Term Tuesday: Understanding The Pâ€™s of Marketing
Today’s editorial helps entrepreneurs understand business terms and how the terms influence their business activities.
The P’s of marketing symbolise what help business function in terms of what of product, packaging, price, place, promotion, people, processes and physical layout decisions. These P’s enhance the business performance in term of market acceptance, sales revenue and going concern.
Though it looks very simple but often business owners get one or more of these elements wrong, resulting in unfavourable actual result.
Imagine a publisher producing textbook after the start of the new school year or a cheap boutique in a luxury park or a luxury restaurant in a poor remote area. Some elements are missing as such your business offerings do not attract the people you're targeting.
PRODUCT (OR SERVICE)
A product can be either a tangible good or an intangible service that fulfils a need or want of consumers. Whether you sell consumables or provide luxury accommodations or luxury services. It’s vital that you have a clear important of exactly what your product is and what makes it unique before you can successfully market it. A well branded product attracts consumer and increase sales revenue. Business owners must have an explicit product descriptions and value preposition.
Does your product or/and service meets people needs?
A value that will purchase a quantity, weight, or other measure of a good or service. Price forms the essential basis of commercial transactions.Price determinations will impact profit margins, supply, demand and marketing strategy. Business owners must develop the habit of continually examining and re-examining the prices of the products and services they sell to make sure they're still appropriate to the realities of the current market. Sometimes market news will tell you that there is need for an upward review of price. Business owner must be mindful that consumers are price-sensitive, a higher price can result in lower demand and vice versa.
How will your price compare with your competitors?
This is the place where your product or service is actually sold. Sometimes a change in place can lead to a rapid increase in sales. Some products are sold faster at exhibition, training, seminar, online platform, luxury areas and so on. Entrepreneurs must test and identify the best place to sell, at times identifying where your competitors are, why they reside there? This gives an insight before you make your business decision. The closer you are to the market the higher the chances of making sales.
Where do buyers look for your product or service?
Promotion includes all the ways you tell your customers about your products or services and how you then market and sell to them. Small changes in the way you promote and sell your products can lead to dramatic changes in your results. Even small changes in your advertising can lead immediately to higher sales. Promotion could be through the use of media such as Tv, Radio, Newspaper, Magazine, Road show, social media etc. Business owners should examine the best media to market their products. Facts and figures reveal that over 46% of Nigerian make use of social platforms like Facebook, Twitter, WeChat, Instagram, Mico, BBM and WhatsApp with over 86% below the age of 35. The use of social network like FixitSME is preferred by SMEs for their social media marketing.
Will you reach your audience by advertising online, in the press, or on TV, or radio, or on billboards? By using direct marketing mailshot? Through PR? On the Internet?
Packaging refers to the way your product or service appears from the outside. Develop the habit of standing back and looking at every visual element in the packaging of your product or service through the eyes of a critical prospect. Remember, people form their first impression about you within the first 30 seconds of seeing you or some element of your company. Small improvements in the packaging or external appearance of your product or service can often lead to completely different reactions from your customers.
Indomie a favourite noodle in Nigeria increased the quantity of their product in term of Kg to suit consumers who wishe to take in more at a go and the consumer reaction was favourable. Packaging could involve change the colour, shape and size of the product container.
With regard to the packaging of your company, your product or service, you should think in terms of everything that the customer sees from the first moment of contact with your company all the way through the purchasing process.
Creative packaging does not cost the earth
It's amazing how many entrepreneurs and business people will work extremely hard to think through every element of the marketing strategy and the marketing mix, and then pay little attention to the fact that every single decision and policy has to be carried out by a specific person, in a specific way. Your ability to select, recruit, hire and retain the proper people, with the skills and abilities to do the job you need to have done, is more important than everything else put together.
"All labour is directed towards producing some effect." - Alfred Marshall
Combination and proper implementation of these key elements make a business successful. Entrepreneurs must design a framework to embrance these. Think and act well!