Firstly, you have to get your product (either goods or services) right. This means doing extensive research on its lifecycle which includes the growth phase, the maturity phase and the decline phase. The decline phase is the point at which you need to reinvent the product or expand or change the offering to stimulate demand.
Secondly, you have to determine the price. This is a crucial relationship between profit and survival; demand and sales – it’s a tricky balance as consumers are unlikely to pay a lot for an unknown product yet may see a low price as a sign of inferiority. So, you need to consider your actual production cost and balance this against how customers perceive its value, whether a lower price could increase your market share, and importantly, what your competitors are charging.
Next, decide on your distribution channels and make them accessible to potential buyers – so find out where they look and decide whether you need a physical or online presence, or both. Obviously, there are budgetary implications to be considered here which vary from business to business.
Finally, promotion, which is necessary to boost brand recognition and sales. Promotion encompasses paid for advertising – traditionally on TV, radio, printed media and nowadays online. It also includes structured PR – informal word of mouth promotion – which can literally be through speech, or, more commonly nowadays, through social media and an online presence. Managing your online social media presence is crucial to your product and is influenced by your budget, your message, and your target market.