The Marketing Mix

'The Marketing Mix' is a concept that was developed by a number of marketers in the 1950s and 60s, and it is mentioned in most marketing textbooks. It became associated with the '4 Ps': Price, Place, Promotion and Product. Later, marketers added up to three more Ps: People, Process and Physical Evidence. Well that's all fine and dandy, but it's not my aim to get you a degree in marketing. What can the idea of the marketing mix do to help you with your own home based business? It's about blending the Ps together to produce a plan that sells your product at a profit. Lets take them one at a time.

Price. Pricing products is usually one of the difficult decisions for any new business. Many make the mistake of thinking they have to be cheaper to compete. In fact there are few businesses that compete on price alone. It's more about the customer believing they have bought at a good price in the circumstances. If service is prompt, quality high and their need for the product great, they will accept a higher price as being reasonable.

Place - where, and how, you sell your product. Will you be selling direct to your customers, or through agents or affiliates, or a mixture of these? Will you have to hold stock? Will different routes get you a different market? Will some take longer than others? What are the costs of each? Try to be flexible in your thoughts about the routes to your customers. But do make sure you understand the probable outcomes of each.

Product. Remember that old salesman's saying 'sell the benefits, not the features'? If you think about your product that way you may come realise that while you thought you were selling, say, a new software application, the main thing you sold was time-saving! You may also have sold peace of mind, in the form of a money-back guarantee or online help. These factors alter the way the customer sees the value and desirability of the product.

Promotion. You customers may meet you products in more ways than your direct sales pitch. Through mentions on your website, your blog or someone else's, through your competitors even! Each time they meet the product it affects their vies of it. Make sure that all the meetings you are responsible for are good ones. Another old salesman's saying: AIDA. Grab their Attention; hold their Interest; get them to Desire the product; have them take Action towards buying it. The AIDA process may take a few seconds if you are selling beer in a heatwave, or weeks and months if it's a car.

Physical Evidence. Customers want to see evidence of your business and your product. If that product is a service or computer software they won't actually be able to see the product itself. They are them more reliant on other evidence: pictures, websites, letters, business cards, logos, premises, a telephone number - in short, anything about you and your product that will assure them of genuineness and value.

Process. The process your customer goes through in meeting, purchasing and using your product. Our job is to make that process as smooth, simple and satisfying as possible. Your product may be great and just what the customers want, but if they have to endure poor service to get it, they may not think it worth their while, or their money.

People. The last and most important ingredient in the marketing mix. People buy from people. In this internet age customers may never see or hear you or your staff. But they will tune in to any human traces in websites and emails. Pictures of people, use of customers' names, friendly wording and much more, will help. Of course, if your customers do meet you, you have the opportunity to ensure they are treated well.

Use the Marketing Mix to focus on each part of your marketing. You will find areas that need improvement, and attention to improvements will increase sales and profits.