Create-A-Stir   Marketing services and solutions
   

 

The Marketing Mix


Having a marketing strategy will ensure you have a clear plan and understanding of what is needed to reach your goals. It builds a strong foundation and assists in the ongoing success of your firm. The Marketing Mix is another vital consideration when completing your strategy. What is the marketing mix? The 4 P’s of marketing…Product, Price, Place and Promotion!

Product.
While it might seem simple there are, in fact, a number of issues to consider when considering your product. For example, who is your actual target market? The consumer? Or do you fall in the business-to-business sector? Is your product a new one? Or do you already have competitors out there that need consideration? And, if so, does your product differ from theirs, and how? Does your product have a life-cycle? Have you considered the packaging and appearance?

By assessing all of these, you will be taking cognisance of the sectors your target market falls into and will be able to accurately determine what is needed to attract their business. Additionally, you will have a clear understanding of the essence of your product or service and why it is worth selling.

Differentiation is key! Imagine you are your ideal consumer or the business owner your firm is targeting – why would you buy this product or pay for this service? Would it add value to your company? Has it a specific purpose? Is it unique?

Answering these questions will give you an exact idea of your offering and why it would be beneficial to your target market. Without this, your message will be confused which will result in your target market being unclear of what exactly it is you are offering. Remember your customers have a choice! And the product or service that resonates clearly and deeply with them is going to be their first choice.

You should be able to explain your product or service within 30 seconds and the listener should be able to immediately grasp the concept and the benefits to buying or paying for it.

Price.
When considering your price, you need to be clear on your financial objectives. Are you going to sell at a high price and make a large profit in the short term or do you intend to undercut your competitors and focus on the long term?

You need to consider your target market yet again. How price sensitive are they?

It is very important to initially establish your break-even point. Using your price structure, you need to work out how many products you have to sell and how much revenue you need to generate to be able to cover your monthly costs. Knowing this will mean you are able to ascertain, at any time of the month, how many more sales are needed for you to not only break even, but surpass this point and make a profit.

By doing research on what your competitors charge, you will be able to establish what a realistic price is for your product or service. Take into consideration the differences or advantages your product offers that your competitors’ products lack. Be realistic but not too cautious. Your target market will be prepared to pay a premium for a product that has a clear benefit to them.

Place.
Place refers to the distribution channels your products use to reach your customers. Or, can your product be bought on the internet? Is it in stores?

What are the necessary distribution channels? This is one of the most difficult criteria to the successful running of a business. Your system of distribution is important as it can have a direct effect on your product when your target market receives it. Have you selected appropriate partners? Have you established an ongoing evaluation process to monitor and motivate these distribution partners? Do you understand the legal implications within your country or industry?

A clear mission and well defined direction will ensure the successful distribution of your product to its desired target market.

Promotion.
To promote is to create awareness. Firstly, you need to clearly define your firm’s personality. Once this has been established, you need to consistently portray this image in any form of promotion you undertake. These forms include advertising in various media, events, press releases, brochures and internet sites to name a few. It is vital that you never waiver from the ideals that make up your established image.

Secondly, will this personality attract your target market? Will it compel them to buy your product or enlist your service? Again, consider your target market. Consider your strengths and the uniqueness of your offering. Put yourself in your target market’s position – if you were them would you want to support your business?

Considering your image when establishing your promotional plan will mean the successful promotion of your firm to your ideal target market.

Lead by Example.
It is generally accepted that the traditional 4 P’s, while essential, can be added to. And, in conclusion, I would like to add one of the most important additional P’s in my view. And that is, People.

Every member of your firm needs to understand and accurately deliver your message to the outside world. How is this achieved? In my opinion, by starting at the top! The actions and attitude of the most senior person always filter down to the rest of the staff. It is no good if management does not consistently display the true values and beliefs of the firm. Lead by example.

Let’s consider customer service and the role of the receptionist. This is a key position! Your receptionist is your introduction to the outside world. And yet, how often do you call companies only to hear an unhelpful, bored-sounding receptionist who has no idea of the overall offering of her firm? What message does this deliver? And who is truly accountable? I believe the senior management of the firm. By allowing this behaviour, management is telling callers that they do not care.

It is also management’s responsibility to offer all staff members an understanding of what the firm actually offers and the tools they use to do so. Try a simple test. Call a few well-established firms and ask the receptionist for their web site address. I am amazed when doing this to often discover that a fair number do not know. The receptionist, as well as all staff members, should have this information at their fingertips. And management should insist on this.

These basic tips make the difference between an average firm and a phenomenal success. Consider the Marketing Mix and make every person count!

October 2006