The marketing mix is made up of the following elements, often referred to as “the four Ps”:

• Product (or service)
• Place (location and distribution)
• Price
• Promotion

For a business to succeed, you need to:

• get all of the elements right
• strike a balance between the elements

Differentiation of your business from your competitors can be achieved through adjusting the elements to make your product/business more attractive. For example, if you wanted to market a high profile brand, you would focus on promotion rather than price.

Product
Satisfying the customer’s needs or wants and in turn making a profit is your aim in providing a product/service. It is essential therefore that you get your product/service right.

There are various ways in which you can make your product stand out and be appealing. Use your senses in evaluating the product: ask yourself how does it feel and look.

Key questions:

1. Attractiveness - is the packaging and the product itself visually appealing?
2. Expectations - does the product meet customer’s expectations? For instance, they may have expectations in terms of product quality.
3. Benefits - does the product have benefits a customer wants or needs? Benefits describe what it is that a customer gets out of a product, and differ from features.
4. Functionality – how well does it do the job it’s supposed to?
5. Competition - how does it fair compared to other similar products?
6. Reliability – is it reliable?

Place
‘Place’ is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer. It is also referred to as distribution, channel or intermediary.

Successful distribution of your product/service is not only dependent on the delivery mechanism. You must also consider your customers – where is it that they would expect to go to find products/services like yours? It is therefore essential that you choose the correct distribution channel(s).

Key questions:

1. From where do your customers expect, or prefer, to buy the product or service?
2. What are the existing distribution channels in your chosen market?
3. Do you want to use direct or indirect channels? (eg 'direct' to a consumer, 'indirect' via an intermediary)
4. Do you want to use single or multiple channels?
5. If using an intermediary:
   Is the intermediary familiar with your target consumers? 
   Is the intermediary appropriate for your business?

Intermediaries include:

• wholesalers
• agents
• retailers
• the Internet
• overseas distributors

Price
You need to know what your customers would be prepared to pay in order to price something effectively.

Compare your products/services with similar ones belonging to your competitors. This should give you some idea of typical prices in the market.

You will then need to decide upon a pricing strategy. For example, you might use cost based pricing where total costs are calculated and a mark up is added to give the required profit. Or you might consider differential pricing, where you charge different segments of your market different prices for the same service. The strategy you choose will have an effect on the success of the product. (For a further discussion of pricing strategies see the link at the bottom of the page.)

Whichever strategy you choose, you need to distinguish between cost and price. To maximise your profits, you should aim to charge the maximum amount that people will pay, while seeking to reduce costs and increase productivity.

Promotion
Promotion is about effectively communicating with your customers so that they are encouraged to buy from you. You need to promote to both existing customers and prospective ones, which may involve promoting to each in different ways.

To promote successfully, you need to take the following into account:

• You need to know as much as possible about your customers and their buying habits.
• You need to identify which are the important questions customers could have about your product/service, eg is this a reliable product? Your promotional activities should answer these questions.
• You need to identify your unique selling point (USP) and communicate it effectively to your customers.
• You need to identify the style of your promotional activities
• You need to decide when you are going to promote.

When you have answers to the above, you are in a stronger position to decide what to say, how to say it, when to say it, and which promotional method(s) to use.

Promotions mix
The ‘promotions mix’ is the combination of promotional elements you use to promote your product/service.

The various elements which can make up the promotions mix include:

• Personal Selling
• Sales Promotion
• Public Relations
• Direct Mail
• Trade Fairs and Exhibitions
• Advertising
• Sponsorship

You would choose the appropriate elements for your product/service and integrate them to form a promotional campaign.

Note: Sometimes you might see the marketing mix described in terms of the 'five Ps', to includePeople. Alternatively, the ‘seven Ps' also include Physical evidence (eg uniforms) and Process(the whole customer experience).


Summary:
PRODUCT
The business has to produce a product that people want to buy. They have to decide which ‘market segment’ they are aiming at – age, income, geographical location etc. They then have to differentiate their product so that it is slightly different from what is on offer at present so that people can be persuaded to ‘give them a try’.

PROMOTION
Customers have to be made aware of the product. The two main considerations are target market and cost. A new business will not be able to afford to advertise on national television, for instance and would not wish to because its market will be local to start with. Leaflets, billboards, advertisements in local newspapers, Yellow Pages and ‘word of mouth’ would be more appropriate.

PRICE
The price must be high enough to cover costs and make a profit but low enough to attract customers. There are a number of possible pricing strategies. The most commonly used are:

• PENETRATION PRICING – charging a low price, possibly not quite covering costs, to gain a position in the market. This is quite popular with new businesses trying to get a ‘toehold’.
• CREAMING – the opposite to penetration pricing, this involves charging a deliberately high price to persuade people that the product is of high quality. Luxury car makers often use this strategy
• COST PLUS PRICING – this is the most common form of pricing. Costs are totalled and a margin is added on for profit to make the total price.

PLACE
The business must have a location that it can afford, and that is convenient and suitable for customers and any supplier.

Because the company culture influences everything and everyone in it, a well-developed company culture creates positive changes across the board. Managers who have developed their company culture report improvements in many areas, including:

Productivity
A well developed culture gives dramatic, sustained increases in productivity and performance. A 10% increase is minimal. While you can  expect productivity to rise to somewhere between these two points, continuous improvement is the norm. Theoretically there is no limit—if you keep working on the culture.

Morale
High morale is a key to success. It is closely connected to trust, purpose, team loyalty, pride, and faith in the leadership—all qualities that improve as the culture develops.

Costs
Employees know cost control is important. As the culture builds, people take responsibility for costs. With widespread   focus, administrative and operating costs drop well below industry norms.

Profits
Often the underlying reason for improving the company culture is profits. Because the developing culture creates  across-the-board improvements, increased profits are inevitable.

Safety
The keys to safety are  trusting, open relationships. In a safe work culture, people speak up openly about  unsafe
situations, they don't stand silent  when someone violates safe  practices, they constantly look for ways to improve safety, and they  take personal responsibility for creating and maintaining a safe  workplace.

Supply Chain
Supply chain efficiencies depend very much on cooperation between multiple functions and levels. As the culture develops, relationships, cooperation and communications improve. The supply chain becomes more efficient, streamlined and responsive to rapidly changing customer needs.

Injuries and Claims
This is a complex area, closely related to attitudes and relationships. As people see each other in new ways, lost-time injuries and worker’s compensation claims drop. Sometimes this is quite sudden and dramatic.

Insurance Rates
Along with a safer workplace, with   fewer injuries and claims, come lower insurance rates.

Customer Service
As the culture builds, managers  learn to better manage the quality of everyone's experience, inside the company, and with outsiders such as customers, clients, suppliers, and other corporate entities. Customers who like you, return more often, buy more, and recommend you to others.

Retention
When you have a great place to work—where people can satisfy their needs—they just don't want   to leave.

Absenteeism
It is common sense that there will be less absenteeism when people like their jobs. They also develop a new attitude    
towards their fellow workers and to the problems that their absenteeism creates for them.

Recruiting
A well-developed company culture,  clearly stated in promotional materials, is a powerful recruiting point. Companies  with an open, participative workplace, where people enjoy working, and have  broad opportunities for growth and creativity, attract top candidates.

Employee Morale
At the root of morale are trust, a clear purpose, team loyalty and support, and faith in leadership and the success of  the organization these increase as the culture develops.

Employee Motivation
When people can fulfill their desires around work they are highly motivated.

Union-Management Relations
You will see a move away from adversarial relationships and towards cooperation. You will have few grievances and low workers compensation costs. I have clients where grievances dropped to zero.

Openness to Change
A striking increased openness to change and the desire to make things work. As trust and responsibility increases,  employees initiate significant improvements in operations.

Involvement
When the leaders show that they   want everyone involved, people step forward in creative and productive ways.

Leadership
Developing the culture trains managers in people leadership skills and gives them a clearer sense of their role. Many managers say that the culture development process was the most important  experience in their career.

Meetings
With improved openness and trust, people participate more in meetings so they become more energetic, focused, and creative.

Mergers
Smoother mergers and acquisitions,  with higher success rates. People get involved and make them work.

Cooperation
By definition, a developed culture  increases cooperation, collaboration, and motivation.

Teamwork
Expect improved teamwork and communication  between people, divisions, and levels.

Relationships
The culture change process improves  relationships between people, levels, and departments.

Responsibility
Problems are solved where they  happen, or by  those affected. They are not passed up to management.

When you ask a freelancer why he or she started freelancing, you’ll get answers like ‘I wanted to work for myself’, ‘I love being my own boss’, ‘I freelance for the flexibility it provides’ etc. At the heart of it, all those answers mean the same thing: they wanted to escape the cubicle nation.

While freelancers may indeed have escaped ‘imprisonment’ in a cubicle, they can’t completely escape all the things that made their corporate life difficult. Actually because you’re out on your own now (in freelancing), you have to do all the things that your colleagues in their respective departments do on behalf of the company.

In any case, you should know that there are elements that remain the same in both the corporate working life and when you are out of it, and prepare accordingly.


1. Salary/Rate Negotiations
In a corporate job, 9-to-5′ers get a fixed salary and structured pay raise. On the surface, freelancers are the exact opposite. They set their own rates and can raise them whenever they want. In reality however, regular employees negotiate their salary much like how freelancers negotiate their rates with clients.

The only difference is that 9-to-5′ers only do it when accepting a job or negotiating a raise; freelancers do it on a regular, client-by-client basis. So unless you have fixed rates stated on your website, you’re actually negotiating more on your rates than you ever did over your full-time job salary.

2. Accountability
Freelancers boast of not having to be accountable to anyone but themselves. I beg to differ. We’re accountable to our clients. Sure, no one asks us what we’re doing with our time, or checks in on us throughout the day, but on the day of the deadline, the client expect to get their results from you.

Ultimately, a freelancer is accountable to his/her client. Miss a deadline and you can’t simply say ‘Oh sorry, I wasn’t able to meet the deadline.’ Explanations must be given and in most cases, a client is well has the right to dock pay due to your tardiness.

While full-timers report to their superiors, freelancers report to their clients. The accountability cycle is there – it’s just the names and designation of who we report to that has changed.

3. Responsibility
While you might not be completely responsible for a single project or deadline, working in a company gives you a bit of a safety net as far as taking the blame is concerned, when things go wrong. In a corporate setting, the manager takes the rap for a failed project regardless of which of his or her subordinates made the fluke.

In freelancing, congratulations, you get to shoulder ALL the blame regardless of your job function, when things go wrong.

4. Office Politics
Office workers deal with office politics and the different behaviours and personalities of their colleagues on a daily basis. From the passive aggressive co-worker to the know-it-all colleague, the limelight hogger to the boss’ pet. If you have ever worked in an office setting, chances are you have seen them all.

Freelancers see these characters every day too – only instead of co-workers, they experience them in their clients. Gather two or more freelancers together and the topic of client personalities invariably comes up.

5. Working After Hours
If you started freelancing because you wanted the flexibility of working your own hours or less hours, then it probably didn’t take you long to discover that you actually work more hours as a freelancer than you did as a full timer.

Even though plenty of people work after-hours in a corporate job, for freelancers, it’s basically a must. Freelancers often find themselves working nights and even weekends to meet deadlines. If they want to make a success of their freelance business, working long, hard hours is a requirement.

6. Getting A Promotion
In a corporate setting employees get promotions as recognition of their hard work and dedication. For freelancers, it’s pretty much the same, except they give themselves the promotion, or a break, or a raise, or a new gadget etc. Getting a raise in their rates, and handling bigger clients, etc are all part of that promotion.

7. Bigger & Better Opportunities
Whether it’s within the company or with another, corporate employees are always on the lookout for their next big break – be it a new designation, job, benefits or environment. Freelancers are the same.

We’re always on the lookout for our next big client. We’re always looking for bigger and better opportunities that’ll help us earn more. Just as no employee sticks to one company for his entire life, a freelancer doesn’t stick to that one client. It’s simply not in the nature of how a freelance business is done. Sure, every freelancer has clients who retain them but that partnership is not indefinite. Eventually they will move on to other clients.

So What’s The Difference? If there are so many similarities, are we just fooling ourselves into believing we’re better off as freelancers? Is making the switch from a corporate full-time job to a freelancing business just a change in the scenery?

The answer is no. There is a big difference between a full time corporate job and a freelance one:flexibility and control. In a full-time job, you don’t have flexibility. You can’t start work later if you want to go to the gym in the morning, you can’t take the random afternoon off and you certainly can’t just turn off your computer and leave work to go pick up your kids in the middle of the day.

By Samar Owais

Editor’s note: This is a contributed post by Jordan Driediger, an entrepreneur, public speaker, and writer from Toronto, Canada. He is the CEO of his own company DM2 Studios LLC. He and his company are dedicated to support the creativity and inspiration in others.

The freelancer-to-client relationship is a tricky thing to deal with. Your ability to work with the various types of clients can make or break your freelancing career. To help you deal with this problematic area, here is a breakdown of the most common client characteristics that may curse your creative career.

Every client is different. Although we can find faults with each client we work with, we as freelancers need to overlook their strange tendencies, and learn how to interact effectively with them. I hope this guide will help you identify your client’s needs, and increase your success as a freelancer.

The Curious
The Curious client can be a frustrating one. When you first meet them, you are thrilled that someone can be so interested in your work! They are generally hyperactive, very friendly, and very talkative.

Begin work on a project? you may be inclined to share the ins and outs of what you do with this client. Teaching a client is fine, especially if the work you are doing for them requires ongoing maintenance. However, as time passes you may find they take up too much of your time, and can beto be a hindrance to your productivity.

How To Handle Them
They want information. This type of client doesn’t just want to know what you’ve done but also how you did it. They will request meetings on a regular basis and guides on how you performed specific tasks. Once you start feeding them, they only get hungrier. With the Curious client, it is always beneficial to address the issue directly:

Say you’re busy. Let them know bluntly that your time is limited, and that you want to focus on the work they’ve assigned – they will usually understand and respect your time.

Set time limits. You should set end times for every meeting and every phone call you have with this person. This will force both of you to focus on the work at hand.

Become a consultant. When they start asking too many questions, offer them your services as a paid consultant. This way, even if you do talk for a few hours, you will get paid for your time.

The Oblivious
Client never cease to amaze you with their lack of knowledge about your work. In their defence, they are usually part of an older generation. While they can be kind and patient, they bring with them a unique set of challenges. You cannot message the Oblivious on Facebook, because they don’t have an account. You cannot use your favorite movie scene as an example, because they haven’t seen it. Don’t try to show the Oblivious how to do something on the Internet, because you’ll get a 15-minute tale about how great their nephew is with computers.

How To Handle Them
They want to be reassured that they are being treated fairly. This client unfortunately has been abused in the past for their lack of knowledge, and is concerned that you will do the same. Be patient with the Oblivious. It may take extra time to communicate with them, but they can be an absolute joy to work for.

The extreme alternative is to exploit them and overcharge for your work – if you value your reputation, don’t do this. Do however:

Use terms and examples that they can relate to. Don’t bother with the long acronyms or technical terms that will only leave you with a confused and concerned client.

Use pictures and visual aids to illustrate your points. This is incredibly useful because it reinforces the authenticity of what you are saying, and promotes trust.

Write it all down. Work out a comprehensive contract with them to help them feel secure. They may not understand the details of your work, but they do understand a fair deal.

The Know-It-All
You can easily recognize a Know-It-All client because you will hate them shortly after meeting them. They are the ones who apparently know exactly how to do your job, yet for some reason hired you. They will interrupt you during your presentations, and not budge from a decision once it is made.

How To Handle Them
The Know-It-All’s desires are clear: they want control, and they want respect. Their need for control is usually a reflection on insecurity within them. You can easily win their trust with some basic psychology. If your client wants control, and demands respect, then let them have it. This client can be an absolute nightmare if they don’t get their way, so use these simple tactics to win their trust:

Give them an occasional compliment. A Know-It-All will be much more inclined to accept your proposals if their input and ideas are appreciated.

Pick your battles. Don’t fight on every little issue; save your strength for when the critical moments occur.

Don’t work for them. Sometimes the best way to win is to not participate. If a client doesn't respect you or your work, I recommend looking around for someone who does.

The Cheapskate =.=
Many clients today fall under this category. The Cheapskate is on a budget, and is willing to sacrifice time and quality in exchange for a lower price. They will always chose the cheaper option, which makes it easy for you decide what tools to use for their projects.

How To Handle Them
The Cheapskate just wants the product to work. Talk to them about quality and durability all you want –they just want the job complete with the lowest total cost to them. If you want to make them happy, let them know you saved them some money. This client can actually be great to work for if you are looking for a quick payday. The trick is to make sure the product reflects the price.

Do the work quickly. Time is your most valuable asset as a freelancer. This client just wants the job done, so that’s exactly what you need to do.

Get it in writing. Some Cheapskates are so cheap that they won’t even pay you. Be sure to sign a contract with them before beginning any work.

Start the estimates high. It doesn't matter if your prices are fair or not, this client will want a lower price. By beginning your estimates with a higher-end price, you can haggle with a Cheapskate and come to a win-win compromise.

The Dreamer
The Dreamer doesn’t quite live on planet Earth. Their heads are filled with crazy ideas and big plans. Whether it is in style or in function, the Dreamer envisions his or her final product as being the best thing available.

How To Handle Them
Dreamers want their dreams to come true. This can be difficult if you are unable to live up to their high expectations. However, if you impress a Dreamer – they will absolutely adore you. Without discouraging their passion, you must bring the Dreamer back into reality. Letting them visualize and interact with your work can help them:

Ask them to show you examples. You may be hit with the line, "it is so awesome it doesn't exist yet!" but be persistent until they are able to think rationally.

Be straight forward with prices and time frames. Sometimes what the Dreamer wants isn't impossible, it’s just difficult. If this is the case, give them a solid price and time frame to do the work in.

Ask them about the details. Dreamers rarely fill in the blanks. While their end goals are usually incredible, sitting down with them and discussing the details can help both you and them get a good grasp on the scope of the project.

The Helper
The Helper can be sweet at first, but can get in your way if not handled correctly. They are very hands-on people, who need to interact personally with your work. A Helper can be fantastic client to work for, provided you can keep them busy.

How To Handle Them
The Helper wants to be involved in the work. They carry with them a lot of enthusiasm that needs to be released in a constructive and practical way. If a Helper wants to assist you, then give them that opportunity. This gives you a great chance to practice your skills as a delegator and team player, as well as help expedite your work for this client. When working with a Helper:

Give them tasks. Letting them assist you with some of the simpler tasks of your job can save you time and money. Be sure to identify your client’s skillsets before asking them to preform a complicated task.

Ask them to research. Whether you use the information they find or not, research tasks can keep a Helper out of your way for a long stretches of time, leaving you the freedom to focus on your job.

Make noise. As unusual as this may seem: the Helper can be easily scared off by loud noises. If they won’t leave you alone, taking a phone call or turning on a power tool will most often cause them to give you some space.

The Sprinter
Some clients are born Sprinters, and some are just forced to run to meet a deadline. The Sprinter always has time on their minds. They are serious when it comes to deadlines, and are often very busy people. They frequently think if a project can get done in one month; you should be able to get it done in three weeks.


How To Handle Them
For a Sprinter – time is of the essence. Their goal is to get projects done fast. This type of client is generally hard-working, so they expect the people around them to be the same way. When dealing with a Sprinter:

Proceed with caution. Sometimes it only takes an hour to negotiate your workload for the next month. Don’t get caught in a deal that leaves you stuck with an over demanding assignment.

Guard your deadlines. You will be held accountable to the time frames mentioned on your contract, so be realistic and flexible with them. The Sprinter may want you to complete work ahead of schedule, but don’t move from those deadlines unless you are comfortable doing so.

Pace yourself. When working for a Sprinter, follow the basic rules of productivity: stay focused, cut out distractions, take breaks, and stay organized.

The Underling
The Underling is not allowed to make any decisions. They are clients who work under a strict chain of command, meaning they need approval before making most decisions. They usually have no clue what is going on, and are rarely prepared for the questions you have to ask.

How To Handle Them
What the Underling wants doesn’t really matter – what matters is what their superiors want. Ultimately, if the work you give the Underling pleases the ‘guys upstairs’, you will have a very happy client. They key to dealing with an Underling is to think like an employee. Strategically plan ahead for the "let me get back to you" mentality. When working for an Underling:

Ask questions in bulk. Individual questions get lost in emails and sticky notes. The best way to save yourself time and stress is to compile a sizeable list of questions you will need answered and submit them all at once.

Prepare for the lag. You know how news reporters always take a minute to respond to questions? This is exactly what you will have with an Underling. Ask questions ahead of time so you are properly equipped for the next phase of your work.

Don’t bother explaining. If you are working for an Underling there is a good chance their boss is the next type of client on our list. This means that the Underling just needs to know the highlights of the work you’ve done, because that’s all their boss wants to hear.

The Delegator
The Delegator hired you because they know what you’re doing, and expect you do complete your work with skill and professionalism. They won’t want to be bothered with the details or bogged down by long meetings; their credo is: "you do it lah".

How To Handle Them
They simply want a solid finished product completed within a reasonable amount of time. The work you are doing for them is usually just a small piece in a much bigger plan. Your work will have to speak on your behalf, because the Delegator isn't available to meet for the next two months. When working with a Delegator:

Respect their time. Delegators guard their time like they guard their very lives. When interacting with them, come prepared and keep it short.

Be direct and honest. Delegators loathe excuses. They are not interested in what tools used on a project, how long it took you, or what went wrong along the way; they want to know if the job is done, and if the product works.

Give them a document. This type of client can handle paperwork much better than they can handle human interaction (unless of course they have delegated the paperwork to someone else). By giving them a written report, you are able to keep them informed without taking up too much of their time.

By Hongkiat.com