The 5 M’s of Marketing is an interesting marketing model which can be used in a number of different ways. It picks up on five different internal elements of the marketing plan which need to be addressed if the plan is going to be successful. The five elements need to be considered as assets which the organisation has committed to its current marketing strategy and they include Manpower (Staffing), Materials (Production), Machinery (Equipment), Minutes (Time) and Money (Finances). The model itself can be used in a number of different ways.
5 M’s of Marketing as an Auditing Tool
It can be used as an auditing tool as part of the strategic planning process in order to analyse the internal elements which are supporting the current marketing strategy. Once identified an assessment can then take place in order to help make a judgement as to whether those assets are being used to their best advantage.
Identifying Internal Resources required
The 5 M’s of Marketing can be used in order to identify the internal resources required to implement a proposed marketing strategy. This is similar to the Johnson and Scholes approach, when they discuss Resources and Competences required for long-term survival and competitive advantage.
Using It As A Resource Planner
It can also be used as a resource planning tool as part of the controls and measurement section of a typical marketing plan. It can be used alongside appropriate marketing metrics that can be set in order to measure and monitor implementation of the plan (similar to a Balanced Scorecard, i.e. a range of different metrics which measure performance).
Let’s look at the elements of the 5 M’s of Marketing in more detail.
Manpower refers to the human resources committed to implementing either an existing or new marketing strategy. This could then be subdivided into specific HR assets, which can be directly attributable to a particular strategy, but which can also include indirect assets. For example, a specific ‘manpower’ asset could be an advertising agency which is engaged to deliver a communications campaign. A direct asset could also be time spent by the sales force following up leads from that same campaign. An indirect manpower asset could be time spent by the marketing team on a particular campaign, which in practice could be difficult to measure.
This element looks at the supply chain which supports both current and future marketing strategies. It considers the extent to which the supply chain adds value to that strategy, which may also evaluate specific production materials used in the production of the product that forms the basis of that marketing strategy.
Machinery is the physical assets which are dedicated to delivering the marketing strategy. This could range from a CRM system through to specific equipment such as servers, software etc. The question to ask is how efficiently and how effectively are these assets being utilised?
Time is possibly the most valuable asset and requires a review of the marketing planning process, questioning whether the process that in place is as effective as it could be. For example, how long does it take you to bring new products to market? how responsive is the organisation to competitive pressures? Etc.
The final element of the 5 M’s of Marketing looks at the marketing budget and finance. This should evaluate the current strategic ROMI (Return on Marketing Investment) as well as reviewing current projects and breakeven levels of activity for present and future marketing strategies.
The 5 M’s of Marketing can therefore be summarised into three key areas: capability, capacity and constraints. Does the organisation have the capabilities to achieve and/or where are improvements needed? Does the organisation have the available resources to achieve success? And finally, are there any potential factors that could constrain success, such as finance or human resources?
The five M’s of marketing is a useful tool to assess the internal environment. If used correctly, it can assist in driving a successful marketing plan.
If you are interested in understanding more about marketing planning, the CIM Diploma in Professional Marketing may be for you. To find out more, get in touch with our Student Relations Team at firstname.lastname@example.org or call +44 1865 515225.