Overview
The ‘6 Ps of Marketing' are a helpful device for remembering the dimensional breadth of a complete marketing program. By tradition, the marketing core consists of 4 Ps: product, price, place (distribution), and promotion (e.g. advertising). To complete the analytical perspective, add 2 Ps: people who are the central ‘target’ and performance (e.g. profitability and share) which is the ultimate objective. To summarize a brand’s marketing strategy, use a ‘Structured Comparison Framework' to summarize each element of the marketing strategy with specific reference to a key competitor, an identified ‘best practices’ brand, or a hypothesized ideal performer; to draw implications from the ‘marketing mix' elements separately and collectively; and to draw overall conclusions about the relative and absolute effective of the strategies in meeting defined goals.
ASQs
1. People
A) Who are the current and potential customers? Who are the end users? Who actually makes the purchase decision?
B) What is the basis for their purchase decision? Based on what qualifying and winning criteria?
C) How is the market segmented? What common characteristics define the segments (intra-segment homogeneity)? How do segments differ from each other (inter-segment heterogeneity)? How do buying criteria vary by segment?
D) Which segments are potentially the most attractive? On what basis: size, growth, profitability, competitive intensity?
E) How are, or can, the selected target market segments be accessed and attacked?
F) How must a brand be positioned– i.e. what specific multidimensional offering ‘package’ must be delivered - to capture highly profitable share of the target markets?
2. Product
A) What exactly is the product of service being offered? Think broadly in terms of the augmented product. What are the benefits being delivered to the customer? How can the benefits be enhanced to create value?
B) How important is brand name in the category? Is there a role for off-brands, private labels and generics? How much brand equity exists for any existing brands?
C) Where are products in the product life cycle? What are the implications of the current stage? Is there an opportunity to recycle the category?
D) How important are new products, currently and prospectively? Can existing products be cost-reduced without sacrificing other benefits, or repositioned by making relatively small modifications to product attributes?
E) How important is packaging? What role does packaging play in product use and brand communications?
3. Price
A) What is the fully loaded (i.e. all things considered) price of the product over the lifetime of use? What are the terms and conditions of payment?
B) What are the key determinants of value? What makes one product worth more than another? Are there opportunities to reshape the value function?
C) How sensitive is the market to price? What is the elasticity of price movements up or down? Are there distinct price segments (e.g. good, better, best or consumer, professional)?
D) Is the brand gaining or losing share at the current price level? Is the brand profitable versus internal objectives and external benchmarks?
E) How much profit is retained by channel intermediaries (e.g. retailers, distributors)? Are channel margins comparable to competition and do provide acceptable returns to intermediaries?
4. Place (Distribution)
A) Where is the product available? Is supply adequate and conveniently accessible for typical customers?
B) What type of outlets (specialty stores, discounters, etc.) carry the product? Is the product bought or sold, i.e. to what extent do customers need to be educated and ‘closed’? Is there channel harmony or conflict? What are the root causes of conflict?
C) What are the dominant channels of distribution? How does product get from the manufacturer to the end user? Who are the intermediaries? What value does each intermediary add? What is the ROI at each stage of distribution?
D) What are the critical levels of distribution intensity - breadth (area coverage) and depth (density, number of outlets?
5. Promotion (Sales and communication)
A) What is the core selling proposition, and how can it be communicated most effectively to customers: advertising, PR, direct sales? What is the right balance of “push” and “pull”?
B) How do customers respond to different elements of the marketing mix? Which components are most cost effective?
C) What is the role and importance of the sales force? To whom do they actually sell? What is the basis of sales? What skill set and support structure is required?
D) How can special offers (e.g. temporary price reductions, ‘buy now and get …’) incrementally induce or accelerate sales? Who is the appropriate target for special deals: the trade (push) or the end customer (pull)?
E) How do the individual promotional elements sync together? Are they appropriately integrated and complementary, or conflicting?
F) Is the promotional budget adequate to achieve objectives?
6. Performance
A) What are the strategic and financial objectives? Are they appropriate (realistic and achievable) for the category and the brand?
B) What are the appropriate financial performance metrics: contribution margin (price less variable costs), pre-tax profit, net profit, ROI …?
C) What are the appropriate strategic / market metrics: share of market (value, units), share of served market, segment share, price realization (yield)?
D) Are the objectives being achieved?