Four Things To Consider Before Putting Up A Business
In business, a marketing strategy is important to satisfy the focal point of all marketing elements, the customers. More customers means a successful business and a few customers may lead to bankruptcy of the business. Marketing is more than just advertising or selling a product; it involves developing and managing a product that will satisfy customer needs. It focuses on making the product available in the right place and at a price that buyers are willing to pay. In marketing, there are four elements to make a business successful. These are product, distribution, promotion, and price. They are commonly referred to as the marketing mix because managers decide what type of each variable to use in what amounts. These are variables are also referred to as the 4 P's which stand for product, place (distribution), promotion, and price. The primary goal of a manager is to create and maintain the right mix of these elements to satisfy customers' needs for a general product type. Let us discuss these variables in detail.
In developing a product, its ability to become part of the daily lives of people must be considered. That means that the product must satisfy the needs and wants of the customers. The more the customers are satisfied with their purchased product, the more chances that they would come back to purchase again. Products can come in three forms, a good, a service, or an idea. A good is a product that could be touched. Examples of goods are food, clothes, and other objects that are tangible. A service requires the application of human and mechanical efforts so as to relay and give benefits to the customers. Architects, doctors, and hair stylists give their service to their customers as a form of their product. Ideas are intangible which include concepts, philosophies, images, and issues.
It is also important to set the classification of your product and the relationships among all the products sold must be understood to coordinate the marketing of the total group of the products.
Since a product aims to satisfy the needs and wants of the customers, every move that is done in the creation or modification of a product is important. Marketers must decide whether the product is beneficial for both the buyer and the seller. An item that no longer gains enough profit must be either be improved or be eliminated to decrease costs.
A good product means nothing if it couldn't reach the customers to satisfy their needs and wants. Customers want easy access on a product in a given time. Distribution decisions are important to assure that the customers could acquire the product without too much effort on their part.
In distribution, a marketer must make the product available in a given place and must reach as many customers as possible, depending on its level of demand. In doing this, the costs must be kept on a minimum.
The promotion is the communication to build and maintain relationships by informing and persuading the customers to buy the product. Promotion is used to make a new product known or to remind customers to keep purchasing an existing product. It aims to make the customers think of the organization positively and make them accept its products.
Promotion could also be used to create public awareness and cite its stand on a particular issue.
Price is an important factor in establishing a product since customers consider the benefits they would get in exchange for their money. Because price has such a profound impact on a firm's success, finding the right pricing strategy is crucial. The price must be based on the ability of the customers to purchase the product, making sure that it would lead to the profitability of the business.
The right price must be set so as not to lose from the many competitors and make more loyal customers.
To sum up this whole article, here is a video to help you understand the relation of each variable to each other.
The video is by Kelly Foley from YouTube.
Business requires risk. These variables could lower the risks of a start-up so you better consider these elements to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders. Considering these would make your business last long and become more successful.
O. C. Ferrell | G. Thomas M. Hult | William M. Pride