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Archive for May, 2011

Marketing Mix

Monday, May 23rd, 2011

Marketing mix is one of the major concepts of marketing. According to the traditional base, there are 4Ps of marketing. These are referred to as the marketing mix. But in the modern use of the term, many more Ps have been coined. People have found six, seven even eleven Ps of marketing. In this article we will talk about the 4Ps and 6Ps.

Four Ps

The four Ps of marketing mix consist of Product, Price, Place and Promotion. Product means the thing that you are selling. It can also be a service like the tourism industry.

Price means the rate at which the product is being sold. A number of factors are involved in determining the price of a product. These include competition, market share, product identity, material costs and the value customers perceive of a product. In fact prices are also determined by competitor’s products. If the competitors have the same product, then the price of a product will go down.

Place refers to the real or virtual place from where a product can be bought by a consumer. Another name used for place is called “distribution channel”. Promotion is the way that a product will be communicated to the general public. There are four distinct ways in which this might be done- ‘point of sale’, ‘word of mouth’, public relations and advertising.

Somewhere down the line people felt that four Ps were not enough for marketing mix. It had to face a lot of criticism mainly on the grounds that it was extremely product focused. This was not enough for the economy which is based a lot on services as well nowadays.

Another criticism that marketing mix has to face is that it does not have a ‘purpose’. So it should be looked upon as a tool that sets marketing strategy. Another criticism of marketing mix is that it does not discuss customers. This is why the concept of Six Ps of Marketing mix has achieved relevance.

Six Ps

The six Ps contain all the four Ps of marketing – product, price, place and promotion. In addition, it contains, two new Ps, namely People and Performance.

People include the potential and current customers of the business and how they make their purchase decisions. Market segmentation is also a part of this. It contains the features of market segmentation and the most attractive segments of this market.

The next P is Performance. This implies the performance of the business. The financial and strategic objectives of the business are dealt with here. It is also seen whether these objectives are achievable and realistic or not. The metrics of financial performance are also seen and appropriated in this division.

The six Ps of marketing mix help to overcome the criticisms of the four Ps. Hence the 6Ps serve to be a better alternative as compared to the 4Ps of marketing mix.

Operating A City Guide Website

Tuesday, May 17th, 2011

Here is an online home based business that very few people think about but can be quite profitable. If you like being involved with the city or town you live in, owning a city guide community website is not only a great way to be involved, but also a way to give back to your community by offering its business owners a place that they can advertise at a very low cost.

Small business owners may spend hundreds of dollars each month on advertising. Go to a small town newspaper and place an ad. A small ad could cost $100 for just one week. So business owners are always looking for a way to advertise that is inexpensive. By owning a community website you give people a chance to show off their goods and services in a way they could not do in a newspaper or radio. They have their own page on your website where they can update it any time they want. They can post pictures of their store and special sales that are going on. It is all under their control.

So how do you make money with a city guide website? As the owner you set a monthly or yearly price to rent a page on your website. Say you rent a page at $10 per month and you get 50 owners to sign up. That is $500 each month. Not a lot when you first look at it but when you keep adding businesses it starts to add up. Also you can have banner add space for companies who want to advertise on your main page and set prices according to the size of the banner they want. If you like affiliate marketing you can promote products and services through ClickBank or Commission Junction with banner ads and getting commissions. How about having E-Bay in your site map. Visitors click E-Bay and they see live bids going. If they decide to buy a product through your website, you get a commission.

What if you do not know how to build a city guide website? If you Google “your city guide” you will find a few companies with ready made websites. All they need is the name of your city/town and in a few hours your community website is up and running. The monthly costs to operate these sites are very low so you already are ahead in initial investment and they are set up to start making money immediately.

The next thing you have to do is get business owners to sign up and start driving traffic to your website. Remember, these owners are your clients and they are paying you to drive traffic to their web page. You are their promoter, so learn how to advertise effectively.

So operating a city guide website can be a very profitable online home based business if run effectively. It can be fun as well as rewarding. Your imagination can go wild with ways to make your site a go to place for your community.