One of the most enduring concepts in marketing is the 5 Ps of marketing, back in the 1940s. Originally, the four Ps of the marketing mix were invented by Prof. James Culliton of Harvard University. The 5 Ps of marketing include product, price, promotion, place, and people. Altogether, these factors establish the classic marketing mix. They can be considered as five important components or five parameters that could be adjusted, based on the marketing strategy. Let’s explore each of the 5 P’s of marketing to better understand how they can be applied in the real world with 5 ps of marketing examples.
Product
There are many things to be considered in the product, which is the most important among 5 Ps of marketing. It is not just the design and functionality, but also the packaging, warranty, or guarantee, and the support (for a digital product). For some items, mainly high-quality premium products like watches and cars, product design could be everything. On the other hand, product is important for industries like FMCGs, but customer satisfaction is often less brand loyal when price or availability becomes a crucial factor.
Product development activities like focus groups and using sentiment analysis on customer reviews can help fine-tune the product and mitigate the issues. The product decisions also offer important insights into the unique selling points of the product in five Ps of marketing.
Price
Next comes price, a vital part of 5 Ps of marketing. Price is often considered as a factor in customer choice. However, it is not easy to check the prices of the competition. Dynamic pricing has become a significant phenomenon that giant retailers like Amazon are adopting. It is mainly about analyzing the fluctuating prices with changing patterns of demand and stock in 5 Ps of marketing.
Digital product segments like SaaS websites often offer a range of pricing points in 5 Ps of marketing that allow organizations of all sizes to find a subscription model that aligns with their specific use cases. They also offer substantial discounts since distribution costs are lower. The price also relies on the instincts of sales reps and the parameters within which they are allowed to operate. In the case of services and physical goods, pricing has a limited role. Generally, it is what the market will currently find worthy. Renowned and fashionable brands can implement a premium pricing strategy, mainly when scarcity is prevalent.
Recently, there has been a growth in deferred pricing services, and some brands offer 0% credit terms. This functions great for ticket products like technology, cars, and white goods.
Several price comparison platforms can influence your price point selection. It has become easier for customers to compare the prices of your competitors online. Distributors and physical outlets sometimes provide a price promise and refund the difference when a customer finds the same product somewhere else at a more favourable price. Practically, some customers take advantage of this offer. However, it helps instill confidence in customers and reduces the need to juggle multiple platforms.
Promotion
Promotion has become a vital part of 5 Ps of marketing. There are myriad distribution channels than ever before to communicate your brand message. Along with the traditional marketing, other options include events and media sponsorships, content marketing, SMS and cold calling, direct selling through email, and influencer marketing. PR is also a type of marketing that ensures the trade papers and customer review sites review the products. Promotion in 5 Ps of marketing, is not limited to creative content of a campaign, but about selecting the perfect fit between product, message, and medium.
Place
This element of 5 Ps of marketing determines the location or channel through which the product is delivered. Distribution and delivery are important. The place has two main elements- a shopping location and a delivery channel. On the one hand, it is how and where consumers can find your product. On the other side, it is also about how the product is delivered. For example, car showrooms, brick-and-mortar stores, e-commerce sites, and Buy Now URLs on Instagram are all examples of places where customers find your product.
Safe downloads, BOPIS (buy online, pickup in-store), and same-day delivery are some methods of delivery that should be considered, based on the nature of the product and customer expectations.
For digital products, ‘delivery’ also includes the way the product is made available. Is it downloadable on different devices? Is it registered? Can it be installed?
People
The individual personalities and persuasiveness of sales representatives play important roles in 5 Ps of marketing. However, today, people are not only about sales representatives but also about endorsing the product to the target audience through cross-promotion and sponsorships. Brand ambassadors continue to play an important role in the industry. Unbloxings, hauls, podcasts, event sponsorship, and other activities carried out by the public figure or social media influencers are being used for selling the key products.
B2B sales are not exempted from this trend as LinkedIn has become a great way to find industry influencers and sell the product. Incentives, including referral fees, are often provided for the services they provide. In traditional brick-and-mortar sales, presentation and behaviour are vital. Hence, maintaining a humble, knowledgeable, and persuasive behaviour is important. It similarly applies to remote sales, mainly in B2B marketing, where big-ticket products are sold by sales personnel to their target audience.
Examples of the 5 Ps of Marketing
Now that we have understood the significance of 5 Ps of marketing mix, let’s dig into an example of how each factor makes a marketing plan. This example is for a smartphone.
Product
Brand loyalty plays a great role when it comes to smartphone purchases. Hence, some innovations and improvements may boost the sales of the iPhone or Samsung. There is also competition. No doubt, selling convenience, sophisticated technology, and flexibility can help in converting spending customers.
Price
Smartphone buys are hampered or benefited from the bewildering intricacy of phone contract pricing strategies. The market price of the phone could be set in stone. However, the ancillary pricing strategies can be complicated. The great thing is that there is something for everyone.
Promotion
The landing pages and digital showroom of the manufacturers are the places where the products are promoted. However, major global advertising campaigns include product placement, sponsorship, and offline advertising are used together with social media advertisements and digital banners.
Place
Although smartphones are purchased direct from the brand, either online or offline, several are sold through third-party providers who bring together phone contracts, entertainment subscriptions, warranties, screen guards, and other accessories to add value and reassure the customers.
People
Considering the trends towards online buying and ecommerce, the personnel in stores are less focused on. However, as half of the sales are made in-store, it is important to ensure knowledgeable personnel to represent the brand and endorse the products.
This is how 5 Ps of marketing work for the smartphone industry.
Concluding Remarks
The 5 Ps of marketing did not originate in modern marketing, but some modifications have been made by adding two more components, like process and physical evidence, to improve their usefulness. However, the 5 Ps of marketing contribute to the development of a marketing campaign which then focuses on what is important to convert potential customers into spending customers.
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