The 4 P’s of Marketing
The four p’s of marketing are product, price, place, and promotion. You can see how each of these sections corresponds to an area of marketing. Each of these aspects contributes to your businesses success. Let’s dive in to each of the p’s of marketing to learn a little more about each area and how it applies to small businesses that sell products or services.
Product is perhaps the most obvious of the marketing mix. This section correlates to the product or service that you are selling your audience. Typically, this portion of the marketing mix is determining a few things about your product or service and applying them to your business model. First, you will want to determine what problem your product or service solves for your target market. For example, Creative Spark solves the problem of small business owners needing quality marketing services, but not being able to afford them. Next, you will want to determine what sets your product or service apart from your competition. Your unique identifier could be anything, but for the sake of our example Creative Spark is a digital only company. Being digital only allows us to serve our clients with a lower cost and higher quality. This sets our service apart from our competitors. The next step in the “product” section is applying what you have learned about your product or service to your business model. This could mean adjusting your price, adjusting your mission statement, or several other things based on what you have discovered about your offering.
Price is the next section of the marketing mix. Price correlates with what you will charge for your products or services when you go to market. You’ll need to look at a few factors to determine what your price will be. It’s important to look at your overhead costs to ensure that what you are charging will cover your expenses with a reasonable amount of clients or sales. Another element you’ll want to address is your competitors pricing. Your pricing will need to compete with your competitors or you will need to operate on a “more for less” or “more for more” basis. What this means is that you’ll need to choose how you will explain pricing to your clients. For example, Creative Spark operates on a “more for less” basis, meaning that we offer higher quality services for lower costs. You may operate on a “more for more” basis, meaning that your business charges more for a higher quality than your competitor. This is a very important decision as it will affect your marketing messaging, so be sure to evaluate your pricing fully before moving on.
Place is about where you will sell or market your product or service. If you sell basketballs, then your “place” may be a sporting goods store or an online shop that you create. If you sell marketing services, then you might market through LinkedIn to get in front of other businesses. The focal point of this section is to figure out where you will sell your offering to your target audience. A good way to determine where the best fit is for your business is to determine where your target audience spends their time. For example, if you sell basketballs then you’ll want to figure out which shops your target audience buys their balls from. If you sell marketing services, you’ll want to know where small business owners spend their time, whether that is at the office, at home, on social media, etc.
Finally, promotion is the final “p” in the marketing mix. This section is about how you will promote your product. You could use a promotion such as “$50 off your first month of services” or “10% off of your first purchase”. However, promotion goes beyond just offering a coupon. The biggest question for this section is how you will promote your business. For example, you’ve determined the product, the price, and the place you will promote. Now you need to determine if you’ll do this through digital means such as web advertisements or through traditional means like newspaper ads (not recommended these days). You have unlimited potential for this section and shouldn’t limit yourself to only certain types of marketing. For example, you need to have an integrated marketing plan that includes things like social media presence, website, digital advertisements, etc. A good mix of marketing options will help you reach as much of your target audience as possible.
The marketing mix is extremely important for business owners to review. When you break down your marketing plan into the four p’s it makes the entire plan more manageable. It also ensures that you miss nothing while getting started. The four p’s are product, price, place, and promotion and don’t you forget it!
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