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Today, marketing encompasses a dizzying variety of techniques, including market research, branding, inbound and outbound marketing, search engine optimization, content creation, influencer campaigns, and more.
Marketing can seem complex, especially for executives who don't have direct contact with their marketing team. However, there is a simple foundation to all marketing that the American Marketing Association calls the “Four Ps”: Product, Place, Price and Promotion.
Related: 6 Innovative Marketing Strategies for Startups
A product primer
You think you've invented (or acquired) the greatest invention since sliced bread. But before you start a business, you should conduct market research to determine if there's an actual market for it and if it's willing to pay the price. According to the Small Business Association (SBA), “Market research combines consumer behavior and economic trends to validate and improve your business idea.”
Market research can be conducted by hiring a specialized company, using an online platform, or a DIY alternative like Survey Monkey. Here's what you need to answer:
- Is there a desire for your product or service?
- Where do your customers live and can your company reach them?
- Are there already similar options and how much do they cost?
Once it is clear that there will be a large audience for the product or service you want to offer, it is time to move on to the next “P” (square).
Product placement
Unless your business is focused on a major e-commerce platform like Amazon, the right location is important. When my company opened our food truck franchise restaurant in Miami, we knew where our customers were, and that determined our first physical location—but our experience isn't the standard for every business.
The location depends on the type of business and the results of your market research. Here are some examples of “locations”:
- Home – a good place to start a home improvement business.
- Retail – shop windows, shopping malls, airports, pop-ups.
- Mobile – for example a food truck.
- Commercial – for businesses that do not require foot traffic.
- Industrial – for manufacturing and distribution operations.
Related topics: 10 things to consider when choosing a location for your business
The price is correct
Without an advanced degree in business, it can be difficult to analyze all the factors that go into pricing. From a purely marketing perspective, knowing the economic status of the target customer is paramount. Simply put, how much can the market tolerate?
To achieve higher profits while adjusting prices to the market, it may be necessary to keep costs low. Here are a few tips:
- Conduct a thorough cost analysis.
- Negotiate with suppliers to get better deals.
- Implement measures to control portion/product size.
- Introduce energy saving measures.
To get promoted
Now comes the fun part. In advertising, creativity has the greatest impact. In fact, “brands that are willing to take risks and think outside the box are often the ones that stand out in a crowded market.”
When you think of advertising, you might think of keychains with company logos, billboards, and signs in general. While these can be great promotional tools, there are newer and more exciting options. Consider exploring how your business could benefit from pop-up locations in addition to your main location, or offer car magnets to your customers and turn them into “brand ambassadors.” Social media presence is also important (and a topic in itself).
Here are a few concrete ideas that can help your company raise its profile a few notches:
1. Promotional gifts
Consider giving away an item that represents the brand. In our case, it's a taco giveaway, but it could just be a lanyard with your logo on it. Giveaways should always be a line item in the marketing budget for advertising and public relations, because nothing generates goodwill like free gifts.
Here are four reasons why giveaways work:
- Creates brand recognition through an unforgettable experience.
- Shareable on social media.
- Reach new customers and strengthen the loyalty of existing customers.
- Provides the ability to collect data such as email addresses.
Giveaways – whether they're a real product, a promotional item, or free services – increase community engagement, brand awareness, recognition, and social media buzz. Always use social channels to communicate giveaway highlights before, during, and after a campaign.
Related: How a contest or giveaway can attract business prospects
2. Guerrilla campaigns
Many companies underestimate the value of a properly executed guerrilla marketing campaign. But first, what exactly is a guerrilla marketing campaign? According to the Entrepreneur Small Business Encyclopedia, it involves pursuing the traditional goals of profit, sales and growth using unconventional means, such as expanding product offerings during economic downturns to encourage customers to make larger purchases.
It's important to develop a campaign that uses guerrilla marketing tactics in a way that allows you to measure its impact by applying a combination of quantitative and qualitative metrics. Here's how:
- Define clear goals.
- Track online engagement and monitor media coverage.
- Calculate the ROI to ensure that your expenditure was worth the resulting revenue and/or customer loyalty.
Here's a personal example: A customer ordered food from my restaurant to be delivered to her home, and when it arrived, it was stolen by raccoons. She filmed the incident and posted it on social media, and the local news picked it up. We worked to upload the video to some of the bigger meme accounts on Instagram and Facebook, and it got more attention than any print ad or TV spot. All it cost us was a $100 e-gift card for the customer as compensation for her stolen food.
3. “Old school” PR stunts
PR stunts used to have a bad reputation, but they're becoming more common again – as long as you do it ethically. A PR stunt can often be an easy-to-implement, unconventional marketing strategy. Before we opened a brick-and-mortar restaurant, we ran a food truck. We had friends and family line up all day to give the impression of a busy food truck. Promoting small crowds surrounding the truck drew even larger crowds.
Eventually, the number of fans who loved the food truck became so large that we had to open a store – and then another, and another. We are now a successful franchise.
Related: Does PR really help increase sales? Yes – just do it right and be patient
4. Strategic alliances
Look for companies that align with, but don't compete with, your product or service to create cross-promotions. For example, look for a partnership with a local sports team. Studies show that 66% of “forever” sports fans take action after seeing a brand's sponsorship.
Among the four Ps of marketing (product, place, price and promotion), I would like to highlight a “C” – creativity. Creativity is key in marketing, but don't overdo it: always think about the customer and make sure everything you do is relevant to the brand.
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