In a consumer society, there are markets for particular commodities and services, which are dictated by the notion of supply and demand. Those enterprises supplying these commodities and services, whether food supplies, sports cars or healthcare services, are faced with marketing their products or services to consumers, the people who will buy the products or services because they need or want them.
Marketing is done through TV, print or online (digital) advertising, through publicity, such as articles and blogs and photographs in circulated publications, and through many other methods, as well. The goal is promoting, showing, demonstrating and advertising services and products to the consumer – the people with the buying power who can make a business successful.
In any case, an enterprise develops a marketing strategy it believes will effectively promote a product or service. But not every strategy is effective, and the market is also constantly changing – which is what necessitates the 7 P’s of Marketing: Product, Price, Promotion, Place, Packaging, Positioning, and People. By considering its marketing approach in the context of each “P,” an enterprise is able to assess its effectiveness in hitting goals, in making sure it’s heading in the right direction – that it’s ultimately making a return on investment. It’s a sort of checklist, a test, for marketing strategies.
“Product” means that an enterprise takes an objective look at the market to determine if there is a need, in other words, a market, for their product (or service). This requires market research, the gathering of statistical information on market trends, and a long, hard look at what they are selling to the consumer. If there is no demand for it, there is no market for that particular product/service.
“Prices” refers to the assessment of what the products or services are being sold for, the literal prices on the market. An enterprise is to evaluate the demographic they cater to, and if the prices of what they are selling are appropriate to this demographic. They have to remain relevant to the consumer and be sure their prices compete with others in the market while making sure to consider the notion of supply and demand.
“Promotion” is all the ways to tell customers about the products or services, or how these goods are marketed and sold, whether through print and digital advertising, billboards, articles and social media. Each enterprise should ask if their marketing method is relevant to today’s consumer. Maybe traditional print advertising is not reaching their demographic, for example, which may be a young generation. The market changes, and so does the consumer in regards to how they hear about products and services.
“Place” is evaluating the effectiveness of where the product or service is sold, where customer meets the product. Different products and services belong in different places, and the enterprise must determine if the placing of their product is best for the demographic they are trying to reach.
“Packaging” is an evaluation of how the product is presented to the customer. This requires considering things from the perspective of the consumer. If marketing promises one thing to the consumer and doesn’t deliver, the customer loses trust in that brand and will hesitate purchasing that product or service in the future – which of course is quite bad for business.
“Positioning” is how the product or service, even the enterprise, and the brand, is positioned – negatively or positively – in the hearts and minds of the customers, the consumer. This is a crucial determinant of success. Of course, positive positioning is best. So if a business finds they’re negatively positioned, they can make the changes promptly to begin positioning themselves positively in the minds of their customers.
“People” refers to the people, inside the enterprise, who are responsible for every element of sales, marketing strategies, and activities. These people have crucial responsibilities. They hire, recruit and train the best people for each job, after of course getting the right people for the job.