What is marketing?
The definition most often encountered and used by many business start-ups is:
~ offering the right product in the right place, at the right time, and at the right price ~
It seems simple and easy, and the idea is this: you just need to create a product that meets the needs of a certain group of people, put it on sale in places where these same people regularly visit, and set the price at a level where these people realize that they will benefit from the purchase of this product, and at the same time you should also provide related services, which will further encourage people to make a purchase. If you are able to do all this, you can say that you have understood and used marketing to your advantage.
Indeed, this idea captures the essence of marketing in many ways. However, all this requires and implies even more work to identify the needs that need to be met. And also – the specific places where consumers are most likely to make their purchases. Then you need to determine: how to produce a product at a price that is profitable for both you and the consumers, and how to do it all in the shortest possible time.
If you miss any of these points, or do any of them without full commitment, you will make a mistake that could lead to the ultimate failure of your project. Mistakes include promoting a car that saves gasoline much better than other cars to a market with cheap fuel; and publishing a textbook after the new school year has already started; or selling a product at too high or even too low a price in order to attract potential consumers – “overkill” always arouses suspicion and thus narrows the circle of potential consumers.
Marketing mixIn this case, is a good start, thanks to which you can look at the product or service you offer as if from the outside, and avoid all possible mistakes.
Marketing mix tools
The terms “marketing mix” and “4Ps” are often used as synonyms for each other. In fact, they are not necessarily the same thing.
The marketing mix (or marketing mix ) is a general expression used to describe the various options that organizations choose when marketing a product or service. The 4Ps model, first expressed in 1960 Э. J. McCarthy , is one and probably the best known way to define marketing.
The 4Ps are:
- Product – product (good or service);
- Place is a place;
- Price – price;
- Promotion.
In order to better understand the tools of the 4Ps of marketing you need to ask yourself the questions that most emerging businesses face when using marketing. Here are some that will help you understand and define each of the four elements:
Product / Service:
- What does the customer want to get from the product/service? What needs does the product fulfill?
- What features must the product have to satisfy these needs?
- Are there any features that you may have missed?
- Does your product have features that consumers won’t pay attention to?
- How and where will consumers use the product or service?
- What does the product or service look like? How can people “try” them?
- What size, color, and the like should the item be?
- What will the product be called?
- How to position the product?
- How will your product or service differ from that of your competitors?
Location:
- Where do consumers look for or buy your product or service?
- If they buy from stores, which ones? In retail stores or supermarkets or elsewhere? Or online, on the internet? Or from catalogs and brochures?
- What distribution channels are best used to promote your product?
- How can you access the product distribution channel you need?
- Do you need to use real sales already? Or should you attend trade shows for now? Or use online sales? Or send sample catalogs to sales companies/stores?
- How do your competitors operate in the market? And what can you learn from their experience?
Price:
- What is the acceptable cost of the product or service to the customer?
- Are there fixed prices for goods or services in this area?
- Is the consumer price sensitive? Would your market share increase with a small price reduction? How can you gain new market share and make additional profits?
- What discounts can you offer to resellers or consumers?
- How do your prices compare to those of your competitors?
Promotion:
- With which promotional tools are your messages about your new product or service better delivered to your target audience?
- Will your message reach your target audience through press or television or radio or billboard advertising? By using email blasts? Through PR? On the Internet?
- When is the best time to promote a product? Is there seasonality in the market?
- How do your competitors market their products and services? And how does this influence the choice of promotional activities?
The 4P model is just one of many marketing mix options that have been developed over the years. And, because the issues outlined above are key, they are only a subset of the issues you may encounter when researching and developing ways to optimize your marketing mix.
Among other models of the marketing mix, we can highlight Bitner and Booms’ 7P model, which is also sometimes referred to as the extended marketing mix model. This model, in addition to the standard elements of 4P, also includes:
- People – People who promote a product or service;
- Process – The processes, mechanisms, and various sequences of activities that enable the delivery of services;
- Physical evidence – the external environment in which the service is delivered.
Another approach is the 4C marketing mix proposed by Lauterborn in 1993.This model represents the elements of the marketing mix from the buyer rather than the product or seller. It consists of:
- Consumer needs – customer needs (product equivalent);
- Cost – value (equivalent to price);
- Convenience (equivalent to a seat)
- Communication – connections and communications (equivalent to promotion).
In this article, we will focus on the 4P model, as it is the most widely used, and contains the basic elements of a good marketing mix.
Using the 4P marketing mix model to position a new product
The 4Ps marketing model canbe used to properly propose and market a new product or service. The model can also be used to validate an existing marketing strategy.
To optimize your own marketing mix, we suggest you go over the following points:
1. Start by identifying the product or service you want to analyze.
2. Теперь ответьте на вопросы каждого из элементов 4Р, которые изложены выше.
3. Try asking new “why” and “what if” questions. For example, ask why your target audience’s product needs to have specific features? What would happen if you reduced your prices by 5%? What if you offered the product in a different color scheme? Why should you sell the product through wholesalers rather than retailers? What if you improve your PR rather than relying on TV advertising?
Tip:
- Make sure your answers are based on sound knowledge and facts. If you have doubts about your proposals, you should look at market research that has already been done and analyze existing facts and figures that could be relied upon.
4. If you already have a marketing mix developed, test it “on behalf of the consumer” and survey your consumers with questions such as:
- Does the product meet their needs? (Commodity).
- Will they find and buy your product where they are most likely to shop? (Location).
- Is the price acceptable to them? (Price).
- Are marketing communications and messages reaching them? (Promotion).
5. Continue to ask new questions and make changes to the mix according to the answers you get until you are confident that you have optimized your marketing mix given the information, facts and figures that you have.
6. Regularly test and optimize your marketing mix, as the market environment is constantly changing and you need to adapt to its new conditions.
Key Points:
The marketing mix will help you identify the marketing elements to successfully position your market offering.
One of the best known marketing models is the 4Ps model, which defines marketing in terms of product, place, price and promotion. Use this model when developing a new product or service, when entering new markets, or to evaluate an existing offering and optimize communication with your target audience.
Specialists KOLORO will help you to develop your own positioning concept and market promotion strategy, develop a unique product design, logo, brandbook, as well as conduct marketing research, select potential customers and partners and register atrademark.You can contact us by e-mail or by phone:+38-(057)-760-26-05,+38-(057)-760-26-06, +38- (099) -618-87-50,info@koloro.ua.
