5 PS OF MARKETING

The 5 Ps are a set of recognised marketing tactics, which you can use in any combination to
satisfy customers in your target market. The 5 Ps’ are controllable, but subject to yourinternal and
external marketing environments. Combining these different marketing tactics to meet your customers’
needs and wants is known as 'marketing mix'.

Price
This refers to your pricing strategy for your products and services and how it will affect your customers.
You should identify how much your customers are prepared to pay, how much mark-up you need to
cater for overheads, your profit margins andpayment methods, and other costs. To attract customers
and retain your competitive advantage, you may also wish toconsider the possibility of discounts and
seasonal pricing.

When pricing your product you must know four things: your cost, what the competition is charging, the
standard markup or profit margin in your industry, and the value to the customer. Ask yourself this key
question: "What will it cost the customerto not have what I'm offering?" If you can't determine a
perceived value, then you need to redesign or reposition your product.And don't compete on price. A
customer who's deciding solely based on price is not a long-term customer and will switch to
aneighboring business for just a few cents less.

Pricing your products or services does not have to be a stressful process. Remember:

 you are in business to make a profit

 it is much easier to lower your prices than to raise them
 thorough research will help you to establish the right price

The right price is fair to your customers (i.e. they are willing to pay it) and your business (i.e. you cover
costs and make a profit).

Promotion

These are the promotional activities you use to make your customers aware of your products and
services, including advertising, sales tactics, promotions and direct marketing.

Without proper promotion to attract your target customer, you won't grow your revenue. Good
promotion starts with a budget and marketing plan. Today, social media provides small businesses
low-cost opportunities for marketing. If your customer is hanging out on Facebook and Twitter, you
need to be there too, building a relationship that you will eventually be able to turn into commerce.

Types of promotional activities

Product and service promotion is the most common form of marketing. Promotional activities can
include:
 Advertising - you can advertise your product, service or brand in newspapers, radio, television,
magazines, outdoor signage and website.
  Personal selling or telemarketing - effective personal selling relies on good interpersonal
andcommunication skills, excellent product and service knowledge and the ability to sell
product benefits to prospective customers.
 Publicity - created by sending media releases to print and broadcasting media, giving
interviews to the media and from word-of-mouth.
 Short-term sales promotions - market your product or service using coupons, competitions
and contests.
 Direct marketing - involves sending letters, emails, pamphlets and brochures to individual
target clients, often followed by personal selling or telemarketing.
People
When you provide excellent Customer service, you create a positive experience for your customers,
and in doing so market your brand to them. In turn, existing customers may spread the word about
your excellent service and you can win referrals.

Give your business a competitive advantage by Recruiting the right people, Training your staff to
develop their skills, and retaining good staff.

Costumer Service
Customer service is about giving customers what they want, when they want it, in the best possible
way.
If your business provides good customer service, you have a greater chance of keeping and
increasing your customer base. Research indicates that it costs up to 10 times as much to attract a
new customer as it does to keep an existing customer.

Good customer service can help your business grow by increasing:

 Customer numbers through favourable word-of-mouth advertising
 The dollar amount spent per customer per transaction
 The frequency of customer visits.
You can establish a culture of excellent customer service in your business by planning,
developing and sustaining a customer service program. Train your staff to give your
customers the highest level of service.

Finding the right people

In your business, your employees will be your most valuable asset. In most cases they will also be your
greatest cost, so it's important to hire the right people.
The right staff will have the skills and knowledge you need to help you meet your business objectives.
You might be tempted to employ family or friends when you are starting a business, but you should
consider if they will suit your business needs. Recruiting unsuitable staff can be costly, both financially
and time-wise, and this can be further complicated if you have an existing relationship with them.
Finding the right staff is easier if you develop detailed job descriptions before you begin the process of
recruiting. You should also assess your current situation and investigate the options available to
you.

Training staff
Training your staff is an investment in your business. Your staff are your most valuable asset, and
making sure they are trained with the skills and knowledge they need is essential for meeting your
business goals. Training helps you get the most out of your staff and increases their job satisfaction,
which can help you retain staff and avoid the expense of recruitment.
It's important to include training in your business planning and budgeting. You should also consider
whether changes in your business may require you to offer training.
As an employer, you are legally obliged to make sure you provide staff with work health and safety
training so they know how to do their jobs safely. You may also need to provide industry-specific
training relating to your business.

Place
Place is about getting the products to the customer, and includes where a product or service is made,
sold or distributed.

You can set yourself apart from your competition through the design of your retail space and by using
effective visual merchandising techniques. If you are not a retail business, place is still an important
part of your marketing.

Your customers may need a quick delivery turnaround, or want to buy locally manufactured
products. If you are starting a new business, finding the right business location will be a key marketing
tactic.

Retail design and shopfitting

In today's fiercely competitive retail markets, you need an effective store design that attracts new
customers and keeps them coming back.
If you are about to start a new retail business, now is the time to consider how your store's layout,
fixtures and signage can build your brand and increase your sales.
Consultant store designers combine creative and business skills to offer interior decoration, industrial
design and graphic design services to commercial stores.
However, regardless of your scale and budget, you can use basic retail design principles to design
spaces that will help increase your sales.
Good retail design attracts customers to your store and encourages them to stay longer, see more and
buy more.

Creating effective retail displays

Retail displays are a strategic aspect of your business that can help attract customers, retain their
interest, and increase sales. Visual merchandising helps to set you apart from your competition by
creating a look and feel that is unique to your business.
Effective retail displays attract potential customers to your store. When you're designing displays,
choose engaging colours, decor and stock arrangements. Good displays appeal to both the head and
the heart of your customers.
Once you've attracted potential customers, you can arrange your stock to keep them in your store and
direct them towards specific products. Improve your chances of making a sale by doing your research
to see what works in other retail spaces, and keeping an eye on how customer traffic flows through
your own store.
Finding the right business location
Choosing where to locate your business is a big decision that requires research and planning. Your
business's location can be crucial to its success, so it's important that you take the time to find the
right location.
The type of business that you run may influence where you choose to locate it. For example:
 primary producers may need easy access to a regional distribution facility
 retailers may need to be close to other retailers or tourist attractions
 manufacturers may need to be located in a zoned industrial area close to major transport
links.
Product

The product refers to all of the features, advantages and benefits that your customers can enjoy from
buying your goods or services. When marketing your product, you need to think about the key
features and benefits your customers want or need, including (but not limited to) styling, quality,
repairs, and accessories.

which also includes the service offered in service businesses should solve an urgent need or pain for
the customer. Your product needs the right features: It should be easy to use, visually interesting, and
well-packaged. If you own a catering business, the team delivering the service as well as the food, are
all considered the "product." Make sure they have matching uniforms and are trained in how to speak
to the customers, and ensure the food is nicely plated and properly served. Presentation is everything.