Examples of price/value/cost decisions
- Brand Name
- Functionality
- New Products
- Styling
- Variety
- Design
- Features
- Packaging
- Quality/Value
- Warranty
- Diversification
o help you accurately define and develop the products and services that you will take to the market, you can create a product
description statement.
When writing a product description statement, ensure that you connect the features of your product to the way that they can benefit customers. By having a clear understanding of what your product is, you'll be in a better position to fully exploit its potential when advertising and selling it. A clear definition of your product can also help customers make informed decisions and improve their level of satisfaction.
To further improve the attractiveness of your offering you may like to consider adding additional value using incentives such as guarantees and warranties.
A warranty is a legally implied obligation which guarantees the repair or replacement of a product in the event that it fails within a certain period after it has been purchased.
A guarantee is an agreement by the business to assure the quality or length of use of a product offered for sale by the business and in the event that the product is faulty, a refund is given.
A key point in developing your marketing strategy is to come up with your unique selling proposition (USP). A USP is what makes your product or service stand out from your competitors and is generally the reason why customers will purchase your product or service over those of the competition.
Some commonly used USP's are offering ‘best service', ‘lowest price', ‘best value' or ‘most advanced technology'. However, when determining your product's USP be sure to also look beyond the physical characteristics of your product and consider the intangible or psychological benefits of the product for your target customer group such as security, comfort, and timeliness.
4 P's of Marketing Unique Selling Proposition
To convey your USP to customers, you can consider developing it as a way to promote your product. Consider using it on your marketing communications such as business cards, letter heads, brochures, web site etc.
A value-added service is an important factor that should be considered when developing your business's USP. Value adding refers to providing a supplementary or complementary benefit to the customer in addition to your core product which the customer wouldn't receive from your competitors. It is an extra incentive used to encourage customers to rate your product above those of your competitors.
Your product or parts of it may be bought in full or made from raw materials that you purchase from suppliers. Working closely and with these suppliers to develop strong relationships and develop efficient business systems to facilitate your purchasing requirements can help you to; increase profitability, maximize efficiencies, optimize your inventory levels, and reduce storage requirements.
When selecting suppliers it is important to carefully evaluate their offering considering various factors as following:
Dealing with a single supplier can be very efficient and offer opportunities to forge strategic linkages increasing quantity discounts, levels of cooperation and responsiveness. However utilizing multiple suppliers provides options protecting against an over reliance on a single supplier and reduce your risk. Utilizing multiple suppliers also provides the opportunity to ensure competitiveness.
Intellectual property (IP) is the product of someone's intellect used to create something novel, different or original. It can occur in a number of forms such as a piece of art work, a good idea, a design or plans for a design, an invention, knowledge, a book or a trade secret.
IP can be legally secured to ensure that only a certain person (or group of persons) have exclusive rights and control over the use of the idea or invention and therefore have rights to extract profits from it if they see fit. It is illegal for others to copy or use that idea or invention for their own benefit.
There are a number of methods that can be implemented to ensure that your intellectual property rights are protected.