First and foremost, leading with price is not a solid strategy. However, a well-planned seasonally relevant focus on campaigns, themes, or solutions wrapped around your products that your customers will take note of and value, and that prospects will be enticed to try for the first time is ideal.
Understand that once you compete on price alone, your customer will expect that you will always become the lowest provider of those goods or services. This happens because the client has not realized your value simply because you have not demonstrated that value to the consumer.
Therefore, it is important that you revisit your marketing strategy. You will find that your marketing strategy will shift and change as your business scales.
Let’s visit the four P’s of marketing
The four P’s in marketing strategy are product, price, place and promotion. These are the four factors you must consider when you plan your marketing strategy. The four Ps are also known as the “marketing mix.”
To meet the needs of different customers or market sectors, you can change the mix by varying the product you offer, the price you charge, the place you sell it and the way you promote it. However, be careful not to deviate to drastically.
Heather Crabtree outlines how to determine the best product mix and potential expansion for your business.
Consider the Four P’s
The right product is the one that meets the needs of your customers. You must carry out research to identify those needs and obtain feedback to ensure your product meets them. By monitoring product review sites or asking your sales team for feedback on customer attitudes, you can assess how well your product performs compared to its competitors.
You may need to improve different aspects of the product to improve performance. Adding more features that are important to customers, improving quality, changing the packaging or offering the product in different sizes or quantities are examples of changes that can make your product more appealing to customers.
The price you set for your product must represent value to your customers. By comparing the price your competitors charge and the features they offer, you can assess whether your product offers greater value for money. You must also take account of changing prices in the market. If a competitor tries to win business from you by offering a similar product at lower price, you must decide how to respond.
If you decide to lower your own prices, you must calculate the likely increase in sales so that you can maintain profit levels. Pricing decisions also cover the level of discount you offer to trade customers, such as retailers or distributors.
To make decisions about place, you must understand where customers and prospects buy your type of product. If you sell consumer products, you can distribute them through retail outlets, mail-order catalogs, or the Internet. Or, if you are selling software (SAS) perhaps downloading is an option.
If you sell products to other businesses, you must decide whether to offer them directly through a sales force or on the Internet, or indirectly through distributors. Geography is another factor to consider. You may decide to offer your products locally to minimize transportation costs or sell in other regions or other countries to take advantage of customer demand.
You must promote your products to make customers and prospects aware of them and build preference for your brand. You can promote products through a variety of channels, including advertising, direct mail, website content, newsletters or press releases.
To promote your products effectively, you must communicate the benefits that are most important to customers. Market research or feedback from your sales team can help you identify the important benefits.
Goals of A Promotional Campaign
Promotional campaigns may seem like nothing more than a mechanism for reaching an audience through different means, but to do so effectively, these campaigns must be built on a solid foundation with various crucial elements at their core.
Before the gimmicks, social media buzz or giveaways, specific goals must be defined which the campaign must be designed to reach.
These campaign goals should meet the specific needs lacking within the area targeted by the campaign’s marketing plan. The most basic goals to be met include the increase of both sales and awareness of a new product to the audience.
Other purposes for a campaign can include increasing exposure, promoting a new angle of an existing product or service, or changing current stereotypes of, or prejudices toward, a product already available in the market.
A Promotional Campaign Example
Sirius Satellite Radio recently opened their complete channel line-up for a limited time for potential new customers to test-drive their varied formats.
With the advent of iHeart Radio, Apple Music, Pandora and other streaming options, Sirius has had to eat their own lunch, think differently and change their rate structure to remain competitive.
If you don’t have marketing software to get you on the right path to create your marketing strategy, I have researched a (free up to 3 users) marketing mix site to get started!