Price: self-explanatory, but includes the expanded term “pricing” Place: usually refers to distribution and fulfillment (connect- ing our products to customers) Promotion: clearer and has to do with such things as adver- tising, discounting, etc. Rather than take an academic approach (I can already hear the yawns) to understanding this marketing mix stuff, let’s instead look at the real-world translation and application. We can do this (and perhaps even stay awake) by asking some basic questions about our business. Although these questions apply to both startups and also established businesses, it may be more instructive to drive home some of these principles in the context of a startup business. Relevant Marketing Mix Questions Let’s say that you have some sort of epiphany, or perhaps an apparition or, in your case, those scary voices in your head tell you that you are destined for greatness. Yes, I know; you’ve wondered why your obvious prodigy took sooooooo long to be officially recognized. Cosmic forces then push you toward starting your business, and you’re on your way. Fasten your seat belt. For expediency, let’s presume that you have some experience in a service trade and decide to start Bubba’s Mo Bedda Locksmith and Security. We just know you thought of this catchy name all by yourself. Amazing! Keep in mind that the elements discussed in this article are generic and can be applied to most service or product busi- nesses. Now, let’s consider some relevant questions that require answers and then decisions. We’ll also place each of the ques- tions in their respective marketing mix categories, although some can fit in more than one of the Ps. Of course, we realize that some of your decisions, strategies and tactics developed early in the game will likely be refined or change as your business gains some traction and when you become established and entrenched. Although your astonish- ing talent (you’re welcome) could surely own the entire mar- ketplace, your benevolent nature will likely compel you to leave a few crumbs for your competitors. Following are some of the real-world questions. Product: Many of the products you will sell already exist, so this takes care of many questions. What services will you provide? Short-term, longer-term? What range of products and brands will you sell and inventory? WWW.ALOA.ORG What… am I doing? (taking a trip) Why… am I going? (vacation or need a break, etc.) APRIL 2020 KEYNOTES 17 What terms of service will you offer? Policies, terms and conditions, etc.? Price: Relates to the real or perceived value of your offering — value proposition. What is your pricing strategy? Short and longer-term. How will you establish what you charge for various services and products? What types of discounts will you offer? What will your payment and credit terms be? Place: Where you operate and how you connect your services with target customers. Geographically, where will you offer and provide services? Town, county, state, region? Will you have a fixed (store) location or be a mobile pro- vider? Or both? Which market segments will you service? Commercial, in- dustrial, residential, auto, government? Promotion: A bit like choosing bait. Oſten called marketing communications, aka marcom. Who are you trying to reach? (potential prospects) What is your message? (What solutions can you provide?) Build your brand! How will you reach your target audience? (How will they avail of your services?) Although we could spend lots of time developing other rel- evant questions, hopefully you get the point by now. As men- tioned, you have to begin somewhere, but you can expect to refine the answers to these questions as your business evolves. The point is that you should begin answering questions like these as soon as possible and revisit your answers as your busi- ness progresses. Make sure future decisions are consistent with your strategies. As in any planning process, you may find it helpful to use the trip analogy technique that requires answering some basic ques- tions. These interrogation-type questions are oſten referred to as “manager’s friends” because they are open-ended yet specific enough to elicit meaningful responses when applied within a particular context. Be sure to test your decisions using these questions. These are also highly recommended when you are trying to extract information.
