6 P’s of Marketing to Grow Your Business
- Create a desirable product or service that offers value.
- Sell the product or service at a price that is attractive to customers.
- Determine the best place to sell the product or service.
- Optimize the success of attention-grabbing promotions.
- Identify the right people to improve marketing success.
- Attract customers by creating a visually appealing presentation.
What Are the 6 P’s of Marketing, and How Can They Benefit Sales?
- Product: The product is what is being sold. Fulfilling a market opportunity with a timely product that meets customers’ needs will help boost sales.
- Price: The price is the cost the customer pays to acquire the An effective pricing strategy ensures that customers are willing to buy the product, generating sales for the company.
- Place: The place is where customers can buy the product. Whether a brick-and-mortar store, website, or app, proper placement of products creates sales opportunities.
- Promotion: The promotion includes all the tactics used to communicate a product’s value. The goal of promotion is to attract a customer’s attention and foster interest in learning more about — and eventually buying — the product.
- People: The people are the individuals involved in the marketing process on both sides of an exchange. Employees such as salespeople and customer service representatives influence how customers view a business or product, and customers provide feedback to improve the product. This interaction between internal and external people helps determine success.
- Presentation: The presentation is how the product appears in the market. Customers’ opinions of how a product is presented (for example, through packaging and messaging) can impact their buying decisions.
#1 Products and Services
- What are the marketplace’s biggest needs or pain points? Products already on the market may fall short of meeting customers’ urgent needs, which are often called pain points. While developing a product or service, a company should ensure that it meets these needs.
- What kind of offering can address customers’ needs? Sometimes a business identifies a customer need that no product or service attempts to fill, offering the opportunity to develop an innovative solution.
- Which products or services are already in the market? Breaking ground in a saturated market can be difficult. After assessing existing offerings, businesses can develop a unique product.
- Which companies have the most market share? Entering a market dominated by one or two companies can be intimidating. However, identifying which companies have the most market share can determine the types of products customers are buying. This data can help a business trying to make inroads into a market to decide what product to make.
- Will the market need this offering over the long term? Is the product a consumable that needs to be regularly replaced, with built-in repeat business? If the product is a one-time purchase or has a long lifecycle, what additional services or accessories can ensure continued customer engagement?
- How big is the market potential for the offering? Some products and services can find success in serving pain points for niche audiences, while others have a broader reach. Companies may be able to establish a network of trusted customers and then scale up distribution to a larger client base.
- Attributes: Tells customers what the product or service is and does, and highlights specific attributes
- Uniqueness: Differentiates the product or service from competitors’ offerings
- Benefits: Explains to customers what they will gain from the product or service, which may not always be evident at first glance
Resources: Products and Services in Marketing Strategy
- Houston Chronicle, “Product Development Strategy Definition”: Key steps in the product development strategy lifecycle, from new innovations and product improvements to prototyping and market testing
- Marketing Insider Group, “How Marketers Can Differentiate Their Products or Service”: Six ways for businesses to distinguish their product or service in a competitive market
- The Balance Small Business, “How to Write the Business Plan Products and Services Section”: Advice for writing the products and services section of a business plan to obtain funding for new offerings
#2 Price Strategies in Marketing
- Cost and margin: Businesses need to ensure their profit margin — the percentage of profit made for every dollar spent — is high enough to recoup costs and generate a profit.
- Competitor pricing: Markets determine the best price for a product. If a product is priced too high relative to the value it delivers, customers won’t buy it. Research competing products to determine a price that’s attractive and competitive.
- Customer behavior: Consumer-based pricing means setting prices according to customers’ perceived value of the product — and can include different prices for different customers.
7 Pricing Strategies to Grow Sales
- Bundle pricing: This strategy involves combining several products and services, typically priced differently, into one package and charging a price that is lower than the total of the prices of the individual pieces.
- Captive pricing: This involves a core product that requires accessory products to deliver optimal value. Businesses use this strategy to generate brand loyalty and create additional sales opportunities.
- Competitive pricing: Businesses research the prices of their closest competitors and set the price of their product to match or beat the competitor’s price.
- Economy pricing: Businesses price their products and services low, which means small per-item margins, but large sales volume to remain profitable.
- Penetration pricing: Businesses use artificially low prices to entice customers away from competitors and gain market share.
- Price skimming: This short-term strategy involves setting high initial prices and then lowering them gradually over time, including offering discounts.
- Psychological pricing: The aim of psychological pricing is to use customers’ emotional responses to encourage sales. This strategy may include “buy one, get one” offers and reducing whole-dollar prices by a penny or two.
Resources: Price Strategies in Marketing Strategy
- Houston Chronicle, “Different Types of Pricing Strategy”: Six of the various pricing strategies to sell products in competitive marketplaces
- Houston Chronicle, “List the Factors to Consider When Setting a Product Price”: Factors for setting prices, including cost and margin, the competitive marketplace, and a business’s self-discretion
- Intuit Quickbooks, “How to Choose a Pricing Strategy for Your Business”: Twelve pricing strategies for small business owners
- Investopedia, “Penetration Pricing”: The benefits and risks of setting low prices to attract new business
#3 Place in Marketing
Resources: Place Marketing in Marketing Strategy
- Houston Chronicle, “What Is the Difference Between Place and Promotion in the Marketing Mix?”: How place, or a product’s distribution, differs from promotion, or communication about the product
- The Marketing Mix, “Marketing Mix — Place (Distribution Strategy)”: The role of direct and reseller sales in place marketing and distribution
#4 Promotion in Marketing
- Email marketing: One of the first digital promotional tools, sending emails directly to prospects and customers remains a highly effective strategy. Email marketing campaigns aim to convert prospects into customers and build brand loyalty.
- Public relations: The aim of public relations is to spread favorable information about a business and its products to people and organizations who can influence potential customers — for example, newspapers with a large subscription base, or social media influencers with many followers. The goal is to impact public perception, garner attention, and generate interest.
- Advertising: This traditional promotional tactic involves paying for the opportunity to market a product or service to a media outlet’s viewership or subscriber base. Today, digital advertising comes in many forms, from interactive videos to in-app sponsorships.
- Content marketing: The primary aim of content marketing is to create content of relevance and interest that target audiences share organically, spreading marketing messages without paid advertising. When memes, videos, and social media posts spread virally, they generate interest in a product or business without the costs of traditional advertising.
- Social media: Any digital tool that allows users to quickly create and share content is considered social media. A tactic in social media marketing is to leverage influencers to share messaging about a product or service to their followers. Some major social media platforms include Facebook, Instagram, Twitter, and YouTube.
- Contests: Contests such as sweepstakes and giveaways capture leads, who provide their information for a chance at a prize. Although a longstanding traditional promotional method, contests have also become popular in digital marketing.
- Customer referral incentive programs: This strategy relies on the power of word-of-mouth marketing, offering discounts or promotions to existing customers who recommend a product to their colleagues, friends, or family members. Referrals can be effective, as prospects are often more likely to consider buying a product if someone they trust recommends it.
- Point-of-sale (POS) promotions: Traditionally, point-of-sale displays are placed near checkout counters to draw customers’ attention to products they did not enter the store to buy. This strategy is highly effective for seasonal or holiday-time sales. Digital customers can also receive point-of-sale promotions in their digital checkout carts.
- Customer appreciation events: This tactic gives businesses an opportunity to show that they appreciate their customers by offering them gifts, incentives, or special deals. The primary aim is to strengthen customer loyalty.
- Surveys: Surveys allow businesses to capture the opinions of their customers and improve their products and services to meet their needs.
Resources: Promotion in Marketing Strategy
- Houston Chronicle, “Top Ten Promotional Strategies”: Various traditional promotion in marketing strategies
- Evinex, “Promotion Strategy: How to Promote Your Business ”: Ways to improve your marketing plan, from strategy fundamentals to marketing metrics
#5 People in Marketing
Resources: People in Marketing Strategy
- The Marketing Mix, “The Importance of People Within the Marketing Mix”: A deep dive into the fifth P of marketing
- CSEK Creative, “The 3 P’s of Service Marketing”: The “forgotten P’s” of service marketing and how they focus on the role of people
- Packaging: The package determines the product’s impression at first glance. On retail store shelves, a product is competing with hundreds of others. Effective packaging can help your product stand out to consumers.
- Messaging: Messaging focuses on what a company wants to communicate to customers about the company, brand, and product or service. Messaging highlights a product’s primary selling points, but it can also express company values.
- Branding: What effect does your brand have on consumers? What thoughts and feelings are associated with your brand? Positive perception of a brand can drive business.
Resources: Presenting Product in Marketing Strategy
- Forbes, “The Importance of Branding in Business”: The key role presentation and branding play in how people perceive a business by building trust and creating loyal customers
- SAP Community, “The Importance of Presentation in Product Marketing”: The value of presentation in improving image and sales