While there are many benefits to starting your own home-based business, such as the ability to be your own boss, set your own hours, and work from where you choose, that doesn’t mean running such a business successfully is without challenge.
Success in running a home business comes from offering a quality product or service to a target market. It sounds easy enough, but many new home business owners are often inconsistent and ineffective in their marketing because they have a lack of knowledge in the area. Having an understanding of things like the marketing mix and how the 5 Ps of marketing work together will help you find your market audience and entice them to buy.
To help you effective market and grow your home-based business, we’ll list and explain the 5 Ps of marketing and how these steps can be applied to any home business.
The 5 Ps of Marketing
The 5 Ps of marketing are product, price, place, promotion, and people, and having an understanding of all these areas will help you communicate more effectively with your audience.
Product: First and foremost, you need to be able to tell your audience about what you’re trying to sell to them. What products or services do you provide? Be specific and clear. What are the physical attributes of the product or the details of the services you provide? Explain the features of your products and services and how they specifically benefit your market. Also, highlight how you differ from what your competitors provide and the things that set you apart.
Price: Determining the right price-point for your product or service is very important. You want to make sure your prices are competitive, but you also have to make sure you’re not undervaluing your product. What are you charging for your product or service? It needs to be enough to cover your expenses and make a profit, and yet fit with what the market is willing to pay for the quality of product and level of service you provide.
Place: No matter how many people hear about your product, they won’t be able to purchase it if they don’t know where to find it. Where are your products and services sold? How are your products and services distributed? How will you get them to your customers and clients? For example, are they digital goods sold online and delivered through an autoresponder system? Or you do you use a third-party such as Amazon’s fulfillment program? You should also consider the purchasing habits of your target audience to determine where your product should be sold.
Promotion: Now that you’ve got the essentials figure out, you have to decide the best plan for reaching your target market. What methods are you going to use to let potential customers and clients know about your products and services? To do this, you need to understand your market, including where it can be found (i.e. social media, print, radio, television) and how you can create marketing messages that your demo will respond to. Hint: pointing out how your product can help solve a problem relevant to your audience’s problems is a great starting point.
People: If you’re in a position to be hiring employees to help you with your home business, you need to be selective in who you choose. The people and services that you use in your business can impact your success. For instance, if your salesperson or virtual assistant is rude, you’ll lose customers and clients. If your product or service delivery systems fall short (i.e. the digital product isn’t delivered), you’ll have complaints. Remember that customers have a choice in whom they want to do business with, and they prefer companies that provide easy-to-use systems, offer customer service when needed, and are attentive and responsive to their needs. Happy customers will become repeat customers and will refer new business.
How the 5 Ps Guide Marketing Effectiveness
By employing the 5 Ps, you are ensuring that you are effectively reaching your market with clear and precise messaging so that you can provide them with the products and services they need.
The better you understand and target your desired market, the less time and money you expend in reaching them. Spend time putting yourself in your potential customers’ shoes and imagine what steps they would take to find a product or service like yours, and what information they’d need to finalize the purchase. Knowing your audience is of particular importance for small, single-person businesses, as time and money are precious commodities, and you don’t want to waste them on shotgun approaches to marketing.
The 5 Ps will help you focus on what you need to do in marketing, and also give you clues when things aren’t working. If you aren’t finding as much success as you feel you should, then re-examine your approach to the 5 Ps and see where you can make improvements.
The 5 Ps Are an Important Part of Your Business and Marketing Plans
Utilizing the 5 Ps will help focus your activities and give you a better understanding of your market. Ultimately, it will help increase your reach, helping you market to more of the people you want to get your product in front of.
Just remember that nothing static. Your 5 Ps will change and evolve with market needs. For instance, technological advancements may require a change in how you promote your business. A perfect example is Social Media Marketing—a decade ago no one could’ve expected social media to become one of the most important platforms for businesses.
To keep your company growing and adapting to changes in the market, make sure you’re always analyzing and testing your market reach and return. Study website stats, survey your customers for feedback, test efficiency and effectiveness of your sales and delivery systems.
When your implement the 5 Ps, your home-based business will flourish!
If you’re ready to learn more about the many ways you can market your business and reach new, valuable customers then visit Cereal Entrepreneur’s blog for educational articles every week. You can also follow us on Facebook,Instagram, and YouTube.