The new 5 Ps of marketing
Purpose and pivots replace price and promotions in the agile CMO’s priorities By: Dorothy Mead The Economist Group Lean Back – June 3 2014
As marketers, we’ve all used the twelve-month marketing plan and the traditional 4 Ps – Product, Price, Place and Promotion – to drive our marketing efforts. They’re great when starting a new product process, or when in detailed planning and strategy mode. But how often does that happen these days? Very rarely. Today’s digital world has programs happening constantly and new products infrequently.
The 4 Ps of yesterday have transformed and driven a sea change in the marketing department. At blur, we’ve seen the 4Ps become 5 and they’re more Pertinent, Practical and Pragmatic. Here’s our recommendation for the Ps the CMO needs to know today to navigate an ever-changing marketing landscape:
▪ Procurement: When high-speed marketing programs are driven by a desire to get exactly the right results in ever-changing channels, it makes no sense to buy services based on long-term relationships. Recent research conducted by blur even shows that long term partnerships decrease the creativity needed to drive these types of programs.
▪ Purpose: For so many businesses their product is no longer a product. It’s a service, a digital delivery, or enhancing a customer’s capability. Focus on the purpose of what needs to be delivered and develop from there. The proposition should be derived from this.
▪ Presence: Decide where the message is going to be. Is it a digital message, a social one, above or below the line, or a mix of all channels? Once the decision is made, you have to be wholehearted, make every dollar count and be accountable. Placement is only part of the story. Maximizing presence is everything.
▪ Pivot: Although it’s been the domain of the early-stage business needing to make a prompt about-face, pivot is part of marketing. There’s a need to be more agile and address almost instantly the rapidly changing needs of the company’s audience. Factor in how to change direction in a positive way as you plan and embrace a shorter-term, project-oriented approach to marketing.
▪ Personalization: With customers more concerned about convenience than brand loyalty, the way to ensure they stay close to the company is to stay close to them. Develop content that’s relevant at an individual level, outline the purpose in a personal way and engage with them as individuals, even if you have a B2B proposition. This is the crux of social media; without it, you’ll just be broadcasting noise.
The new 5 Ps of marketing may seem daunting at first, but the key to addressing all of them is having an always-on procurement process to supplement your team with essential expertise project by project.
The following are edits by Ron Lesniak:
I love your concept of Purpose as in our world today. A huge percentage of startup entrepreneurs that I work with are bringing new ideas to life through software and mobile aps and where social media attention is proliferating the idea pools. Even in the medical field, the “cure” for cancer seems to be evolving into aggressive programs to fight and kill cancer cells that are many times a result of our DNA and gene pool. This approach is more “dealing” with cancer and not trying to eliminate its cause. So the purpose of what our product does and supplies is a key part of the solving of problems and filling needs.
Your concepts of Presence and Procurement seem to be related to the type of delivery system and the type of message to be created about the offering to the customer. It focuses on what the problem solution is or the how the need is being fulfilled. Presence is related to concept of creating the network connections of ideas, digital delivery techniques, and a coordinated orchestration of action that works. It is also related to the personal network strengths we have with our collaborators, our business partners and our personal relationships upon which ideas and commerce flow. Procurement is about how we operate in the B2C and the B2B approaches to the influencers, the suppliers and to the buying customers.
I sense that the art of the Pivot is an emerging reality that speaks to the number one rule of business survival and ultimate success which is to the need for have a sufficient number of paying customers. The world of lean launch creates customer discovery directions in all types of products and services. The shifting of the desired customer response from “nice to have” to “must have” drives the speed and direction of the pivot. All companies pivot because we generally learn over time what our customers really want and need and then live with their changing direction.
Personalization calls for the interrelationships between customers and suppliers. It creates the concept of brand and fosters the concept that customers ultimately buy from people they like. Social media fills the need for close associations and reference selling which is one the most powerful selling approaches practiced today.
Your article speaks to new concepts and ideas. It is very timely and pertinent