The 7Ps of Marketing

Today, as competitive pressures increase, marketing is more and more key to being successful in business. It plays a key role in many business success stories. Most small businesses carry out a great deal of marketing, but don’t always recognise it as such and don’t always plan it to its fullest.

You probably already know your customers well; you know that you should be continually improving and extending your products. All this is part of the marketing mix.

Marketing is so much more than just sales and advertising. Marketing allows your business to identify, anticipate and satisfy customer requirements profitably. Get it right and marketing will allow you to get the right product or service to your customers at the right price, in the right place, at the right time.

Successful marketing depends on addressing a number of key issues, including how your product reaches the customer, how it is priced and how you tell your customers what is available.

The Chartered Institute of Marketing (CIM) has produced a guide to the seven things you should consider for successful marketing.  These are known as the 7Ps of marketing.

1 Product
Don’t develop a product or service first and then hope to find a market for it afterwards.  Research the market before you launch your product or service so that it meets the needs of customers, put a system in place to regularly check that your product is what the market wants.  If you are already in business and have a product, then you should have a means to develop and extend your product to meet those ever changing needs.

2 Price
A product/service is only worth what customers are prepared to pay for it. The price also needs to be competitive, but this does not necessarily mean the cheapest.  For example, a small business may be able to compete with larger rivals by adding extra services that will offer customers better value for money. Price positions you in the marketplace; the more you charge the more value or quality your customers will expect for their money. Just as importantly, your pricing must also cover your costs and provide a profit. It is the only element of the marketing mix that generates revenue — everything else represents a cost.

3 Place
Where you sell your product or offer your service must be appropriate and convenient for the customer.  Your product needs to be available in sufficient quantity to satisfy customer demands. At the same time you should keep storage, inventory and distribution costs to an acceptable level. A place also means a way of displaying your product/service to customers. This could be a shop window, but can also be mail order, a website or your office or workshop. It will depend on the nature of the product or service, but should always be designed to make your offering appropriate and attractive to the customer.

4 Promotion
Promotion is the aspect of marketing that most people recognise. It is the way your company communicates what it does and what it can offer customers. It includes activities such as branding, advertising, direct mail, your website, PR, corporate identity, sales management, special offers and exhibitions. Promotion must gain attention, be appealing, tell a consistent message, communicate the benefits and not just the features of the product/service and, above all else, give the customer a reason to choose your product rather than someone else’s.  One aspect of promotion that is often missed is that of communicating effectively with your own staff so that they can be knowledgeable and share expertise with their customers.

5 People
Every time your staff/colleagues come into contact with a customer an impression is made. Make sure it’s a good impression by having properly trained, well-motivated staff with a good attitude; the reputation of your company rests in their hands.  Providing after sales support and advice is one way you can add value to what you offer, giving your business an important edge over competitors who don’t. In many sectors customers do not separate the product or service from the staff member who provides it, making this a key element of the marketing mix. 

6 Process
The process of giving a service is crucial to customer satisfaction. Issues such as waiting times, the information given to customers and the helpfulness of staff are all vital to keep customers happy. Remember, customers are not interested in the details of how your business runs, only in getting a good service. It will run most smoothly for the customer if there are processes in place that the staff understand.

7 Physical evidence
Unlike a product, a service can’t be experienced before it is delivered. This means for a customer choosing to use a service there can be an element of risk. Any uncertainty can be reduced by helping potential customers to ‘see’ what they are buying. Case studies and testimonials can provide evidence that your company keeps its promises. Facilities such as a clean, tidy and well-decorated reception area can also help to reassure. The physical evidence should be appropriate to the expectations of the customer. For example a financial services product will need to be delivered more formally than a children’s entertainer. This may show in such aspects as premises or the way that staff dress.

There is an 8th P which pulls the other seven together  - planning. No one element of the mix can be considered in isolation. Planning a marketing strategy starts with a detailed and ongoing investigation of the market and your company’s position within it. The plan should then define objectives, targets and performance measures and assign a budget, and finally you should develop an action plan taking account of all elements of the marketing mix.