1.02 – Establishing Your Marketing Formula
A marketing program should be based on a marketing strategy, which is the big-picture idea driving your success. The marketing program comprises all the coordinated activities that implement that strategy. To clarify both strategy and program, document them in a marketing plan.
For instance, a general contractor might adopt the strategy of renovating and building residential homes in appealing smaller cities and larger suburbs near downtown areas. This strategy capitalizes on the trend of professional couples moving out of the suburbs to revitalize downtowns. Clearly stating this strategy brings focus to the marketing program. You now know the types of projects to feature in blogs, local media, and on your website portfolio. You also know who your customers are and can brainstorm ways to find more of them, such as networking with local Realtors who assist in relocations.
You don’t need to delve deeply into the technicalities of strategies and plans right now. This lesson covers simpler, quicker actions you can take to leverage your marketing activities into a winning program. The following sections encourage you to think about and write down some ideas, so have a pencil and paper or tablet handy for notes.
Analyzing Your Four Ps
Every marketing plan should address the four Ps – price, product, promotion, and place – as they represent the foundation of your business and the assets you have to sell and market your goods. Develop your product and pricing strategies, distribution strategies, and promotions to compare your strengths to your competitors, monitor progress, and achieve your goals.
The purpose of your marketing plan is to outline actionable items that will push your product forward in the market, expand distribution efficiently, price your products for trial and loyalty, and promote your product and brand using the best channels and tactics to reach and influence your customers.
Price
List the aspects of price that influence customer perception. Consider the total cost to the customer, including the list price, discounts, special offers, and any extra costs, such as switching from a competitor’s product to yours. If you can make switching easier or cheaper, you may be able to charge more and still increase sales.
Product
Identify which aspects of the product itself are important and influence customer perception and purchase intentions. List all tangible features and intangibles, such as personality, look and feel, and packaging. First impressions are crucial for initial purchase, but product performance over time is more important for repurchase and referrals.
Promotion
List all the ways you promote your offering to customers and prospects. Include websites, blogs, social media updates, advertisements, mailings, brochures, signs on buildings or vehicles, and any promotional efforts by distributors or marketing partners. Routine customer communications, like bills, also shape customer perception. Innovate to get your messages out creatively and inexpensively using various promotional channels.
Place
List the aspects of place or distribution (in both time and space) that influence the accessibility of your product. When and where is your product available to customers? Place is a significant influence because customers aren’t always actively shopping for your product. The web allows you to define your market narrowly and locally, or globally. For example, if you have a bookstore specializing in children’s and young adult titles, target local areas with many children and young adult readers, or focus on top cities for your product using targeted web marketing.
Refining Your List of Possibilities
To positively influence customer perception, you need efficient, effective ways to motivate customers to buy and use your product. Start with your current influence points for each of the four Ps, then ask:
- What can be subtracted because it isn’t effective?
- What can be emphasized or added?
Look to competitors or successful marketers from outside your industry for fresh ideas. Expand your list of possibilities to find the best elements for your marketing program. Focus on the handful of influence points that offer the biggest effect.
Avoiding the Pricing Trap
Avoid making price the main focus of your marketing program. Emphasizing discounts and low prices can attract customers, but it’s a hard way to make a profit. Unless you have a sustainable cost advantage, don’t let low prices or discounts dominate your marketing strategy. Price reasonably, use discounts sparingly, and focus on other tactics.
Conclusion
By establishing your marketing formula, analyzing the four Ps, refining your list of possibilities, and avoiding the pricing trap, you can create a strategic marketing program that effectively promotes your brand and drives growth.
