Understanding the Difference Between Marketing and Promotion
by Stone Evans
Are you an online marketer? Or do you simply promote affiliate programs?
Marketing is truly the most misunderstood word in use today on the Internet.
Let me see if I can clarify this issue just a bit.
In Marketing 101 at
your local university, marketing is actually the process of Product, Place,
Price and Promotion.
No business can exist without a
product or service to sell.
In a nutshell, entrepreneurs are the people
who believe in a product, service or idea, so much that they are willing
to invest their lives into the development of their
Historically, every major corporation in the world was
started by an entrepreneur with a dream and the drive to make it
However, there comes a time in the life of every
corporation when those who fear the gambling nature of their founder,
squash the entrepreneurial drive that made the company a viable concern in
the first place. The entrepreneur will either submit to the careful nature of
the stockholders, or he will be forced to leave the company he
The only entrepreneurs who withstand the pressure to move
more carefully are those who have maintained majority control over their
In the offline world, place is defined by
location. On the Internet, place is defined by domain name and the web
hosting service chosen.
Both online and offline, place can make or
break a company without respect to the quality and value of the product,
service or idea.
Selecting a price is determined
first on a basis of whether the company wants to be seen as a discount or a
Take for example Wal-Mart and Staples.
the lead discounter in the marketplace. Staples on the other hand is the
specialist in office supplies.
Both sell a significant number of office
supplies despite the fact that the lowest price can usually be found at
Wal-Mart. As a value dealer, Staples can afford to charge more for
their products than Wal-Mart.
So the question for you is whether you
want to position your company as a discount or value company.
has shown that products and services can be sold at any number of prices and
still reach a significant number of people.
The challenge of selecting
the best price for your product or service will require a certain amount of
UNDERSTANDING THE PRICING EQUATION
Let's assume we
are selling a product. Let us also assume that we know that the product can
be sold for $10 or $50. Let us also assume that if the price dips below $10
or rises above $50, then the product sales fall off significantly.
challenge is to determine the best rate at which to sell
Testing has shown us that we can sell 1000 items a week
at $10. Testing has also shown that we can sell 500 items per week at $50.
And testing has shown that we can sell 650 items per week at $45.
$10, our projected weekly earnings are $10,000. When we sell the product at
$50, we know that we can earn $25,000 per week. Most importantly, we know
that we can earn $29,250 when our product is priced at $45.
imaginary testing we have done on our imaginary product, we can easily see
that selling our product at $45 per item will earn us more money over the
Thus, when we make the decision for a national rollout of
our product, then we will price our product at $45.
Of course, this is
a very simplistic analysis of the point I am trying to make. Though simple, I
believe this analogy will help you understand the methods of developing a
Promotion, on the other hand, is
the process of notifying the consumers for your product or service of your
availability to serve them.
Methods of promotion vary distinctly and
should be arranged to meet very specific goals.
As with product, place
and price, promotion should not be left to chance. You should test every ad,
every media, and every price point to determine the best bang for your
If you are an online
promoter or marketer, please factor in the most important element concerning
the cost of your promotions.
What element is that? Your
Value your time at a certain dollar amount, and figure in
your time into the cost of your promotional accounting.
I say this
because too many online promoters lose sight of this concept and spend 20
hours to generate one sale while using free advertising. Even if you rate
your time at the federal minimum wage, then you will have invested $105 of
your time for one sale that might only net you a gross sale of
ARE YOU TRULY A MARKETER OR ARE YOU JUST A PROMOTER?
people who run a business on the Internet call themselves marketers. Yet,
most of these same people are really just promoters wrapped in the label of a
True marketers do not promote without a lot of advance
work. They spend time planning, testing and measuring their actions and
results to get the most out of every dollar spent and
Entrepreneurs finesse the art of marketing as they build
their company into a major enterprise.
If you are a promoter who does
not keep an eye on the total marketing equation, then you are bound to
If you do call yourself a marketer, then do what a
professional marketer does. Make sure that every dollar spent is spent
well. Make sure that every dollar earned is put to good use. Market well
so that when the people of the next generation look at your life, they will
see a fine example of a successful entrepreneur that they will strive to
What Does Marketing Mean?
Learn how to market yourself, because you are your business. Don't confuse the terms
"marketing," "advertising," and "promotion." These terms carry a different tune.
RP Promotion Strategy
Hundreds of techniques and even more theories. What is the
best? Internet gives marketing freedom for any business. RP promotion is not the only
possible way of online promotion strategy but surely one of
the most fundamental, with unmatched potential.
The Top 10 Ways to Get Over Fear of Marketing Your Business
Marketing does not have to be the big, scary, hairy green monster it may appear to be. The following tips will help you take the fear (hairy green monster) out of promoting your business.
The Building Blocks to Effective Marketing
Before you ever consider developing a brochure, running an ad, implementing a direct mail campaign, joining an organization for networking or even conducting a sales call, begin by mapping a path to success through the development of a consistent, focused marketing strategy.
Copyright © Stone Evans, The Home Biz Guy
Stone Evans owns the Home Business Resource Directory where you can find
everything you`ll ever need to start, run and grow a home based business at: http://www.Home-Business.com
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