Price decreases at the start of the pandemic.
Price increases today.
With the signs of increasing inflation, we ae spending more and buying less. We did in March and April, as we end May and go into June .
We've got the governmental stimulus checks driving demand. We've got the vaccination rates up and some pent-up demand.
We are seeing supply chain issues. Just in Time (JIT) inventory isn't working when the components aren't available.
I'm predicting vacation or travel costs will be up for families.
What about cars and clothing in the fall. We have workers going back to the office and kids going back to school.
Prices are sneaking up.
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I am a senior Forensic Marketing Expert, Advertising expert, Advertising/Marketing consultant with Londre Marketing Consultants, LLC.
The Nine P's/9P's of Marketing help identify marketing problems in a number of strategic areas and help develop profitable marketing’s objectives, strategies, tactics and solutions. The 9P's are insightful.
In the study and practice of Marketing, brand, advertising and marketing managers develop plans, strategies and tactics. The Nine P’s include these important concepts, practices and components:
- People (Segmentation and Targeting)
- In my 9P's, I stress that firms need to look and analyze potential, new, existing and repeat customers and users.
- To understand your "People" or market segments, you will need to or may need to utilize many characteristics, including demographics (such as age, family size, family life cycle, gender, income, occupation, education, religion, race, culture, generation, nationality, and social class), geographics, psychographics (buyers are on basis of psychological/personality traits, lifecycle, values), behavioral characteristics (needs and benefits, decision roles, user and usage-related variables, occasions, user status, usage rate buyer-readiness stage, loyalty status, attitude and multiple bases) and technographics (potential buyers may or may not have the software and computer skills. Think employees here too, which may be a vital component or components of the 9P's of Marketing.
- Once a target market is chosen, the organization can develop its marketing strategies to target a market segment or market segments
- It’s easy to market toward demographics, but brands can’t connect with people unless they learn how they think. By developing mindset-based marketing strategies, brand decision-making can better resonate with these segments, targets and audiences to increase consumer loyalty.
- Brand managers need to look at at their customers and/or potential users. Do you understand your potential customer's purchase and usage touchpoints, their habits and how they engage with your brand? Competing for their attention?
- Place "consumers," "People" or "potential buyers" in the middle of a circle. Find information or data on them. Add the other components in the other nine P's.
- Post Covid 19 pandemic, I'm seeing "People" want an exceptional buying experience, which includes ethics and the company’s values. People are caring about convenience, comfort, ethics, and sustainability. Look at home delivery of meals and everything on Amazon and Walmart or Target.
- “People” or consumers prefer to buy “Products” from brands that share their values and “purpose-driven” movements.
- Targeting mindsets allows brands to connect with consumers on an emotional level, which positively affects brands’ bottom lines.
- Consumer and shopping data, plus first-party data can also help brands identify what people find valuable and important. You need to know where they live, how they work and play?
- "People" or targeting has almost always been left out of the traditional "Marketing Mix," almost every diagram includes the four P's with Product, Promotion, Place and Price.
- In Marketing, from my education, training, research and analysis plus testimony, there needs to be greater focus on the buyer, "customer," or "People," in both planning ad implementation.
- Product and Services
- Under the 9P's, it's the goods and service combination the firm offers to the target market, including variety of product mix, features, branding, designs, packaging, sizes, services, maintenance contracts, warranties and return policies.
- A product (service) is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.
- Place (Distribution)
- Prices are creeping up. Just read the reports and studies by the Commerce Dept and the Fed. I’m finding that “People” or potential customers in my 9P’s, actual consumers are no longer buying “Products” and services based solely on “Price” and product quality.
- An IBM study found that Nearly six in 10 consumers ("People") surveyed are willing to change their buying habits to reduce environmental impact. They found that over 70% would pay a premium of 35%, on average, for brands and products that are sustainable and environmentally responsible.
- There are eight (8) major, strategic components or communication elements which are personal and non-personal communication activities.
- The activities that communicate the merits of the overall product include:
- Personal Selling/ Sales Force: Sales persons
- Listen more than you talk. People who listen more, learn more, plus helps you position your service/product/solution or offering.
- Advertising: There's an expression "It is only creative if the product or service sells." I wanted to add "It is only good media spending if it sells."
- Sales Promotion
- Collateral Materials
- Direct Marketing (also referred to as Action or Direct Response Advertising)
- Interactive/Internet/Web, Digital Media, Social Media:
- Events and Experiences
- Public Relations/PR
- Here are some strategic comments and questions under Promotion:
- To whom should you target and promote? Under "People"/Targeting, target market, audience with media characteristics fall here.
- What should you promote? Strategic copy points.
- Evaluate the eight different elements under Promotion and your brand's practices. That affects media planning.
- Ask is there a better way? A different promotional mix. There has to be a better way.
- What are your costs in dollars and manpower or person power? Ask "Is there a different way or ways to budget?"
- Look at different strategic partners? Their costs?
- You can differentiate with price. Discounting? Special sales? What economic and discount levels should you offer? Look at revenue versus costs.
- What form or combination of promotion should you offer? Features?
- How frequent? Add media planning here.
- Consumers are voting with their wallet and pocketbook.
- Some research says that consumers or my "People" care about business and their brands that have a social conscience (for the environment, for their workers, for societal issues, etc.). These "People" are actually prepared to pay more for these brands. They will support the brands that do, and ditch brands that don’t.
- It's been reported that consumers or "people" are socially aware about how brands, products and businesses behave.
- Deloitte found that “62% of customers said that they are more likely to spend with companies who have taken extra steps to ensure the safety and well-being of their employees during lockdown.”
Or for more fun, marketing strategies/tactics and facts: Go to Marketing Trivia with 54 stimulating questions and answers at Londre Marketing Consultants, LLC. Here to help. All the best.