6 Principles of Marketing for Your Business
If you want to grow your small business into a thriving enterprise, you need to get serious about your marketing strategy. Marketing is an invaluable tool you can use to tell the world about your brand and influence how it is perceived. It’s why most of us think about more than just fruit when we hear the word “apple”. So, what are the key things to know about? Whatever your business, these are the 6 marketing principles to follow to attract, engage and convert customers.
What is marketing? Is it just a fancy word for selling?
It’s way more than that. While selling is mostly about the transaction of goods for cash, marketing concerns itself with the entire business process. It embraces product development, the people who are most likely to buy your product, your pricing structure, promotional techniques and more. If you see a pattern developing here, you’re right.
What are the 4 Ps of the marketing mix?
The 4 Ps of marketing are Product, Price, Place and Promotion.
It’s generally believed that there are four Ps in what people call ‘the marketing mix'. (Some stretch the term to include seven or even nine, but there are four main ones.) Whether you sit down and construct a formal five-year marketing strategy for your business, or tend to 'freestyle' things, you should always be thinking about the four Ps: Product, Price, Place and Promotion.
6 Basic Marketing Principles
At DHL, we always go the extra mile (excuse the pun). So rather than four, we focus on six marketing principles: Product, Price, Place, Promotion, People and Packaging. That’s right, we’ve added People and Packaging into the mix. Let's take a closer look at each one:
1. Product
This is presumably why you’re here. You’ve got a good product and you want to sell it. For the sake of brevity, our use of ‘product’ also includes things like apps and services, and applies to business-to-consumer (B2C) and business-to-business (B2B) sales. Right from the start, you need to forget that you’ve got anything to do with the product at all. Instead, examine it afresh from the perspective of a potential customer. Channel their thoughts like this:
- Hey, that looks cool. I wonder what it does?
- I could use something like this in my study/garage/kitchen
- I wonder if it’s available in black?
- Maybe there are cheaper versions elsewhere?
- This would make me look good to my boss/partner/kids
- Not sure about that name. How am I supposed to pronounce it?
- Why all this packaging? Don’t they know plastic is the enemy?
- It would make a great gift. Maybe it’s cheaper if I buy several
- Ah, the instructions...‘Utilize’? ‘Enablement’? Who talks like this?
By forensically examining every aspect of your product – maybe asking impartial observers to do likewise – you’ll find ways to enhance it or make it more appealing to more people. You need to think ahead too. Just about everything for sale has a ‘product life cycle’, a period after which sales naturally decline. You must be ready for that, and plan to introduce new and/or improved versions of the product long before your sales curve starts to head south.
“Our jobs as marketers are to understand how the customer wants to buy and help them do so.” – Bryan Eisenberg, Author & Keynote Speaker
2. Price
Ever noticed anything odd about men’s grooming site, Dollar Shave Club? They’re wildly successful at what they do, but nobody’s ever bought a razor from them for a dollar. It can’t be done. Not once the cost of shipping is included. That’s just one example of how a clever pricing strategy (together with a catchy name) can reel the shoppers in. Determining the price of your product is a balancing act. Set it too low and you might appear cheap and inferior. Set it too high and people will quickly look elsewhere. There are exceptions, of course. A Dyson fan will blow the same air around your living room as a regular fan, but advanced technology and a unique design mean the company can command a cost per unit many times higher than other manufacturers.
Rather than going with your gut feeling, do some research. Look at what your competitors (if any) are charging and learn what your potential customers would be willing to pay. Consider offering bulk discounts or introductory offers, or adding value in other ways such as a user guide or club membership. Dive into the consumer psychology of pricing too – you can read more about nudge techniques around pricing, here. Then consider which pricing strategy you should implement. There’s a range of different strategies to suit different objectives and marketing environments. Some of the main ones are:
Market Penetration
This is where your initial price is set artificially low, then hiked once you’ve achieved a predetermined market share. New subscription services like TV or broadband providers typically use this model. As we’ve seen, the Dollar Shave Club is pretty much just the name on the door.
Price Skimming
Price skimming occurs when a first-to-the-market company can afford to charge a higher price, but then has to lower it when cut-price competitors arrive on the scene. Most hi-tech items are eye-wateringly expensive at launch.
Neutral Pricing
Here, you set the price to match whatever the bulk of your competitors are charging. It’s not a strategy to adopt if your products are demonstrably superior to others. Once you’ve settled on a price that brings the orders trickling in, turn your attention to how you can modify your pricing strategy so that the trickle becomes a stream, then a torrent, then a flood. Never stop testing, in other words. (But always have that other P word at the back of your mind – profit.)
3. Place
'Place' in a marketing mix context refers not to a single location but to several: where your business is located; where your customers are located; and any points in between such as warehouses, distributors and retailers. How you get your products from you to the end user is, as with most things in marketing, customer driven. You have to find out where your customers are, where they might look to find your product, where they’d feel most comfortable buying it, how long they’re prepared to wait for it to be delivered, how often they’re likely to place an order and so on. Knowing the answers will help you determine the best – i.e. quickest, simplest and most cost-efficient – method of getting your stuff out there.
Now, you could be lucky in that your business might thrive just through selling handmade watches to a handful of high net worth individuals every year. In which case, distribution is a pretty simple matter and your main concern is ensuring you have hefty insurance. But for most SMEs, a more structured system will be required. It’s no exaggeration to say that distribution can make or break a business. But help is at hand. Because when it comes to national or international logistics, whether for global corporations or bedroom-based start-ups, nobody can offer more hands-on experience or helpful advice than DHL. With offices in over 220 countries and territories, we’re the first name in crossing borders, reaching new markets and growing your business. And, as our software aligns with many e-commerce platforms, your customers can see shipping costs transparently.
4. Promotion
This is what most people think of when you talk about marketing, but promotion is just the communication aspect of the marketing process and is often one of the last steps you take.
Promotion can take many forms:
- Advertising
- TV and radio
- Newspapers and magazines
- Posters
- PPC (pay per click) advertising
- Online banners
- Email
- Direct mail
- Social media – including influencer marketing
- Sales Promotion
- Money-off coupons
- Loyalty programs
- Product sampling
- Competitions
- Point of salePublic Relations
- Press releases
- Exhibitions and events
- Sponsorship
5. People
It goes without saying that your customers should be at the heart of everything you do. After all, without them, there is no business. Ask yourself:
- What do people want from your product or service?
- Are they using it in ways you hadn’t envisaged?
- How are they interacting with your brand?
- What are they saying about you on social media or review sites?
- Do you value your customers or feel they somehow ‘get in the way’?
- How can you improve their experience of your website or products?
- When was the last time you wrote a personal note to a customer?
And people doesn't just refer to your customers; the people who work for you are also vital to the success of your enterprise. A lot of companies claim to be people-centric, but this should always be more than a buzz phrase for your ‘about us’ page. If you’re passionate about your business, you’ll clearly want people who share at least some of your commitment. This shared idealism not only creates a happier working environment, it also helps gives you a competitive edge over less united rivals. This topic is explored in our article investigating how to build your team for success.
6. Packaging
Unlike traditional advertising like television or press ads, digital media lets you test the effectiveness of promotions very accurately. You can launch a marketing campaign online and immediately see how many people interacted with your ad, visited your website and bought a product. The trouble is, your competitors can do exactly the same thing – and their marketing budget might be bigger, meaning they can reach more people, more often. So it’s here that you balance the science of responsive marketing with creativity and impact, so that your advertising stands out from the crowd through the use of striking images or a distinctive ‘tone of voice’.
Incidentally, pay no heed to those who claim advertising doesn’t work on them. They’re often the ones who drive a VW ‘because it’s reliable’, wear Levis ‘because they’re hard-wearing’ or use Persil because it ‘washes whiter’. And finally...You may be a marketing whizz, but remember, no form of promotion has ever bettered the authenticity of word-of-mouth recommendations. But that takes time and continual investment in your product and customer service. In the meantime, focus on "the golden six"!