Tag Archives: promotion

Marketing , , , Leave a comment

8 P’s of Marketing for the 21st Century

by

It was at The University of Notre Dame that Professor of Marketing E. Jerome McCarthy laid out the principles of the original four P’s of marketing, also known as the Marketing Mix, in his 1960 book Basic Marketing: A Managerial Approach. McCarthy and co-authors Joseph Cannon and William Perreault chose a hands-on, problem- solving approach to the challenges that marketing professionals face.

The boots-on- the-ground approach championed by the 4 P’s Marketing Mix was quickly recognized as foundational to the craft, the gold standard. The genius of the P’s is evidenced by their ability to address both the primary objectives of the marketing team and critical requirements of customers. The P’s relevance has continued into the 21st century and even inspired marketing researchers and thought leaders to expand the list.

As you build a marketing strategy for your products and services—-content and social media marketing, branding, advertising and PR, for starters—-you’ll find that the 4 P’s (+ more) Marketing Mix will guide you and your team to the most effective strategies and action plans every time. Here are the original four and four more that you may find useful.

Product: The solutions that a company sells—products or services, tangible or intangible, B2B or B2C.

Price: The value, in monetary terms, of what customers are willing to pay to obtain a company’s product or service. Company leaders are advised to fully account for the many factors involved in developing, manufacturing, or acquiring a product or service, in addition to the associated marketing, selling, distribution and overhead expenses when determining an appropriate Price. The prices of competitors will also influence your pricing.

Place: Where customers come into contact with and are able to buy the product or service—-in a bricks & mortar storefront, online, at a flea market, in a meeting after contract terms have been negotiated.

This component also refers to both which stores stock a product and the product’s location within a store. For example, certain breakfast cereals and other items targeted to children are found on shelves that are at a child’s eye level or in the children’s department.

Promotion: Strategies and tactics used by the company to persuade potential customers to buy its products or services.

Process: Where and how the customer receives the solution provided by the product or service and all that is entailed. Intangible services delivered by skilled practitioners are more obviously influenced by this component.

Will the solution be delivered in a classroom (education courses), a salon (hair styling or massage therapy), a health care facility (dentistry), or leak- proof cardboard containers (ice cream shop)? How the methods employed in the delivery or application of the solution significantly impacts both outcomes and the customer experience.

Position: The ranking or assessment that customers, prospects and sometimes even the public assigns to your product or service, as compared to similar offerings. To achieve the preferred Position for the product or service, a marketing team will through branding utilize distinctive messaging, packaging, advertising and product placement, sometimes through celebrity endorsement, to create and reinforce the desired image.

Packaging: Tangible products are more obviously influenced by this component. A product’s Price, Place, Promotion and Position are telegraphed in how a company “dresses” the product and presents it to target customers. Even the shopping bags and tissue wrapping paper (or their absence) support the story.

Intangibles are given a “verbal package” that will emphasize its most tangible advantages and benefits, which may include exclusivity (social media site Clubhouse) or rarity or other significant benefits.

People: One component of this factor refers to those who work in the business, in particular the customer-facing staff. Those who interact with customers usually have a profound impact on the all-important customer experience.

The second component in this category refers to the customers themselves, who have many opportunities to communicate to others both the perceived quality of the product or service that was purchased and the perceived quality of the customer experience. Online ranking and social media sites such as Trip Advisor, Yelp and Facebook empower people to either reward or punish a company.

Thanks for reading,

Kim

Image: © Harris Farm Markets Sydney, Australia

Marketing , , 11 Comments

Marketing Mix Remix: 4 Ps for the 21st Century

by

The term Marketing Mix was coined in 1948 by Neil Borden,  who was then a professor at the Harvard Business School and James Culliton,  who was dean of the business school at University of Notre Dame.  In 1960,  then marketing professor at Michigan State University E. Jerome McCarthy laid out the original 4 Ps: Product,  Place,  Price and Promotion.

Half a century later,  the 4 Ps  are still considered to be the marketing strategy gold standard.  Over time,  the marketing mix list was expanded to include nine Ps,  with Process,  Position,  Profit,  Packaging and People added.  In whatever number,  the Ps served marketing departments throughout the world for several decades.

But we’re in a new century now and the marketplace has changed.  It is time to re-think and re-tool the Ps for today’s B2B service-oriented economy.  Eduardo Conrado (Senior VP and Chief of Marketing at Motorola),  Richard Ettenson  (Thunderbird School of Global Management)  and Jonathan Knowles  (CEO of Type 2 Consulting in New York City)  have presented a reinterpretation of the Ps that tacks toward offering solutions,  which is what the Freelance consultant’s current and prospective clients value today.  Their model has updated Product to Solution;  Place to Access;  Price to Value: and Promotion to Education:  SAVE,  a perfect acronym if ever there was one.

Conrado,  Ettenson and Knowles posit SAVE as the centerpiece of a 21st century solution-selling strategy that encourages marketing and sales practices that take a client-centric perspective.  The SAVE model gets one into a solutions-oriented mindset and helps a Freelance consultant to devise marketing strategies that target specific client needs.  SAVE emphasizes the value proposition of the B2B solution that is being offered and creates the context for the Freelancer to position him/herself as a trusted source of expertise,  advice and problem-solving.

SOLUTION,  rather than Product /Service

  • Describe your services and bundle your service packages according to the client needs that they meet instead of merely presenting a list of services offered,  with descriptions of their functions,  features and benefits.  Don’t make clients have to think about how to use your services.  Show them exactly where your service fits.  Clients are over-worked and distracted,  so save a step and visualize things for them.

ACCESS,  rather than Place

  • Institute an approach to delivering products and services that is mindful of the client’s entire purchase journey,  from the initial project specs meeting through post-project follow-up support and billing.

VALUE,  rather than Price

  • Articulate the benefits of your services relative to price,  instead of stressing how price relates to production costs,  profit margins,  or competitors’ prices.  Present your value proposition in a way that ensures you’ll be perceived as being well worth the money.

EDUCATION,  rather than Promotion

  • Provide information relevant to your clients’ specific needs at each point in the sales cycle.
  • Re-think and re-tool a broad-brush advertising message and media outlet choices.  Maybe a webinar that helps clients sort out approaches to meeting specific business needs will be more convincing than an advertisement.  A relevant case study,  presented as a story, is invariably convincing,  helping clients to visualize where and how your services can address business needs effectively.

Eduardo Conrado and his marketing team at Motorola used SAVE to guide the re-structuring of its entire approach to marketing and sales strategy development.  Motorola now designs strategies that build a strong case for the superior value of their products by presenting them as solutions that solve problems,  shifting the perception of their sales professionals to that of trusted experts and advisers.  Like Motorola and other multi-nationals,   Freelance consultants who plan to maintain their relevance in a merciless marketplace are advised to bring our marketing strategies into the 21st century as well.

Thanks for reading,

Kim