Power: The 5th P of Marketing in Asia

Many of us were first schooled on the “Four Ps of Marketing” popularised by Philip Kotler in his book, “Principles of Marketing.”

Kotler described the four Ps of the marketing are:

1.     Price.

2.     Product

3.     Promotion.

4.     Placement.

 All of these factors are seen as critical in obtaining customer loyalty, repeat sales and a profitable market position.

There has been much debate about whether there exists a 5th P of marketing. Many options have been put forward such as People, Productivity and Purpose to name a few.

Kotler himself joined the debate and in 2013 put forward the case that Purpose is the 5th P of Marketing.

Kotler explains that this is because if “a company has the interest of customers, employees and the supplier aligned to its business then it will make everyone happy thus improving the overall profitability of the business”.

Kotler also concludes “Another thing that is a huge asset to the company is its corporate culture. For instance, for Apple, the core is innovation and that is what they have thrived on.”

This makes sense to me from an overall business strategy point of view.

When I reflect on doing business in Asia I believe that the 5th P for marketing in Asia is POWER.

My definition of POWER in the context of Asia is where a business and its Asian partners have a significance influence in the market whereby they can gain a strong market position. That is a significant market share and premium pricing for your product or service.

This influence is generally due to the Asian partner’s strong relationship with the key customers in the market or the exclusive ownership of a key brand, product or service.

This power position is something that has to be earned and in some cases inherited due through the relationships that stakeholders in the business have.

In the context of Asian markets, POWER could be construed as a combination of People and Purpose.

To obtain the 5th P of POWER you need to select the right business partners, distributors, agents and local management. Therefore partner selection is critical when establishing your business in Asia.

You need to understand what influence they have in the Asian market you are marketing to. Can they give you an edge in the market due to their existing relationships? Are they motivated to work with you to make the business successful?

That is are these the right People and do they have the same Purpose as you?

Campbell MacKintosh 15th March 2020