Objectives:

• Determine the factors that will make the

product strategy effective
• Discover a good distribution channel for the
new business
• Put up a good pricing strategy
• Create useful and meaningful ways to
promote new product/services ; and
• Appraise the ways on using people, process
and physical evidence on making a new
service business successful.
• “Without an effective start up
business marketing strategy,
the company will not be
capable of bringing in new
business.”
 4 P’s of Marketing

4 P’s of Marketing
Mix
• Product Strategy-

Solving one’s own problem is a great way to start

building a product. When setting a new product or
service offering, the would-be-business owner must
first do an in-depth study of competing products and
services currently in marketplace and set a plan on how
he will differentiate his offer to potential customers.
• Place (Distribution) Strategy
– The place element of the marketing place is
where the product is made, where is it stored and
how is it transported to the customer.
– The place for each of these things should
guarantee that the product gets to the right place
at the right time without damage or loss.
• Place (Distribution) Strategy
The ideal place will be:
1. Convenient for the customers and the business
2. Accessible for the customer if it is the place
where the product is sold
3. Low cost or free for the customer If it is the
place where the product is sold.
4. Reasonable cost to the business.
 Two types of Channel of
Distribution:
1. Indirect Distribution
– Involves distributing
the product by the
use of an
intermediary for
example: A
manufacturer selling
to a wholesaler and
then on the retailer.
Two types of Channel of
Distribution:
2. Direct Distribution
Involves distributing
straight from a manufacturer
to the consumer.
The advantage of direct
distribution is that it gives a
manufacturer complete
control over their product.
 2. Direct Distribution
Depending on the type of product being distributed there
are three general distribution strategies available:
Intensive Distribution Exclusive Distribution Selective Distribution

- It is used commonly - Here a small number of

to distribute low - It involves limiting retail outlets are chosen to
priced or impulse distribution to a single distribute the product. It is
purchase products outlet. The product is common with products such
like chocolates and usually highly priced, and as computers, televisions
soft drinks entails the intermediary to and household appliances,
place much detail in its sell. where consumers are
An example of it would be willing to shop around and
the sale of vehicles through where manufacturers want
exclusive dealers. a large geographical spread.
• Pricing Strategy

The pricing strategies that will help reach the

target profit margin. How the would-be-business
owner prices the new product or service so that the
price remains competitive will allow a good profit.
Pricing should take into account the following
factors into account:
1. Fixed and variable costs
2. Competition
3. Company objectives
4. Proposed positioning strategies
5. Target group and willingness to pay
 TYPES OF PRICING STRATEGY
PENETRATION SKIMMING COMPETITION PRODUCYT LINE
PRICING PRICING PRICING PRICING

- The - The - Setting a price - Pricing

organization organization in comparison different
sets a low price sets an initial with the products within
to increase high price and competitors. the same
sales and then slowly Really a firm product range
market share. lowers the price has three at different
Once the to make the options and price points.
market share product these are to
has been available to a price lower,
captures the wider market. price the same
firm may well The objective is or price higher.
then increase to skim profits
their price of the market
layer by layer.
 TYPES OF PRICING STRATEGY
BUNDLE PSYCHOLOGICAL PREMIUM OPTIONAL
PRICING PRICING PRICING PRICING

-The -The seller here -The price set is - Pricing

organization will consider the high to reflect different
bundles a psychology of the products within
group of price and the exclusiveness of the same
products at a positioning of the product product range
reduced price. price within the at different
Common market place price points.
methods are
buy one and
get one free
promotions
TYPES OF PRICING STRATEGY
COST BASED PRICING COST PLUS PRICING

-The firm takes into -Here the firm adds a

account the cost of percentage to costs as
production and profit margin to come to
distribution, they then their final pricing decisions.
decide on a markup
which they would like
for profit to come to
their final pricing
decisions
• Promotion Strategy
The startup business owner must decide
on the methods of promotion he will use to
communicate the features and benefits of the
new products or services to target customers.
 TYPES OF PROMOTION STRATEGY
TYPES OF PROMOTION DEFINITION
Advertising Any non personal paid form of
communication using any form of mass
media
Public Relations Involves developing positive relationships
with the organizations media public
Sales Promotion Commonly used to obtain an increase in
sales short term. Could involve using
money off coupons or special offers.
Personal Selling Selling a product service one to one
Direct Mail It is the sending of publicity material to a
named person within and organization
Internet Marketing Promoting and selling your services online
using various forms of online marketing
techniques.
Sponsorship Where you pay an organzation to use your
logo or brand.
• Service Marketing Mix (Extended Marketing
Mix)
Some would-be-business owner desire to put up
businesses that sell services and still others sell
products and services.

There are five characteristics to a service.

1. Lack of ownership
2. Intangibility
3. Inseparability
4. Perishability
5. Heterogeneity
• People Strategy
Business people responsible for
providing service to customers must consider
people as vital in making the startup business
successful.
People are necessary ingredient in
service provision; recruiting and training the
right staff is mandatory to create a
competitive advantage.
• PROCESS STRATEGY
- This element of the marketing mix looks
at the systems used to bring the service. It deals
with the process that allowed the customers to
obtain an efficient service delivery.
PHYSICAL EVIDENCE
is about where the service is being
delivered from. It is particularly significant to
retailers operating out of shops. This element of
the marketing mix will differentiate a company
from its competitors.
 QUANTIFY THE MARKETING
BUDGET

Marketing is essential to understanding

the profitability and growth of a startup
business. Yet , many starting business don’t
allocate enough money to marketing or worse,
spend it chaotically.
 QUANTIFY THE MARKETING
BUDGET
• Knowing how much to spend on marketing is
critical, even more critical is how to spend it.
• Marketing budget means having a plan
• It should outline the costs of how to achieve
the marketing goals within a certain
timeframe.
• Once developed, remember that there must
be a need to throw in another unplanned
campaign or event.
 QUANTIFY THE MARKETING
BUDGET

“At the end of the day, knowing whether

the spending is actually helping achieve
the marketing goals is more important
than sticking to the budget. ”
END OF SLIDE