By exploring the market, the entrepreneur can
understand the marketing strategies used by the
competitors. Then the entrepreneur has to select
strategies for his/her own business, so that it
can face the competition successfully. Selection
of marketing strategies should be based on the
marketing mix. There are four main variables of
the marketing mix, which are also known as the
4 Ps:
- Product
- Price
- Place
- Promotion
Product
Products refer to goods or services offered to the market which can satisfy
the customer’s needs or wants.
This involves information regarding the product such as its content,
ingredients, shape, quality, size, brand name, instructions for use, etc.
Price
The cost incurred by the customer when obtaining a product is called its
price. This is a main factor that determines the demand for the goods as well
as the profit earned by the entrepreneur.
Pricing strategies, how the prices are to be set, any discounts to be given etc
are considered here.
Place
This refers to how the goods or service will reach the target customer.
Different strategies can be used to make the goods/service available to
the customers. For example, the entrepreneur may sell the goods directly to
the customer, or through retail traders. If not, the entrepreneur can sell the
goods to the wholesale trader, who sells them to the retail trader, who in turn
sells them to the customer.
Out of all such strategies, the most suitable one/s should be considered to
make the product available to the customer.
Promotion
Businesses use various strategies to create a demand for their goods
or services, to increase the existing demand and to attract the customers.
These strategies are called promotion.
The following are some possible means of promoting a product.
# Television, radio, newspapers,
banners, leaflets, posters.
# Methods involving new technology,
such as promotions over Websites,
Facebook, etc.
# Using mobile SMS
P Meeting the customers in person.
# Organizing charity programmes and artistic or cultural events.
As described above, the marketing plan should include the promotional strategies
for attracting the customers and retaining their loyalty for the product.
