Today we’re going to take a look at a classic theoretical topic in marketing. University knowledge, so to speak.
To make sure that this knowledge doesn’t just remain a theoretical model for you, I’ve spared no effort to make this blog post as clear as possible for you.
So I tried to complement the whole thing with the current standards of modern marketing.
You are welcome to comment on what came out of it. And I’m happy about suggestions on this topic anyway!
First, let’s get to the 4Ps of marketing:
#1 Product – Product Policy
You start a company. Let’s call it the Sales GmbH. Of course you ask yourself what you want to sell. What is your product? It can be a service or a physical product. The problem is, just because you think your product is sensational doesn’t mean your customers will find it equally sensational.
In classical theory, product policy includes the following sub-areas:
- Product management: development and structure of the product
- Brand management: building and developing the brand
- Packaging: the effect of the packaging should not be underestimated
- Service: Which service channels should there be?
- Program or range policy: How should the product range be expanded?
We prefer the approach of developing the product together with the customer.
How can something like this work?
Let’s assume you want to set up a marketing consultancy with your Sales GmbH. At the beginning you talk to countless entrepreneurs and self-employed people. You ALWAYS ask them about their pain points.
Now you know what problems people are dealing with. Once you’ve done enough surveys, you’ll realize which target audience suits you best and how to tailor your marketing to them.
Let’s say you have food startups as your target audience and they have the problem that they need to constantly attract new customers. Now you develop a solution strategy for your target group and start actively selling/promoting it. Piece by piece – with more and more knowledge you build up the other areas, e.g. a content strategy to push your brand, a CI as “packaging”, a FAQ area for the service. You continue to expand your offer with the development of the service. You develop everything dynamically.
This is what modern and customer-oriented product policy looks like!
#2 Price – Price policy
Of course you have to be aware of the value of your consulting services to Sales GmbH.
Therefore, it is advisable not to make wishy-washy statements regarding your service. Define clearly which stages or modules of your service there are. So that your customer knows exactly how much service he can expect in each stage, the scope of services must also be known. Last but not least, define the terms.
Now the customer knows exactly what to expect and is not in the dark. Now you just have to set your price, I will write an extra blog article about this.
Basically, I would like to say to you: Always go into the price negotiations with the mindset of abundance.
Signal that you are not dependent on the customer. If the customer says no, then he does not fit your offer.
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#3 Promotion – Communication Policy and #4 Place – Distribution Policy
In economics, all actions that serve to spread information about the products/company are called promotion or communication policy.
Distribution policy refers to the actions that promote sales. In my opinion, this separation is due to the university theory.
Because the two go hand in hand. You will be all the more effective if you let your marketing department work closely together with your sales department. Ideally, your marketing department will get the leads (contacts) with creative ads and content, and your sales department will convert these contacts directly into enthusiastic customers.
You can learn more about the options available to you on our blog.
Those were the classic 4Ps. In recent years, there have been additions by various authors. First, let’s look at the extension to 7Ps:
#5 Person – Personnel policy
I know it’s extremely difficult to find good people right now. That’s why it’s even more important to set up a clean process for recruiting.
After all, your employees are the ones who help you represent Sales GmbH to the outside world or provide the service.
This has a decisive influence on the external perception of your company. This starts with the neatness of the employee, over friendliness up to punctuality.
Define your desired candidate at the beginning. What qualities should he bring with him? What strengths should he have? Keep in mind that strengths often go hand in hand with weaknesses.
So think carefully about what you value. And then let the recruiting campaign run hot!
#6 Process – Process Policy
A company without set routines, processes and clearly defined strategy is doomed.
There are two types of people – those who are good with numbers and those who are not.
If you belong to the first group, congratulations. However, you will most likely have to find a congenial partner who is responsible for motivation, communication and sales.
If you are this congenial partner yourself, then by all means look for a numbers person! You will complement each other, that it is an inner flower picking for you!
The number person has to define, control and readjust everything exactly.
This starts with the finances, continues with the customer journey and ends with the management of the CRM system.
Speaking of the CRM system. If you are currently using self-made Excel tables, then stop! Invest €15 per month in e.g. Pipedrive. This is the best invested €15 of your life.
This topic is so important that I will write a blog post about it. Because with a CRM system you will be able to manage your customer flood wonderfully and you will be forced to do your follow-ups cleanly.
#7 Physical Facilities – Equipment Policy
This is about giving the customer a sense of value both in your business space and in your images.
I’m not saying you should get an opulent office. I have a much better and cheaper tip for you:
Coworking spaces are becoming more and more popular. These are more than just representative.
At an acceptable price (from €200) you get a state-of-the-art working environment in a prime location.
Sometimes you feel like you’re on a Google campus. Most of the time you get a coffee and beverage flat rate. I personally have my offices at WeWork. There, a beer flat rate is included. In addition, I can flexibly book cozy meeting rooms.
And the best thing is: you get to know so many potential customers there. A program of activities rounds off the whole thing.
Besides WeWork, I can also recommend DesignOffices. Feel free to write me in the comments which coworking providers you think are also worth their money!
Now that I’ve explained the 7Ps, let’s move on to the 8th P. This is the most important P. I’ve already touched on it before:
#8 Participating Customer – Customer Integration
Especially through social media you have a perfect tool to involve your customers. Thus, the trend is increasingly moving away from the offer, i.e. the product, to the needs of the customer. We remember: The needs of the customer are always: avoid pain or feel pleasure.
What does this mean for your Sales GmbH?
- Build long-term relationships with your customers (invitations, emails, Christmas cards, …)
- Ask honestly about the needs of your customers (feedback conversations, surveys, listening, …)
- Involve them actively (workshops, actively ask for their opinion, guest contributions, …)
- Always talk about the benefits of the customer: What does the customer of Sales GmbH get from your service?
Always keep in mind that a customer only has his advantages and benefits in mind. Therefore, avoid boring self-congratulation and long company presentations. Give him the feeling that you have understood all his longings and bottlenecks and that you satisfy or solve them for him!
A content customer will recommend you to others and never costs as much as a new acquisition. Have fun working with your customers!
Summary of the 8Ps in Marketing
Here’s what we’ve learned in this article:
- Always develop your product in the interest of your customer
- Your service package should be exactly defined
- When marketing and sales work hand in hand, you have an endless stream of new customers.
- Find the best employees – your customers deserve it
- A numbers person in the company management is worth its weight in gold
- A coworking space is an affordable and high-quality alternative to an office
- Align everything with your client’s needs and they will love you!
I hope I could bring this theoretical topic in the field of marketing closer to you and complement it with good practical tips. Feel free to write me your feedback!
Good luck in building up your Sales GmbH or whatever you want to call your company!
PS: If you want to be even more successful online, then take advantage of the expert knowledge of Monkeys.Digital & arrange a free initial consultation firstname.lastname@example.org