Each marketing class begins with the 4 P’s of marketing: Product, Price, Place, and Promotion. They always start with the 4 P’s. However, through taking classes and teaching classes, then 4 P’s have been further expanded to include people and profits.
Product is the product or service that you are providing to potential customers that they are willing to pay for. Remember that you should be filling a need or want, otherwise, you could be stuck with a lot of inventory that nobody wants. Are you offering a premium product or low cost product? Most startups will only survive if they offer customized or premium products. Otherwise, I can order it cheaper from Amazon. You can’t compete on scope with Amazon so find another way to be different: features, benefits, value, customization, uniqueness, etc.
Price is the price of the product. But how are you calauting price? Are you calculating price based on your costs? A set mark-up or a set percentage? What is everyone esle charging? Or are you pricing the pr oduct based on how much your customer is willing to pay? I see a lot of moms on social media that price their customized crafts according to Wal-Mart prices and that’s a big no-no. They need to include their actual time and cost of supplies, plus a markup. (You still have to pay taxes at the end of the year and then consider the time learning the craft and any money you’ve already put into the business). So a $7 mug from Wal-mart, customized with a designed logo should easily be $15 – 25.
Place is the location that you are selling the product. Place can be a physical retail location or an online location. You also need to consider where your potential customer is. You can’t sell a premium product at a yard sale, unless it’s some sort of refurnished decor item and you are featured on one of those tv shows where people pay $400 for a painted side dresser. That’s not reality for most of us in the U.S.
Promotion is the sales aspect and more traditional marketing concepts. How are you going to tell your potential customers about the features and benefits of your product and convince them to buy it? Examples include online ads, networking through face to face or social media, newspaper, tv, radio ads, sales and coupons, etc.
And on to the 5th P… People. People are the employees that help you in your business. This can be direct hires or vendors that you pay to do certain tasks. Hiring the right people can help your small business soar or it can hurt tremendously. Don’t put a grumpy person at the sales floor. If you need a rocket scientist, then hire a rocket scientist.
And now the 6th P… Profitability. Profitability is the measure of the business’s performance in terms of revenue and costs. Basically, are your sales more than your costs of doing business? That’s the profit. Is this sustainable? Can you increase your profits by increasing sales or reducing costs?
And there you have it folks, the 6P’s of marketing. If you want to add a 7th, go ahead. At this point, I have to go pee pee pee pee pee pee in the bathroom. Bad joke, right?
See you next time where I’ll add some more fabulous marketing information!