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Product, Price, Promotion, and Place. But as the marketing landscape evolved, the 4Ps expanded to 7Ps, adding People, Process, and Physical Evidence to the mix. The importance of marketing mix in achieving business objectives cannot be overstated. As we mentioned, you must make sure each element of the marketing mix works with the others to support your objectives.
For example, you need to support a premium product with premium pricing and location, and your promotion must communicate that value. Some companies with standout growth are experiencing the effects of leveraging individual elements of the marketing mix.
This extends to quality, warranties, packaging, features, variety of products or service levels, and so on. Product-led-growth is a go-to-market strategy currently popular in the startup world. The basic idea is to put the user experience at the forefront of every aspect of strategy to create a product that satisfies users more than any other solution.
To make your business viable, your price must lead to a profit. Yet many companies still fail to price their product optimally. Not Starbucks, though. Its approach to pricing gives us an insightful look into how the company continues to grow and operate profitably.
Knowing that its customers are not price-sensitive lets Starbucks increase prices in tiny increments. This means the company can continually move its pricing upward, toward the highest amount customers are willing to pay, without causing them to stop buying.
It includes what you say, who you say it to, what channels you use to reach them, and how often you do it. Activities in the promotional mix fall within advertising, PR, direct marketing, and personal selling and can encompass search engine marketing , social media , billboards and signage, print advertising, and much more.
Promotion plays a significant part in growth because it makes it possible for potential customers to hear about you. The company had been facing decline until it turned to branded entertainment to connect with customers.
It also encouraged user-generated content within its Lego Life online community and on YouTube, allowing its own customers to market its products.
Large brands may consider embracing promotion via its users a risky move, but it paid off for Lego. It includes the channels a company uses to sell its products, such as local stores, ecommerce websites, personal networks, direct sales, affiliates, and so on.
It also includes logistics such as distribution centers, product transport, and warehouses and inventory. Despite the fact that Chick-fil-A has fewer locations than competitors and only operates six days a week, the chain has become the third-largest restaurant chain in America. It has invested heavily in location technology to help it evaluate sites, looking at psychographic and demographic data to determine potential.
It also supports local communities by taking great care that its locations do not put individual store owners in competition with each other. This includes managers, customer service reps, product engineers, production workers, salespeople, and support staff.
It also includes the hierarchy of relationships at an organization, which is meant to help employees get things done efficiently and work together smoothly. Bonjoro, a video-sharing tool, has become one of the fastest-growing apps on Zapier , very likely because of its focus on people.
It features its own staff — and its customers — in all its videos. This focus on people can help a brand connect with its audience on a more intimate, personal level. It can also extend to how the marketing team works together to create campaigns.
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