The 7Ps of the marketing mix can open up an array of possibilities for a business to assess its strategy and build a competitive edge over its competitors. The relevance of these Ps is more than ever today. To have that X factor in your business, you need to frequently access these 7 Ps and modify it according to what the market demands. Applying them in a right and meaningful way can make or break the deal for any entrepreneur and his organization.
The 7Ps include:
1) Product
2) Price
3) Physical evidence
4) Process
5) Place
6) Promotion
7) People
The first four P’s i.e. Product, Price, Physical evidence, and Process form the core of the marketing mix and are fundamentals of the same. But with time, we came to see the 3 additional factors- Place, People, and Promotion, to serve a great purpose.
Let’s start with the first one.
Product:
What is a great business idea all about?
Definitely, a good model that helps you make money in the future with excellent economics but there’s something that matters more than that for all the success one dreams of.
- What is it that you offer to your customers?
- Does that solve any problem?
- Is it good enough to create that stickiness in customers?
- Do you really have a differentiating factor that gives you an edge over competitors?
- Are you following all ethical standards to maintain a certain quality that should be non-negotiable?
- Is there enough demand to result in a big market opportunity?
If your answer to those questions is affirmative, then you have an excellent idea that deserves more time and effort and you are on track to make a lot of difference to the world with your idea. But getting there can really be a task as the idea needs to be backed by comprehensive market research, aggressive research & development, and competitive analysis. When customer satisfaction is a top priority, the odds of the idea failing is low. So the product should be something that sells itself.
Example: Starbucks
Starbucks catered to the taste of millions. With a consistent quality of product, if offered good coffee that people were missing. In fact, Starbucks’ approach to marketing is very focused on its product and the quality of the product provided to its customers. And, we all saw what amazing benefits it reaped for the company!
Price:
Now a business may have a great product to offer but if its pricing isn’t right, the efforts of building an absolutely stellar product may go in vain. So, it is important to ask a few questions before coming up with a price.
- Is your product appropriately priced?
- Will your targeted audience be willing to pay the same?
- Are your costs covered?
- What about the competitors’ pricing?
There are many startups that have had a great business plan, an excellent team to execute them, and a good market opportunity. But they still failed! For one single reason which is – asking for a price not relevant for the targeted audience.
Pricing can be one of the most difficult decisions to be taken for an entrepreneur. It needs a very careful evaluation of the perceived value of the product by consumers. At the same time, the price should be able to cover all the expenses and provide a good ROI to all the stakeholders to keep them going. So it’s one of those areas where the marketing team needs to be diligent enough to take the right decision. A competitive space where there are multiple players in the market can make it even more difficult and a business may be forced to rely on scalability to make real money.
Example: Netflix
Netflix has come up with various options with different prices to cater to the needs of the huge market that may not be ready to pay one single price. And, a good pricing strategy like the company’s can be a crucial role in the success of a business.
Now once you have an amazing product and an appropriate pricing strategy, the next step is deciding on the interface of the product that the customers will experience and the way the product will be delivered which the next 2 Ps, Physical evidence, and Process covers. Stay tuned for part 2 of the series.
Author:
Kavya Sehgal
