What are the 8 Ps of marketing?

When we talk about the 8 Ps of marketing, we are talking about something known as the ‘marketing mix’. You can think of the marketing mix as a recipe. In this recipe, you have eight ingredients. You need to get the balance of these ingredients just right. They will interact with one another to ensure that you have the greatest chance of success when bringing a product to market.

In the past, the marketing mix would have referred to four major elements; price, product, place, and promotion. If you studied business at GCSE level, then this would have formed a key part of your learning. Nowadays, most people consider the marketing mix as having eight distinct elements. Just like the original four elements, each element needs to be thought about when establishing a business plan.

Each of these elements will involve various decisions having to be made. Each of these decisions could impact another element of the marketing mix. For example; opting to price a product on the higher end of things will mean that you need to offer better customer service and a better quality product. It will also impact the places that you advertise to bring in the higher end of the market. If the right balance isn’t made, then a product will fail. This is why the 8 Ps of marketing needs to be considered at the early stage of business development.

So, what are the 8 Ps of marketing?

Product

This is what the business is selling. It could be a physical product, or it could be a service. Several things need to be considered when thinking about the product. This could include the reason for the product (i.e. what purpose does it have), as well as any competition there may be for the same product. You may also want to focus a little on the branding of your product, although other elements of the 8 Ps of marketing will also impact your brand. The rest of the marketing mix will extend from this.

Price

This is the price that the product or service is being sold.

Of course, the main thing to consider when it comes to ‘price’ is ensuring that a company is actually making a profit when the product is sold. However, when it comes to marketing, this is not the only thing that needs to be considered.

People will look at the price of a product and use that to determine it’s worth. For example; if a product is priced drastically below competing products on the market, people may think that it is a ‘budget’ product and not worth the time or effort purchasing it. If a product is priced above the standard market price, then it gives off the perception of ‘luxury’. People will assume that it is a better product, even if it does not offer that much more than other similar products on the market.

Place

Where is the physical product or service being offered?

Let’s say, for instance, you have a physical product. If you sell on a website, then you will be able to target the whole world. However, if you sold it exclusively through your shop, people will need to physically come to you. This conveys more ‘exclusiveness’ for your product, and you can offer better customer service. Although, it could impact potential income.

The same goes if you are running a service-based business. Will you require people to come to you, or can everything be done online or over the telephone?

Considering the ‘place’ in the marketing mix is highly-important. Some people are fine doing something completely online, whereas other potential customers may crave that more personal touch. This will tie into the price that you can offer too.

Promotion

Promotion is all about your marketing campaign. How do you plan to reach your target market? How do you plan to build your brand?

This area of the marketing mix will consider the promotional message that is being delivered. What is the perception you want people to have of your brand? Are you a company that deals will upper-end clients? Do you operate down the cheaper end of the market? Your website or storefront will have a major impact on how people see you.

You also need to consider where your promotion is being done. This will have an impact on the markets you are targeting. For example; advertising in a trade journal is very different from advertising on the side of a bus. One will target businesses in your niche, whereas the other will target everybody. Both will give off different messages.

Process

This is the method used to deliver the product. The process mostly needs to be considered when we are talking about services, although it can apply to physical products too. A lot of things will need to be considered when thinking about the process. For example; when delivering a higher-class service, then there may be more ‘face to face’ interaction with the client. If the product is cheaper, then the process may be more automated.

As with everything about the marketing mix, the process needs to be standardised. The clients need to know what to expect when the service is being delivered. A poor process, even when the product is cheaper, can result in a negative reputation for a company.

Productivity & Quality

This is a newer addition to the ‘marketing mix’ and it is only recently marketers have started talking about focusing on productivity and quality.

Here, you will need to think about whether what you are delivering is worth the value that the customer is paying. A quality product needs to be provided while, at the same time, a business will need to focus on ensuring that their productivity is as high as possible to ensure this quality product can be delivered at a competitive price.

This is part of the marketing mix that a company will always be playing about with. It is vital that every bit of value is squeezed out of the processes that a business has in place. Of course, you do not want to become too ‘efficient’, because when you cut too many corners, the value of your product or service will be lowered, which will result in lost customers.

People

These are the people delivering the physical product or service. How courteous is the person delivering the product? How skilled are they at their job? A person who is good at their job will have a positive impact on word-of-mouth marketing. It will also allow a company to charge a higher price for their product or service. Hiring somebody who isn’t skilled at their job can lower productivity, and result in a lower perceived value of the product. The right option needs to be selected for the product that is being delivered.

Physical Environment

This doesn’t necessarily need to apply to a physical location. When we are talking about the physical environment, we may also be thinking about the website a company has.

The physical environment talks about the outward view that your company is giving people. For example; a website that looks modern, works on mobile, etc. gives a good outward impression. A website that looks like it was built in the late 90s may scare customers away. After all, it gives the impression that you don’t really care about the product or service you are offering.