The four P’s of marketing, also known as a marketing mix, include product, price, place, and promotion. The idea is simple: find a way to select the right product, price it so consumers will want to buy it, place it in the marketplace so it is easy to find, and promote it to get the word out that it is exactly what consumers need right now.
Let’s break it down into digestible chunks.
When it comes to the product, professionals should determine if they are offering a tangible product or an intangible service to meet a customer’s needs. For this step, it is vital to know all the features the product or service has to offer, as well as it is unique selling proposition. The key is to find a product or service that will meet an aspect of consumer demand or compel them to believe they need it.
At this point, a professional also needs to start identifying who his or her target market or customers are going to be.
Next, a professional should identify the pricing for his or her products and services. It is important to consider perceived value rather than personal opinion of how the service should be priced. As a business owner, it is easy to get swept away by how fantastic the idea is thinking others will definitely think the same. The reality is, however, that is never the case. Consumers want to pay the least amount for the most value. Websites like Groupon and Living Social make this increasingly more clear. If a customer can get a service for practically nothing, they will choose that over another product or service. While there are some exceptions, this is more the norm today than in years past.
One thing that is key is to know the cost to produce the product or service and mark up the price accordingly to make a profit. Take into account overhead costs, advertising and marketing costs, and employee costs when pricing.
Research can be crucial when it comes to determining price. Look at the area, where the business is located. What is the median income in this? Check out other businesses that are viable competitors. Price products and services closely to reflect the local market.
Another factor for professionals to consider when marketing is place. Where will the product or service be sold and how will it get it to market? Retail products at the business, create an online store to sell products online, and, perhaps, even look at local boutiques to sell a product line in their stores and split the profit.
If marketing a service, the service will most often be performed at the business location. Still, on-location work, mobile services, volunteering at events to show off work, and selling gift certificates for services online are all options available for promoting the service remotely. The idea is to get creative in getting the service into consumers hands so they buy it.
Brand is a key player in promotion. Promotion is what professionals do to get the word out about their businesses, products, and services. Advertising, public relations, and other strategies fall into promotion.
The key to promotion is to educate the consumer on what the spa offers, how it works, why consumers need it, why they should pay a certain price for it, and why they should buy it from the spa, instead of a competitor.
There are so many ways to promote a business. The key is to research which ideas would work best.
As professionals consider the four p’s in their marketing efforts, their visibility and client base will surely expand.