan, while an internal plan would satisfy the latter.) Also, consider your audience. An investment firm that sees hundreds of potential business plans a day may prefer to see a one-pager upfront and, if they’re interested, a longer plan later.
Every business plan needs a company description—aka a summary of the company’s purpose, what they do/offer, and what makes it unique. Company descriptions should be clear and concise, avoiding the use of jargon, Cobello says. Ideally, descriptions should be a few paragraphs at most.
A business plan should be centered around the company’s goals, and it should clearly explain how the company will generate revenue. To do this, Cobello recommends using actual numbers and details, as opposed to just projections.
For instance, if the company is already making money, show how much and at what cost (e.g. what was the net profit). If it hasn’t generated revenue yet, outline the plan for how it will—including what the product/service will cost to produce and how much it will cost the consumer.
How will you promote the business? Through what channels will you be promoting it? How are you going to reach and appeal to your target market? The more specific and thorough you can be with your plans here, the better, Cobello says.
What will you do with the money you raise? What are the first steps you plan to take? As a founder, you want to instill confidence in your investors and show them that the instant you receive their money, you’ll be taking smart actions that grow the company.
Creating a business plan is in some ways akin to building a legal case, but for your business. “You want to tell a story, and to be as thorough as possible, while keeping your plan succinct, clear, interesting, and visually appealing,” Cobello says. “Supporting documents could include financial projects, a competitive analysis of the market you’re entering into, and even any licenses, patents, or permits you’ve secured.”
A business plan is an individualized document—it’s ultimately up to you what information to include and what story you tell. But above all, Cobello says, your business plan should have a clear focus and goal in mind, because everything else will build off this cornerstone.
“Many people don’t realize how important business plans are for the health of their company,” she says. “Set aside time to make this a priority for your business, and make sure to keep it updated as you grow.”
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When perfected and synchronized, the core elements of a marketing mix provide a well-rounded approach to marketing strategy. 1. Product. Product refers to what your business is selling - product (s), service (s), or both. The bulk of the work in this element is typically done by product marketers or managers.
The first P in the four Ps of marketing is product. A product can come in a variety of forms, such as a physical product, digital product, service, event or experience. The product is the actual ...
Marketing Mix: A marketing mix usually refers to E. Jerome McCarthy's four P classification for developing an effective marketing strategy: product, price, placement, or distribution, and ...
The four Ps of marketing are product, price, place, and promotion. These are the key factors that are involved in marketing a product or service. You take the four Ps into account when creating strategies for marketing, promoting, advertising, and positioning your product or brand. The four Ps are meant to help marketers consider everything ...
The four Ps are a "marketing mix" comprised of four key elements—product, price, place, and promotion—used when marketing a product or service. Typically, successful marketers and businesses consider the four Ps when creating marketing plans and strategies to effectively market to their target audience. Although there are many other ...
Four Ps: The four Ps are the categories that are involved in the marketing of a good or service, and they include product, price, place and promotion. Often referred to as the marketing mix, the ...
The 4 Ps—product, price, place, and promotion—and the 4 Cs—consumer, cost, convenience, communication—are both examples of marketing mix models. They both aim to boost sales, but the 4 Ps is more focused on the internal processes of the marketing strategy while the 4 Cs is more focused on the external processes that may influence a ...
The 4 P's example and template for a service business. The Marketing Mix of "HVAC Plumber" reflects a real life example of how a service company covers the 4 P's (Product, Price, Place, Promotion) in their marketing strategy. "HVAC plumber" (a fictitious company) provides heating and cooling services in the Chicago Metropolitan Area.
You need to have a solid understanding of your target audience before integrating your marketing efforts. Example: If your target audience is executives that spend a lot of time on LinkedIn, focus your social media strategy around placing branded content on LinkedIn. 5. Differentiate with creative content.
A marketing plan is a strategic document that outlines marketing objectives, strategies, and tactics. A business plan is also a strategic document. But this plan covers all aspects of a company's operations, including finance, operations, and more. It can also help your business decide how to distribute resources and make decisions as your ...
Key takeaways. Marketing is an exciting field and, with so many models available, there are plenty of ways to approach your marketing strategy. The marketing mix (or the 4 Ps) are four elements that marketers must consider while planning their marketing strategy, which are: product, price, place, and promotion.
The seven Ps of marketing is a marketing mix model designed especially for service marketing and was proposed by Bernard Booms and Mary Bitner in 1981. The seven components of the model are: Product - What you sell. Price - How much you sell it for. Place - Where you sell it. Promotion - How you get customers.
A marketing mix is a blend of business strategies brought into execution that make up the overall marketing strategy for a product. ... 4 P's of Marketing Mix with Examples. A marketing plan must be based on thorough market research and analysis of the many factors of marketing. A marketing design without a solid blueprint is like aiming in the ...
Oct 26, 2023. A marketing plan is a blueprint that outlines your strategies to attract and convert your ideal customers as a part of your customer acquisition strategy. It's a comprehensive document that details your: Target audience: Who you're trying to reach. Marketing goals: What you want to achieve.
Marketing Strategy: This section of a marketing plan details the business's unique value proposition and the channels that will communicate it. A robust marketing strategy addresses the touchpoints in a consumer's buying cycle and breaks down the 4 Ps (product, price, place, promotion) of the marketing mix.
Strategy: Segmentation, Targeting and Positoning (STP) and the tactics forming the 7Ps of the marketing mix. Action: Budget, resourcing including team and tools and marketing technology (Martech) and 90-day action plans. As a marketer, every activity will fall into either an opportunity, strategy, or action.
3. Red Bull Marketing Mix Example. Since entering the market in 1987, Red Bull has remained the most popular energy drink brand worldwide. Over the years, Red Bull has sold over 100 billion cans and, as of 2020, held 43% of the global energy drinks market share.
A marketing mix refers to a set of controllable variables that a company strategically chooses to influence the target buyers' responses. The elements of a marketing mix include four P's, i.e., product, price, promotion, and place. These elements work in conjunction to help brands create brand positioning, marketing plan, and advertising ...
Marketing mix is a selection of marketing tools that include several areas of focus that can be combined to create a comprehensive plan. The term refers to a classification that began as the 4 P's: product, price, placement, and promotion, and has been expanded to Product, Price, Promotion, Place, People, Packaging, and Process.
Original References and sources of 7Ps marketing mix. Bitner, M. J. and Booms, H. (1981). Marketing Strategies and Organization: Structure for Service Firms. ... 15 section download to quickly create a marketing plan for your business Many marketing plan templates you will find online were created long ago for larger businesses and aren't so ...
The marketing mix is a term to describe the multi-faceted approach to a complete and effective marketing plan. Traditionally, this plan included the four Ps of marketing: price, product, promotion, and place. But the exact makeup of a marketing mix has undergone various changes in response to new technologies and ways of thinking. Additions to the four Ps include physical evidence, people ...
Step 1. Goals and Objectives. To create the right marketing mix you must first clearly define what you want the end result to be - more customers, brand awareness, higher sales, etc. Every marketing plan has its own marketing goals. Also ensure you have set a specific time frame in which to achieve your goals. Step 2.
A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you'll make money). A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage ...