The word “Place” may be confusing when it comes to marketing. Essentially, it’s to do with your distribution channels and business locations.

DISTRIBUTION CHANNELS

There are various distribution methods a business can use to sell its products/services. A retail model may work for some companies, while a wholesale model may be more suitable for others. There’s also mail order, catalog sales and online businesses as direct sales can save a company money on having a brick and mortar operation.  If you have a service based business, how you are going to distribute your services also needs to be thought through as it impacts how you market.

Other things to consider include whether or not to have your own sales force, outside agents or independent representatives to move your products/services. Companies may be able to gain competitive advantage through its distribution channels.

LOCATIONS

It is important to analyze your business location in terms of how it would affect your target customers. As a business in your specific industry, is your location important to your customers? If customers come to your place of business, is it convenient in terms of its accessibility and parking? Is the interior space consistent with your image and brand? It is just as important to understand where your competitors are located and why. Is it better for you to be near them or away from them? Like your distribution channels, your business location (especially for retail stores) can provide competitive advantages or disadvantages.

PROMOTION

Many people use the word “marketing” when what they have in mind is actually “promotion”. Promotion is simply one aspect of marketing and it helps you identify the mediums you’re going to use to get your target market’s attention for your business, products and services.

Many also use the word “advertising” synonymously with “marketing”, when advertising is just one of the many promotional tactics available – television, radio, newspaper, trade shows, social media, website, direct mail, word of mouth and billboards, to name a few.

Not all promotional tactics are suitable for your target audience and budget.  Without understanding what the best way is to reach your intended market, you may risk wasting a lot of money and time not getting the return you need.

Once you have identified the suitable tactics (or mediums), the key is to be consistent and frequent with your efforts. It’s better to select and be consistent with two or three tactics than to have 10 mediums and spread yourself too thin. Don’t forget your current and past customers in your promotional mix as they’re usually your biggest fans.

The Importance of a Marketing Plan – PART 2

The Importance of a Marketing Plan – PART 1

The Importance of a Marketing Plan – INTRO

Without products/services, a for-profit business cannot exist in the market place as all businesses have only these things to offer in return for revenue.

PRODUCTS/SERVICES

It is crucial for companies to understand what their customers are looking for. Consumers buy to solve their problems or satisfy their needs and wants. Identifying the features and benefits of the products/services offered from the customers’ perspective will help businesses market.

Note the difference between features and benefits and think about them. For example, a house that gives shelter and lasts a long time is made with certain materials and to a certain design; these are its features. Its benefits include pride of ownership, financial security, providing for the family and inclusion in a neighborhood. You build features into your products/services so that you can sell the benefits.

Research on competitors’ products/services will help you understand your competitive advantages and disadvantages. How do your quality and uniqueness compare to those of your competition? Are there any proprietary features that will set you apart from everyone else in the market? Knowing your competitive advantages and disadvantages will give you a benchmark in pricing and promoting strategically.

PRICING

The next thing to look at is the price of your products/services. Depending on the type of business, where you are in your business life cycle, the concentration of players in your industry and various other factors, there are numerous pricing strategies you may want to consider for effective marketing. Some of the more common pricing strategies include competition-based pricing, cost plus pricing and premium pricing. Market research is the key for you to determine what’s suitable for your type of products/services. To read more on and better understand various pricing strategies, simply do an Internet search on “Pricing Strategy”.

The Importance of a Marketing Plan – PART 3

The Importance of a Marketing Plan – PART 1

The Importance of a Marketing Plan – INTRO