I was recently asked how I apply the Four Principles of Marketing to my business.
The 4 P’s being Product, Place, Price and Promotion.
When I was with Wells Fargo, I spent a significant portion of my time working with marketing teams to help analyze market opportunity, assess market penetration, and to measure marketing campaign success.
I learned quite a bit about how to attach metrics to each of the 4 P’s to determine our strategy.
When it comes to product, the most common metric is sales. How many products have been sold and how much revenue that translate too is a cornerstone of any business plan.
It can be just important though to blend in analysis that is not reflected by internal data alone. Knowing how your product stacks up to the competition and what your customers are saying about your product are much more challenging data points to capture.
As for place, the general data point most business decision-makers start with is how much sales activity comes out of a location or geographic area.
Place can also be reflected in marketing channel; in-store, direct, online, etc. Decision-makers tie this concept to market place and always look within that place to determine marketing plans.
I also like to add demographic data to place to help understand overall opportunity and trends in how the market place is evolving.
Price is much more than just what it costs to produce and sell a product. Marketing expense must also be counted in the amount ultimately charged for a product. Price usually contain several components that can be analyzed to make sure price covers expense and allows for profit.
Again, I look to competitor data to help assess if the price we are charging is optimal. As a rule, you don’t want to be too expensive or too cheap when your customers have a choice.
Finally, when looking at promotion, its more than just where you sell your product and what marketing materials your use. Using the right delivery channel and leveraging your company brand also factor into the equation and should have metrics attached to them.
So, as you can see, marketing is more than just counting products sold, finding a place to sell the product, setting a price and beginning a promotion. For a good marketing analytics strategy, that is just the beginning.
An effective marketing analytics approach should have at least 10-20 data points to more accurately capture the things you need to know like how big is your market, how competitive is your product, how deeply have you penetrated your market, and what delivery options are the most effective ways to promote your product.
The 4 P’s of Marketing can easily be built into a marketing analytics dashboard where you see your key performance indicators and make swift, decisive business decisions.
Since setting up my business about 5 years ago, I have helped dozens of businesses get a better handle on their 4 P’s using marketing analytics.
Let me show you how we can do the same for your business.
Business Strategy with Analytics – Aligning a business strategy to drive an organization forward requires a robust analytics solution. Businesses who have good analytics tend to be much more profitable and efficient then ones that do not. DMAIPH has helped dozens of companies in both the U.S. and the Philippines with adding more data analysis in their business strategy. Contact DMAIPH now at firstname.lastname@example.org or connect with me directly to find out what we can do to help you align your business strategy with analytics.