Whole Concept Marketing

Creating Valuable Exchanges in the Marketing Mix

by Tammy Cannon

From time to time I drive past a little vegetable stand off the side of an out-of-the-way road. At first glance it looks like your everyday country entrepreneurial enterprise, reminiscent of those lemonade stands we all had in our childhood. You may not think there’s a whole lot of “marketing” that applies. But on second glance, we see just how this country roadside vegetable stand uses the principles of marketing to sell its agricultural wares.

The first element of marketing is that of the product. Our vegetable stand owner has to know what kinds of produce should be on display. This isn’t too difficult, considering the stand’s usually stocked with those vegetables in season. But which products are the most in demand? Will a stand stocked with brussels sprouts create as much revenue as one stocked with carrots? The owner will do well to know his or her target market and what the customers’ tastes and preferences are. The way the product looks is important to consider as well. Which vegetables look fresh in appearance, even after a long day in the hot sun?

Next, we’ll take a look at the price of the produce in our roadside stand, the second element of marketing. Does our stand owner price the vegetables slightly lower than the major grocery chains? Or is it important to price them equally or higher, based on the concept of freshness, locally grown, etc. Our owner has to analyze his goals for success in determining what his return-on-investment (ROI) should be and how fast it should be generated. By matching his revenue goals to compliment what the market will bear, our stand owner will reap the profitable benefits of logical pricing.

Location, location, location. We’ve all heard this before and it’s for good reason. The third element in our marketing example is placement of the product. For our vegetable-stand owner, considering where to place the concession is very important. Perhaps in front of the family home makes sense, where restocking is quick and easy. But is it a high-traffic area? Does the location need to be so “busy”?

By now, our stand owner has settled on which vegetables are in demand and which ones still have good “show” after a long day. He has also determined his level of comfort in generating revenue. So, if he has concluded that the current crop of vegetables doesn’t do well after a long day and he requires high turnover to make a profit, a high-traffic area makes more sense than in front of the family home. On the other hand, if he’s decided that revenues from the stand are a small supplement for his children’s spending money and that the vegetables will hold up well, the location in front of the family home will do just fine.

All of this analysis leads us to the last element of marketing and that is promotion. For our roadside enterprise, promotion doesn’t have to be complicated. It isn’t necessary to create beautiful brochures or to place huge, expensive advertisements in newspapers, for obvious reasons. Grass-roots promotion will help our roadside vendor. Word-of-mouth is a tried and true method of promoting products and services. The way the vegetable stand is painted may add a flair that beckons passersby to stop. Perhaps if it’s meant to generate revenue for extra spending money for the kids, tiny hand prints are painted on the outside of the stand, with a cute sign that reads, “Yummy Veggies Made by Tiny People.” The clever, unique and innovative ideas are the ones that stop people in their tracks.

These elements — Product, Price, Placement and Promotion — make up what’s called the “marketing mix” or the 4P’s of marketing. This concept can be very detailed and multi-layered under each element, or simplified for the roadside enterprises around the world. The things to know for sure, even for the small enterprise, are:

• Recognizing what products to offer and when.

• Understanding how the product is expected to make a return on investment — and matching this with what the market can bear.

• Knowing how to distribute the product .

• Determining how to communicate all of these elements to promote the sale of these items.

All of these aspects compliment each other, and when they are utilized together, a successful enterprise is built.

So take a look at the whole concept of marketing and how it applies to your products or services. If you don’t, you may find yourself promoting ketchup Popsicle sticks to women wearing white gloves.

 

(Tammy Cannon is owner and founder of i.m.c. [Innovative Marketing Concepts] of Burlington. Call 421-1720 for more information, or e-mail her at i_m_concepts@hotmail.com.)