Tool Box
Issue No. 16 - April/May 2004
To Market, to Market
A beginner‘s guide to product development (part 2)
by Andrew Robertson
Part 1 of this article was published in Issue 15 of ‘in—business‘. Marketing is an often misunderstood term. It is much more than advertising and promotion. It involves a thorough understanding of your market, from the product through to the sale and the customer relationship beyond the sale.
The Four Ps
The traditional definition of marketing: Product, Price, Place (distribution) and Promotion. Promotion has only ever been one part of the marketing mix — and cannot succeed if the other parts are not addressed
Four more Ps
Contemporary business and marketing strategists have added four more Ps:
- People (internal staff and external customers)
- Positioning (brand)
- Physical (resources)
- Profit
If all eight Ps are addressed, chances are you will have a successful business!
MARKETING: THE QUESTIONS
- Is there a market for your product?
- Who will buy it, and how to reach them?
- How will it be distributed and sold?
- How will it be packaged and promoted?
- Who are your competitors and what is your competitive advantage?
- What is the size of the market and what market share can you achieve?
TARGET MARKET
- Who is in the target market?
- Can you identify them in detail?
- Why will they buy your product/service?
- What is the value proposition?
- Can you define it in their terms?
- How does it compare with your competition?
- How can we quantify the size of the potential market?
MARKET RESEARCH
- Desk research
- Internet
- Australian Bureau of Statistics
- Other (trade journals, industry groups, etc)
- Bizline (State Library of SA)
- Quantitative research – eg survey
- Qualitative research – eg focus groups
- Market testing
THE MARKETING PLAN
- Executive summary. A brief overview, ideally one page
- Vision: where you want to be
- Mission: how you will get there
- Objectives....
