Thursday 31 July, 2014

Marketing Basics – Identifying Your Marketing Mix

When businesses create their marketing plan, the core is what’s called the ‘marketing mix.’ The marketing mix includes all of the elements of your marketing plan and how you’re going to implement it. This is done by clarifying four categories, also known as the ‘4 P’s’: Product, Price, Place and Promotion.

For each of these 4 P’s, you should do some thinking and brainstorming. If you were writing a marketing plan, you would include a statement defining each of these P’s for each campaign.

Product

The product is your product or service. It’s whatever you’re offering to your market. You need to think about the features and qualities that make your product unique. How does your product help your customers solve their problems?

In this category, you should focus on how your product is unique. In order to do this, you should look at the offerings of your competitors. Identify what it is that leads customers to buy your product instead of others.

This category also includes product details such as its name, characteristics and features.

Price

Your pricing strategy is what you charge for the product and what options you offer your customers. You may choose competitive pricing, where you price your goods just below similar offerings. Another strategy is to charge slightly more but emphasize key benefits or customizability.

Here you may also offer pricing options. One option is tiered pricing, where you offer different versions of your product at different price points. Customers can then choose accordingly depending on their needs and budget. Another pricing option is to offer free and premium versions of a product. This is common with apps and software packages.

Here, you can also consider discounts and special deals you’ll offer, and how small changes in price might affect sales.

The important thing in crafting price strategies is to consider perceived value, not actual cost. In other words, price it according to your market’s expectations rather than what it is worth to your company.

Place

Place means not only location but also distribution channels. This category considers how you get your product to the customer. It includes both online and offline sales. You have to understand where your customers are and where they buy. It also includes your sales force and others that will sell for you.

Promotion

Finally, promotional strategies are how you entice people to buy your product. There is a virtually limitless variety of options in this category, including everything from social media to free giveaways, direct mail to cold calling, and so on. This category is basically everything you will do either online or off to get exposure.

Use these 4 Ps to develop marketing strategies. Conduct market research to discover as much as possible about your market. Then, use this data to create a strategy for each of the above categories for each campaign.

Bob Steele

Bob Steele

Bob Steele is an entrepreneur, software developer, marketer, and author living in the Denver metropolitan area. He’s an avid outdoorsman who loves skiing, hiking, fishing, boating, and just plain having fun. His interests include games, space, technology, physics, cooking (well eating actually), economics, business, internationalism, and team sports. With over thirty years of professional consulting experience, Bob has been exposed to many diverse business models and has gained a sensible approach to life. Bob’s company, WaveCentric is focused on commerce, marketing, and entertainment related products.

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