Developing a Marketing Strategy

Developing a Marketing Strategy

Many people think that selling is another word for marketing, but marketing involves much more.

What is marketing? Marketing refers to the business activities that help move goods and services from the producer to the consumer. The strategies a business uses to market its products depend on its marketing mix, a blend of the four Ps of marketing: Product, Price, Place and Promotion.

Product / The first task facing a business is deciding which goods or services it wants to sell. Product decisions involve selection, design, packaging, warranties, and more.
Price / After selecting the products it will sell, the business must decide what price to charge. If the price is too low, expenses will not be covered. If it is too high, sales will be lost as buyers take their business elsewhere. In both cases, the business fails to earn a profit.
Place / For a product to be successful, it must be available when and where consumers need or want it. Producers must be able to ship or distribute their products to those who will sell their products. This marketplace—where buyers and sellers meet—could be online, person-to-person, or a retail store.
Promotion / Advertising, point-of-purchase displays, and other strategies businesses use to inform customers about their products are called promotion. Unless potential customers are informed about a product, they are not likely to buy it.

Developing a product’s marketing mix takes thought and planning. For example, automotive engineers work with market researchers to design cars that “feel” good and look stylish. Market researchers survey current and potential customers to discover their likes and dislikes. The information they receive influences seat comfort, dashboard design, and even cup holders!

Researchers also study neighborhoods, traffic patterns, and consumer buying habits. Supermarkets choose locations for their stores very carefully, for example, and your store’s decisions to stock certain goods are based on the typical buying habits of people in your area.

Some researchers study customers’ reactions to particular colors, slogans, jingles, and other promotional strategies. Notice the colors, slogans, jingles and other promotional strategies. Notice the colors on boxes of detergent; they are typically bold and bright. Notice personal care items such as shampoo and lotions; they are typically packaged in pastels or soft colors.

Through market research, businesses can reduce risk by providing goods or services people truly want. On the other hand, market researchers can make mistakes. Ford lost millions of dollars in the development of the Edsel, and Coca Cola underestimated its customers’ loyalty to the “classic” recipe. Similarly, few market researchers would have guessed that 3M’s Post-It Notes would become a staple I modern offices. They were made possible by development of a glue that wasn’t quite sticky or strong enough to hold anything together!

Project – Choose a product you use every day, like toothpaste. Think about how it is marketed. Consider such things as its taste, color, texture, and smell. Examine the packaging color and design. Survey which stores carry the product and where they place it on their shelves. How much shelf space is devoted to toothpaste? How many varieties of each brand are there? How do prices differ?