The Marketing Mixor marketing decision variables

The seven ‘P’s

Seven marketing decision variables

ProductPricePlace

PromotionPeople

Physical evidenceProcess

Let’s take an example

Two companies, Redco and Greenco, each have a similar product – a diagnostic device for use with diesel engines.

Both use the same basic circuitry and components from the same manufacturers, bought at a similar price.

Two approaches

But each takes a different approach, using the variables of the marketing mix.

Product

… focuses on ease of use with simple buttons and coloured lights to show results.They are aiming at low skill users, self-employed mechanics, even competent amateurs.

… is aiming at high skilled users in big companies, utilities and transportation networks. They go for displaying more detailed information, and use finer controls.

Price

… aims at a wide market. Keeping prices low enough for amateur use.They look for low margin and high-volume.

… targeting skilled users. A small market so going for low-volume but with high margin to fund support and added value.

Place

… need volume, so going through retail chains, big sheds and volume e-commerce.

… small, easily identified market, so using direct sales, specialist distributors, own sales force.

Promotion

… mass market, promote through trade press, specialist magazines, on-line, in-store promotions.

… PR in specialist press, editorial, product reviews, trade and technical, blogging. Support website.

People

… concentrate on having the right staff to work with distributors and big sheds. Understand logistics and volume production.

…high grade technical trained staff to liaise with customers/users and provide pre and post sales support.

Physical Evidence

…use attractive blister packs showing ease of use, simple instructions.

… quality outer pack, plastic pouch included, user manual, training.

Process

… strong retail support, inventory, stock control. Key account service.

… technical support, customer helplines, OEM liaison, R&D, updates

Both approaches are valid - depending upon the business

and marketing strategies.

The seven variables allow an infinite number of solutions.

Any one of the seven ‘P’s may provide a lever you can pull to gain competitive advantage.

Seven marketing mix tips

1. Identify your strengths and weaknesses – be honest.

2. Focus on strengths – that’s where opportunities spring from.

3. Analyse your competitors – see where you can gain advantage.

4. Check internal logic – does it make sense for your business?

5. Check external logic – will it make sense to customers?

6. Does your mix match the needs of your customers?

7. For export you may need a different mix for each market – a weakness in one market may be a strength in another.

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