In general, SMEs are excellent manufacturers of products and services, achieving in the case of good administration and management to improve the know-how transmitted by the original owner.
However, this is not the case when it comes to winning the market, for example when launching a new product.
The main key to success to start establishing yourself in the market is to be clear about the definition of the 4 P's of marketing.
- P roduct or service P Recio, evaluation of internal and comparative costs with competitors ' prices. P laza, target market and distribution. P ublicity, different means of communication, promotion and dissemination.
If any of these variables fails, that is, it is not consistent with what is desirable internally (by the company) or according to the external reference (of the market), the sales campaign will never bear fruit.
Some examples of failures if the clarity in establishing these four concepts is lacking:
Product
If the product or service we offer does not have any competitive advantage over the existing one in the market, it is difficult to change the brand choice because it is the same. Always in the development of a product or service it is necessary to establish some competitive advantage that allows us to compare ourselves with what is on the market.
Price
A common mistake that SMEs usually make is to guide the price of a new product or service based on the cost involved in developing it plus the margin with which it is accustomed to working, which may result in the company not of the profit that was expected or that the product is rejected because in the establishment of prices the existing in the market was not taken into account, that is, the competitive price.
Square
If the new product is the same generic that the company produces but its variable includes a use that is not the one that customers give to existing products, we will have a rejection from the market. For example, if a company produces milk in sachet, and suddenly wants to develop a product like powdered milk with additives for nutritionally ill children, it will change the way of reaching the consumer, in one case it is supermarkets and warehouses and in the other will be the pharmacies. Surely a Chinese supermarket will not buy us special milk powder.
Advertising
Choosing the wrong medium or not being clear about the competitive advantage that we offer with the new product or service implies a certain failure in the sales campaign because the product may be sold in the distribution channel but the final consumer will never go to it. look for.
