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Explanation of the Three Phases of Marketing by Ron Kurtus - Succeed in Marketing. Also refer to goal, purpose, mission, customer, competition, preparation, product, service, price, place, promotion, advertising, sales, School for Champions. Copyright © Restrictions
Three Phases of Marketing
by Ron Kurtus (revised 10 September 2011)
Marketing is the business activity that leads to sales. There are three phases in the marketing process: defining, preparing and selling.
To effectively pursue the goal of selling your product, you need to first define your circumstances, such as what your core business is and who your customers are. Then you must make preparations for getting your customers to buy your product. Preparations include getting an appealing product, setting a good price and providing a place for them to buy.
Finally, you go into action, trying to reach your customers, letting them know about your product and telling how good it is. Once you can get them in the showroom, you can convince them to buy.
Questions you may have include:
- What is the definition phase of marketing?
- What is the preparation phase of marketing?
- What is the sales phase of marketing?
This lesson will answer those questions.
Definition phase of marketing
When you are starting a new business enterprise, you must have the business well-defined, as part of your business and marketing plan.
When planning to add a new product, to expand your business or to make some other changes, you need to take a step back and look at your business enterprise as part of your marketing strategy.
The definition phase of marketing consists of defining your:
- Business
- Customers
- Competition
- Objectives
This can also be called the analysis phase of marketing.
What is your business?
You need to define or re-state what business you are in. What is your core business? What is your purpose, mission and vision?
For example: "We are in the business of publishing children's books."
Who are your customers?
You need to clearly define who your existing and potential customers are. They are not "everybody" or some vague market. Knowing who your customers are allows you to determine how to reach them.
"Our customers consist of parents who are buying for their children and relatives buying a gift for the children."
Who is the competition?
It is always good to remind yourself of your competition, so that you can keep an eye on their activities. This also helps you position your business or establish a good niche for it.
"Our main competition is the Happy Day Kids Book Co."
What are your objectives?
What do you want to achieve with this marketing effort? Define what you plan to achieve by introducing a new product or in refreshing your business.
"Our objective is to get become an accepted vendor in toy stores."
Preparation phase of marketing
Once you have defined your business or a new aspect of it, you need to make preparations for selling your product or service.
You do this by:
- Determining exactly what to offer
- Setting competitive prices
- Establishing a place to make the sales and means to deliver the goods.
You can then obtain or manufacture the items you want to sell.
Determine product or service to offer
Whether you are planning on providing a new product or service or are including new features on an existing item, you need to perform market research to find out what your typical customers want and expect in your business. This can be done on an ongoing basis of simply talking to people, as well as getting spoken or written requests.
From your market research and customer input, you can decide on what products to offer. There may be special products that people want that you had not even thought of offering. There are also certain brands that customers may prefer.
Once the product is determined, it is handed over to the production part of the business.
Set competitive prices
Prices must be within the range of customer affordability. It must also be competitive compared to other businesses where they may shop.
Establish a place to do business
People need to have a place to buy the products or services. This can be a store, a website or even their own home.
Also, product placement within some stores is important. Often suppliers demand their product be placed at eye-level or in some location to give them an advantage.
Sales phase of marketing
Once you have obtained or manufactured your products, you enter the sales phase of marketing. This is where you let potential customers know what you have to offer to entice them to shop and buy.
Promotion
Promotion involves making potential customers aware of what you have to offer and where they can purchase it, as well as how much it costs. You can also promote your store as compared to your competition in advertisements or other means to tell your superior quality and prices.
Sometimes packaging is part of promotion, especially if it draws attention to the product display.
Advertising
Prominent signs outside your grocer store should attract attention, tell what type of store it is and include hours of business.
You can advertise in the local newspapers about what you have available, as well as specials you may have. Advertising also should include your address and hours of business.
Selling
Customers must be able to easily select items and purchase them at the checkout counter.
Summary
There are three phases in the marketing process. The first phase is define your circumstances, such as what your core business is and who your customers are. Then you must make preparations for getting your customers to buy your product, including setting a good price and providing a place for them to buy. Finally, you go into action, trying to reach your customers, letting them know about your product and telling how good it is. Once you can get them in the showroom, you can convince them to buy.
Get to the core of the matter
Resources and references
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