1.

Product (or Service)

Unique Selling Proposition (USP)

The unique selling proposition is what you as a marketer identify as a unique characteristic of
your product. This characteristic sets you apart from other products within your market. This
unique characteristic is also the basis used in promoting and advertising your product.

Look at your product, service, distribution, and competitors to determine your unique selling
propositions:

 The product itself

 The variety of products you have on the market

 The ease of use of your product

 The sales price of your product

 The availability of your product through stores, internet, sales staff

 Colors available

 Sizes available

 The quality of your product within the package

Make a list of the competitive differences you have.

What separates your product from the rest?
Why would a customer come to you over the competitor?
Use these differences as an advantage when you market your product. But also, know your
weaknesses and be prepared to address them internally with your company. Likewise, your
competitor may use your weakness as a USP for their product.

Packaging

Packaging can make a big difference presenting and selling a product. It is very easy to place a
product in a box and slap a label on it. A plain box and simple label will save money, but will it
get noticed? Take the time to look at a competitor’s product and the way it is packaged. Is your
package similar and just blend in, or does it have enough differences to grab attention? Pay close
attention to the colors and shapes of packaging. You want your packaging to stand out and be
noticed.

“Creative Packaging Sells!”

 The size of the package also is also an important factor. Know your target customer, the need,
and the demand for your product. Pay attention to the consumer’s requirements when
determining the quantity or volume of product to be contained in the package. Think about
packaging options:

 One per package

 A label attached to the product. This could be as simple as a zip tie attached to a
rake or shovel

 Is it placed in a box?

 Do you package by the pound or ounce?

 Package by quantity: 25, 50, 100

Product Messaging

The next time you’re at a store, look at various products and their packages. The messaging
placed on a package will influence the customer to purchase one product over another. The
difference can be a brand name, slogan, product message, the package design, or the ingredients.
You will see many generic packages. Generic customers do not exist. Each customer has a
preference and trigger that influences their buying decision.

Know the language your audience relates to. There are key words and phrases associated with
every industry; “new”, “improved”, “real juice”, “larger size” or “value pack”. Speaking the
language of your customer motivates them to consider your product.

Also, your customer needs a reason to purchase your product. If you just place a brand name on
the package, you are not solving a customer’s problem or fulfilling their need. Product
messaging must be a compelling statement that grabs the attention of the consumer. They do not
want to know all the history about your company; they are simply looking for a solution to their
problem or need.
2. Price

Market Value

The customer perceives value. The value of a product or service is determined by how much
benefit the buyer feels they receive for their purchase price. This can be very subjective.

Lets look at the “Rolling Hills Bee Company”. They offer a wide variety of beekeeping supplies.
A consumer who relies on beekeeping as a family income may find a high value in their products
and services. For that consumer, Rolling Hills provides every product they need to support their
business. The perceived value is then high. For a person who keeps bees as a hobby, they
occasionally purchase from Rolling Hills, but they do not require the vast amount of products
offered. For that hobbyist, the perceived value is lower. In some cases, Rolling Hills pricing may
be higher than other companies. For the hobbyist, higher quality, variety, or specialty products
may not be important to their buying decision.

Is there value in paying more for a product?

Let’s say you are buying nesting boxes for poultry. One company sells this product for $75.
Another company sells the same size-nesting box for $140.

Is there value in the $75 or $140 nesting box?

Some buyers would say, “Are you kidding?” I can buy two nesting boxes for the price of one.
And they would be correct. That customer perceives the value of a nesting box in the price tag.
Thus, they see a lower value in the $140 box.

Now, lets look at the difference in the two products.

Nesting Box 1: $75

Made of Pine

Shipping is $30 based on weight No warranty

Delivers in 2 weeks

Nesting Box 2 $140

Aluminum construction, easy to clean, odorless

Shipping is $20 based on weight 12-month replacement warranty Ships in 7 days

Based on this information, the producer sees a higher value in purchasing nesting box 2.
Shipping is a little lower, but the value is in the quality of the product and the warranty. Cleaning
is easier, and it will last longer than box 1 and may actually cost less in the long term based on
replacement of the $75 box in a couple years.
Introductory Pricing

Introductory pricing is a strategy used by lowering prices for a limited time or by including
other offers in the introduction a new product. Introductory pricing is an excellent way to bring a
new product to the market. By advertising a lower price point, even for a limited time period,
you may influence customers to try your product, convert their current buying habits, and
develop loyalty to your product.

Other business tools to gain new customers include a bonus product or a discount on other items
you may offer. This way, you are marketing a new product as well as creating an opportunity for
a consumer to try your other products.

In the case of the nesting box, one pricing strategy may be to sell the nesting box at $125 and, for
a limited time, include a one-gallon poultry water bottle at no extra cost. Another strategy would
be to offer a discount on an additional nesting box. Buy the first box at $140 and a second box at
$125. This practice is called bulk pricing.

Bulk pricing is a strategy used by lowering product costs based on purchasing more than one of
a specific or same product. It may also be referred to as bundling. Bulk pricing provides a good
incentive for consumers who purchase that product on a regular basis. The opportunity to “stock
up” is appealing when bulk-pricing discounts are available.

Direct Pricing is another strategy used by marketers to increase sales. Companies will offer a
reduced price to the consumer for buying the product directly from them. This strategy
eliminates the middleman, distributor, or retail seller. (A distributor or retailer will add a
commission to the base price they pay from the manufacturer.) In this strategy, the manufacturer
benefits by selling the product directly to the consumer with a profit, but below the retail price
structures. There is a benefit to both the manufacturer and the consumer. Selling direct can be
done through a company website (e-commerce) or a company owned store.

Seasonal Pricing is a strategy applying discounts on sales seasons or pre- seasons such as
holidays, the start of grass cutting in the spring, planting, harvesting, or other ‘events.’ The best
example of a seasonal discount is the day after Thanksgiving, “Black Friday”. Traditionally, this
day is set aside for seasonal holiday shopping, offering early morning and all day discounts.
3. Place

Simply, ‘place’ is where you will sell and deliver your product/service to your
customers, as well as the distribution process you intend to use.

Distribution Process

The distribution process is the method by which a company gets their product to the consumer.
This is also called the “distribution channel”. Distribution can be either direct or indirect. Here
are examples of distribution channels:

 Direct Sales: Direct sales can be a sales representative or sales team selling a product
or service direct to the consumer.

 Direct Internet Sales: Is used by selling products on a company web site. Also called
e-commerce, this site allows a company to post its products online and sell direct to the customer
through credit cards or pay-pal systems. The product is then shipped direct to the consumer.

 Direct Catalog Sales: A company will print a product catalog and distribute in stores
or through direct mail to the prospective customer. The customer can order products by mail,
Internet, or by phone usually through credit card, money order, or check purchases.

 Indirect Distributor: A distributor will buy products from a manufacturer or company

and sell them to retail stores or markets. They make their money by buying a product bulk and
applying a commission to it.

 Indirect Retailer: The retailer is the market or store buying from the distributor.
Retailers sell direct to the consumer. They will also add a commission to the product creating
their profit margin. This is also known as retail pricing. Retailers may sell in a store catalog or
even on their own web site.
4. Promotion

Public Relations (PR)

The purpose of public relations is to promote, maintain, and manage the image of a product or
brand. PR is a valuable tool in communicating positive information about a company and its
products. Public relations may also be used to address responses to negative information or
problems a company may face. This is also known as “damage control”. PR programs include
press releases, media relations, editorials, endorsements, trade shows, events, customer
testimonials, and press conferences.

Educational Material

Educational material is a great way to communicate information regarding a subject or problem.

At the same time, you are demonstrating your product as a solution. By doing this, you not only
educate the consumer, but you also create a value for your product or service. This can be
accomplished through literature, press releases, or media.

Advertising

Advertising is a form of communications used to persuade a target audience to buy a certain

product or use a particular service. Advertising can affect the way we view a subject or even alter
our behavior. The goal of advertising is to gain results: results in sales numbers, profit margins,
or customer response. Advertising is not only used for products and services, but also in politics
and social issues.

Advertising is classified as traditional media and new media. Over the last several years, the
Internet and mobile phones have provided advertisers new tools to reach their consumers.

Print Media

Print media is a form of advertising communicated by the printed page. Print media includes
newspapers, magazines, journals, FSI inserts, coupons, or yellow page advertising.

Social Media

Social media is a very popular way to communicate to a target audience. It makes a great
addition to the marketing mix and communications plan. Social media programs rely on content
to attract customer attention. A good message can spread throughout the social network quickly
by word of mouth.

Premiums
Premiums are a great way to promote your product. They’re sometimes known as “giveaways”.
Advertisers will imprint logos and slogans on merchandise to promote their products. A premium
can also be offered with the purchase of a given product.

Advertisers will often offer premiums at trade shows, farm shows, or sales events. Most
premiums are low-cost merchandise but can make a large impact on your customer.

Internet Advertising

Internet marketing may also be referred to as digital marketing, web marketing, online
marketing, or e marketing. Many advertisers have included the Internet in their media mix. The
Internet provides methods of finding and tracking users in a given target audience and data to
measure your ROI (Return On Investment).

Banner Ads are media units or ad space available to advertisers on the Internet. These units are
purchased similar to print media. Banner ad pricing is based on search criteria or the placement
of the banner ad on the page. A company may place an ad in a print magazine. A similar
condensed version of that ad may be placed on the Internet. An advertiser can place a “hot link”
on the Internet ad. When clicked, the consumer is redirected to your web site with the
opportunity to review your information and product line immediately.