Beyond The Marketing Mix: The Power of People
Written by Noah Wohlers & Savannah Hayes | December 22, 2023
Most people in the world of business know about the Marketing Mix. This mix – also known as the four P’s – is composed of Product, Place, Price and Promotion. The goal of the model is to help marketers plan and carry out their marketing strategies while considering each of these elements. This idea was first pitched by James Culliton in the 1940s, and has endured as a core concept through all the peaks and valleys of marketing since.
There’s a good reason this model has stuck around for so long. The framework has been key in guiding marketers in designing some of the most successful campaigns we know to date. But, as the business world has evolved, so has the idea of what drives good marketing – and what people expect of the companies they buy from.
This evolution has led marketers to recognize a critical, often overlooked component that should be included in the Marketing Mix: People – the 5th P.
The Original 4 Ps: The Pillars of the Marketing Mix
Product: Goods & Services
“Product” essentially encompasses the goods or services a company provides to fulfill its customers’ needs and desires. In simpler terms, it’s what a company offers to satisfy customer demands.
Price: Perception of Value
Pricing needs balance. Companies need to consider the market’s perception of their product, whilst weighting demand, production costs, and competition. It’s about finding the right space between production cost perceived.
Place: There When (and Where) You Need It
The key is to make the product available to the target when and where they’re looking for it. If a customer can’t find what they need (from you), when they need it – they aren’t going to buy it (from you).
Promotion: What Are We Telling People?
“Promotion” is how we tell people about our product or service. This could be done through any form of advertising or sales tactics. The goal of this P is to persuade sales when someone is in the market for what we’re selling, and if they’re not – keep us top of mind for when they eventually are.
Introducing the 5th P: People
People, the fifth P, represent the human element in the marketing mix. Think of people as the connective link that brings the other four Ps together. They are the ones who create, sell, improve and buy the products. The 5th P is about understanding and valuing the interactions, experiences, and relationships between the business and its customers.
When it comes to ‘People’ in marketing, it’s not just the employees and customers but the entire ecosystem of individuals who contribute to making the business work. From employees to shoppers, suppliers to partners, the ‘P’ in ‘People’ filters through every part of the marketing mix.
It’s about understanding and valuing the interactions, experiences, and relationships between the business and its customers.
People as Employees
In today’s highly competitive market, consumers are faced with a multitude of choices when making purchasing decisions. Brand loyalty is no longer solely driven by accessibility and cost; instead, the decision-making process has become intricate and nuanced. In response to this contemporary dynamic, corporate social responsibility (CSR) plays a crucial role. CSR involves businesses acknowledging their impact on society and the environment beyond their core operations, considering the well-being of employees, communities, customers, and the environment. Recent studies, such as the 2023 IHA Market Watch Report, emphasize the significance of favorable working conditions for employees, with 82% of respondents stating that how brands treat employees most influences their purchase decisions.
Ensuring employee well-being is paramount, and one effective way to achieve this is through comprehensive training programs. Proper training is highlighted in this Forbes article, stating that inadequate training can lead to confusion, miscommunication, increased turnover, and reduced efficiency. Statistics reveal the substantial benefits of prioritizing employee development, with companies having comprehensive training programs experiencing 218% higher income per employee. Additionally, companies with well-trained employees are 17% more productive. In Canada, 83% of employers are increasing their investment in employee training, underscoring the industry’s commitment to this critical aspect. Consistently, companies that invest in their employees tend to witness higher customer satisfaction rates, increased loyalty, and improved overall performance.
Training isn’t the only way to keep your employees happy – we’ve got several blog articles dedicated to other ways to improve employee wellbeing. Check them out here!
People as Customers
Recognizing what your target customer values can’t be understated in effective marketing. Businesses will find the most useful information when they dig deeper than basic demographics. Think about ideal consumers’ needs, what is important to them, lifestyles, and pain points to understand why they come to you for solutions – and nurture those values.
Once you thoroughly understand your customer, you can provide great customer service to them in a way that speaks to them. For example – a customer who values reduced carbon footprints and recycled materials is going to have specific expectations. Good customer service for this person may mean emphasizing the fact that returned goods will be recycled back into the company’s production chain rather than simply discarded into a landfill.
HubSpot reports that 93% of customers are likely to make repeat purchases with companies that offer excellent customer service, highlighting the value of focusing on people. It makes sense — when your company cares about delighting customers, those customers want to buy again.
The Roles of Suppliers and Partners
The significance of suppliers and partners cannot be overstated in shaping trust with consumers with an organization. Major boycotts often stem from the alignment of companies with suppliers whose practices don’t resonate with customers’ values.
Take, for instance, the boycott against Ecover and Method, brands known for promoting cruelty-free products. Despite their ethical claims, a boycott was launched when these brands were acquired by SC Johnson, a company linked to others involved in animal testing. Recognizing the values held by suppliers and partners is as crucial as understanding those of target customers. Suppliers form the bedrock of product availability and quality, playing an indispensable role in the supply chain that directly influences a business’s ability to deliver top-notch products and services. If these entities don’t align with your organization or consumer values, they pose a risk. Conversely, aligning your company and consumer’s values with those of your partners and suppliers establishes a deeper level of trust and commitment from your target customers.
In the interconnected web of employees, shoppers, suppliers, and partners, each role represents a link connecting products and services with diverse markets and customers. These stakeholders embody the ‘P’ in ‘People,’ underscoring that every interaction in the business ecosystem is vital for holistic marketing success. Ultimately, the essence of marketing lies not just in the product or service but in the people who bring it to life at every stage in the process.
Customer-Centricity and Adaptability
Using an approach driven by human elements leads to human success. Creating a workplace culture that’s human-focused is one way to make sure your people always feel like they matter. This isn’t just about providing good customer service, it’s also about creating a brand experience that truly connects with your customers on all levels. By putting human needs and experiences first, businesses can significantly boost multifaceted satisfaction and foster lasting loyalty, two necessary ingredients in any competitive market.
Adaptability is equally important. Adaptability can be driven by considering ongoing feedback from both customers and employees. This approach allows businesses to stay agile and responsive. When a business is responsive to its market, it can continuously evolve their products, services, values and strategies to meet changing expectations and trends. Adaptability makes a business proactive rather than reactive.
Incorporating these “people” elements into the marketing mix highlights the profound impact that people have on a business’ success. By focusing on customer-centricity and adaptability, businesses can build stronger connections with their customers, create a positive work environment for their employees, feel good about their products and services and set themselves up for sustainable growth and success.
Embracing People for Marketing Success
The essence of true marketing success in today’s complex consumer landscape is deeply intertwined with valuing every individual involved in the process — from the dedicated employees who craft and deliver your products or services to the loyal customers who champion your brand, alongside the suppliers and partners’ pivotal role in your business’ ecosystem. These are the cornerstone of a genuinely holistic and effective marketing strategy.
Recognizing and prioritizing your ‘People’ goes beyond mere transactions. Caring about people means building a community rooted in aligned values, trust, and growth. It means committing to forging deeper, more meaningful connections. This approach not only enhances the value delivered but also sets the stage for sustainable success, ensuring that your business thrives not just today but sustainably so for years to come.
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