Thursday, February 10, 2011

equity shares

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5th p of marketing

• Price: What will the buyers pay?
• Product: At that price point, what features to include and what to do without?
• Place: Where do they want to buy this product?
• Pace: At what rate (how many, how soon)?
• Promotion: How do they know what we have for sale?
• The last P is really the first!
• Is the Profit sufficient to proceed - that is after all costs, is there enough margin
to justify proceeding?
• When most folks talk about marketing, they seem to forget all the first four “P’s”
and discuss models, signage, brochures and advertising, what I refer to as
Promotion.
• These first four aren’t glamorous, but are much more important than the last “P”
where we seem to spend so much energy and money.
• And, if you do them well, and do a reason-able job of promoting your self, the
rest is EASY

Tuesday, February 8, 2011

Using the 4Ps Marketing Mix Model

The marketing mix model can be used to help you decide how to take 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, follow the steps below help you define and improve your marketing mix

1.
Start by identifying the product or service that you want to analyze.
2.
Now go through and answers the 4Ps questions – as defined in detail above.
3.
Try asking “why” and “what if” questions too, to challenge your offer. For example, ask why your target audience needs a particular feature. What if you drop your price by 5%? What if you offer more colors? Why sell through wholesalers rather than direct channels? What if you improve PR rather than rely on TV advertising?
4.
Once you have a well-defined marketing mix, try “testing” the overall offer from the customer’s perspective, by asking customer focused questions:
1.
Does it meet their needs? (product)
2.
Will they find it where they shop? (place)
3.
Will they consider it’s priced favorably? (price)
4.
And will the marketing communications reach them? (promotion)
5.
Keep on asking questions and making changes to your mix until you are satisfied that you have optimized your marketing mix, given the information and facts and figures you have available.
6.
Review you 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.

KEY POINTS
The marketing mix helps you define the marketing elements for successfully positioning your market offer.
One of the best known models is the Four Ps, which helps you define your marketing options in terms of product, place, price and promotion. Use the model when you are planning a new venture, or evaluating an existing offer, to optimize the impact with your target market

marketing mix and 4ps

MARKETING

Putting the right product in the right place, at the right price, at the right time.

4PS
Product (or Service)
Place
Price
Promotion

PRODUCT

What does the customer want from the product/service? What needs does it satisfy?

What features does it have to meet these needs?

Are there any features you’ve missed out?

Are you including costly features that the customer won’t actually use?

How and where will the customer use it?

What does it look like? How will customers experience it?

What size(s), color(s), and so on, 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? (See also Price, below).

PLACE

Where do buyers look for your product or service?

If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalogue?

How can you access the right distribution channels?

Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies?

What do you 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 price 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 can you get across your marketing messages to your target market?

Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards? Through PR? On the Internet?

When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions?

How do your competitors do their promotions? And how does that influence your choice of promotional activity