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The 5 Ps of marketing

The 5 Ps of marketing

The 5 Ps of marketing Thinking about all the elements in your business, no matter how small they may seem, can help you position your business and therefore your products and services in the market.

The 5 Ps are key marketing elements designed to help you think about your business strategically. Put broadly, marketing is a mix of business activities that aims to build your brand and business in a consistent way.

If you want to grow your business, the 5 Ps of marketing can help you think about the different areas of your business can add value and offer a product or service different from your competitors.

Working your way through each of the Ps can help you think about which areas of your business you can change or improve on, to help you meet the needs of your target market.

The 5 Ps include:


The product element refers to what you are offering as a whole – what exactly are you selling to your customers? This includes the value added features, branding and packaging as well as service and warranty terms.

For example, if you’re a jewellery maker who is looking to grow your business, you might think about giving your customers a free gift wrapping service as an incentive to buy from you.

Find out more on labelling and packaging.


The price element refers to the way you set prices for your products or services. It generally includes all the parts that make up your overall cost, including the advertised price, any discounts, sales, credit terms or other payment arrangements or price matching services you offer.

Your pricing will also depend on your business’s position in the market. For example, if you advertise your business as a budget car rental service, your pricing should reflect that choice. If you’re looking to grow your business consider if your pricing reflects your business’ positioning.

Read more about Pricing to determine your pricing strategy and objectives.


The promotion element refers to all the activities and methods you use to promote your business and products. This includes sales, public relations, direct marketing and advertising.

For example, if you’re growing your sports management business, you might add sponsorships to your marketing mix to help promote your business.


The place element refers to how you deliver your product or service to your customers. This might include the physical location (e.g. via a shopfront, online or a distributor), delivery methods as well as how you manage your stock levels.. For example, you could choose to provide your product from a shopfront, over the internet or through a distributor.

If you’re looking to grow your business, you might consider changing or expanding the way you sell your products and services. For example, if you’re a homewares distributor, you might think about setting up a new store in a different location or offering franchises.

Alternatively, you might consider setting up an online website as a supplier that allows other businesses to purchase online from you.


The people element refers to yourself, your staff and your customers. This covers customer service levels, as well as effective communication and training for your staff. You’ll need to consider both your staff and customers if you’re thinking of growing your business.

For example, if you’re thinking of expanding your business online, you’ll need to think about how your customers use the internet, if they would feel comfortable purchasing your goods online and if they would be willing to pay shipping costs for your products.

You’ll also need to consider staffing elements. For example, do your staff have the skills to manage a website? Will you need to provide further training for them?

Find out more about what is customer service, including how to provide good customer service, setting targets and measuring your customer service and attracting and keeping loyal customers.

Although the 5 Ps are somewhat controllable, they are always subject to your internal and external marketing environments.

Examples – 5 Ps in action

Here’s two examples of the 5 Ps in action:

Family restaurant

You might run a restaurant catering to families. To position your restaurant towards your target market, you might consider having:

  • product – food catering to fussy eaters
  • price – affordable prices for families
  • promotion – advertisements in school newsletters
  • place – location and opening hours suited to busy, family lifestyles
  • people – staff that are friendly and accommodating to the needs of parents and children.

Scuba diving shop

You might run a scuba diving shop catering to backpackers. To position your business towards this market, you might consider having:

  • product – quick diving trips for people who are only in town for a short time
  • price – cheaper dive trips to cater for budget-conscious travellers
  • promotion – a Facebook page to promote your business online
  • place – an in-town location so you can be found easily
  • people – friendly staff who like to meet other travellers.