Thursday, 8 August 2013

Marketing Today the essentials the 7 Ps1

Logo of the London Cooperative Society
 in the Fulham Road, London
 - the site is now a German style Pub
According to 'information Britain', the first true supermarket in Britain was not a Tesco or Sainsbury but the London Cooperative Society  on 12th  January 1948 in Manor Park a mere 32 years after Clarence Saunders began exploiting the self-service concept in his splendidly named Piggly Wiggly store in Memphis.

But human nature does not change much nor do their needs and wants that marketing fulfils.

What goes around comes around as the proverb goes.

Farmers markets have returned even to the main cities despite the cheap prices that the supermarkets can offer.

They seem to be a good starting point for this new series for the blog to take a fresh look at the topic of Marketing.

The Background to Marketing

Back in the day, the emphasis of any business was very much on the needs of the company and the product which it made.

 Products or services were launched into the market place and it was then the task of the marketing department and sales force to create the need for them.

 This was  known as company or product orientation. In many instances it was successful ( and can be today especially with new and innovative products).  However, to ensure on-going growth and development business needed to adopt a different approach.
The emphasis changed from being centred on the needs of the company and its products to being centred on the needs of the consumers who would buy the products or services.
  Companies found that they could only exist and grow if, before producing products, they first established what the actual needs of consumers were and then produced in line with those needs. 

The MARKETING APPROACH has a primary aim of customer satisfaction.  The better that customer needs can be satisfied, provided that by doing so a profit can be earned, the more businesses will thrive.  This is marketing or consumer orientation.

The Marketing Mix ( the 4 Ps plus some more)

This comprises four key elements which need to be considered in order to satisfy the customer needs determined by marketing research. 

The first of these is our PRODUCT or SERVICE, sometimes referred to as our “OFFERING”.  Product planning includes not only the physical design of a product but also decisions about packaging, branding, guarantees, trademarks and the anticipated market life of the product or service.  It is vital that the product or service is developed, in all aspects, to satisfy identified consumer needs. 
Parsons Green farmers market is located in a school playground
The second element of the marketing mix is PLACE, which refers to logistics or the distribution CHANNEL.  This includes everything from the physical aspect of getting the product to the customer, to the selection of appropriate channels of distribution.  These can include wholesalers, distributors or retailers if the product is intended for the general public
The third element is PROMOTION or marketing COMMUNICATION.  This includes advertising, sales promotion, personal selling, direct mail, telemarketing, exhibitions, public relations, social media etc.  The blending of these different methods of promotion is known as the marketing communications mix, and will vary from company to company, industry to industry.
The fourth element in the marketing mix is PRICE, also referred to as COST.  The price of a product or service must be set at a point where profit is possible, is acceptable and justifiable to the consumer, and is also competitive with similar products (if any exist).

These four key elements are collectively referred to as the four P’s of marketing, and the precise marketing mix, the relative importance of each, for one product or service is likely to differ enormously to another product or service.

If you are exclusively marketing a service then consideration should be given to two further P’s.  The first is PEOPLE – they are core to making your service a success and they must be fully trained and capable of meeting the customers’ expectations.  The second service ‘P’ is PROCESSES – and these must be structured so as to deliver maximum customer value and satisfaction.

Related Links

No comments:

Post a Comment