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5 P's of Marketing: What Are They And Why Do They Matter?

Updated: Jan 24, 2021



The 5 P's of marketing is an essential tool to help you develop a strategic marketing plan with clarity and direction. The 5 P's strategy is adopted by businesses that sell products and/or services. Read on to learn what the 5 P's of marketing are and how you can use them to leverage your business success.

What are the 5 P's of marketing?

The 5 Ps of marketing comprises 5 strategies that will effectively inform your marketing plan. Each of the 5 P's relates to a set of decisions that will determine how your product or service will perform when it reaches the target market.


Any successful marketing plan requires an understanding of the 5 P's. Organizing your marketing plan using the 5ps will help you understand how your product/service is positioned in the market place.


You can toggle the 5 P's of marketing below.


  1. Product

  2. Price

  3. Promotion

  4. Place

  5. People

1. PRODUCT

The first P refers to "product" although the same rules apply to service-based businesses. Decisions made at the product stage are concerned with the specificities of what it is your selling. What is the product's function? How will it be packaged? Is there a warranty?

When addressing these questions, it is important that you put the consumer first. Think about your target audience and ask yourself how your offer will benefit them.

When it comes to writing your product description, remember to focus on the benefits of the products as well as the features.

In other words, don't simply state what your product does. Explain how it will solve a problem your consumer may be having or state clearly how it will benefit them.


Key questions to ask yourself at the Product stage:


When defining your product from a marketing perspective, these are some of the key questions you should be asking yourself.


  • What are the core features of my product or service?

  • What are the key benefits of my product or service?

  • How can I adapt my product or service to meet the needs and desires of my customers?

EXAMPLE:

APT Content offers SEO content marketing for growing businesses.


What are the key features of my SEO content marketing services?

  • Keyword research

  • Keyword optimization

  • High-quality content that is written for your target audience


What are the key benefits of my SEO content marketing services?

  • Get more traffic to your website from search engines

  • Rank on the first page of Google

  • Build long term relationships with your clients

How does my service meet the needs of my customers?

  • Content designed to generate traffic indefinitely which cuts down ad costs

  • An initial brainstorm to clarify brand voice and ethos thus reducing the need for back and forth in the future and saving the client time


Key Takeaway: When making decisions about your product or service, focus on how the consumer will benefit. If a decision adds to your product cost but doesn't benefit user experience, consider whether it is the right decision for your business.


2. PRICE

The second P stands for "Price." Understanding your product price place determines how your product will sell.

Decisions about the pricing of your products and services do not just refer to the RRP. You should also take into account product price promotion and the minimum price you are will to sell for in order to make a profit in the long run.


For example, Mcdonalds doesn't actually make any profit on their $0.99 hamburgers. The reason they continue to offer hamburgers at this price is that they make a huge markup on their soft drinks and fries.