Marketing – the 7 P’s
Many businesses confuse marketing with advertising. When considering the marketing of their business they will look at how they can promote their brand, as in spread the word, but they fail to look at related variables that all have an impact on potential sales. The 7 P’s of marketing, Product, Price, Place, Promotion, People, Process and Physical Evidence provide a methodical and structured way to create a marketing strategy as it covers a wide scope factoring in both internal and external aspects.
The marketing mix
The 7 P’s of marketing are also known as the “marketing mix” and it covers:
- Physical Evidence
Technically there is no hierarchy as all aspects of the marketing mix are interrelated and are difficult to review in isolation of one another – imagine considering a Product without considering Price or a Process without taking into account People.
Product is a good place to start when looking at the marketing mix, as it’s the essence of all business activities. “Product” doesn’t just relate though to physical products, it can be a service too – in other words it is what you are selling.
Market research is an essential part of product development. Often business owners decide what product or service they want to offer, without fully knowing if there is a market demand for it. Customer feedback is essential when expanding a range of products or services – it’s real opinions that will help you sculpt your business offering effectively.
Put another way; don’t try to develop a Rolls Royce to sell to someone who wants a Renault Clio.
Pricing is a difficult area of marketing. Price your product or service too high and you will alienate large sections of the market. Price it too low and you compromise your profit margins.
Also, price sets your place within the market so know your audience and where sub-sections could be sensitive to price
The key to pricing is to offer value for money and match the expectation of the customer with the quality standard of your product or service.
The location from which a business operates can make or break certain businesses, for example, those who rely on passing footfall.
New businesses are wise to carefully consider location and again it comes back to understanding the buying behavior of your target audience. Is there a demand for your product or service in your chosen area?
Of course, for many businesses now, “online” is the trading place but the same applies – are you getting the right customers to your shop front?
Promotion is how you communicate your business brand and values to the outside world. Promotion includes both online and print advertising, or for larger companies TV or radio may be effective. Other promotional activities include e-mail marketing, mail-shots, special offers and presentations, trade shows, exhibitions and other events
It is essential to trial and test different promotional activities and work out the Return on Investment to see which bring in new customers at the right cost to your business.
With this type of information you can continually develop your promotional marketing strategy in line with your marketing budget.
Customer retention and customer satisfaction are important for businesses to run smoothly and attract new business through word of mouth.
Having a capable team, who represent your business well, goes a long way to creating a great brand name for your business.
Ensure your team is sufficiently trained. Also, carefully match your staff with the right roles and taking care of high value customers
It is frequent that business owners build their systems and processes with the business in mind, rather than the customer.
Process, as part of the marketing mix, encourages you to review your business processes from the eyes of the customer.
For example you may start to consider how long the phone rings? How long is the delivery time for a product? What is your policy and process on refunds?
Thinking about these from the viewpoint of the customer helps a business grow.
The consideration of “physical evidence’ is a way to show customers that you offer a great product or service even if they haven’t used you before
With the online world of reviews it is becoming increasingly something that consumers rely on and have access to.
Customers generally want to know that someone else has had a good experience.
Testimonials and Case studies are a great way to demonstrate this and can be published throughout all your marketing material.
Moving your business forward with the marketing mix
By factoring in all areas of the marketing mix, your business can grow and develop in a strategic way. Instead of just considering the promotional aspects of marketing, take real time out of your working day to uncover other related areas where improvements can be made.
Figurit are specialist London based accountants for forward thinking commercial business owners. We work with a bespoke client base to ensure we have a one-to-one personal relationship to help you grow your business and save tax. Call today.
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