Marketing: Marketing mix
Marketing refers to activities a company undertakes to promote the buying or selling of a product or service. It includes advertising, selling, and delivering products to consumers or other businesses. Marketing makes use of the “marketing mix,” also known as the four Ps. That is, product, price, place, and promotion. At core, it seeks to take a product or service, identify its ideal customers, and draw the customers’ attention to the product or service available.
Marketing mix
The Marketing Mix 5 P’s is an important tool to help you select and create the right marketing strategies for your business. It forces you to think about which areas of your business you can change or improve on, to help you meet the needs of your target market, add value and differentiate your product or service from your competitors. The five aspects you need to make decisions about are: PRODUCT, PRICE, PROMOTION, PLACE AND PEOPLE.
PRODUCT/SERVICE
The product or service element refers to what you are offering to your customers. Product aspects include functionality, branding, packaging, service, quality, appearance and warranty terms. When coming up with a product consider the key features, benefits, and the needs and wants of customers.
PRICE
The price element refers to the way you set prices for your products or services. It should include all the parts that make up your overall cost. This includes the advertised price, any discounts, sales, credit terms or other payment arrangements.
Your pricing will also depend on your businesses position in the market. For example, if you advertise your business as a budget car rental service, your pricing should reflect that choice. Also your price should be at a premium to lesser quality products to reflect the better packaging and quality of products you offer.
PROMOTION
Promotion refers to all the activities and methods you use to promote your products/services to your target market. It includes sales, public relations, direct marketing, advertising, sponsorship and social media.
Since promotion costs can be substantial, it is sensible to conduct a return on investment analysis (ROI) when making promotion decisions. Firstly, you need to establish who your target market is, what media do they consume, what the cost of that media will be, how many more sales you need to cover your investment and how you will gather the information that shows how the promotion has worked.
PLACE
The place element refers to how you get your product or service to your customers at the right time, at the right place, and in the right quantity. It includes distribution channels , location, logistics, service levels and market coverage.
If you’re looking to grow your business, you might consider expanding the way you sell your products and services. For example, if you’re a homewares distributor, you might think about setting up a new store in a different location or offering franchises.
PEOPLE
The people element refers to your customers, yourself and your staff. You need to consider both your staff and customers if you’re thinking of expanding your business. It includes understanding what your customers’ needs are. Setting targets and measuring your customer service levels so that you attract and retain loyal customers.
You’ll also need to consider staff training so they have the skills to offer the best customer experience.
