Let people understand that Marketing is not all about Advertising as the latter is only a part of the marketing activity. Let us also not underestimate the power of advertising or promotion as it forms the core of the business activity. Instead of four "P" s namely, Product, Price, Place and Promotion, two more "P" s have come into existence, People and Packaging. Many of us confuse marketing with advertising where marketing is a function that guides the development and sales of a product or a service while advertising is part of the marketing campaign, abruptheless a brutal one.
I would like to go step by step on the promotion strategy that will help you to pitch your product for the appropriate market segment.
1. A Great Product or a Service : The quality of your product should be par excellence since quality of the product speaks for itself. Never compromise on quality even if it is going to cost you a few more bucks in your budget as you can recover the investment made in no time when you strike bang on the target. Total Quality Management is like an ISO BRAND for your company and helps you to attract more customers by building credibility. Make the customers happy and satisfied by giving them a product with unmatched quality. That will help you in establishing GOODWILL over a period of time.
2. Market Segment : Do some research on the demographic essentials that will help you to decide the right market segment for your product. In fact this should be your first step in terms of developing a product. Market research is absolutely essential to reasonably gauge the consumer preferences for your product -to- be, in terms of age, gender, income level etc., There are two entities when it comes to product purchase, first, the ability to buy and second , the willingness to buy. If you are going to pitch a premium product for a middle income group, that may prove to be a costly mistake.
3. Branding Strategies : The 'TAG LINE' that comes along with your product is a great source of promotion tool. You have to concisely frame your tagline in order to make people understand about your product. For example, 'Quotable quotes' clearly impress upon the idea that the website talks about inspirational quotes. 'A Diamond forever' implies that the product is diamond jewelry. Although a tagline does not delve deep into your marketing approach, the reach it gives your product is amazing. Over a period of time, people start associating your product with the brand image that has been created. Logos also position your product in the industry and become a part of your marketing campaign in course of time. Although branding takes time, it makes your job easy in the long run to take your product to the next level.
4. Promotional Strategies : Internet ruling the world, it is only but appropriate to go for online marketing. Create a great website that exhibits your product range for the benefit of the customers who can purchase your product online. This saves much time and analysts have confirmed that online marketing is an amazing tool that augments the product image and selling. Say, if you have developed an 'iPhone game app', what will be your target market segment and what will be your strategy to boost the sales of the product through promotions? You have to pitch the product in markets where people use iPhones and fix the price in relation to the purchasing power of that market segment. Face book and Twitter have become the business partners for almost all businesses that go online for promotions.
5. Pricing : Pricing is the critical component of the marketing plan as it is a volatile factor.A firm has to consider a number of other factors before fixing the price of the product. Consider the same 'iPhone game app'- you have to consider the initial investment made for developing the product, namely, salary for game developers, cost on license for gaming software purchase, promotion costs that include submitting the game on a popular gaming platform and costs for reviewing so that the game gets a good rating. The ratio of price per unit versus volume of sales should fetch you the required amount of profit that will cover the initial investment costs as well as a decent profit. Psychological pricing, say, 1.99 dollars might be appealing rather than 2 dollars, though there is no big difference.
Considering all these factors one could say that 'A Great Product with a Competitive Price and Unique Promotion' will make it to the top in no time.