In this section, we will review how marketing can help you understand your customers and how you can provide a better product or service. You will learn how to define your product, build a customer profile, set the right price for your products/services, conduct your business, and create a promotional strategy. These are known as the 5 Ps of marketing, and they can help distinguish you from your competition and make you more appealing to customers.
The 5 Ps of Marketing are the product, person, position, price and promotion.
- Product: (or service) you offer. The “product” is the physical product you sell or the professional service you provide.
- People: Who is purchasing your product or service? Knowing your customer’s needs, wants, problems, and preferences will help you earn new customers, and maintain existing ones.
- Price: How much are your customers willing to pay for your product? The price is a balance between the value and cost of your product. A product is only worth as much as your customers are willing to pay for it.
- Position: Your position includes how, when, and where you sell your products or offer your services. How are your customers interacting with your business? Do you sell online? In grocery stores? This is your position.
- Promotion: There are several ways to promote or advertise your business to new and existing customers. You have to reach your customers where they are, so your promotion needs to be centered around them.