After you’ve pulled the hard yards analysing and working out who your target market is: you need to set about developing your marketing mix. The “mix” (also known as the 4Ps in marketing speak) includes:
- Place (distribution)
A brand is a perception formed from:
- Experiences (eg: what contact has the consumer had with your brand?)
- Communication messages (what do they know about your brand?)
- WOM (ANOTHER acronym! = WORD OF MOUTH, linked to above. The best way to achieve positive WOM is with a great product and great service – then people WILL talk about you!). WOM is VERY powerful because it’s seen as CREDIBLE.
Your brand is a promise of value to your customer – it’s a cognitive shortcut. When they see your brand –a consumer should immediately know what they’re going to get. That’s why consistency is important.
Things to consider: your RRP, discounts (do you give any?), allowances, credit terms. Have you determined your breakeven quantity? Clearly your costs set the price floor and these can vary depending on your level of production, how long it takes to manufacture/craft. The market and demand set the price ceiling. Customer oriented pricing involves understanding the value the customer places on a product, then setting the price accordingly. This may be a good way to approach your pricing – convene a (not so scientific) focus group of your target consumers (friends?) and workshop your pricing. Remember you want to make a profit yourself and also provide a margin to a retailer (if you’re not selling it yourself). External factors to consider here: competitors’ pricing, economic conditions and your re-sellers.
Stay tuned for next week’s biggie – the fourth “P” – promotion! The importance of managing/evaluating your marketing efforts will also be explained.
Categories: Advice and Tips, Marketing and Social Media Basics | Comments Off on Marketing basics part II