I’m sure you are wondering “can the marketing mix really be held accountable for my success?” You bet it can. You see, the marketing mix is the foundations of any business promotion. Read on to find how it works…
Not many people know of the Marketing Mix, or if they have heard of it, what it really means. Some think it’s all about the specials that they run in their business, or how many newspaper adverts they put it. Actually, it’s a combination of what is also commonly known as The 4 P’s.
Product, Price, Place and Promotion. In that order. Without one, the others fail. All 4 combined together will be 100% responsible for your promotion success. Let me go over them each and how they tie in together and you’ll start to see what I mean.
Product.
This refers to your physical product, or your service that you offer. Have you really looked at it? Pulled it apart and examined it from all angles? (And I don’t mean physically pull it apart!) What is so special about this product of yours? What are you really selling? For example, a hardware shop doesn’t sell drills; it sells holes in the walls. A hairdresser doesn’t sell haircuts, they sell confidence. Find your benefits and see if your product really delivers what you say it does. Once you know that the market wants your product, you can then go about pricing it.
Pricing
Many people get stuck on pricing of their products. The only time this should stump you is when you are introducing a brand new, individual, never been done before product or service into the market. Otherwise this is where your competition analysis comes into play. Who are your competitors? What products do they have that are similar to yours? Are the same type of people buying their products that you want to buy yours? Where do you fit into the marketplace? Are you going to come in cheaper than your competition?(A strategy that can never be sustained, I might add) or will you come with a different angle. This will help you to complete the pricing component of your marketing mix.
Place
This element refers to how people can buy your product. Do you have a retail shopfront? Can they purchase online? Do you have your own distributers? You will see that this section is critical to your marketing success. If people can only buy from your shopfront – what’s the point of advertising in a city ½ an hour away? Especially when your competitors are closer to them? By analysing this point carefully, you will discover that you can save precious marketing $$.
Promotion
This element is the part that people skip straight to. And funnily enough, if you haven’t done the above 3 points first, it’s useless! You are just throwing away all of your money and profits if you don’t know the answers to the above. Test yourself – get someone to ask you all of the above questions, try to overcome objections about your product. When you can passionately promote your product and overcome customers’ objections without any hesitation then you are ready to move on to the promotion aspect.
As you may already know, there are boundless avenues to promote your business. From mainstream marketing such as newspapers and magazines, to free publicity via press releases, to online marketing and social web, there are plenty of strategies that will fit well with your marketing mix, and save you thousands of dollars on your business promotion.
Archive for category Starting out in business
Arts based recovery?
Apr 19
Years ago when the “recession we had to have” was on (late 80’s) there was a push at one stage for an Arts Led Recovery. Perhaps it’s time to look at it again and try a fresh tack in the “G.F.Crisis”.
Locally there is a small Arts following with a few commercial galleries and a regional one with some contemporary artists hiding in the bushes somewhere.
However on the Weekend I was in Melbourne for “Art 09″ a giant expo of art from a range of Commercial Art Galleries and a lot of “art” was bought, thousands flock in, thrashed their credit cards and went off with smiles and art in hand.
A lot of discussion took place (and will for a few weeks to come) about the merits of the event and the possibilities for those wanting to have display spaces next time, as well as other ways to “make art pay”. It’s a topic dear to my heart (being an Artist might do that…)
To get on with the process it’s probably important to say, it’s about income (when people buy stuff that’s what happens folks…) then about the art (the product), then the artist (the producer…) The flow on is therefore about sustainability to be able to then have a profit and see the spread of the income to the wider community. Note with no margin there is no spread so the profit is important (both monetary and other).
I’m thinking that not everyone wants a contemporary piece in their home, (well not a big 1 X 3 metre piece anyway). However there is sure to be ways to encourage people to consider the works (at the moment much is hidden under the bed of Artists wanting to become the next big thing…) to enlighten them etc…
One initiative I saw a while back, was art in vending machines, (clearly very small pieces). however it is not until people start to explore ideas that ways to “make Art pay.” will we see the flow on. Also the flow on of interest in creative endeavours and not just the cash transaction.
There is scope for exploration for ways to make it pay, for now lets consider the fact that we have a solid core of artists, galleries and punters willing to purchase. So lets find ways to get the ball rolling.
Free Training YAY! ??
Apr 19
Local paper, classified training section, courses on offer with local accredited training org’s there are free courses in pre apprenticeship training, and various others to assist to up skill people… seems good, fairly non eventful stuff. It looks like the government and trying to boost things along with the freebies (have done for some time now…
However I looked down to see a small business start up course to explore new biz ideas, read through, looked okay but you have to pay… hmm at first I ranted and raved to the wife about “THIS SHOULD BE FREE!! dammit!” then got the raised eyebrow and a chat about “yeah, yeah… bla blahhhh… get over it..” and I stopped, then thought…
Hmm they should pay but then at the successful completion of the course get their money back… a money back redemption, perhaps a discount or a carry over to another course to take the idea further, or better still a chance to thrash the idea out that bit deeper with a mentor.
A nine week program, Perhaps I should go along and play devils advocate… thoughts?
We are dumb… USE IT!
Feb 4
Ok.. some of you are… (not you specifically…)
I wanted to raise your interest in a thought I had this morning watching the news, someone did something dumb and I thought “Derrh! what an idiot”, then I started to mentally add up the dumb stuff…
- Stop violence against women, great idea, but why not just Stop Violence…
- War, probably the dumbest concept of all time…
- Teachers stand and deliver to classes with an attention span of two seconds, heck cut the crap give the kids engaging material which causes them to want to be interested.
- Cigarettes, no nutritional value, no other value, not even cool anymore… BUT people buy them. I don’t get it, never have, never will, dumb…
- Barriers on high bridges to stop suiciders jumping, no biggy put them in NOW! Or give them a trampoline to make it a fun exit… (apologies if that offends).
- Transport ticketing systems that cost millions and don’t work, hmm other countries have systems that work, copy them…
- Solar panels for power on roofs, umm, hey guys someone start a publicly listed energy Co that wants to put them on the roofs of businesses, let alone houses, the economy of scale makes it useful surely. Could be a way of stimulating the share market again…
- Cars that burglars can break into easily still. just set a std guideline that says the car Co’s have to fix the problem now… how long has this been an issue… grr DUMB.
- Paperless offices, great idea, simple answer, stop selling printers… then watch people sort out the issue fast.
- Empty shops, as long as shops are owned by private enterprise there will be issues. Too many too expensive and in poor order. Too many are running at a loss so they don’t have to pay too much tax, yep that’s why there are so many crap ones about.
- Too many grumpy old guys, over fifty, out of work, become grumpy and a burden somehow. No one likes a grumpy person, and too many guys over fifty (oops that’s me too!) have to contend with being redundant and replaced (young kids are cheaper, faster and tech savvy…. grr!) run down… I call it “Death of a Salesman syndrome” (after the play and book of the same name.) The wisdom these guys can have collectively should be used (somehow) and not shelved.
- Councils… (I guess that speaks for itself in some ways.) many people whinge about them…
- Defence forces (perhaps that should be offence forces) what if they were peace keeping forces that if a hostile situation broke out they could be quickly retrained to shoot etc… a humanitarin force not in combat camoflague.
- Water, it’s every where, but not a drop to drink (too salty) but hey we have to import the technology and use up precious power to run a desalination plant… (when we get it) and will it be enough? and hey why not put the water in to the top of the river system so the whole state can benefit… dumb, and why not investigate a solar powered one? Anyone go a prototype of a portable model?
- Too much alcohol is causing major punch ups and violence… so stop serving it in ways where people can consume too much.
- No power, we are running out of power on hot days to run airconditioners, they still sell heaps of them though… any solar power cells in your area? What about a wind turbine? Heck there are enough power poles, can we have mini turbines to mount atop these?
- We have water usage issues, yet they still sell inefficient washing machines, dishwashers etc. DUMB, just sell us the best, hey do that for power too.
- Every year thousands of new businesses start up and lose HEAPS of money when they go belly up in a few months… DUMB! Lets come up with ways to set up these start ups so they have the BEST chance of thriving. lets create “thinkubators” to make it easy for them to learn about business, research, get started and supported in the all too important start up phase. heck a stimulus package for businesses like this could have BRILLIANT flow on effects… I guess this means the government ins DUMB for not thinking of it.
- $2 shops, heck I can buy all sorts of garbage for next to nothing, do we need it? nope, do we want it? not really does it help the economy? hmm ask people in local manufacturing if it helps them… does it help the businesses in high st anywhere look good? nup… dumb…
- Op shops that open in main streets next to or near fashion shops… ooh nothing drags down retail areas more than an op shop. OKAY! they have their place BUT can we have some control please… and why so many…(It’s a sign of the times I guess…) DUMB (perhaps it’s the council for not providing guidelines here.)
- Hand done signs on windows of stores, sure Uncle Harry is a dab hand with a brush, but your specials painted by him on the window look like garbage… you saved how much? and made how much? Nup not bright… in fact DUMB.
- Bullying… As the economy slips further down the gurgler, Bullies everywhere are able to inflict more pain and hassle on their victims… “they can’t go elsewhere, so they have to put up with me…” (sinister chuckle ensues). Its an OHS ISSUE plan for it, do something and kick their butts.
- I need a license for a car but not to be a parent, that makes sense… NOT, DUMB… how many dysfunctional families can the world take! Teacher’s everywhere will be able to tell you the hassles they cause. Simple tip folks, a parent’s key role is to build the child’s self esteem… Does it happen enough… nope.
- Welfare organisations, why so many? Surely five admin departments is better than 25… The cost saving surely is worth it. DUMB! “Oh lets help more people… oops no money left… oh what a pity…”
Go on add to the list (in the comments section please.)
BUT figure out ways to make money out of any of these ideas and you might well be sitting on a goldmine… 
A thought to finish on… Frank Zappa (musician) in one of his songs loosely said “If we are created in gods image, therefore if we are DUMB then GOD IS DUMB, and maybe even a little ugly on the side…”
In a stand against getting snubbed by some big bands, a Geelong based team put together a music show to set the town toe tapping and grooving to the beat of their own drum… Lets hope they get the support they need to make it successful!
I have seen a range of TV current affairs shows recently pointing out businesses (reasonable sized ones on occasions), going under and taking investors with them. If you invest in a business it is risky, any sort of business (and I don’t care what glossy brochure or figures they show you…)
So there are risks involved and you can lose money, you can also gain $$ to, and of course that’s generally the aim for an investment. Look I feel sorry, deeply sorry for anyone that loses hard earned cash in a business deal of some kind, and perhaps there should be a leaflet that people have to hand out in any transaction that may involve risk to explain there may be a risk.
The thing is let the buyer beware (Caveat Emptor) but also understand that people are losing day in day out, and the opposite is also true! In a capitalist society like ours the aim therefore is to have more wins than loses.
So guys, harden up, the road ahead is loaded with potholes and challenges, don’t get angry, get smart and find better ways of evaluating a deal or investment in terms you can understand.
Who’s responsible?
Aug 29
In the “topsy turvy” world of franchise contracts, agreements etc, (which many franchisees have little understanding of) it’s painfully obvious that many of these documents ask the franchisee to jump through hoops, but how about working things the other way?
Over time the franchisor will build a “watertight contract” and expect the franchisee to know a lot of things about business and how to get results, but if the result in the business for the franchisee is less than spectacular, where is the “Duty Of Care” by the franchisor in all of this. It’s far too easy for them to throw their hands in the air and say things like “You knew what you were getting into” or “You had the disclosure documents…” “You had the info” and a whole list of other statements/excuses.
When a franchisee is experiencing challenges (not enough customers, not enough turnover, not enough full stop!) then the franchisor says “Well ask us for help” So some do, they drop their pride and call for help. Often the answers given relate to “Put more into your local area marketing” Hello! if I am down the “tubes” and have less cash, how can I put in to make things “better”.
I figure the franchisor should establish a “Duty Of Care” policy and or procedure for the good of the franchise, and the good of the franchise industry. In fact the duty of care policy should state. (For example) That a franchisee must keep a reserve float of emergency cash (in a bank account) that ensures they are able to pull out some extra to make things go “voom”, and over time add to that so it grows to cope with inflation etc.
I also figure they should be held accountable for the marketing… If they put an advert in a publication, was it designed by a marketing expert or the copy room at the local paper…? Then making sure the results are clearly and effectively measured so you can know how well the marketing $$ are spent and you are definitely getting a respectable return on the investment.
If the franchisor is working at building a robust organisation that can provide an effective system for the franchisee, then they need to make sure the people investing in the business are developing their business and financial accumen as well. Okay some have an annual conference, the people go and have a great time, but how many put the information into action? Is their “area supervisor” following up on that? Are their business plans reflecting that development? In many cases no.
Watch out for more “Duty of Care” observations, as they arise and franchisees become savvy to the idea and franchisors get caught out.
So far it’s a one way street with the contracts, but a savvy organisation will ensure they provide avenues to ensure a franchisees ongoing success and what a selling point that will be.
Wisdom comes in many forms…
Aug 28
Fast thinking and wisdom can work wonders, I saw this today and thought it’s well worth reproducing here, enjoy!
A wealthy old lady decides to go on a photo safari in Africa, taking her faithful aged poodle named Cuddles, along for the company.
One day the poodle starts chasing butterflies and before long, Cuddles discovers that he’s lost. Wandering about, he notices a leopard heading rapidly in his direction with the intention of having lunch.
The old poodle thinks, ‘Oh, oh! I’m in deep doo-doo now!’ Noticing some bones on the ground close by, he immediately settles down to chew on the bones with his back to the approaching cat. Just as the leopard is about to leap the old poodle exclaims loudly, ‘Boy, that was one delicious leopard! I wonder if there are any more around here?’
Hearing this, the young leopard halts his attack in mid-strike, a look of terror comes over him and he slinks away into the trees. ‘Whew!’ says the leopard, ‘That was close! That old poodle nearly had me!’
Meanwhile, a monkey who had been watching the whole scene from a nearby tree, figures he can put this knowledge to good use and trade it for protection from the leopard. So off he goes, but the old poodle sees him heading after the leopard with great speed, and figures that something must be up. The monkey soon catches up with the leopard, spills the beans and strikes a deal for himself with the leopard.
The young leopard is furious at being made a fool of and says, ‘Here, monkey, hop on my back and see what’s going to happen to that conniving canine!
Now, the old poodle sees the leopard coming with the monkey on his back and thinks, ‘What am I going to do now?’, but instead of running, the dog sits down with his back to his attackers, pretending he hasn’t seen them yet, and just when they get close enough to hear, the old poodle says ‘Where’s that damn monkey? I sent him off an hour ago to bring me another leopard!
The moral of this story….
Don’t mess with the old .. age and treachery will always overcome youth and skill! Knowledge and wisdom only come with age and experience.
I am in no way insinuating that any of you are old, perhaps some are just youthfully challenged!
Over time I have come to respect the wisdom of the more “mature” around us, and as I get older I hope I can benefit more from my own wisdom and have the good sense to draw more on the wisdom of others.
In business it can seem like we know it all, (or we think we do) but the reality can be different. I guess the point being to know the difference and profit from it.
Maybe you have been in business for quite a while and have most things figured, but how much are you really making?
With so many variables, fixed costs, and “things that challenge your earnings” it can be hard to tell what the take home earnings are.
If you have fixed costs it pays to make sure you have those covered, and knowing how much you need to earn per day (min) to cover these. Recently I met a business person that was sure he was making a profit but in reality he had a surplus, and with added costs from variables he was actually only making a very small profit.
Your business requires you to know if you are making a profit so that longer term planning can take place, otherwise you may find yourself in a tricky business position and wonder how on earth it happened.
Take care to measure carefully what’s happening so you too can get ahead and explore the growth possibilities your business can offer.
Starting a business is a great idea, you think about the possibilities, get emotionally wrapped up in it and then make a start… But there are a few things you may not have thought of, namely how much money you will need to get started and how long you will need to “feed the beast” until it starts to pay for itself.
Starting with the bare minimum is called “boot strapping”, it works on the premise that with what little you have you will generate income and a profit from day one. It has worked for many in the past, however it has also failed many…
Another thought is to start with enough savings to pay wages for a given period (as well as all the other start up costs) until you things to a point where the earnings provide a solid return and can take over from your savings to cover the outgoing costs.
Whichever you choose prudent planning is required (sounds boring doesn’t it…) to ensure you have a lower stress start up to your business. The aim of any plan is to provide you with a guide to ensure success, so go ahead and plan out which one you will use and how to get ahead, after all business is about making a return on the time and money you invest.
