ENTREPRENEURSHIP

• Place


  The second P in the Marketing Mix, representing the location where the buyer and seller exchange goods or services, also called the distribution channel
• Place can include any physical store as well as virtual stores or online shops on the Internet
• Customers are not near a retailer that is selling the product


  It is a problem for the business
• A competing product is stocked by a much wider range of outlets


  It is a problem for the business
• A competitor is winning because it has a team of trained distributors or sales agents who are out there meeting customers and closing the sale


  It is a problem for the business
• Channel 1


  1. Contains two stages between producer and consumer - a wholesaler and a retailer

  2. A wholesaler typically buys and stores large quantities of several producers' goods and then breaks into bulk deliveries to supply retailers with smaller quantities

  3. For small retailers with limited order quantities, the use of wholesalers makes economic sense

  
• Channel 2


  1. Contains one intermediary, typically a retailer

  2. A retailer is a company that buys products from a manufacturer or wholesaler and sells them to end users or customers

  3. A retailer is an intermediary or middleman that customers use to get products from the manufacturers
• Channel 3


  1. Is called a "direct-marketing" channel, since it has no intermediary levels

  2. The manufacturer sells directly to customers
• Price


  The value of money in exchange for a product or service, determined by what a buyer is willing to pay, a seller is willing to accept, and the competition is allowing to be charged
• Penetration Pricing Examples


  • Internet and cable providers use penetration pricing to entice new customers with a deal they can't refuse
  • Smartphone providers, such as Android, use a penetration pricing strategy to win new customers and create loyalty to the brand
  • Starbucks often introduces new or seasonal products at a lower price
  • Gillette offers its core product at a lower cost price, but sells its razor blades at premium prices
• Promotion


  The fourth P in the Marketing Mix, referring to the complete set of activities which communicate the product, brand or service to the user, with the aim of creating awareness, attracting and inducing consumers to buy the product
• Promotional Mix


  • Advertising (radio, television, print, electronic, word of mouth, generic)
  • Public Relations
  • Personal Selling
  • Sales Promotions (free gifts, free samples, free trials, customer contests, special pricing)
  • Direct Marketing (brochures, catalogs, fliers, newsletters, postcards, coupons, email, phone calls, text messages)
• Penetration Pricing - The price charged for products and services is set artificially low in order to gain market share.
• Skimming Pricing - A company charges a higher price then slowly lowers the price to make the product available to a wider market because it has a considerable competitive advantage.
• Radio gives the advantage of selecting the territory and audience to which the message is to be directed. It is also cheaper than TV advertising.
• Television is the latest and the fast-developing medium of advertising and is getting increased popularity these days. It is more effective as compared to radio as it has the advantages of sound and sight.
• Print media - carry their messages entirely through the visual mode. These media consist of newspapers, magazines and direct mail.
• Electronic - You can also advertise electronically through your company website and provide important and pertinent information to clients and customers. You can protect some parts of your website through passwords and give access to member customers. You can also send advertisements via direct e-mail as part of your promotional strategy
• Word-of-mouth advertising is important for every business, as each happy customer can steer dozens of new ones your way.
• Word-of-mouth the most credible forms of advertising because a person puts their reputation on the line every time they make a recommendation and that person has nothing to gain but the appreciation of those who are listening.
• Generic - the promotion of a particular commodity is without reference to a specific producer, brand name or manufacturer. Producers join together to expand total demand for the commodity, thereby helping their own sales.
• Generic - are often self-funded through assessments on marketing called check-off program.
• Competition Pricing - A pricing method which a seller uses prices of competing products as a benchmark instead of considering own costs or the costumer demand. In reality a firm has 3 options and these are to price lower, price the same and price higher than competitors.
• Product Line Pricing - The practice and reviewing and setting the prices for multiple products that a company offers in coordination with one another.
• Bundle Pricing - The act of placing several products or services together in a single package and selling for a lower price than would be charged if the items were sold separately.
• Premium Pricing - Setting the price of a product higher than similar products. The goal is to create a perception that the products must have a higher value than competing products because the prices are higher.
• Psychological Pricing - Is the practice of setting prices slightly lower than rounded numbers, in the belief that costumers do not round up these prices, and so will treat them as lower prices than they really are.
• Optional Pricing - The company earns more through cross-selling products along with a basic core products.
• Cost Plus Pricing - Involves adding a markup to the cost of goods and services to arrive at a selling price.
• Cost Based Pricing - A pricing method in which a fixed sum or a percentage of the total cost is added(as income or profit) to the cost of the product to arrive at its selling price.
• Value Based Pricing - A price-setting strategy where prices are set primarily on consumers' perceived value of the product or service.
• Public Relations or PR


  the article that features your company is not paid for. The reporter, whether broadcast or print, writes about or films your company as a result of information he or she received and researched.
• The goal of public relations is to shape public perception of a business, presenting a positive image through various strategies to its various constituents.
• Personal Selling


  occurs when an individual salesperson sells a product, service or solution to a client. Salespeople match the benefits of their offering to the specific needs of a client.
• Personal Selling, involves the development of longstanding client relationships
• Five Stage Personal Selling Process

  • Prospecting
  • Making first contact
  • The sales call
  • Objection handling
  • Closing the sale
• Sales Promotion


  is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service (i.e., initiatives that are not covered by the other elements of the marketing communications or promotions mix).
• Sales Promotion Technique

  • Free Gifts
  • Free Samples
  • Free Trial
  • Customer Contests
  • Special Pricing
• Direct Marketing 


  is a promotional method that involves presenting information about your company, product, or service to your target customer without the use of an advertising middleman. It is a targeted form of marketing that presents information of potential interest to a consumer that has been determined to be a likely buyer.
• Forms of Direct Marketing

  • Brochure
  • Fliers
  • Post cards
  • Coupons
  • Phone calls
  • Catalogs
  • Newsletters
  • Email
  • Text messages