During this pandemic, businesses must focus on consumer trends more than ever and make adjustments to their business model. Consumer habits have fundamentally, and possibly permanently, changed in 2020. Evaluating and optimizing the 5 P’s of marketing is a good strategy now as we are heading into the holiday season.
What Are The 5 P’s of Marketing
The 5 P’s are Product, Price, Promotion, Place, and People.
Here are some recent consumer trends and suggested changes businesses can take to optimize the 5 P’s:
- Price – With so much uncertainty, unemployed households, and financial stress, consumers are more price sensitive than ever before. According to a survey by TotalRetail, nearly two-thirds of shoppers would abandon their purchase if they can find a cheaper alternative elsewhere. Brand loyalty is shaken as consumers flock to budget brands. Make sure your pricing reflects this change and offer sales promotions to stay ahead of competition.
- Product – For the same reasons mentioned above, consumers are prioritizing functionality and usefulness. Highlighting products that solve the consumers problems and adjust product mix with more emphasis on products that provide value.
- Promotion – How do you get the word out about your business? Consumers have made a fundamental shift to digital shopping with e-commerce sales up 33% in 2020. People are working and isolating from others at home and they are online more than ever. If your not selling products online, start ASAP. Consider shifting advertising dollars from print, outdoor, radio, and television media to improving/updating your website, search ads, YouTube ads, and social media ads. For the same budget that you were spending on those traditional channels, you will be able to reach many more people, target specific audiences, engage with consumers, and better measure results.
- Place – This can refer to a physical location or a virtual one (e-commerce site). With people concerned about sanitation, make sure your physical location has proper sanitation and social distancing procedures. If you have an e-commerce site, make sure that it is easy to navigate, easy to check out, and resizes to fit on any device. More than two-thirds of all online activity are on smart phones, so make it easy to shop on those devices.
- People – Ensuring you and your employees are providing fast and friendly customer service goes a long way. With this pandemic, people are gloomy, depressed, and isolated. People are craving in-person social interaction, so providing a positive experience in your business will keep them coming back.
2020 has been a brutally challenging year for everyone. With the holidays coming up, there is an opportunity for businesses to turn things around and start the recovery. The competition will be fierce for those consumer dollars, but having an aggressive marketing strategy and an understanding how consumers have changed during this pandemic, will set your business up for success. As always, we are here to help.