Entrepreneurship: The Marketing Mix (7Ps) In Relation To Business Opportunity PDF

# Entrepreneurship: The Marketing Mix (7Ps) In Relation To Business Opportunity ## Unique Selling Proposition (USP) - Refers to how you sell your product or services to your customer. You will address the wants and desires of your customers. - Is the key to effective selling and advertising. - A u...

# Entrepreneurship: The Marketing Mix (7Ps) In Relation To Business Opportunity ## Unique Selling Proposition (USP) - Refers to how you sell your product or services to your customer. You will address the wants and desires of your customers. - Is the key to effective selling and advertising. - A unique selling proposition (USP, also seen as unique selling point) is a factor that differentiates a product from its competitors, such as the lowest cost, the highest quality or the first-ever product of its kind. - A USP could be though of as "what you have that competitors don’t." ### Example: - Charles Revson, founder of Revlon, always used to say he said hope, not makeup. - Some airlines sell friendly service, while others sell on-time service. - Neiman Marcus sells luxury, while Wal-Mart sells bargains. ## Here are 5 types to determine your USP: 1. List the features and benefits that are unique about your product or service. 2. Decide what emotional need is being specifically met by your product or service. 3. Identify aspects of your product or service that your competitors cannot imitate. 4. Create phrases about your unique product or service that are short, clear, and concise. 5. Answering your customer’s primary question: "What’s in it for me?". ## Determining Your Target Market ### Target Market - Are those who are most likely to buy from you. ### Market Targeting - A stage in market identification process that aims to determine the buyers with common needs and characteristics. ## Requirements of Target Market - Are your target customers male or female? - How old are they? - Where do they live? Is geography a limiting factor for any reason? - What do they do for a living? - How much money do they make? ## The Marketing Mix (7Ps): | Category | Element | | -------------- | -------------- | | Product | People | | Promotion | Packaging | | Pricing | Positioning | | Place | | 1. **Product:** Refers to any goods or services that are produced to meet the consumers' wants, tastes and preferences. "What should be done with the product so that it will be more attractive than the competitors’ products?" 2. **Promotion:** Refers to the complete set of activities, which communicate the product, brand or service to the user. The idea is to attract people to buy your product over others. “What promotional activities should be done in order to compete with the promotions of the current suppliers?” 3. **Pricing:** In the narrowest sense, price is the value of money in exchange for a product or service. Generally speaking, the price is the amount of value that a customer gives up to enjoy the benefits of having or using a product or service. - **Cost-plus Method:** The simplest method. The cost of the product is figured out and tacked on a little something to profit - **Market-Oriented Method:** This is not based on cost, but on the interaction of demand and supply. - **“Loss” Leader Strategy:** Some products may be sold at a losing proposition to attract customers to go to their stores. The markup is taken from other products. - **Psychological Pricing:** Stating the price on a lower scale For example: 2.95 instead of 3.00 - **Value for Money Pricing:** This pricing approach is not aimed at maximizing profit per single purchase but in bulk of quantity / frequent sale. This sales tactic is an ideal mechanism in tapping potential sales through more purchases, thus clearing inventory gluts and creating an image of fresh supply. This pricing concept targets either or both the diet and price conscious consumers. - **Pricing Factor Segmentation:** The “seller” subdivides the market into groups responsive to price and price deals, product quality etc. - **Marked Down Pricing:** In cases where demand is limited and competition is intense, the usual mark-up pricing approach is temporarily suspended in favor of a markdown to capture a segment of the market. The concept behind the markdown pricing is the thought that the lower you can make your price, the more you sell, and you generate revenues sufficient to cover costs and provide a profit. - **Bonus-Pack Pricing:** For the end-users, this is commonly used so that they will buy more than the required quantity. 4. **Place:** Represents the location where the buyer and seller exchange goods or services. It is also called as the distribution channel. It can include any physical store as well as virtual stores or online shops on the Internet. ### Stages of Distribution Channel - **Indirect traditional distribution** - Producer → Wholesaler → Retailer → Consumer - **Indirect distribution** - Producer → Retailer → Consumer - **Direct distribution** - Producer → Consumer 5. **People:** Your team, a staff that makes it happen for you, your audience and your advertisers are the people in marketing. This consists of each person who is involved in the product or service whether directly or indirectly. 6. **Packaging:** Is highly functional. It is for protection, containment, information, utility of use and promotion. 7. **Positioning:** Is the process of marketers use to determine how to best communicate their products attributes to their target customers based on customers needs, competitive pressures, available communication channels and carefully crafted key messages. ## Brand name - A name applied by a manufacturer or organization to a particular product or service. Brand names are usually capitalized. In recent years bicapitalized names (such as eBay and iPod) have become popular. It may be used and protected as a trademark.