The Marketing Mix
Product
Your Marketing plan has to be built around your product. But before distribution can begin, market research needs to be performed. Analysing the Market place and researching what competitors are doing will bring perspective to your Marketing strategy and vision. It will also provide key indicators on pricing and potential. Something to consider is your product's life cycle which is important in determining when the market will reject your product.
Once a product is launched into the market, a stable growth in sales is common at first. This will eventually stabilise as the product gets older, and as more competitors enter the market it eventually will start declining to the point of elimination. It is difficult to tell where a specific product is within the lifecycle or how long each phase will last. This is dependent on many factors within the market and how they are dealt with. Many companies have adopted strategies to combat a shortened product life by releasing improved versions.
Price
Marketing Mix:PriceWhen entering the Market for the first time, pricing is something that can either 'make you or break you'. Small businesses tend to think that they need to offer really cheap prices to stand a chance of survival. Thats not the case. It all depends on what you do, what you can do and what you are willing to do. We all know about demand and supply, an abundent supply forces prices to drop because demand decreases. We see it in the UK today, many companies offer the same service in the same area but still seem to make it. How? Its called Value Added Services. Taking a standard product that is available on the Market and adding something that is unique and beneficial to consumers ensures that your product has a chance. It also allows you more flexibility on Pricing.
Economic
Price is kept as low as possible. A strategy most associated with Supermarkets who tend to make a very low margin on goods like tin food.
Skim
This strategy is adopted by companies that have a unique product or competitive advantage and can therefore charge a high price. The strategy does not last for too long because a high price tends to open the door to competitors. This eventually results in increased supply which inevitably lowers the market price.
Penetrate
This involves setting the price as low as possible in order to gain a substantial share in the market. Once this has been achieved price can be increased. A strategy prominent amoungst Telecoms companies in the UK.
Premium
Similar to Skim pricing, this strategy is popular amoung companies that offer a unique product or service. The difference between the two is that Premium pricing is usually associated with a product that satisfies a niche market.
Bundle Pricing
A popular strategy where products are combined to form one package.
Value Pricing
Where factors in the market force companies to lower prices to retain sales.
Psychological Pricing
Uses emotive perception rather than rational to persuade the consumer...£1.99 instead of £2.00.
Position
Many small businesses associate position with location only. It is much more than where your business is physically situated or where your distribution areas encompass. It is about creating a unique identity for your business, a Brand which will act as a platform from which to launch your products. In other words, position applies to your place in the Market. Does you company name reflect what you are about, will consumers be able to instantly recognise you?
Promotion / Distribution
Who are your customers. If you don't know who they are and what they want, you will not be able to promote effectively. Target, target, target. Most of your information will come from Market Research and analyses. Things like Average age, yearly spend, customer groups, buying habits are all important facts that help make promotion effective and easy. Once you identify your perfect customer, you need to figure out the best way to reach them. Remember...Getting your Marketing message heard! Choosing a communication channel is of utmost importance. The wrong one being chosen will result in the wrong audience being reached.
Check out our Advertising section for more information. Your Marketing plan will act as your mission statement, what you intend to do in order to reach your objective or Vision.
Article Source: http://www.articledashboard.com
Sudesh Pillay
www.marketinginfo.co.uk