The five marketing principles include what is commonly known as the four Ps, plus another 5th: product, price, promotion, place and people. The marketing industry dictates that without these elements, a complete and effective marketing plan is impossible. To ensure success in any business, a mix of these five principles must be understood and carried out.
As defined by the American Marketing Association, “Marketing is the activity, group of institutions, and processes for creating, communicating, delivering, and exchanging offers that have value to consumers, customers, partners, and society in general “.
The product is the heart of any business. If there is no relevant product, good or service, and there is no need for it, there is no business. The structure and characteristics of the product are important in the marketing mix and must be different from that of the competition.
The second principle is promotion. Having the perfect product is of no importance if no one knows that your product exists. Promotion is the process of communicating to a target audience the benefits and availability of your product. Promotion can also involve creating a perception about the product or service. Advertising campaigns, promotional incentives, and public relations are effective promotional methods.
The third principle is price. Pricing your product correctly plays a significant role in the marketing mix. If the price is too high or too low it can influence the consumer’s perception of the product as well as its availability. There are several strategies that can be implemented with price. A business may believe that a lower price will attract more consumers. However, if the target market is more interested in items such as quality, a higher price could be set.
The next principle is square. Where the consumer can actually get the product is the key. If the product or service cannot be purchased conveniently, a consumer can buy it from the competition. For example, a business may find that offering a product online is more effective than opening a physical store.
The fifth principle is people, or consumers. Understanding consumer demand can dictate the type of product. Products are often developed based on perceived consumer needs.