Amazon is a topmost e-commerce platform!
Swiggy is the number one online food delivery service!
We all have availed these platforms at least once to make purchases. They are well-known businesses worldwide but what do you think makes a business successful?
Any organization to flourish requires strategical planning, which benefits in achieving goals.
This article briefs about the marketing tools which helps in performing business activities smoothly.
Allow me to introduce you to a concept known as Marketing Mix.
- What Is Marketing Mix?
The marketing mix is a set of elements that an organization uses to offer its products to its target audience at the right time, right place with an important motto to accomplish the organizational objectives.
This specifically means, any business before the implementation of a strategy requires proper planning of the layout which assists in efficient functioning.
Jerome McCarthy proposed the concept of 4Ps in the Marketing Mix.
If you are planning to commence a business of your own, then these are the essential marketing elements you are expected to be aware of before getting started.
Lets together plot a business strategy for a better idea.
Imagine that you want to start a Liquor store. What do you think is the first crucial thing to do? Starting by manufacturing the bottles? Probably not!
Don’t be upset if you have guessed it wrong, let’s start from scratch on planning for our liquor store.
The Marketing Mix comes into the picture at this point.
Marketing Mix consists of 4P’s that are essential for any organization
A product is any tangible commodity you are willing to sell to a target customer.
People would purchase a product if it is
- satisfies their needs
- easy to use
- stands out in the market.
Thus, it is important to select a product that meets the needs of the end consumer.
As we have taken an example of a liquor bank in this article, let’s work on individual segments of the product.
The quantity of the product you are willing to sell
The product can be purchased as
A product should be handy to use, never neglect the design.
The price of the product is fixed considering a few aspects
- Cost of production
- Type of pricing technique
- Compare your price with that of competitors.
Fix a reasonable price that does justice to the amount spent by the customers on the product.
The average price of a single liquor bottle
Which price did you select and why? Let us know!
Price is one of the major aspects of any business that decides its profitability. It doesn’t necessarily mean you have to compromise and set low prices but they should be affordable to the target customer. A price shouldn’t make them think twice about their decision to purchase.
Assume that you reside in Bihar and want to set up a liquor store. There are a few criteria you should consider before selecting a location in the place you have decided.
Where would you wish to set up your shop at?
The potential place to select in this scenario is a restaurant, as it is near to the target audience and they have easy access.
A place should be decided with a motive to reach the target audience at the right time at the right place without any chaos or having to travel a longer distance.
As we have worked on the first 3Ps, it’s time to communicate about your presence to the target customers. Promotion is the advertising channels you select to reach out to your customers. Selecting the right promotion tool makes a huge difference. You have to make people informed of the existence of your product. A word of mouth can give your business a good impression but that would take quite a long time to get a maximum reach. With the up-gradation of technology, we can leverage various platforms to promote the product.
Events(promotion through social media)
In this scenario, event promotion is the best promotional tool as visiting cards and newspapers will not have an impact as much as organizing an event.
Availability of the product
Event promotion gathers people together that also allows you to provide offers, give away alerts, and discounts that appeal to your customers.
We have understood the 4 important marketing P’s, with an example. This will assist you in plotting an efficient strategy for your business. Get started with framing objectives and working on each P individually but together.
On 26 November 2015, Bihar Chief Minister Nitish Kumar announced that alcohol would be banned in the state from 1 April 2016. Kumar officially declared the total ban on 5 April 2016, and said in a press conference, “All type of liquor will be banned in the state from today.
Liquor selling is banned in Bihar!!
Sorry if this sounds disappointing but I assure you that the marketing tools explained works right for any business.
This also highlights the importance of Market Research, Availing a license, and State Laws.
It is unquestionably essential to have an innovative product but proper knowledge and right implementation contribute to the success of any business.