Are you sure about, you can sell your products by doing only Network Marketing?
If you believe you can, it’s completely wrong.
You can not achieve any target sales if you go with Direct Selling by avoiding all other important elements in Marketing.
These elements are also known as Marketing Mix. If you are a producer of a commodity, you have to focus on many other factors along with MLM.
Here are the factors that you should focus on to sell a product in the market.
Marketing Mix Definition
What is the Marketing Mix Concept?
Do you know what does Marketing Mix Mean?
A Marketing Mix is the combination of all elements in marketing that is used by the companies for altering and modifying marketing strategies to achieve the desired goal.
In other words, the Marketing Mix is the tool that a company follows to attain certain business goals such as maximize profits, increase sales etc.
The elements in this mix vary according to the nature of the business, a marketing strategy used and desired goals.
It is very important to get a higher value for your products or promoting your brand.
What are the 4Ps of the Marketing Mix?
We didn’t mention the elements in Marketing Mix. It is 4 types; Product, Price, Place and Promotion and it is known as the 4Ps of Marketing Mix.
These 4Ps are the basic structure of marketing that enables you to accomplishes your marketing strategy.
Let’s make the 4Ps in detail;
Have you ever think that what is a product?
I know you heard the term and usually use that. But I hope you didn’t think about what is actually a product mean.
A product can be a physical item or service that must satisfy the need or desires of the customers.
Product is an essential element in marketing. Without a product, you cannot start any steps in marketing, moreover, it is useless.
Every company need some products to sell and they produce different products. Products may vary from company to company. For example, a company in the automobile industry produces vehicles whereas a company in the IT industry produces hardware and software.
But in the case of MLM companies, they usually focus on some selected products. Typically Network Marketing Companies focus on items in the areas of health, beauty and lifestyle.
Whatever your business is, you should give importance to the quality of products. If your products have no quality, it will adversely affect sales. Because customers will not buy your products when the products don’t meet their requirements. A product must satisfy customer requirements.
You can use many strategies to improve your products. This strategy includes a feature, design, user experience, naming, branding and differentiation.
Place refers to the distribution channel through which a product reaches the customers. A company can determine the distribution channels based on their convenience. Usually, a product reaches the customers through wholesalers and retailers.
A traditional company follow this to market their products. But adding intermediaries between the companies and customers will lead to an increase in price.
Then how can you reduce the price of the products?
MLM or Multi-level Marketing is quite different from the traditional marketing method. A traditional company uses intermediaries to market their product whereas an MLM company does not use these kinds of intermediaries. MLM company uses different plans to promote their products through networking. Nowadays these plans are executed using MLM software.
As a result, the product will reach the customers directly from the producers. Therefore, customers will get high quality- trustable products.
Organizations determine the promotion mix based on their objectives, whether it is a traditional company or an MLM company. Promotion is another important factor for finding the right customers. Otherwise, your product will not reach your customers.
Advertising, sales promotion, personal selling, public relation and direct marketing are the categories of promotional activities. A Network Marketing company typically, use direct or personal communication with customers to sell their products.
However, MLM company can use alternative methods to promote their products, there is no restriction. Because the promotion of a product depends on the communication mix of a company. It may vary from company to company.
Price means the final cost to the customers. Normally, companies determine the price of a product by considering a lot of factors. They incur expenses in each step of their production. The company face expenses from the beginning of production to transport them to the market.
Price is also determined by channels of distribution. If the manufacturer uses indirect channels, the price for the product will increase. On the other side, if they use direct channels, they can minimize the product cost.
Direct Selling can minimize product price by avoiding intermediaries in the distribution channels.
A price should cover these expenses. Otherwise, you will face loss, because of the higher expense than its price. Your price should include your profit, but not high.
Furthermore, you can use pricing strategies for determining the price of your products. There is a lot of option available to you such as skimming pricing, competitive pricing, psychological pricing, penetration pricing etc.
How Do You Use the 4Ps of Marketing?
Hey, I want to share important information with you. You don’t have to use all these methods. Because all these strategies will not work for your industry. It depends on many factors such as area of business, nature of business etc.
While determining the price of a product you should follow up the below steps;
a)Quality of Products
Firstly, you should consider the quality of products more seriously at the time of production. If your products have low quality, customers will not impress. They always look for high-quality products at a reasonable price. So, your product must require high quality.
b) Check Whether the Product Meets the Customer’s Needs or Not
Then you should analyse that your products meet the needs of the customers. It should return a value to the ultimate user.
c) Clearly Defined Target Audience
In the third step, you need to define clearly your target audience. Here, you should analyse the trends, customer behaviour etc.
d) Setting Price
Setting a price is the most important step from all others. It must cover all your expenses and it must give a certain percentage of profit.
e) Consider Channels of Distribution
In this step, you should consider the channels of distribution to reach the product to the ultimate customers. Here, you need to consider all possible channels and consider the best possible method.
In the case of MLM company, there are no intermediaries between the producers and the customers.
f) Evaluate Your Marketing Mix
Finally, evaluate your marketing mix. You need to check thoroughly that your product covers all your costs of production.
In this way, Marketing MIx assists you to market a product with minimum cost.