Create an effective strategy using the 4Ps – Nairametrics


Marketing is not a product battle; it’s a battle of perceptions.

The main elements of a marketing strategy are the four Pmarketing s – product, location, price and promotion. These four elements are interconnected and, when properly coordinated with a solid marketing plan, increase the market appeal of a product or service. Small business leaders need to incorporate these elements to maximize the impact of their product or service on the consumer. All four Ps must reinforce the image of the product or service that the company presents to potential customers.

The product itself is an essential part of marketing. Throughout history, small businesses have been an important source of innovative products, a trend that continues today. Many small businesses are at the forefront of wearable technology, clothing integrated with computer technology and performing a variety of useful and sometimes entertaining functions.

The products go through different stages of development. Knowing what stage in a product’s life cycle is allows managers to decide whether to continue selling the product, when to introduce new follow-on products, and when to make changes to an existing product. The length of a product’s life cycle depends on many variables, including the type of product.

In order for there to be a good product, it must have these characteristics:

  • Deep: This includes features and functions that meet a range of customer needs.
  • Indulgent: allows customers to feel special when they buy it; an award.
  • Complete: The product must provide a great total customer experience, from packaging to technical support.
  • Elegant: The product must be intuitive to use; it should work in a way that users expect – without a fight.
  • Sensitive: The product should connect with customers in such a way that they are compelled to tell others.

Any product that has this characteristic has achieved the goal of being a great product.

Product life cycle

In the introductory step, traders present their product (s) to potential customers. The high initial level of acceptance is rare. Typically, new products need to break into existing marketers and compete with established products. Advertising and promotion helps the new product to be recognized faster. Potential customers need to get information about the product, how to use it, and what needs it can meet. The cost of bringing a product to market at this point in the lifecycle is typically high because a business has to overcome resistance and inertia from customers. Therefore, the benefits are usually small or even negative at the introductory stage.

The product then enters the growth and acceptance phase. At this point, customers start buying the product in large numbers so that the sales numbers increase and the profits materialize. Products that reach this stage are not necessarily successful. If at the launch or growth stage the product does not meet the needs of the customers, it does not sell and eventually disappears from the market. For successful products, sales and profit margins continue to increase throughout the growth phase.

In the stage of maturity and competition, sales volume continues to increase, but profit margins peak and then begin to decline as competitors enter the market. Normally, this leads to a drop in the selling price of the product to face competition and maintain market share.

Sales peak at the market saturation stage of the product lifecycle, giving marketers a fair warning that it’s time to introduce the next-gen product.

The last stage of the product lifecycle is the decline phase of the product. Sales continue to decline and profit margins drop dramatically. However, every time a product reaches this point in the cycle, it doesn’t mean it’s doomed. Products that have remained popular are constantly revised. No business can maintain its selling position without innovation and product change.

Some companies wait too late in the life cycle of one product to introduce another. The result is that they are completely unprepared when a competitor produces “a better mousetrap” and their sales decline.

Location or method of distribution has grown in importance as customers expect better service and convenience from businesses. This trend is one of the driving forces behind the web’s rapid growth as a purchasing tool; customers simply place their orders with a few mouse clicks, and in a matter of days, the merchandise appears at their doorstep! Every day, entrepreneurs come up with other smart ways to distribute their products and services and provide more convenience to their customers. Some companies intentionally limit the distribution network of their products in order to improve their brands.

Almost everyone agrees that the price of the product or service is a key factor in the purchase decision. Price affects both sales volume and profits, and without the right price, sales and profits will suffer. For small businesses, non-price competition – focusing on factors other than price – is often a more effective strategy than trying to beat larger competitors in a price war. Non-price competition, such as free trial offers, free shipping, extended warranties and money back guarantees (money back policy), is aimed at minimizing the price of the product and emphasizing its durability, quality, reputation. or its special features.

The purpose of promotion is to inform and persuade consumers. Advertising communicates the benefits of a good or service to potential customers through mass media. In addition to using traditional advertising mediums, small businesses are turning to innovative advertising techniques that connect with customers wherever they are. A small business’s promotional program can play an important role in creating a specific image in the minds of its customers – whether high-end, discount, or somewhere in between.

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