Marketing Definitions
Marketing mix:
Marketing mix usually refers to McCarthy's '4 P's':
Promotion, Place, Price and Product. Other words beginning with P (eg People
and Process) are sometimes also included. Helps to
explain the scope of marketing although very much an
over-simplification.
Competitive Advantage / Competitive Edge.
The point of difference that gives your product a real
advantage over its competitors. One of the key tasks
in marketing. This might be a superior product in some way, or a greater range
of product options, or the deliery time, or the back-up service, or any number
of other attributes. Market:
A group of people or organisations that share a need
for your product. Not always as simple to define for
your product as you might think. It is not uncommon for small business owners
to be too 'ambitious' or 'non-specific' with the definition of their own
market. This leads to a lack of focus and a great deal of the current marketing
budget/effort being wasted.
Market segmentation:
The process of dividing the market into smaller (more
specific) groups / sectors / segments that share one or more characteristics. The tendency is for inexperienced managers to segment
the market by product type (ie Widget A, Widget B, Widget C). This can
be a mistake as the most appropriate segmentation is by customer group. By segmenting the market in
this way it becomes much more obvious where your business-building activities
need to be focused.
Market share:
The percentage of the total market (or market sector)
that is using your product.
Mission:
The central goal(s) of an organisation. This
is then broken down further into 'Objectives',
'Strategies', and 'Tactics'.
Place:
The way in which a product or service is distributed,
or where it is located.
Positioning:
How your product fits into the market, and how you
want it to be perceived in relation to its competition. Not always as simple to define as you might think.
Product:
Your product and/or service. Not always as simple to define as you might think. If you
manufacture a Widget, is the 'product' the widget itself or the excellent
customer service you have developed to support it?
USP (Unique Selling Proposition)
What makes your product different from those of your
competitors. What can you say about your product that cannot be said by your
competitors?You should always strive to generate a
point of difference between you and your competitors (and not necessarily
price).
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