How to Champ Market with 8Ps
What are 8Ps?
Every person in this world is supposed to be a marketer. If Marketing skills are required to get a good job they are equally needed to become a successful businessman. But do you think you are a good market champ? This article will help you to understand “How to champ market with 8Ps.”
The existing combination of 4P’s (Product, Price, Promotion, Place) with the addition of People, Process, Physical Evidence and, Partners is now called 8Ps.
8Ps has become an important part of tactical planning and pave the ways to champ the market.
Evolution of “8Ps”
Neil Borden, professor of Harvard University coined the term in 1950. E. Jerome McCarthy from Michigan State University utilized this term to introduce Marketing Mix.
Inspired by this marvelous concept, companies started to reinvigorate their marketing programs. 4P’s were evolved at an introductory stage which later converted into 8ps of marketing.
What is the Importance of 8Ps?
The ultimate goal of every Marketer is to reach the maximum audience to increase his sales as more sales generate more revenues.
Marketing Mix of 8Ps guides the businessmen to champ the Market while preparing a well-thought mix plate of the right product to reach the right person at the right place and at right time.
Every Marketer has a different marketing approach to promote his products and services. All marketing strategies are devised keeping in view the best mix plate of these 8 factors.
Thus Marketers are required to develop promotional plans based on market research and interpretation of these 8 prevalent factors.
Marketing Mix is termed as essential Marketing terminology comprised of “8Ps of Marketing “that all businessmen need to understand to champ the market.
These “8 P’s of Marketing Mix” become an integral part of tactical planning and formulate the ways to boost up sales. It can help you…
- Develop Product Strategy
- Identifying strength and weakness
- Boost up sales and increase profits
- Monitor market trends
- Defining Target Market
- Understanding the customers’ importance
- Increasing customer retention
- Delighting the customers
What is the difference between Marketing strategy, and Marketing Mix?
It’s vital to segregate marketing strategy from Marketing Mix. Strategy is the more comprehensive and long-term plan that caters sales market. Strategy reveals the plan to reach the target audience. It comes prior to8ps of Marketing.
Marketing Mix is a combo of 8Ps: Product, Price, Promotion, Place, People, Process, Physical Existence, and Partners. A well-connected Marketing mix leads the company to reach the target audience.
8Ps to follow to support strategy
e.g. Progressive insurance primarily makes a strategy to capture the market for Auto and Home Insurance by offering low prices.
Then comes the turn of Marketing Mix in which they decide to reach the target audience by means of search engine marketing, television advertising, social media campaign, etc.
How is 8Ps & Product Life Cycle (PLC) related?
The promotion of products greatly depends on the product life cycle. The introductory stage is the most important stage in product promotion.
Newly launched products require intensive advertising campaigns to break the clutter.
Mature products with a more specific market intend to adopt direct response tactics.
Sweepstakes, add ons, and tweaks drive more sales for mature products. That’s why a good marketer rolls on his promotional strategy according to Product Life Cycle (PLC).
Original 4p’s of Marketing Mix
Marketers started initially with these 4p’s to chalk out their marketing plans while utilizing the available resources effectively. These 4p’s included:
Product/Service is the most important “P” of 8Ps of Marketing Mix which a marketer needs to understand.
It helps us to identify that what the customer requires as his need and what we want to sell him as our product.
The product can be tangible (can be touched and stored) or intangible e.g. service (can not be touched and stored).
A product is normally composed of 5 elements:
The Generic Product includes the basic item with compulsory features. This element is basic for the start-up as a product at the start-up is expected to reap maximum profits without getting accessorized.
It is also called Minimum Viable Product (MVP). It includes design, packaging, quality, brand, etc.
II.The Core Product
It includes the main reason due to which customer buys the product. It shows the fundamental needs which a product can discharge.
It includes all the features in which a product can be molded in the future like upgrades and modifications in the product to increase its life.
It denotes the additional features of your product like installations, after-sale service, repair and maintenance, shipping, warranty, etc.
It represents the additional benefits or features which a customer expects from your product. They are not constant and vary from time to time.
Let’s take the example of the Hotel. The core product for a customer is a place to rest or sleep.
The actual product can be mattresses, beds, bathrooms, towels, and bedsheets. The actual product may be clean e.g. bathrooms and bedsheets.
The augmented products can be comprised of wi-fi, a free map of the city, etc.
while the potential products can include a spa, gym facility, and so on.
A good marketer while introducing a product always seeks the answers to these basic questions:
- What are the needs of customers?
- What are the features of a product?
- Does the product fulfill the customer’s requirements?
2nd P in 8Ps of Marketing Mix lets the marketer understands how much, customers will be able and willing to pay for your product.
Price can be set keeping in view the features of the product. The price of a product should justify the features which it serves.
Unjustified prices can irritate the customers. They are expected to switch to some other products with the same features but having a lesser price.
Internal Factors affecting Price
It is fixed in every condition and doesn’t vary with production output i.e. insurance, lease, interest, property taxes, etc.
The cost varies on the basis of production output. It increases as the production increases.
e.g. Packaging, raw materials
Product Life Cycles (PLC)
Packaging and Branding
External Factors influencing Price
- Market Reach
- Market Share
- Legal Formalities
Strategies for Determining Price
- Increasing ROIs
- Increasing Profit percentage
- Beating the Competitors
- Blocking new entrants
The following variables persuade marketers to set the Price:
Strategies for Setting the Price
High-end customers are attracted through skimmed prices as they don’t bother getting charged for higher prices.
Companies set premium prices to make the supreme image of their product.
Companies set low prices to increase their market share. Keeping prices low company tries to attract more customers.
Companies try to play with customers’ psychology through this pricing. Price is fixed slightly lower than round number usually in figure 9/.
Questions to Consider while setting Price
- How is price interrelated with features of the product?
- How much customer is willing to pay?
- How much discount can be offered?
3rd P amongst 8Ps of the Marketing Mix defines the space where the product will be served to customers. In other words, it defines the market where the Product will be launched.
It may be placed in a physical store or sold online with the help of e-commerce.
The marketer needs to understand
- Which is the target Market?
- Will the product be sold via direct retail, wholesale or online distribution?
- If the product is sold online then how customers’ shopping experience will be optimized?
Public Relations (PR) and advertising are important tools of promotion. Intensive promotion of a product lets the customers know about the availability of some new product in the market. It includes both offline and online promotions.
Viral Marketing and Positive word of mouth help you to set supreme image of your product.
Today use of newsletters, pamphlets, banners, social media like Facebook, WhatsApp, websites helps to promote your product.
How were these 4p’s extended to 8Ps?
With the passage of time, the companies felt the need to define their marketing strategies in a well-rounded system.
They decided to include 4 more P’s to get closer to the more functional marketing plan. Thus new 4p’s were introduced
- Physical Evidence
How a Marketing Mix of “8Ps” can give its best?
Companies are required to test, measure, and refine each element of the marketing mix. Google is the most authentic tool to check the stats for traffic, market trends, demography, population, and other important life patterns.
How to formulate Marketing Mix
Marketing Mix of 8Ps to champ the market can be formulated keeping in view the following factors:
- Define and Identify your target Market
- Identification and Understanding of Competitors
- Defining Unique Selling Proposition (USP)
- Defining all 8Ps of Marketing
- Chalking Out Marketing Plan
- Implementation of Marketing Plan
What is Extended Marketing Mix?
Extended Marketing Mix includes some more P’s. These additional P’s help the marketers to make more comprehensive marketing plans. Here go the 8ps of marketing with examples:
This additional P of an extended marketing plan is one of the key components of the “8Ps of Marketing Mix. It plays a vital role to champ the market.
It describes how do the people at the front desk and back end are involved in the company.
Self-motivated and Uni-directional people exert their positive efforts to win the customers for the company.
These people are considered important assets of the company. They are the only source to communicate the value of the company to the customers.
8 ps of Marketing Example:
The highly trained and self-motivated people serving in the coffee shop are expected to create an exceptional customer experience.
If lattes are good, it is not sufficient until waiters greet the customers, don’t remember their choice, or address the customers by name.
This user experience keeps the customers coming back time and again.
This P of Extended Marketing Plan defines that how do you come up to the expectations of your customers.
This is the most prime factor of 8Ps of Marketing Mix which involves Standard Operating procedures (SOPs) to champ the market.
It reveals that how will you ensure to deliver a memorable customer experience.
8 ps of Marketing mix Example:
If the coffee is prepared with the required recipe while keeping in view the customer choice, then it can be inculcated that the right process has been followed to deliver the product.
A customer can never be served in the air. The physical presence of the company builds trust in customers.
physical Evidence in 8Ps of Marketing Mix guides the company to use the best promotional material to champ the market and to set itself apart from competitors.
The use of advanced gadgets can help the company to delight its customers.
If the coffee shop wants to develop its image as a native brand, it is required to inculcate its local image in minds of customers.
This can thrive with the use of local coffee beans, mugs manufactured locally, and an eclipse of native decoration in the shop.
8th “P” of Marketing Mix is last but not the least factor. Partners play a vital role in a combo of the 8Ps of the Marketing Mix.
It includes partners. Here the Marketer needs to collaborate with a person or business which has greater influence in the market.
This partnership enables your product to have a wide reach.
Your partner in the 8Ps can give you logistics as well as financial support to champ market and capture more market share.
The following types of partnerships can be signed:
- Joint Production
- Product Placement
Which is 8th P of Service Industry?
American Camp Association considers Philosophy as the 8th”P” of Service Industry.
This 8th P of Marketing Mix answers the “Why” question?
Since Services are designed to focus on the customers’ loyalty. So, the customers are required to understand the mission, vision, and business values. This can be smartly comprehended in 8 ps of service marketing.
Businesses dealing in the service industry try to position themselves based on their service philosophies. They try to answer these questions:
- Why a business does offer a particular service?
- Which USP makes the business unique?
A doctor positions his service based on the Psychology of his patients. He tries to ensure the patients that they have been heard properly. A service-based Industry uses 8 ps of marketing in hospitality industry that lets its customers learn the philosophy of being served.
It is evident from this thought-provoking discussion that how does “8Ps of Marketing Mix help to champ the Market. Output Analysis can be made to gauge”Performance in the Marketing Mix.”
The need of the hour is to design all marketing strategies keeping in view the best mix plate of these 8 factors.
Deliberate use of these 8 ps can help the marketer to get good business results with fewer efforts and limited resources.
- What are the 4p’s of Marketing Mix?
The four P’s of Marketing Mix are the basic key factors that are included in the marketing of a product or service. These help the marketer to formulate a marketing plan for their business.
- What is Philosophy behind some particular services?
Philosophy of a business answers “Why” Question?
It let the customers know the basic mission and vision of the company.
Service business dealing in some particular service segregates itself from competitors on the basis of this philosophy.
3. How Marketing Mix is developed?
A marketing Mix of 8Ps is developed keeping in view the following important factors.
- First of all, the marketer should clearly define and Identify his target Market
- At 2nd stage, the Marketer should identify and understand his competitors
- The marketer needs to understand his Unique Selling Proposition (USP) at 3rd stage.
4. What are 8ps of Digital Marketing Mix?
Digital marketing has almost the same framework as the marketing mix. It is simply the adaptation of regular 8ps in the Digital Marketing Context. all 8ps of the Digital marketing mix can be applied in for online service industry to extract good results.
5. What are 7 ps and 7 cs Marketing Mix?
Critics are of the view that 7 Ps lead you to think internally focused style rather than from the customer’s point of view. That’s why they have modified these Ps with Cs as follows:
- Product = Customer
- Price = Cost
- Place = Convenience
- Promotion = Communication
- People = Caring
- Process = Coordination
- Physical Evidence = Confirmation
6. What are 8ps of Social Marketing?
The concept of social marketing differs from regular marketing in the aspect that it emphasizes selling ideas, attitudes, and behaviors instead of selling products. It benefits the target audience through a change in behavior. Its 8ps include:
- Purse Strings