Quarter 1 – Module 5 7 P’s of Marketing and Branding

Marketing Mix is a set of controllable and connected variables that a

company gather to satisfy a customer better than its competitor. It is also
known as the “Ps” in marketing. Originally, there were only 4Ps but the
model has been continually modified until it became 7P’s. The original 4 P’s
stands for product, place, price and promotion. Eventually, three elements
have been added, namely: people, packaging and positioning to comprise
the 7 P’s.
The 7 P’s of Marketing Mix
1. PRODUCT
Marketing strategy typically starts with the product. Marketers can’t plan a
distribution system or set a price if they don’t know exactly what the product
will be offered to the market.
Product refers to any goods or services that are produced to meet the
consumers’ wants, tastes and preferences. An example of goods includes
tires, MP3 players, clothing and etc. Goods can be categorized into business
goods or consumer goods. A buyer of consumer goods may not have
thorough knowledge of the goods he buys and uses. An example of services
includes hair salons and accounting firms. Services can be divided into
consumer services, such as hair styling or professional services, such as
engineering and accounting.
2. PLACE
Place represents the location where the buyer and seller exchange goods or
services. It is also called as the distribution channel. It can include any
physical store as well as virtual stores or online shops on the Internet.
STAGES OF DISTRIBUTION CHANNEL

Channel 1 contains two stages between producer and consumer - a

wholesaler and
a retailer. A wholesaler typically buys and stores large quantities of several
producers' goods and then breaks into bulk deliveries to supply retailers with
smaller quantities. For small retailers with limited order quantities, the use of
wholesalers makes economic sense.
Channel 2 contains one intermediary. In consumer markets, this is typically a
retailer.
A retailer is a company that buys products from a manufacturer or
wholesaler and
sells them to end users or customers. In a sense, a retailer is an intermediary
or
middleman that customers use to get products from the manufacturers.
Channel 3 is called a "direct-marketing" channel, since it has no intermediary
levels.
In this case the manufacturer sells directly to customers.

3. PRICE
The price is a serious component of the marketing mix. What do you think is
the meaning of a Price?
In the narrowest sense, price is the value of money in exchange for a product
or service. Generally speaking, the price is the amount or value that a
customer gives up to enjoy the benefits of having or using a product or
service. One example of a pricing strategy is the penetration pricing. It is
when the price charged for products and services is set artificially low in
order to gain market share. Once this is
attained, the price can be higher than before. For example, if you are going
to open a Beauty Salon, you need to set your prices lower than those of your
competitors so that you can penetrate the market. If you already have a
good number of market share then you can slowly increase your price.
4. PROMOTION
Promotion refers to the complete set of activities, which communicate the
product, brand or service to the user. The idea is to attract people to buy
your product over others. Advertising, Personal Selling, Sales Promotion,
Direct Marketing, and Social Media are examples of promotion.
5. PEOPLE
Your team, a staff that makes it happen for you, your audience, and your
advertisers are the people in marketing. This consists of each person who is
involved in the product or service whether directly or indirectly.
People are the ultimate marketing strategy. They sell and push the product.
People are one of the most important elements of the marketing mix today.
This is because of the remarkable rise of the services industry. Products are
being sold through retail channels today. If the retail channels are not
handled with the right people, the product will not be sold. Services must be
first class nowadays. The people rendering the service must be competent
and skilled enough so that that the clients will patronize your
service.Therefore, the right people are essential in marketing mix in the
current marketing scenario.
6. PACKAGING
Packaging is a silent hero in the marketing world. Packaging refers to the
outside appearance of a product and how it is presented to the customers.
The best packaging should be attractive enough and cost efficient for the
customers. Packaging is highly functional. It is for protection, containment,
information, utility of use and promotion.
7. POSITIONING
When a company presents a product or service in a way that is different from
the competitors, they are said to be “positioning” it. Positioning refers to a
process used by marketers to create an image in the minds of a target
market.Solid positioning will allow a single product to attract different
customers for not the same reasons. For example, two people are interested
in buying a phone; one wants a phone that is cheaper in price and
fashionable while the other buyer is looking for a phone that is durable and
has longer battery life and yet they buy the same exact phone.
Develop a Brand Name
Brand Name is a name, symbol, or other feature that distinguishes a seller's
goods or services in the marketplace. Your brand is one of your greatest
assetsbecause your brand is your customers' over-all experience of your
business. Brand strategy is a long-term design for the development of a
popular brand in order to achieve the goals and objectives. A well-defined
brand strategy shakes all parts of a business and is directly linked to
customer needs, wants, emotions, and competitive surroundings
Experts believe that a good brand can result in better loyalty for its
customers, a better corporate image and a more relevant identity.
As more customers continue to differentiate between emotional and
experienced companies, a brand may be the first step forward in your
competition instead of price points and product features. The question is, can
you build a brand which truly talks to your audience?
Branding is a powerful and sustainable high-level marketing strategy used
to create or influence a brand. Branding as a strategy to distinguish products
and companies and to build economic value to both customers and to brand
owners, are described by Pickton and Broderick in 2001.
Commonly Used Branding Strategy
1) Purpose
"Every brand makes a promise. But in a market in which customer
confidence is little and budgetary observance is great, it’s not just making a
promise that separates one brand from another, but having a significant
purpose," (Allen Adamson).
How can you define your business' purpose? According to Business Strategy
Insider, purpose can be viewed in two ways:
a.Functional. This way focuses on the assessments of success in terms of
fastand profitable reasons. For example the purpose of the business is to
make money.
b.Intentional. This way focuses on fulfillment as it relates to the capability
to generate money and do well in the world.
2) Consistency
The significant of consistency is to avoid things that don’t relate to or
improve your brand. Consistency aids to brand recognition, which fuels
customer loyalty.
3) Emotion
There should be an emotional voice, whispering "Buy me". This means you
allow the customers have chance to feel that they are part of your brand.
You should find ways to connect more deeply and emotionally with your
customers. Make them feel part of the family and use emotion to build
relationships and promote brand loyalty.
4) Flexibility
Marketers should remain flexible to in this rapidly changing world.
Consistency targets at setting the standard for your brand, flexibility allows
you to adjust and
differentiate your approach from your competition. According to Kevin
Budelmann, "Effective identity programs require sufficient consistency to be
identifiable, but sufficient variation to keep things fresh and human" so if
your old tactics don't work anymore, don't be afraid to change. It doesn’t
mean it worked in the past it may still work now.
5) Employee Involvement
It is equally important for your employees to be well versed in how they
communicate with customers and represent the brand of your product
6) Loyalty
Loyalty is an important part of brand strategy. At the end of the day, the
emphasis on a positive relationship between you and your existing
customers sets the tone for what potential customers can expect from doing
business with you.
7) Competitive Awareness
Do not be frightened of competition. Take it as a challenge to improve your
branding strategy and craft a better value in your brand.