Building a Marketing Model

Video Transcript

"Marketing Guru Philip Kotler perhaps said it best. Authentic marketing is not the active selling what you make. But knowing what to make. This would also be the first step in building a marketing model. Hi, I'm Peggy Collins. And we're going to talk a few minutes about how to build a marketing model. The business world is littered with sad stories of people. Who develop products that nobody wanted to buy. So step number one, find a product that people want. And then develop a strategy to reach that market segment. Step number two, determine what customers would be willing to pay for the product, you've decided to make. The price should reflect not only the actual cost of the product, plus a markup. But the G Wiz factor or the vanity value. Remember the first I-phones. They flew off the shelves at six hundred dollars. Now the new generation is available for less than two hundred. And out performs the original in every way. Extensive market research will have determined the price point. And that will be your major piece of your marketing model. Step number three. O.k, you have your product and your price. Now where do you place it. How will it be sold? Increasingly, manufacturers are looking for places other than brick and motor stores. To sell their products. Distribution and shipping costs are off the charts, now. And you still have to store a bunch at regional warehouses. To serve the stores. The place to sell these days, is on-line. and for all the right reasons. No warehousing. And in most cases, the customer pays the shipping costs. You can buy just about anything now, on-line. Even over your cell phone. And effective marketing model will include Internet selling. Step four, promotion. While it's last on the list. It is in my opinion, the most important step in building a successful marketing model. Without the proper investment, you maybe left with a garage or a warehouse filled with the best gadget. Nobody ever heard of. Advertising is key. But don't under estimate the value of face to face selling. Devising innovative sales promotions. And tossing in some effective public relations, for good measure. I'm Peggy Collins, wishing you good luck and good business."