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Why Are the 4 Ps of Marketing So Important to Your Plan? Example of a Marketing Mix.

Your marketing plan needs to include a strong marketing mix program (the 4 Ps of marketing). Use this example of a marketing mix to better understand how to develop the most important mix elements. To create the best marketing mix program, learn how to balance and develop product or service strategies, the marketing mix promotion, the price, the place (or distribution).

Your business needs to focus on marketing planning to ensure your business growth and success. Create marketing strategy that will help you grow! Each business has specific strategies, specific goals and operates in specific environments; define target market and build marketing mix plans that help to build the right programs for your market.

This example of a marketing mix looks at a plan for a Computer Technology software company. The firm’s profile: $2 million in annual sales, 14 employees (many of them long-term employees with a wide range of skills), and providing business-to-business services. Business priorities are to retain existing customers and to gain new business. The three year plan business objective is to grow sales 10 percent a year.

The first requirement in your marketing mix is to define the company’s services. For example, the company offers a software evaluation service for customers who are reviewing new software options. The company also provides technical support – 24 hours a day, 7 days a week. It performs computer security reviews and audits. It provides a range of service agreements (1 hour response, 4 hour response or 24 hour response). The company conducts back-up services both on- and off-site. Finally, the company offers custom designed software support packages.

Next, define target market and then develop a benefits package for that specific market. The benefits must provide customers with a thorough understanding of the value of each of the services provided. For example, the custom designed software support package can provide testing and implementation of new version upgrades, bug testing and resolution, communication with the software provider, and more. The cost advantage of this custom package is in the value of an experienced and knowledgeable advocate on behalf of the company in all interactions with the software provider. Another advantage is the experience of long-term employees in a broad range of technologies and software applications. By outsourcing computer support, the customer can save on the cost of in-house technical staff; use specific cost/benefit examples.

Then focus on what makes the business different from the competition; what is unique about the services offered? Determine the key differentiation points. Then develop the positioning of the service provided; is diversification the right strategy, or niche, or low cost, or high value? The positioning strategy needs to be clearly defined. Calculate financial benefits for the advantages and develop them as solutions to the customers’ issues. For example, the company’s success rate in negotiating value added upgrades and customization to new software application purchases. There is a tangible dollar value to that success; communicate it to customers.

For this particular business, a good pricing strategy would be to focus on bundle pricing. For example, a monthly or annual retainer that would include response time for trouble calls; response time for regular maintenance; frequency of back-ups; testing of equipment; implementation times for software upgrades; and more. Compare the pricing offer to what it might cost to employ in-house staff or to employ several computer service companies to do the work that you provide.

Marketing mix promotion is focused on selling: through networking, public relations, face-to-face personal selling, telemarketing, advertising, direct email marketing programs, other forms of personal selling, relationship and referral marketing, website, and more. For example, companies cut staff positions during tough times. You can find out which companies have recently laid off staff by tracking media reports and announcements. Then prepare a marketing campaign that is directed to those companies and the outsourcing solution you provide. Target your campaign through a direct marketing program; using a personalized, one-to-one approach. Use a direct marketing firm to put the best campaign together. Sub-contract or hire sales and promotion support if you do not have professional sales and marketing staff.

How the services (or product) are delivered to market is the ‘place or distribution’ element of marketing mix. For example, for a business in the retail sector, the element of place needs to describe and plan the store (physical or virtual) location. For this computer technology business example, place is about how the company reaches its clients/customers. For the most part, company staff would be driving out to the customer location to provide the service (or access their systems remotely). Place is important in terms of how clients/customers find you; it needs to be considered in the marketing mix for distribution channels and challenges.

The four elements of marketing mix – product, promotion, price and place – need a strong focus on strategies and tactics for implementation. It’s not enough to plan, you need to act on your plan. Use this example of a marketing mix, or use a marketing mix model, to build an effective plan for your business.

Do you want to learn more about marketing, such as how to develop your marketing mix promotion plan? Find resources and strategies for product positioning and differentiation, pricing, human resources, and more at www.More-for-Small-Business.com (http://tinyurl.com/m2febn).