What are we going to see in this article?
O Marketing Mix or Composite Marketing is a marketing theory that, although always updated, was formulated in the 60 years. Many companies insist on underestimating the importance of marketing mix, but should not do so, because if well worked, is able to greatly optimize the efforts and expenditures spent on disclosure, in addition to adding value to the brand.
The theory itself maps the variables or market elements that a brand will have to consider when making an offer to a particular target audience and allows you to formulate your marketing positioning. Initially 12 elements, but Jerome McCarthy simplified the elements for the famous 4'Ps of Marketing: Product, Price, Square and Promotion.
- Product - solution you are offering, or rather the set of tangible and intangible attributes that you are offering to your audience. Most good deals are born of problems to be solved in the world and the product is the solution proposed for them. For example, McDonalds was born to solve the problem that people were increasingly in a hurry to eat. Google was born to index all the information in the world in the same place.
- Square - distribution of the product / service. Where is the audience that needs it, and what distribution channels are needed to get the product to the public?
- Price - monetary value that will be charged when delivering the product / service to the public. A lot of people think that pricing is a simple matter of paying the costs, but in fact it is one of the most important marketing attributes because it will be the heart of your positioning strategy.
- Promotion - communication that will be used to persuade your customer to buy your product. It consists of advertising, short-term incentives such as samples, rebates, etc., and public relations.
The marketing positioning is the set of strategies that the company will follow to impute or not value in your brand. This strategy influences 100% in the relationship that the company will have with the 4 P's of marketing. Some examples of positioning strategy:
When you sell a product with the same attributes as your competitors, you get stuck with their price. If they charge $ 100 and you $ 200, you can be sure that everyone will buy from them. How to get out of this? Seek differentiation of your product, so that you offer some or some of the attributes that the public values much better than your competitors.
O Netflix, for example, offers on-demand movies and series to its audience. They could do this as their initial competitors (movie theaters and movie theaters), but noted that a part of the audience valued much comfort over the novelty issue and was not being attended to. They sought this kind of differentiation and swam in a blue ocean without competition for long.
A Value Curve Worksheet is a beautiful tool for those who are differentiating themselves. If this is your case, try to look at which attributes you can stand well above your competitors so that they are no longer direct competitors. Talk to the public, listen to the criticism they have of conventional models, and think about how to get round the criticism.
It is part of a differentiation strategy, but as it is particular and interesting, I present it separately. A niche market is a segment of it with specific needs to be met. The niche domain is a good opportunity for the small entrepreneur to differentiate their product to serve them and be the number 1 supplier in this group. A good example of this is to note the recent appearance of male beauty salons. In the past, there were only women and unisex, but today a man can come to a salon, grab a beer and shave while watching football. Another example are specific markets that are emerging: specific clothing and music for gospel audiences, special product lines for GLBT audiences, among many others.
As it has been said, if your product has the same attributes as your competitors' products, or even a little worse, and you see no clear path to differentiation, there is no way ... your price also has to be below. To charge the same price or less, you will have to look inside your company and do your homework: keep the structure as simple as possible. Most major retail markets are good examples of markets where competitors seek more price than differentiation. Sometimes this also occurs because the public simply values much more low price than any other attribute. Even so you can already see differentiation in some of them, such as supermarkets focused on vegetarians, among other possible examples.
Once you've chosen your positioning strategy and it's a little clearer in your head, it's time to fill our 4 P's Marketing Worksheet to finalize its strategy. Understand the spreadsheet below.
In this tab you will create your value curve to understand if you are supplying your target audience and if you have competitive advantages over your competitors. If you have items that your audience values that you are much better than your competition, you can look for a differentiation strategy. Otherwise, you will have to look for price as a differential in a cost leadership strategy. If you prefer to work with a niche domain, remember to consider the desired niche preferences in the attribute weights.
After verifying how your product / service behaves towards competitors, the spreadsheet will take you to a tab in which you will map all possible distribution channels to find the desired audience and their respective potential return. Again, remember to think of channels specific to specific niches if you are working with them.
The price part is a complementation of the product part in the formulation of your positioning strategy. First, you will answer some questions, thinking about your value curve and the strategy you want to see if it is compatible with your possibilities.
As a result, the spreadsheet will recommend a price strategy:
Finally, the spreadsheet gives you the option to plan online and offline marketing actions and their investments in them and think about your sales projection month by month.