Marketing As An Entrepreneur (Part 2)

Marketing As An Entrepreneur (Part 2)

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marketing mix

Marking as an entrepreneur cannot be covered in a single post, in case you didn’t get the first one, I’ll advice reading it here first before proceeding with marketing mix.

MARKETING MIX:

The definition that many marketers learn as they start out in the industry is ‘’putting the right product in the right place, at the right place and at the right time.’’

HERE’S WHAT YOU WILL LEARN:

  • The concept of marketing mix
  • The 4P’s of marketing
  • How to use the 4P’s of marketing

marketing mix

It is simple. You just need to create a product that a particular group of people ant, put it on sale at a place that those same people visit regularly, and price it at a level which matches the value they feel they get out of it; and do all that a time they want to buy. Then you have made it.

There is a lot of truth in this idea. However, a lot of hard work needs to go into finding out what customers want, and identifying where they do their shopping. Then you need to figure out how to produce the item at a price that represents value to them and get it all to come together at a critical time.

But if you get just on element wrong, it can spell disaster. You could be left promoting a car with amazing fuel-economy in a country where fuel is very cheap; or publishing a textbook after the start of a new school year, or selling an item at a price that is too high or too low, to attract the people you are targeting.

The marketing mix is a good place to start when you are thinking through your plans for a product or service, and it helps you avoid these kinds of mistakes.

UNDERSTANDING THE TOOL:

The marketing mix and the 4Ps of marketing are often used as synonyms for each other. In fact, they are not necessarily the same thing

‘’Marketing Mix’’ is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The 4Ps is one way- probably the best-known way of defining the marketing mix and was first expressed in 1960 by E J McCarthy.

THE 4Ps ARE:

  1. Product
  2. Place
  3. Price
  4. Promotion

A good way to understand the 4Ps is by asking questions that define marketing mix. I’ve decide to come out with a list of questions that will help you in defining the four elements.

PRODUCT:

  • What does the customer want from the product?
  • What needs does it satisfy?
  • What features does it have to meet these needs?
  • Are there any features you have missed out?
  • Are you including costly features that the consumer would not actually use?
  • How and where will the costumer use it?
  • What does it look like? How will customers experience it?
  • What size, colour should it be?
  • What is it to be called?
  • How is it branded?
  • How is it differentiated versus your competitors?
  • What is the most it can cost to provide, and still be sold sufficiently profitably?

PLACE:

  • Where do buyers look for your product or service?
  • If they look into a store, what kind? A specialist boutique or in a supermarket or both? On-line? Via catalogue?
  • Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies?
  • What does your competitors do, and how can you learn from that and/or differentiate?

  PRICE:

  • What is the value of the product or service to the buyer?
  • Are there established price points for products or services in this area?
  • Is the customer sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so gain you extra profit margin?
  • What discounts should be offered to trade customers, or to other specific segments of your market?
  • How will your price compare with your competitors?

PROMOTION:

  • Where and when you can get across your marketing messages to your target market?
  • Will you reach your audience by advertising in the press, on TV, on radio or on billboards? By using direct marketing mailshot? Through PR? On the internet?
  • When is the best time to produce? Is there seasonality in the market? Are there any wider environ mental issues that suggest or dictate the timing of your market launch r the timing of subsequent promotions?
  • How does your competitor do their promotions? And how does that influence your choice of promotional activity?

marketing mix

The 4Ps model is just one of many marketing mix lists that have been developed over the years. And whilst the questions I’ve listed above are key, they are just a subset of the detailed probing that may be required to optimize your marketing mix.

Amongst the other marketing mix models that have been developed over the years is Boom and Bitner’s 7Ps sometimes called the extended marketing mix which includes the first 4Ps plus people, processes and physical layout decisions.

Another marketing mix approach is Lauterborn’s 4Cs which represents the elements of the marketing mix from the buyer’s rather than the seller’s perspective. It is made up of customer needs and wants cost, convenience and communication.

            USING THE 4Ps MARKETING MIX MODEL:

The marketing mix model can be used to help you decide how to make a new offer to market.it can also be used to test your existing marketing strategy. Whether you are considering a new or existing offer, the steps below are meant to help you define and improve your marketing mix.

  • Start by identifying the product or service you want to analyse.
  • Now go through and answer the 4Ps questions.
  • Try asking ‘’why’’ and ‘’what if’’ questions to challenge your offer. You can ask why your target audience needs a particular feature. What if you drop your price by 5%? What if you offer a variety of colour? Why sell through wholesalers rather than direct channels? What if you improve PR Rather than rely on TV advertising?
  • Check through your answers to make sure they are based on sound knowledge and facts. If they are doubts about your assumptions, identify any market research, or facts figures that you may need to gather.
  • Once you have a well- defined marketing mix, try ‘’testing’’ the overall offer from the customer’s perspective by asking customer focused questions.

      TIPS:

  • Does it meet their needs? (product)
  • Will they find it where they shop? (place)
  • Will they consider it is priced favourably? (price)
  • And will the marketing communication reach them? (promotion)
  • Keep on asking questions and making changes to your mix until you are satisfied that you have optimized your marketing mix; given the information, facts and figures you have available.
  • Review your marketing mix regularly as some elements will need to change as the product or service and its market grow, mature and adapt in an ever-changing competitive environment.

MARKETING AS AN ENTREPRENEUR

That’s pretty much all there is to say about marketing as an entrepreneur. Below is a brief summary of the major points

  1. As an entrepreneur marketing is a function that cannot be evaded
  2. Marketing mix is the efficient combination of marketing tools which are the 4p’s of marketing
  3. The 4p’s of marketing are price, promotion, place, and product.
  4. None of the 4p’s of the marketing mix can be neglected or done without

Have I done right by you? Feel free to let me know what you think.

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