07

The 7 'P's to a successful Marketing Mix

Product

There is no point in developing a product or service that no one wants to buy. Yet many businesses decide what to offer first and then hope to find a market for it afterwards. The successful company, in contrast, will find out what customers need or want and then develop the right product with the right level of quality t meet those needs now and in the future.

Price

A product or service is only worth what a customer is prepared to pay for it. The price also needs to be competitive. But this does not necessarily mean the cheapest - the small business may be able to compete with rivals by adding extra services or details that will offer customers better value for their money. Your pricing must also provide a profit. It is the only element of the marketing mix that generates revenue - everything else represents a cost.

Place

The place where customers buy a product and the means of distributing your product or service to that place must be convenient and appropriate for the customer. The product must be available in the right place, at the right time and in the right quantity while keeping storage, inventory and distribution costs to an acceptable level.

Promotion

Promotion is the way a company communicates what it does and what it can offer to its customers. It includes activities such as branding, advertising, PR, corporate identity, sales management, special offers, direct mail, internet marketing and exhibitions. It must grab attention, it must be appealing, it must tell a consistent story and it must give the customer a reason to choose your product rather than someone else's - it must give them tangible benefits of Saving Money, Saving Time or Making Money.

People

Anyone who comes into contact with your customers will make an impression, and they can have a profound effect - either positive or negative - on customer satisfaction. The reputation of your brand rests in your people's hands so they must be therefore trained, well motivated and have the right attitude.

Process

The process of giving a service and the behaviour of those who deliver it is crucial to customer satisfaction. Issues such as waiting times, the information that is given to customers and the helpfulness of staff are all vital to keep customers happy.

Physical Evidence

A service can't be experienced before its delivered. This means that choosing to use a service can be perceived as a risky business because you are buying something intangible. This uncertainty can be reduced by helping potential customers to see what they are buying. Case studies and testimonials can provide evidence that an organisation keeps its promises. Facilities such as clean, tidy, well decorated reception area can also help to reassure. If your premises aren't up to scratch, why would the customer think your service is?

The Chartered Institute of Marketing: www.cim.co.uk