According to J.P.Morgan, Black women are the fastest growing group of entrepreneurs in the U.S. right now.
If you’ve been thinking of turning an idea into a business, this marketing strategy aka The Marketing Mix will help you create the simplest version of a business plan.
Introducing: The Marketing Mix
The Marketing Mix sometimes referred to as The 4Ps of marketing states every business is made up of 4 core elements.
Why? Because, when these 4 elements are established, they act as a foundational guide helping you get to where you want to go. Essentially, knowing the 4Ps of your business is kind of like a very basic business plan.
So, what are the four core elements (ie. the 4Ps) that make up every business?
- Product
- Price
- Place
- Promotion
Product
Every business has a product. Your product is the ‘thing’ people are giving you money in exchange for. It may be a physical object (like a jar of whipped Shea butter) or it can be intangible for example, a service (like a one-hour coaching call).
What is your target audience going to buy from you?
Price
Every business establishes a price for its product. The price should be aligned with what your target market is willing to pay for your product but it should also make sense from an expense and profit point of view. What I mean is, that the price you charge should allow you to cover any costs associated with producing your product, plus pay you for your time while still being attractive to the people who need what you have to offer.
After doing the math, what are you going to charge for your product? Considering other businesses selling similar products, are your prices at the higher or lower end of the market?
Place
Establishing where you are going to sell your product is another foundational element. After all, the success of your business relies on people buying your product, but they can’t buy it if they can’t access it. Think about where your target audience frequents and work to get your product into those places. Maybe your target audience loves hanging out and shopping online. That’s one location you could choose to sell your product.
But here’s a word of caution, while it seems like everyone hangs out online these days, not everyone is shopping online. Online shopping requires your target audience to have bank cards and to trust online banking systems and online shopping in general. Maybe your audience spends more time shopping with cash at pop-up markets or somewhere else. Put your product in the places that make the most sense for your business.
Thinking about the specific group of people you are trying to help with your product, what are the best locations to place your product that makes it accessible to them?
Promotion
Finally, the last core element businesses must establish is a promotion plan. In the words of Investopedia, promotion is all about how you will communicate “…to consumers that they need [your] product and that it is priced appropriately. Promotion encompasses advertising, public relations, and the overall media strategy for introducing a product.”
Thinking about how your target audience learns about new products, where will you tell them about your product? How will you get your target audience to understand that your product is the best on the market for them? How will you convince your target audience that the price you’re selling your product for is good value for them?
Writing down the 4Ps of your business idea can help you go from a half-baked idea to a more solid, basic business plan. With this ‘map’ established you’re ready to move on to the next steps in bringing your business to life. Good luck!
