Keys to a Marketing Mix
- 4 P’s
- Product
- Price
- Place
- Promotion
Product (Idea)
- Core
- Something that is essential (example: what are you buying? An iPhone)
- Augmented
- What supports the core (ex: iTunes that you can out on iPhone)
- Value
- Perception a consumer has on your idea (what value does your innovation has that supports the customer)
- Differentiation
- How is your product unique? What is the unmet need of your customer?
- Life Cycle
- The beginning of the product to its decline (new ideas may come along)
- Diffusion strategy (what is the consumer willingness to adopt your idea?)
- CVP (Customer Value Proposition )
- The perception of the consumer, has to give enough beyond the cost to be worthwile
Price
- Fixed costs
- Costs that do not change no matter where the product is going
- Variable costs
- Costs that change and impact the product and how to get it to market (fuel costs)
- Skimming
- Ideas that impact how you set a price; how to make a very high profit with a small market share
- Penetration
- Lower price, higher market share
- Price Points
- Fixed prices, for the participation of idea or product
- Price Promotions
- short term pricing to introduce (discounts to encourage sale)
- Price discrimination
- Pricing things depending on consumer (things are cheaper in Norfolk than in Northern Virginia
- Psychology of Value
- Consumers may value price as higher than what you are selling for, or price is too high for the value of product (need to find the right price)
Place (Distribution)
- Channels
- How to get the products out to consumers
- Product and payment flows
- How do we get payment flows to occur, how to activate the adoption curve
- Conflict and disintermediation
- May need wholesales and retailers to get product out or go direct to consumers such as Amazon, may cause conflict with vendors
- Multiple channels
- Relying on middle-man may consider multiple channels to get distribution curve started
- The most serious challenge to entrepreneurs
- Price, not enough discussion about place and distribution
Promotion
- Communication is backbone to promotion
- Push and Pull Technique
- push is promoting through a personal channel
- pull is creating consumer demand and the consumer will pull product through a channel
- Data collectio – how often are consumers receving promotin