Local business marketing to manage local traffic
Marketing and Marketing
The marketing and commercial area is responsible for creating the demand and selling the products in the different markets. To achieve local business marketing successfully, the characteristics of the three markets, the actions of the competition and a marketing plan aimed at improving the market image must be analyzed, focusing on key factors such as price, advertising, quality, distribution. and the commercial network among others.
The Marketing Plan aims to awaken the desire of the selected target audience to be attracted and buy the products or services of the company. For this, commercial objectives and strategies are established to achieve them.
For each target segment, it is necessary to describe what is known as the marketing mix, which is the combination of four variables that will allow a market to be successfully addressed. These four closely related variables are: the product, the price, the distribution and the promotion.
In this section, you must describe which product lines are going to be offered and which customers. For each line, the characteristics of each product, the needs it covers, the differential characteristics, as well as the benefits obtained by the customer of that segment will be detailed.
In each company it is important to know what attributes, on the product or service to be marketed, have greater relevance for the consumer. In this sense, the products and services that the company offers in lines and ranges have to be grouped.
Product line. Group of closely related products, either because they meet the same type of needs, because they complement each other or because they are aimed at the same type of customer.
Article or reference. Specific version of a product that has its own characteristics in the catalog of the establishment (model, size, color, etc.), so that an article or reference can have more than one product and not vice versa.
In addition to the physical and functional attributes, it is necessary to take into account the psychological attributes that are part of the products or services. Aspects such as quality, its characteristics, brand, types of packaging, design and related services, after-sales service, are shown as differential elements in our market.
The assortment is the set of items and product lines marketed by the company. Normally, the assortment is classified as:
Sectors or Departments: Groups the products into large groups.
Sections: Groups a series of similar articles.
Families: They group those articles that present a certain homogeneity in characteristics, functions.
Subfamilies: They group similar articles, but with something that differentiates them.
Articles: Common names or final names.
References: Designate the specific items sold by the point of sale.
Likewise, the assortment of products is usually analyzed in two dimensions:
The amplitude. Measures the number of product lines available to a company, so that an assortment will be broad when it consists of a large number of lines, and narrow when it consists of a few lines.
The depth. Measure the number of different items that exist within the same product line. So that a line will be deep when it has a high number of articles, and shallow when it is not.
Comparison of the Product / Service with the Existing Offer
In this section we must compare the similar characteristics or similarities of our products and services with the existing offer. Analyze if the needs that satisfy our products and services are already met by other substitutes.
In addition, we must compare the differences in our products and services from those that already exist in the market. If there are differences, what is the novelty? What are the advantages? It is convenient that they have innovative elements that differentiate our products and services from the competition.
Guarantee and Technical Assistance
The life cycle of a given product must be studied to decide whether or not to include it in the business assortment, since this analysis can assess the maximum sales potential and the breadth of the sales period of the product. You can distinguish four phases or different stages:
Stage 1: Emergent. This stage begins when a new product is presented for the first time in the market.
Stage 2: Growth. Demand starts to accelerate and sales volume expands rapidly. It could also be called the “takeoff” stage.
Stage 3: Maturity. Demand is equalized and, in general, the volumes grow due to the replacement of products and the creation of new families.
Stage 4: Decline. The product begins to lose its appeal to consumers and sales visibly decrease.
We must define for each product how it will differentiate itself from the rest of the competitors’ products. In this sense, the differentiation may come as a result of the very nature of the product or service to be marketed, the process used in its development, the sales technique and even other benefits offered by the warranty and after-sales service .
Technology: Patents and Trademarks
The company has an R + D + i area. His work involves carrying out a research process that allows, on the one hand, to achieve innovations that apply to existing products, and on the other to develop prototypes of new ones. With an adequate investment, it will be possible to achieve that the technical conception and the design of the products are superior to those of the competition, which will have a very positive effect on the brand image of the company.
Through Industrial Property companies protect their inventions in order to prevent copy or plagiarism, as well as to guarantee a market for the product. But in order for an idea to be patentable, it must be a world novelty, payable to Invention Patents, it is assessed based on the report on the State of the Technique made by the Spanish Patent and Trademark Office, during the general procedure of concession.
Intellectual Property protects original literary, artistic or scientific creations expressed in any medium, such as books, writings, musical compositions, dramatic works, choreographies, audiovisual works, sculptures, pictorial works, plans, models, maps, photographs, computer programs , web pages and databases. It also protects artistic performances, phonograms, audiovisual recordings and broadcasts.
Future Products and Services
In this section, we will describe what the evolution of the product or service will be, as well as the possible future changes.
The objective of this section is to decide what prices and discounts will be applied, whether they will be uniform or vary according to the type of client. The pricing policy must be consistent with the product policy, that is, the relationship between quality, characteristics and prices.
In this section we will detail the main attributes of the price as a variable of the marketing mix, as well as the aspects that should be considered when setting the prices, among which we include:
The analysis of costs. The unit cost must be calculated in order to know how much a certain product costs when setting the price, in order to study the margin that can be obtained by it. The direct costs that are those costs directly attributable to the products (costs of raw materials, personnel) plus the indirect costs that are not directly attributable to the products and that proportional spending is established for each product depending, for example, on the space it occupies in warehouse.
The demand. To study this approach, the concept of “elasticity” is used, which measures the price sensitivity of consumers. When analyzing the price elasticity of demand, interesting questions can be answered such as: Will customers modify their purchasing attitude considerably if I modify prices? On the contrary, will they continue to buy my products because they are not too price sensitive?
The product. Depending on the value perceived by consumers or market. The price will be equal to the maximum amount that the customer is willing to pay for the product. To know the assessment made by the buyers of the products, they must identify the attributes that form them and perform test tests with a sample of potential consumers. Depending on the substitute products: consider which products can replace the analyzed product in case of price modification.
The competition It is not advisable to establish prices exclusively based on changes in the demand or the costs of the products, but we must always remain alert to the competition. In this way we must be able to decide if the prices of our products should be lower, superior or similar to those of the competition, which will be determined by the positioning of the business, that is, the perception or idea that consumers have of the establishment and for which they will be willing to pay a little more or on the contrary they would demand to pay less.
High prices or selection. These are novel products mainly as a result of research and development processes or innovative or differentiated products:
The product or technology is patented, the brand is registered.
It is a unique and differentiated service from the competition.
There is no high competition because the demand is insufficient.
It requires technology and advanced know-how or know-how for its manufacture or processing.
b. Low prices of exit or penetration. These are not very innovative or differentiated products. A quick introduction into the market is desired.
Deterrent prices. It is about dissuading the competition from entering that market through very low prices.
Promotional reduction It is about making the product known and creating a demand. For this, a low price is set at the beginning but over time it will increase until it maintains its normal price.
c. Strategies of “Product lines”. They receive this name because decisions about the prices of a product are not made in isolation, but in relation to the other products that make up the line. The following alternatives stand out:
Prices hook. It offers a product of those that are part of the line at a very low price.
Only price. It consists of establishing the same price for all the products of the same line.
d. Psychological prices. This strategy tries to influence the perception of price and product by consumers. They can be highlighted:
Prestige prices. Many consumers relate price to quality.
In this way companies can offer products, very similar to those of higher quality, at a price close to them.
Odd price This strategy seeks that the consumer perceives the price of the product as lower. It is achieved by reducing the total figure by letting the price end at an odd number. (95, 99, …)
Price pair. It is intended to speed up the collection to customers.
and. Geographic prices. These strategies are used by companies that distribute the products sold to the place of residence or consumption of customers.
Include in the price set for a product the cost of transportation.
Sell at the same price to all consumers.
Divide the market into zones or areas, so that a different price will be fixed for each of them.
Payment term to customers
In this section we try to break down 100% of sales to customers based on the number of days we grant as credit; cash, 30 days, 60 days, etc.
The objective of this section is to decide if the company will distribute directly or if it will use distributors to deliver the product or provide the appropriate service, through the right person and at the right time. The most suitable type of channel is inferred from the chosen market, the conditions of the company and the rules of distribution of the sector.
specialized wholesaler, cash-and-carry, carrier
of bookshelf office
traditional sale, supermarket, hypermarket
hyper specialized, discount store, convenience store
popular department stores, home delivery
vending machines, mail order, sale by magazine
sale by television, sale by Internet
Network of Branch Sellers or Delegations
own or others
List of Distributors
The promoter or entrepreneur will be the first commercial of the company. However, as the activity grows it will be necessary to hire a network of experienced vendors and motivate them. In this sense, the distributors, representatives or commercial agents must be identified and agreements made with them.
In this section we must establish the distribution policy that will depend on the nature of the product or service. In this sense, we can establish a selective distribution strategy in several points of sale, exclusive in a single point of sale, extensive in all the channels such as supermarkets, supermarkets, stores, etc. or intensive in a single channel but with many points of sale.
Sales Network: Motivation and Incentives Policy for Commercials
The sales of the company depend to a large extent on the experience and motivation of the sales people. Therefore, we must establish commercial incentive policies; commissions for sale, gifts, non-retributive complements, etc.
Customer service: Evaluation systems for distribution channels
When evaluating the possible distribution channels we must establish as a criterion that is efficient in the delivery of the product or service over time, the form, the place and the price established by the company. If there are deviations, the company must take corrective measures.
Means of storage and transport
In this section we must analyze the different means of transport for the purchases of raw materials and supplies, as well as for the sales of products. To do this, several criteria will be established for the choice of means of transport such as the type of product, quantity to be transported, tariffs, regularity of the service, risk coverage of the merchandise, punctuality. In addition, we must take into account the safety in the transfer and handling, as well as in the loading and unloading operations.
When evaluating the possible export channels we must establish as a criterion that is efficient in the delivery of the product or service over time, the form, the place and the price established by the company. If there are deviations, the company must take corrective measures. In addition, we must analyze freight costs, insurance of merchandise, means of transport, etc.
The objective of this section is to establish the means and channels to communicate the products and services to the client, as well as to encourage sales. In this sense, we must define the corporate image, the message to be communicated, the medium or media for promotion and publicity, as well as its characteristics. In addition, we must set a budget to perform these actions. On the other hand, it is necessary to train our sales network so that they know how to transmit and communicate the promotion strategy.
In this section we will analyze those elements that influence the image for which the company wants to be known and differentiated from the competition. In this sense, we must define an image that positions the company and transmits the idea of product or quality of service that is desired. The image must respond to some concepts of value that you wish to fix in the mind of the potential client. Some of the elements of corporate image are the logo, the brand, the labels, etc.
The logo should be simple and easy to recognize in order to capture the customer’s attention, original to differentiate itself from other companies and stand out by contrast, homogeneous, with elements coherent with each other, without distortions or variants of realization, as well as adequate to social criteria and weather.
Message or Slogan of the Company
The company must select the target market or groups of clients on which it wishes to influence to provoke the sale by analyzing its characteristics.
In addition, it is necessary to determine the objectives of the communication, that is, what we want to communicate to the target market chosen in the different stages of the purchasing process: awareness, knowledge, taste, preference, conviction or purchase.
To reach the communication objectives we must develop an effective message that captures the attention, develop interest to seek more information, provoke desire to consume and purchase action.
Brands of Products or Services
It is important to analyze if the company will register (in the Spanish Patent and Trademark Office – www.oepm.es) one or several brands as well as the costs of the procedure. Brands are the graphic representation that serves to distinguish in the market the products or services of one company from those of others.
The exterior of the company’s facilities is our letter of introduction. It says about us and the image we want to convey to our customers. Therefore, we will study what design and corporate image will have the premises and facilities of the company; colors, materials, luminous, labels, materials, etc.
The communication strategy can be of two types: of “push” towards the distribution channels and, subsequently, these deliver the product to the consumers or “attraction” to the consumer, so that later it will be the one who claims it in the market. For this it is necessary to invest a large amount of money in advertising and promotion.
To determine the channel that we will use to transmit the message we must decide if we want a personal communication, direct and in contact with the audience or impersonal. The different communication channels are explained below:
Advertising. The objective of advertising is to inform, convince and remind customers of the company and its products or services. To do this, the message will be in the format of information or announcement and will be transmitted through different media, television, Internet, newspapers and magazines, radio or others.
Internet and social networks
telephone and mobile sale
Sale promotion. The objective of sales promotion is to increase customer purchases in the short term. For this, the message will be transmitted through exhibitors and other media, mainly at the point of sale offering discounts on prices, products, contests and prizes, gifts and samples, reusable packaging, greater guarantee. Public relations. The objective of public relations is to improve and create the contacts, opinions and favorable attitude of the target public towards the company, its products and services.
discounts by volume or term
gifts and prizes
guarantees on the products
trade fairs and conventions
talks and days
Personal sales. The objective is to increase sales and develop relationships with customers. For this purpose, different telephone means, presentations at the clients’ facilities, commercial missions and fairs will be used.
Merchandising They are the actions and commercial techniques in the establishment with the aim of increasing sales. In this sense, the merchandising tries to create a propitious environment of purchase for the client, as well as to make an adequate disposition of products, furniture, media and advertising and promotional supports at the point of sale.
The objective is to inform the opinion leaders in the purchasing process of each market segment about the activities of the company. For this, the different actions such as conferences, lectures and conferences, trade missions and fairs must be established.
Information Systems and Results of Promotion Actions
In this section you must determine the budget of the company for each promotional instrument, that is, between advertising, personal sales, sales promotion and public relations.
Finally, we will establish indicators to measure the results and response of the audience in order to take corrective measures if there were deviations. Some of these indicators can be: if the message is recognized or remembered, what is remembered, what does it feel about the message, the previous attitude and the current attitude towards the product or the company, as well as how many times did you see it.
Among the products of the market there is usually some kind of difference in some of its attributes. Therefore, the company must promote those characteristics that distinguish and that interest our customers, for which it will be necessary to implement a positioning strategy focused on the target audience.
The positioning strategy consists in deciding the image with which the company wishes to be identified by its target audience. We are going to establish next the commercial variables that are going to articulate the rest of the policies that will integrate the marketing plan. The attributes that we are going to highlight and on which the marketing strategy will turn are the product, the price, the quality, as well as the image.
The reasons that justify the selection of these positioning variables are the following:
They condition the purchasing behavior of the target audience inasmuch as they constitute purchase attributes of the product.
Facilitate differentiation with respect to the competition.
From them, sustainable competitive advantages can be developed by being linked to business strengths.
Based on the general objectives of the company and the forecasts made, specific achievable and real market objectives must be established. These objectives must be quantified in terms of market share, percentage increases or in physical units of product or demand, or in economic or sales terms.
In addition, the planning period should be established; monthly, semi-annual, annual, etc …, the geographical scope; country, region, municipality, neighborhood, etc. and the market segments.
Force of Sale Policy (Commercial)
The objective of this section is to establish a policy of incentives, remuneration and motivation of the network of vendors of the company. For this, we must bear in mind that said policy must be competitive with respect to competition, that is, incentives equal or superior to competitors. And on the other hand, it must be equitable internally in the company, clearly establishing the results indicators, as well as the remuneration and incentive criteria.
In this section we will discuss the main techniques of setting and disposition of the point of sale and of the assortment, with the aim of invigorating and facilitating your sales, transmitting the desired image to the client and ensuring your satisfaction.
We will analyze aspects such as distribution in the plant, the corridors, the entrance of the premises, the signs and escape, the use and signage of the floor, the exhibition of the linear, the type, size and arrangement of the furniture, the placement of the products, the circulation of entrance and exit and inside the establishment, the posters announcing, the signaling of the premises, the actions to avoid the queues, the position of the boxes and entrance doors, the music and other elements of comfort, information points, possible bottlenecks, as well as the speed of circulation and the times of permanence.
If we have commercial premises or point of sale, we should comment on the window dressing techniques that the company will use to improve the exterior image of the installations. For this, we must pay special attention to the facade of the building, entrance to the establishment, sign and shop windows.