1. ProductYour product is whatever you sell or offer. This could be a
physical thing like handmade jewelry, it could be your writing, or it
could be a service like coaching, consulting or photography.
Form is an integral consideration of the product element. Writing could be offered in a bound book, a downloadable e-book or it could be a service you offer such as say copywriting or take the form of speeches that you or others deliver. If it is a tangible item then things like packaging are part of the product element. Other considerations include the product name, features, quality of materials, and more.
about how to price your product include choosing basics like the
suggested or list price (including zero or free). Beyond that,
additional considerations include discounts such as for volume, such as
buy three get one free or price drops with every 10 units purchased,
e.g. the per hour cost of your time is lower if a client purchases
10-20 hours vs. 1-9 hours; or a giving a discount if you receive an
3. Place (Distribution)Distribution is called place so that it neatly fits the framework
without disrupting the alliteration and because it refers to the
place(s) where you sell your product. If you are selling a tangible
product you might sell it in a brick and mortar store or at an online
store. Let's think about the example of shoes from Chapter 1.
Shoes are sold in many places including in department stores,
boutiques, shoe stores, online via sites like Zappos or through auction
at sites like eBay.
Considerations for distribution include delivery and logistics and questions such as do you send products to a retailer's warehouse, use drop shipping or ship from your inventory to customers; do customers buy your services directly from you or through a broker (such as an agency); do you restrict (exclusive dealers) or expand (affiliates) sales; and whether or not to take returns.
4. PromotionThis is the
stuff many people think of when they think marketing. Promotion includes
advertising, public relations (PR), giveaways, events, and coupons.
Homework:Define your four P's and list every relevant element you can think of. Then define your target market accordingly.
For example, one episode of CNN's late show The Turnaround in which small business owners were mentored by successful business people at large companies featured a small bakery. The baker had a small shop but offered a wide range of baked goods. Using a 4P framework, brand managers from Dreyer's ice cream showed her how they used it to help guide the marketing of Dibs as a new product. Applying it to her baked goods, the bakery owner, Denise, was able to see that weddings cakes were her most promising target market and she could focus accordingly.
Previous ChaptersChapter 1: Introduction
Chapter 2: Setting Goals and Creating a P&L Statement