The house of marketing

Many students of management and business have been formally introduced to marketing via the four Ps of Philip Kotier. Building on the four Ps of Kotier and adding 10 more Ps, we come up with an entrepreneurial house, a framework that looks like a house and focuses on making money creatively.

* Primary target market: The roof of the house

One starts by segmenting the market and identifying the primary target market or PTM. The entrepreneur must understand the needs and wants of the PTM. (Other people or segments who may buy the product/service are referred to as the secondary market).

As defined, the PTM is the primary source of the firm’s revenue. If most of the sales of your product/service is coming from a segment that is not defined as your PTM, then the marketing strategy should be questioned. The strategy is not making the PTM buy as they should and/or there is a segment (who is not part of the PTM) that is larger than the chosen PTM.

In one of our discussions at the AIM-Asian Center for Entrepreneurship, a student-entrepreneur narrated how he serendipitously found out that the original PTM of his product bought less than another market. While yuppies were his original PTM, it turned out that students bought more of his product. Because of this finding, he changed his whole marketing strategy.

* Positioning or unique selling proposition: The ceiling of the house

After identifying the PTM, look at who are also targeting the same PTM with a comparable product/service. These are your competitors and one must position his/her product/service against them. Remember that you are competing for the same attention and share of pocket. A differentiated position that most of the PTM will spend money on is the best unique selling proposition or USP.

The key words are differentiated, unique and spend. Even if you are differentiated and unique, if the PTM does not appreciate this and does not part with their money in exchange for your product/service, your positioning is useless. The positioning or ceiling must be under the PTM roof. It is your USP to the needs and wants of your chosen PTM.

*The four columns of marketing: product, price, place, promotions

Much has already been said by many marketing gurus on the fundamental four Ps of marketing. Let me just stress that not only must the four be consistent with each other, they must support the positioning or USP of the product/service.

* People with passion: The floor and foundation

The marketing strategy is developed and executed by people. It will take people with passion to come up with and implement an entrepreneurial marketing plan. Akin to a house, the strength of the foundation will determine whether the storm (of competition) will blow it away. As such, the entrepreneurial house of marketing must be built by people with entrepreneurial passion.

* Process to create a promise

The entrepreneurial house of marketing is a process that is directed towards making a promise to a PTM. The builders of the entrepreneurial house of marketing must be aware that these promises must be kept. If the promises made cannot be kept, the house will be blown away by the forces of credibility and market dissatisfaction. Do not make promises to the PTM that the product/service cannot keep.

* Persistent profits

The process of making and keeping the promise must result in persistent profits. This means that not only should the marketing strategy lead to profits, it must lead to profits that are enduring, profits for a going concern and not a one-shot deal. Entrepreneurs are in business for the long haul. Deal-makers make money only for the short term. Genuine entrepreneurs are not mere deal makers.

* The last but most important P is prayer

Running parallel to the entire process is prayer. Many of the natural elements, forces and storms whipped up by the environment and/or competition cannot be totally anticipated by the marketing plan. The entrepreneur must also pray. Note that the term used is "also pray". The entrepreneur must do the process and then pray. Prayer without process may not result in persistent profits.

(Alejandrino Ferreria is the associate dean of the Asian Center for Entrepreneurship of the Asian Institute of Management. For further comments and inquiries, you may contact him at: [email protected]. Published "Entrepreneur’s Helpline" columns can be viewed on the AIM website at http//: www.aim.edu.ph).