The Traditional And Expanded Marketing Mix
Marketing strategy frameworks can be a great tool to bring focus and clarity when dealing with the all too common issue of information overload. One of the classic frameworks is the 4 P’s and expanded 7 P’s of marketing which can be used to help you plan how to effectively market your brand to your target audience. For a small businesses, the efforts of reaching your audience can become daunting in the digital age. Utilizing the entire expanded marketing mix within your business plan is an important component to building your brand’s competitive edge.
Keep reading to learn more about both the traditional and expanded marketing mix, why each P is important, and how to incorporate the framework into your business.
The Traditional Marketing Mix:
Product: A differentiated core product or service is foundational to any business. It may be apparent what your product is, but success will be difficult without detailed planning around factors like quality, design, branding, features, benefits, packaging, production and a robust profile of who your customer is. Ask yourself why customers should want your product and what need you’re fulfilling when they do.
Price: Price is a vital factor impacting your company’s revenue and is an immediate tip off to how your product is positioned. If your product has a premium price, is there enough perceived value to validate the cost? If your product has economy level pricing can you sell in high enough volume to meet your revenue targets and avoid margin eating commoditization? For most businesses, especially small businesses, competing on price is typically the worst option. Be aware that when your product or service lacks differentiation from other similar options, price will usually be weighted heavier in the customers purchasing decision. A unique brand position is vital to fortifying against downward pricing pressure.
Promotion: Simply purchasing ad space online and in your local newspaper won’t reach your audience as effectively unless this outreach is a part of a larger, coordinated integrated marketing communications (IMC) plan. IMC encompasses advertising (online and offline), public relations, sales promotion and personal selling. With this multi-faceted approach, it’s essential to have a clear picture of your target demographic and where, when and how they access content related to your offering. A consistent and unified brand presence across all the company touchpoints with your potential customers is essential to your value proposition being remembered, understood and acted upon.
Place: With limited time and resources what are the best channels to distribute your product to reach your customer base? Your shop offers the best opportunity to make a direct connection with your buyers and provide a unique experience that can get people talking about your business. A website is a must for having your own online platform to sell directly to your customers, tell your story and provide vital product information. Selling on your website can be augmented by having a presence on other established online marketplaces like Amazon and Etsy. As consumer spending continues to transition online, competition for web traffic will continue to increase. Success will be based on having a strong online marketing plan and staying current on latest search search engine marketing trends.
The Expanded Marketing Mix:
People: We all work in a knowledge economy, business leaders will only be as successful as the talent your company is able to attract and retain. Establishing a desirable company culture, aligning compensation with the company’s strategic goals and being diligent about instilling fair practices around diversity, equity and inclusion are all vital components to keeping your workforce happy and motivated.
Process: All of your internal processes, including anything from product innovation to human resources can become part of the secret sauce for your company. Think about what areas of your business operation you can do better than any of your competitors. Ikea founder, Ingvar Kamprad, is famed for his sustained focus on manufacturing excellence and efficiency. Amazon’s relentless emphasis and investment in distribution allowed them to change the game with two day shipping. These are two examples of companies that optimized their internal processes to create a sustainable competitive advantage.
Physical Evidence: Physical evidence relates to the branded presence of your company and should be leveraged to reinforce your credibility and create a positive impression. Physical evidence can be anything from the design of your store, your packaging, marketing collateral and much more. The combination of these items provides cues to your customer regarding what your brand represents and if done well, creates an engaging brand experience that leads to interest in your product or services.
Every P in the marketing mix should be carefully conceived and evolved over time to reflect changes in your industry and how best to serve the needs of your customers.