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Your Marketing Plan Step-by-Step, Page 6

Step 6. Place

Where do your customers go to buy?

After you know who your audiences are, and where they are, it makes it much easier to determine where to locate your business to be most successful. Again, remember, quick and easy is what we customers like.

Here are questions to ask about your place of business:

  • Can your customers easily find you?
  • Do you have easily read, lighted signage?
  • Do customers immediately know what you have to sell?
  • Are you in a safe, well-lighted location?
  • Do you have good visibility from the street?
  • Does your location look clean and friendly?
  • Do you show your customers that you are environmentally conscious with recycling in evidence?
  • Can customers easily park?
  • Do you have a well designed, easily navigated website?
  • (Current stats show that more than 70% of buyers and growing now check the web BEFORE they buy in store or online).
  • Once customers are in the store, will your Internal Company Morale encourage them to return?

Step 7. Price

Where do your customers go to buy?

Setting a price is a critical part of marketing. The purpose of price is to create a set value for a product, idea or service - a value that results in profitable exchange for both the buyer and seller. Value for both buyer and seller is in the perception of a fair deal, a satisfactory, two-way exchange. This value often is measured in money, although a trade or exchange can be for services often referred to as value-added promotions.

Profit is measured in the revenue or cash remaining after all expenses to the buyer have been deducted.

When setting a price for profit, first determine what all the expenses will be. These include labor, inventory, salaries, rent, production, sales, advertising, legal expense, license fees, training, lights, heat, phones, websites - in short, all of the costs of bringing a product to the market.

Next, review your SWOT as price also is determined by what the competition is doing, by your objectives and by any constraints you defined in your SWOT.

Third, estimate the demand by reviewing your opportunities, your objectives and the audience most likely to buy from you and why.

When you price, remember to be flexible. It is easier to go down than to go up. If your price is too high, have a sale.

Don't forget to include the cost of distributors if you are selling wholesale. Check to see how many of each item you need to sell to make a profit. It may be that it's not worth it - and if so, that's ok. You will have saved yourself a lot of agony and money in the end.

Here's an example of how I found out how many books I would have to sell to make any kind of profit:

Book Price: $12.95 (based on extensive review of competition and similar products)

Production cost:     $3.50
Distributor cost:     $7.00
Marketing cost:      $2.00
--------------------------------
Total:                    $12.50

At $.45 per book, I knew I would have to sell a whole lot of books. This was going to have to be a volume business!

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