Amidst all the new ways to market your products – social media, email, search engine marketing – it is still important to build your communications on a solid foundation of marketing basics. A good place to start is with the 4 P’s of Marketing! Product, Place, Price, Promotion
Your product and product mix are a critical first step in the marketing plan. Here are some questions to ask periodically to make sure you are still relevant in the market place.
Market Need – Do your core products still meet the important market need?
Product Mix – Could you add products to more completely meet the need of existing customers?
Product Profitability – Is there a way to make your products more profitable by cutting material and manufacturing costs? (We’ll talk price in a minute)
Make sure your product mix is keeping up with a changing market need and that you are getting the most business possible from your existing loyal customer base.
There are two basic approaches to pricing.
Cost Plus – Calculate the cost to provide our product or service and then mark it up enough to cover overhead and provide profit. This method can be safe and very effective in many situations. However, most small business owners under estimate their costs and leave money on the table.
Market Price – Market price is about selling to value, to the amount people are willing to pay. Businesses in markets where there are high quantities of similar sales can usually figure out a good market price and then adjust to their added value. Gas
stations are a great example. For the rest of us a good starting place is to compare purchase price to the cost of alternatives – buying this widget for $100 will save you $200.
Be careful not to undersell when you are getting started. Charge what you need to make to
be successful and then deliver the value.
Place or Distribution
Determining the best, pronounced “most profitable”, way to get your product to market is often UNDER analyzed by small businesses. Here are some things to consider for your product “Place”.
Sales Volume – independent distributors, network marketing or joint packaging can provide a very large direct sales resource that local retail would have trouble touching.
Most Convenient – it’s usually best to close a customer and get product in their hands quickly, without much effort on their part. Leverage the post purchase attitude.
Cost and Efficiency – many great product ideas are dragged under by a distribution plan that takes too much time, energy and cost.
Channel Competition – are you using retail distribution or independent agents for your product?
What is the impact on them if you start selling directly online? If you don’t coordinate closely you may lose a loyal sales force.
When it comes to distribution, beware of the statement or thought “Well, we’ll just….., shouldn’t be that difficult”, it’s usually more difficult.
FINALLY! PROMOTION! For most people with no marketing experience or education, marketing is promotion. When I interview new clients to build them a marketing plan, or when I have students in my marketing classes, most think I’m there to talk about advertising. Where should I advertise? Should I be on Facebook? What about Twitter? My web site isn’t generating traffic!
It usually takes me some time to talk them through the importance of focusing on Product, Place and Price first, so that when we spend our Promotion money it isn’t flushed down the Pot!
A simple approach to every advertising, promotion or communication decision is to first determine the Audience, Objective and Message and then figure out the media that will be most effective.
Audience – a defined group of buyers and influencers that you want to reach.
Objective – awareness, attitude or action. What are you trying to accomplish?
Message – what is the right thing to say and the right way to say it to meet your objective with the target audience
Media – the communication tool or set of tools that will most effectively deliver the message
OK, I made this one up as a fifth P, but it might be the most important. We could sit together for 15 minutes and come up with a multitude of ideas to market your business. That’s the easy part of marketing. The hard part, especially for the small business owner, is to consistently and repeatedly deliver your message patiently over a long period of time.
This takes money, marketing knowledge, resources and patience, not traits associated with the average entrepreneur!
Not getting the most from your marketing efforts or don’t know where to start with your marketing? Sigma College of Small Business provides marketing classes, marketing services and marketing consulting to get you going. We keep it practical and affordable to meet your immediate needs.
Recently, I had the opportunity to present a Career Building event at Strayer University in Manassas, VA. My friend Amelia Stansell, a VP with BB&T, joined me in presenting a topic on professional networking and using social media to leverage your network. My next few posts will work through that presentation, highlighting Amelia’s principles for networking and then relating those principles to techniques for social media marketing.
The Enigma We Call “Networking”
Amelia begins her presentation by defining the enigma we call networking as “person to person relationship marketing. She emphasizes that it is taking the time with each individual to know them as a person and build a relationship. It’s these relationships that can help lead to either closing a sale with that person or getting a referral from them.
Social Media is a new technology that leverages proven networking techniques. The resulting value is that you can grow and manage a much larger network. Use tools like Facebook and LinkedIn to follow the lives and careers of your network, interact with them through posts and comments, and refer them through sharing and recommendations. These methods make it easier to interact with each person in your network between the meetings and phone calls. Try it and notice how your face-to-face conversations change from “how have you been” to “did your son get off to college ok?”. It’s a much deeper start to what will be a more productive conversation.
It’s About Getting More Referrals
Professional networkers will tell you that it’s all about the referral because it is more likely that you will get new business from a referral by your network than directly with someone in your network. Therefore, it’s important that your network trusts you, sees you as an expert and understands your business enough to recognize situations where they can make the referral. In traditional networking the process begins with the “elevator pitch” and initial meeting, then continues with follow-up meetings, networking groups, phone calls and promotional materials.
Social Media leverages these techniques by enabling you to post your basic information in online “profiles” and “info” pages. These provide the base background information about you and your business. Build trust and credibility online is a continual process of listening to your network by reading their posts, interacting with comments and questions, and consistently posting valuable and informative content for your audience.
Relationship Selling, Not Broadcast Advertising
Many business people approach their social media marketing as a broadcast advertising channel, a free way to reach more people with their message. For some businesses that have a huge fan base, it can certainly be used in that way. However, for most of us who count on sales through personal relationships and word-of-mouth, the approach needs to mirror solid networking techniques more than basic advertising principles.
Sigma College of Small Business Social Media Services help customers use Facebook, LinkedIn, Twitter and Blogging to promote their business and themselves.
What are some tips and recommendations that you have for how to leverage social media to build your professional network?