Marketing

Understanding your marketing mix

Successful marketing usually involves balancing several variables, often described as the four P's of the Marketing Mix, which include: product, price, positioning and promotion..

Positioning

How would you like customers to think about your product or service? Your positioning is your business' answer to the question every customer asks when considering whether or not to buy: "What's in it for me?". Describe the key benefits you'd like your customers to value in your product or service. The best positioning:

  • Appeals directly to your target customers
  • Sets your business apart from the competition
  • Is based on your competitive advantage

At a Glance

Look at things from the customer's point of view.

Pricing

Setting a pricing strategy can be one of the most difficult decisions for small business owners. As a starting point, calculate the break-even point and profit margin of your product or service. From a customer's perspective Price = Value, so your pricing will be a deciding factor in what customers you attract, how much you sell and how much you earn on each sale. Explain your pricing strategy, including how you came up with your prices and where they fall in relation to your competition.

Promotion

People need to know about your product, be willing to pay for it, and be able to find it. Promoting your business means to communicate and sell to potential customers using advertising, public relations, publicity and other forms of media. Promotion costs can be large in relation to your product's price, so a break-even analysis can be helpful.

Describe how potential customers will learn about your product or service and consider which medium will be most likely to attract your customers' attention.

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