Business tools abound. There is always a hack, book, or framework nestling in the corner to guide you on your company’s next big profitable breakthrough. The 3 P’s in marketing are among these strategies, but what does it contain? The setup embraces simplicity and focuses on the most critical facets of an organization — no frills, no smoke, no mirrors. This idea goes back to marketing basics, highlighting the relevance of what’s right in front of you.
What Are the 3 P’s in Marketing?
The P’s are a marketing mix. Much like a recipe, it is a composition of ingredients to form a marketing strategy. We will explore the three components in detail, accenting their role in a company’s success. They include:
- Product
- Price
- Promotion
Prioritizing the growth and synergy of these components ensures reasonable growth potential for businesses of any size. For example, if you need to know what your product brings to your customers, how can you promote it with intention with an accurate price that reflects a value that feels compatible?
A quality promotion justifies the price. The product’s intrigue makes promotions worth engaging with. Smart pricing makes a product feel enticing. No matter what angle you view, the P’s intertwine from every side. The three combined work to increase lead generation and communicate with customers. This way, they know about your mission and innovation with your product or service.
Variations and additions to the original marketing mix have appeared over the years, which you will also become familiar with for a modernized perspective on the recipe. For now, let’s review the main events. — product, price, and promotion.
Product or Product Strategy
This is the time to answer what your product is. It sounds easy enough but requires a total envisioning of its specs and potential. If you don’t know everything your product is capable of, how can you expect customers to discover those things or reach every audience that the product applies to? Here are some data points you will want to find out when considering your product:
- How accessible is the product, geographically or usage-wise?
- Are there variants, such as multiple sizes or colors?
- Are you offering a product as a service or simply a service?
- How many uses does the product or service have?
- How knowledgeable are you about the product?
- What are the product’s sustainability metrics?
- What kind of person would benefit from the product?
- What is the life cycle of the product?
Brainstorm as much as you can about the item’s life. Figure out the who, what, when, where, why, and everything in between. Every detail will eventually hit a customer’s eyes, and their perception of the product should match what you intended.
Price
Sometimes, nothing is more important than how much customers pay for your product or service. That is what this P represents. However, there is nuance to the price. You have to consider so many factors when assigning a price, including:
- The potential for it to rise in the future
- Target income demographic
- Overhead
- Cost of materials and production
- Price to market the product
- Cost of energy and waste related to manufacturing
- Market research
The price is not the only aspect responsible for profit, but careful consideration of these influences will make it accurate and consistent. Plus, it ensures the product’s price reflects its actual value, apart from the value the customer places on the product after usage — this is the core benefit proposition, and it’s essential for the P’s to work.
Additionally, the price will only matter if it is competitive. Look at your sector. How are they pricing similar products? Does the cost reflect ethical pricing systems? Are they realistic? With that pricing in mind, how strong and resilient is the company’s revenue? Answering these questions with data will reinforce pricing decisions.
Promotion
Promotion revolves around advertising, marketing, and positioning. It is literal and less tangible at the same time. Initially, you want to focus on a content development strategy. Is this product going to hit billboards or social media influencers? How will it reach target audiences? Thinking of promotion this way helps think about price, too. Determining how much you will invest in getting the word out and if that reflects in your price is essential.
Additionally, there is a more symbolic promotion, and that is to B2B competition. How you promote the product with your brand voice is eventually what all consumers will associate with it — so it must be striking. Will the product’s presence inspire your sector to innovate? How do you want businesses selling similar products to perceive your offering?
Here is the fascinating part of promotion — if it isn’t working, it signals something is wrong with the other P’s. If people have less-than-exciting reactions to your idea, ask yourself what is wrong with the product or price concerning the core benefit proposition. Promoting a product’s price and inherent value may get a few extra sales, but advertising will not salvage a product with a poor foundation if expectations are not met.
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Is There a Fourth P?
As the sector’s understanding of marketing became more apparent, so did the necessity to add another part to the recipe. The fourth P is often known as “place.” Again, this can be tangible and intangible. If you have a brick-and-mortar store, the place matters significantly with the rest of the P’s. It considers how you store it on the shelf, include it as part of displays, and how many you keep in stock in front of the public.
E-commerce is only getting bigger, and you should address online spaces too. Check into how functional and aesthetically pleasing your site is. Can visitors easily navigate it with minimal barriers, so converting leads is easy? Marketers will want to consider search engine optimization to snag a “place” in Google’s rankings, expanding the scope of what place means even more.
Other P’s have arisen in marketing discourse, such as process, over the years. Have you seen any others you feel that are worth mentioning?
The “New” 3 P’s in Marketing
Some people are moving from the traditional marketing mix into a new age. The “new” 3 P’s are a modernized list of priorities, including:
- People: This makes the marketing scheme more customer-focused and heightens their experience related to the product. It considers how important the consumer is despite a fragmented, digitized market.
- Personalization: Offering personalization options makes other marketing concerns go away. For example, if you sell an item with clothing with many size and color options, your audience increases with every selection.
- Privacy: Data is one of the most treasured assets of the modern world, making marketers focus on being transparent and asking for consent from customers when using their data for marketing purposes. Customers will not care about a product without privacy, rendering market efforts useless.
The 3 P’s in Marketing Deliver Results
These are the marketing world’s most renowned pillars. Product, price, and promotion are the core of every marketing technique, regardless if you are designing strategies with these immediately in mind. They are so critical to operations that they influence decisions subconsciously.
However, acknowledging their impact during the strategic phases makes them more powerful. Craft marketing development with the three P’s — and their related ingredients — for comprehensive marketing that delivers results.
