Tutor profile: Shahzeb J.
Subject: Basic Math
What are the 5 Ps of marketing and how do you use them in developing your marketing communication?
The 5 Ps of marketing are People, Product, Price, Promotion, Place and People. This means that in order to develop a marketing plan, the existence of a product is key. Hence, having well rounded information about what purpose the product is fulfilling. Or what the product really is. It's specifications, the benefits it provides to the consumers and the like. Other than that, it is important to know the ideal consumer for the product or service. This entails information of the target market that will be addressed by the communications plan. Therefore, the business should develop the sketch of an 'ideal' consumer. This would consist of demographics, income, personality, gender (if necessary), aspirations and the like. This information can be further used to develop the next P, promotion. Details about people or consumers can be used to select communication channels, content, imagery, aesthetics and the like. Next, the business needs to decide the channels that are to be selected to make the product or service available. This could entail the selection of online/ offline channels or selecting a mix of both. The channels or 'place' that is eventually selected would be utilized to further select channels of promotion. For example, for an online service, just online marketing might do the job and help the business in avoiding offline marketing costs. Lastly, the business needs to ascertain the price points at which products or services would be made available. If there are multiple price points, these prices could be used to communicate themes like variety, innovation and the like. Other than that, low price points can be used to signal affordability, while high price points can be used to communicate luxury and status.
What would be a step-by-step approach to set up a new business?
Setting up a new business can consist of the following steps: 1. Business Research: Finding out the current dynamics of a market. This could include information such as product competition, price points, labor costs and the like. This would provide you with a significant idea about the probable investment that a particular business venture might require. 2. Consumer Research: This could act as an asset in addition to Business Research. While Business Research informs about the costs and investments, Consumer Research would point out the current status of consumer needs regarding a product or category. Moreover, this research can be done through quantitative and qualitative methods, providing insights about consumption patterns of a given business. Other than that, consumer research can also be conducted through online platforms such as a Facebook and Twitter, providing us with intricate details about a products' need. 3. Supply Chain: Another step would be to run a supply-chain analysis. While business research provides us with an idea about probable investments, a supply chain analysis would provide us details about key suppliers, raw-material costs, how and where to do storage. If we are a service based business, then this analysis would provide us about service delivery intermediaries. 4. Finance: Another important factor is the financial viability of a business. Hence, this step should be carried out after research has been completed. Here, business and consumer research would provide data to calculate estimates about the business's break even, probable profits, probable costs and return to stakeholders, if there are any. 5. Product/ Service Testing: Other than the above mentioned points, the idea of Product/ Service Testing holds pivotal importance. This should be done along with consumer research, where updated prototypes of the product/ service should be tested by consumers along the way. In this manner, Product/Service Testing could be a part of Consumer Research. 6. Branding/ Marketing: Although mentioned on number 6, it should be mentioned that Branding a product should be taken up once business research is done. This means that a basic template of the probable branding should be laid out and it should be tweaked along the way. An example of this could be the name of the product or service, the mission statement of the brand, the vision statement of a brand. It is key to differentiate between each and every component of the brand. Hence, branding should also be tested under Consumer Research. All the gathered should then be analyzed to develop the marketing communication end of the business. Once again, marketing strategies are also supposed to go through an evolution, where the communication should be changed according to consumer insights, if and only if, the need arises to do so.
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