Michael Powell once said, “Only when you bring value to others, will you bring value to yourself.” Looking at this quote from a business standpoint, your brand value will only increase if your company is able to provide true value to your customers first. Your marketing mix (or 4 P’s), which is part of your marketing strategy, can help you decide what value to provide to customers and how to best communicate that value. The 4 P’s of the marketing mix outlines the right product (or service) to sell, the right price to sell it at, the right place to deliver it, and the right promotions to get it known. Value, of course, should be at the heart of every “P.”
The product refers to the good or service that you will be selling. The product should be able to fulfill a need or a want. Only then, will it be able to provide value to the consumers’ lives. When deciding the best product to put on the market, ask yourself these few questions:
- Question 1. Will this product enhance my customers’ lives? If so, in what way?
- Question 2. Will my product provide more value than my competitors’ products? If not, what can I do to enhance it?
Question 1 helps you explore the different values your product provides. The answer to Question 2 will help you figure out the product’s unique selling proposition or the characteristic that differentiates your product from competitors’ products. Remember, your customers’ opinions of the product will determine its sales.
Price plays a big part in your marketing mix, and ultimately, your marketing strategy. Price indicates the amount of money your customers have to pay in order to buy the product or get access to the service. Setting the price can be a bit tricky. Setting the price too low can affect your revenue and business’s growth. Setting a price too high can affect the demand for your product. To determine the best price for your product, take into account the production costs and the customers’ perceived product value. Product value is the product benefit minus the product costs. Product benefits may include a product’s quality, convenience, performance, experience, healthiness, and environmental friendliness. This is the only “P” that will bring money into your company. The other three “P’s” are simply cost incurring factors.
Location, location, location!
The “Place” element of the 4 P’s identify where your product or service will be sold. Picking the right place helps your product reach the right target audience. For the company, it means more sales. For the customer, it means an experience. A good experience will bring value. When determining a place to sell your product or service, consider the following factors:
- Reach- Is this the right location to attract the right customers?
- Convenience- Can your customers easily access this location? Should you sell your product online?
- Environment- Is this the place reflecting my brand? (Hint: You will not find Tiffany & Co.’s jewelry at a discount store.)
“Place” also includes the “online” environment. At Marketing Eye, we provide website development services to get your business on the virtual map. The place you choose should provide a great experience for your customers. Therefore, make it easy for customers to pursue your product--online and offline.
Promotion refers to the process of communicating the product, price, and place to target customers. Your promotion objectives should include communicating the value of the product/service. There are several types of promotions, including public relations, direct mail, internet marketing, personal selling, advertising, and social media marketing. When looking for how to promote and where to promote, keep the customer in mind.The marketing mix affects a company’s product success. This is why the marketing mix plays such a big role in a company’s marketing strategy. Need help with your marketing strategy? Contact us online, or call 404-626-8070 to speak with a marketing manager.