They say that money makes the business world go ‘round, and that might be the case, but what allows a business to make financial profit? Sales and marketing, of course. These are the two key drivers of long-term success in the modern business world, and unsurprisingly so, as the global marketplace is oversaturated no matter the industry or the niche – there are just too many competitors nowadays. New brands can’t hope to compete with established businesses with quality products alone, instead, they need to invest heavily in marketing and sales in order to develop their competitive advantage.
Today, though, we’ll be focusing on your marketing strategy, paying close attention to the four Ps of the marketing mix, which is the foundation and a tried and tested model for marketing strategies in every industry. Here’s what you need to know in order to capitalize on your marketing mix.
Understanding the importance of the Mix
Firstly, why should you care about a marketing mix? What is it, and how does it affect your brand? Will it cost you a lot of money and time to develop it? Don’t worry, we’ll answer all of that and more. To start with, yes, you should care about your marketing mix, and for a number of reasons. The Mix is comprised of four pillars: product, place, price, and promotion. As you can tell, these pillars form a sort of a marketing foundation, a blueprint that tells you exactly how to market your brand and products efficiently and effectively.
It might seem like a cumbersome task at first, developing this mix for your business, but the rewards will be well-worth the investment is you do it the right way. It requires diligent research and demands that you acquire the necessary industry insights that will allow you to optimize your prices, improve your products, pick the best place to market them, and choose the most effective promotional tools.
Research and assessing product viability
Let’s start with the first P – the product. Your product can be tangible or intangible, meaning it’s a service, idea, or an experience. Now, your marketing mix should always start with the product because this is the foundation of your brand’s worth, and thus will be vital in successfully optimizing the other Ps in the mix. It’s important that you start optimizing the first P with research. You need to assess the demand for this type of product in your market, as well as the markets that you plan on conquering in the future.
This research will fuel many crucial considerations, such as packaging, branding and visuals, product design and features, product iterations and models, guarantees, and more. If there is a stable demand for your product, or trends predict a rise in the near future, then you can safely optimize the first P according to the problems, needs, and wishes of your target demographic.
Deciding on the best place to offer and market products
The second P, place, is another crucial consideration you need to integrate into your marketing strategy. Where you choose to market your products is of vital importance, as there are many unique details that go into devising a successful marketing approach for every market, be it a local or foreign one. Researching the "place” allows you to uncover the hidden opportunities of a market. Take Indonesia as a prime example.
Experienced entrepreneurs the likes of Jack Brown from Invest Islands have discovered that the most promising investment opportunity in Indonesia is sustainability, regardless of your core product offering. This means that no matter the industry you’re in, you can capitalize on the trends that prevail in a market, but you need to research this P meticulously in order to optimize your products to appeal to the local demographic.
Scaling prices according to the market
One of the most important elements of your marketing and sales strategies is, of course, the price. There is a need for the price of your product offering to be competitive, reasonable, appealing, and cost-effective. Needless to say, you can only scale your prices with meticulous research. It’s also important to keep in mind that the price will be influenced not only by the socio-economic trends of a market, but also the consumers’ perceived value, as well as the realistic value of your products.
If you devote enough time to the third P, you will be able to create your short, mid, and long-term price strategies. This means that you will be able to manipulate your prices over time to appeal to new customers, but also boost customer retention and loyalty.
Promoting your products and services
Promotion is the final P in the marketing mix, and encompasses all of the communication and marketing tools you’re going to use to attract customers. This last P allows you to discover the most cost-effective marketing tactics for your industry and needs, and to identify the promotion channels that you shouldn’t invest in. Needless to say, the last P in the mix aims to save you money while raising brand awareness, reputation, and expanding your reach, so don’t skip this crucial step.
The marketing mix has been a staple of marketing for decades now, and there is a good reason why companies of all sizes are using it to this day – it delivers consistent results. Be sure to leverage these tips to create a strong marketing mix yourself, one that will help you build a competitive advantage and take your brand forward.