A few months back, we wrote a short blog about “3 Reasons Why Your Services is Your Product.” In that blog, we outlined why home services businesses that don’t sell a physical product should still consider your “service” as a “product”. At the end of that blog we mentioned a marketing technique called The Marketing Mix and in this blog we will expand on a famous classification of this tool named “The 4Ps of Marketing.” We recognize that many small business owners will not have attended business school so here’s our useful overview that you can put into practice and make your life easier when taking your services to market.
To many marketers, the four “P” words (commonly, and more aptly, known as the 4Ps) are the golden fundamentals of all marketing. The 4Ps are the starting point to success in marketing your business and your services. For small business owners that often only think of marketing as something only big firms with big budgets do, the 4Ps may seem a bit of a mystery, but by following the simple framework you can transform your thinking and take your services to market more effectively. And more effective marketing creates more demand, leading to increased revenues.
Developed in the 1960 by E. Jerome McCarthy, a marketing professor at Michigan State University, the 4Ps stand for product, place, promotion, and price; the four key elements of marketing any product or service.
• Product: Be clear about exactly what you are selling to your customers. You may not have a tangible product to sell but know if you are selling “home cleaning services”, “landscaping services” or “pest control services.” The more precise you are with telling people what service you are selling, the greater the chance you’ll end up targeting the right people: those people who want to buy your services.
• Place: Where will you be selling your services? Will it be online via sites such as Angie’s List, on your company’s website, via the telephone, or using some or all of these techniques? Here you are deciding on how people will be able to buy from you. By making it simple, you can encourage more people to buy without needing to ask many questions because questions create confusion, and confusion drives potential customers away.
• Promotion: How will you promote your business and services? Will you advertise in local newspapers, or display your logo on your field service representatives’ vehicles? Even the subtle use of your logo on a business card or estimate is an example of Promotion. Think carefully about where and how you want your future customers to find out about you.
• Price: Decide on how you will charge for your services. Is it by the job, by the hour, by the square foot, or by some other measurement? How will you incorporate your running costs and overheads? Whatever approach suits your business should be clear and transparent to your customer, and price with no hidden charges. And remember to add some margin too because you still need to make a profit.
shorter model. But what do you think of this model, and what are your experiences of adopting this?