Start a business and design the life you want, all in one place. It began with the four principles of marketing, also called the 4 Ps or the 4 P marketing matrix. This framework was first published in 1960 (although its origins date back to the 1940s). Then, in 1981, researchers extended that model to the seven principles of marketing, or the 7 Ps.
Booms and Bitner, the sellers who added the last three, thought that the original 4 P model was too focused on marketing tangible products. Your version responds to the unique considerations of service-based companies. The concept of marketing principles is part of the “marketing mix”, which is a general term to describe all the strategies and tactics that companies can use to bring their products and services to the market. If you browse online resources, you'll find some variations in how people define the 7 P's.
For example, some marketers replace physical and process evidence with positioning and packaging. As an added bonus, the 7 P's are sustainable marketing principles that prepare your brand for long-term stability. Market conditions will constantly change, but the strategies you develop based on these principles will help strengthen and protect your company from inevitable market volatility. It could be said that the product is the core of the four original principles of marketing.
If you don't have a good product, you don't have a good business, right? One of the most important considerations for your product or service is to ensure that there is strong demand. Do customers really want it? Does it really satisfy a market need? Pricing strategy is critical to the success of your business, so you should always optimize your pricing for your audience and niche market. Even if you've found a price that seems to work perfectly, there are still uncontrollable elements that can change your circumstances, such as a new development or competition in your niche market. To set prices, there are a couple of strategies to consider.
Let's say that you have invested a lot of money in setting up that business and you need to recover your investment quickly. You may want to start with a higher price and see how it works before lowering it. If you have few overhead costs, such as a dropshipping store, you can opt for lower prices to start with and see how your audience reacts. If you sell a large volume, you may have room to maneuver to raise your prices and see how that affects sales.
Sales promotions are a great way to attract new customers, but make sure you don't discount more than your company can afford. Watch this video for help calculating your profit margins. Even so, you may want to sell your products on online marketplaces such as Amazon, eBay and Bonanza. If your business isn't 100% online, location is a more important consideration.
If you have a specialized product, you may need to be creative with the places where you sell it to ensure that your offer reaches the right audience. Regardless of where you choose, it's important to understand where your target audience likes to buy items and spend their time. This way, you can position yourself so that they don't miss you. As we mentioned before, this marketing principle encompasses most of the strategies and tactics that people think of when they think of marketing and advertising.
In a way, the promotion is intertwined with the place. For example, selling on Instagram or Facebook requires a social media marketing strategy. Similarly, selling at trade shows or at a farmers market requires a direct marketing strategy. While there are many promotional strategies that take place in the real world, such as placing displays in stores, handing out flyers, organizing events and even going door to door, nowadays practically all companies are part, if not all, of their online promotion.
When staffing and configuring customer service processes, establish people and processes that truly reflect your brand's personality and adapt to the types of experiences your target audience wants and expects. The process is one of the marketing principles that helps streamline and simplify your operations, which in turn has benefits for virtually every aspect of your business. You'll find that streamlined processes help reduce costs, increase productivity, and provide a reliable customer experience that remains consistent for every customer. A great way to create reliable and repeatable processes is to document them.
For example, you can create official spreadsheets and instruction manuals that anyone can consult when certain problems arise. You can also create training materials so that all new employees receive the same training and manage tasks in the same way. The last of our seven marketing principles is physical evidence. Every brand has physical evidence, even if it's service-based or digital.
For example, part of a plumber's evidence is a fixed drain, and part of a dog walker's evidence is a happy dog who doesn't pee all over the house. Even before those services are provided or a product is sold, there are other tests, such as the company's website, sales materials, and interaction with sales staff. While they may not apply 100% to your 21st century business, we have no doubt that there are several ideas and concepts that are important, and even fundamental, to ensure that your company outperforms the competition and successfully becomes a part of the market. At the center of any product or service is the truth.
Federal law requires that advertising be truthful and not misleading, but we ALL know that there are cases in which the product or service does not match the experience. While most of the truth depends on brands manufacturing the products, the other side of the truth is based on brands sharing the true customer experience. The value varies from one customer to another according to the needs of each customer. The concept of marketing, a philosophy that underlies everything marketers do, requires marketers to try to satisfy the wants and needs of customers.
Companies that operate with this philosophy are said to be market-oriented. At the same time, market-oriented companies recognize that the exchange must be profitable for the company to succeed. A marketing orientation is not an excuse for not making a profit. These four basic marketing principles: product, price, place and promotion are interconnected and work together; therefore, they are also known as Marketing Mix.
The following are three additional principles that some companies use in addition to the 4 P's mentioned above since the 1980s. We'll also look at examples of these principles and how they translate into an effective marketing strategy. Marketing principles are the most commonly used principles that have existed since the 1960s. These principles have stood the test of time and have remained the same, with some variation here and there, for decades.
We'll break down each of them and provide you with a detailed definition, as well as practical tips and examples to help you know how to apply the principle to your brand. Marketing may not seem the same as before evaluating the digital world, but the basic principles of marketing remain the same. If you've heard of classic marketing principles, you may also know that they've been around for a while. This principle can also refer to the entire customer experience journey, the service a customer receives from your company, from start to finish.
There are four original marketing principles called 4P or 4P marketing Matrix that companies use for their marketing strategy. These basic marketing principles were designed to be broad, which can be both positive and negative. This principle more or less represents customer service, the human touch of your company that tells customers that there is a real person on the other side who listens and works to provide them with a good experience with the brand. Principles of Marketing from the University of Minnesota is licensed under an international Creative Commons Attribution-ShareAlike 4.0 license, unless otherwise indicated.
. .
