For Young entrepreneurs and Start-Ups: A listing of classical marketing lapses

Missing market orientation
With the examination of establishment drafts experts determine again and again: Foundresses and founders are very often masters of their subject. At the same moment are absent(lacking) in a lot of business plans information about whether product or service is desired of the market actually and how these should be brought " to the man", be sold also.

Missing enterprise face
Enterprises often get on only as a product offerer or service offerer. They overlook with the fact that they are never seen by the customer only, but as a " complex whole ". Problematically is that many founders and female founders underestimate the meaning of the firm appearance. Important is rather to give a "face" to the enterprise as fast as possible and to communicate this identity systematically and uniformly.

In addition belong:
• Meaningful naming, best the development of a mark
• Development of a telling logo
• Standardized, for the firm representative business papers (from the visiting card as far as image brochure)

Tiring public relations
With a unique, still opening action so full of swing for the enterprise start your public relations should be in no case done. Your company admits to make and too received, is top-priority case. This is a permanent task which you should pursue as an owner of a young firm constantly.

Advertising killer day business
Many young entrepreneurs neglect their external appearance and their efforts of advertising, because they are much too strongly stressed by the cash transaction. Do not forget about the loads of the everyday life: They should set up a sale plan and advertising plan. Both should be a default for the individual sales and advertising measures.

Frittered away Advertising
Very frequently young entrepreneurs must register after a successful start phase that incoming orders and sales stagnate. At the same moment only few new customers have come. Background: founders very often have problems to form their advertising efforts, oriented to target group. They waste themselves, the success of all efforts does not justify the expenditure, the expenses exceed the income. Here helps a consistent demarcation of the target group.

Not prepared on the counter measures of the competitors
The least enterprises make aware themselves that a marketing offensive challenges the contest in a close market. Short term success must be also secured in the long term. One must think over it how a competitor will react, who is attacked. Does he lower the prices? Does he also improve his products? Think start with which possibilities the contest has to resist. He will do it!

Missing sales planning
Who should buy your products and how many? Never commit the mistake and you plan your paragraph after what can produce or offered. If you are insecure to yourselves with a new product, try a test market. Even by the best design surprises come again by days.

Marketing and pricing
Who wants to sell something, must be safe that he will be "loose the required price. At the same moment he must be able to live from the proceed. The practical price marketing searches the optimal paragraph price of a product or a service. Besides, it is not only about the height of the specific retail price: in addition there come the terms of payment, if necessary discounts as well as the terms of delivery.

Completely fundamentally are to be considered during the selling price calculation:
• Price: result from supply and demand
• Do your prices cover your expenses?
• Are your prices competitive?
• If the cost price above the market price lies
• Threshold prices
• Discounts
• Price strategies

Price: result from supply and demand
Each price results from as largely the offer of certain products or services and as high the demand for it is. That means:
1. If there is of a product or a service only a very limited offer, and the demand is big, then a high price can be achieved here. This is, first of all the case when offerers have nobody or hardly competition at their market, or for, e.g., for particularly high-quality goods or even rare and valuable things as for example works of art.

2. If a product or a service is available massively, only a lower price can be achieved here. First of all when the demand is rather low (e.g., for winter clothes in the spring after a mild winter).

Only in special cases there rises the sales volume with the price:
• Jet time first right effect: the customer buys expensive products, because he would like to strike by luxurious consumption.
• Snob’s effect: the customer buys expensive products, because he would like to possess goods which cannot possess other or possess.
• Fellow traveller’s effect: the customer buys expensive products, because he would like to possess goods, the other, socially emphasized persons possess.
• Price as a quality graduation: by the price it is concluded on the quality: high price equally high quality.

Most enterprises are subjected with the price formation to the general law by " offer and demand ". However, your product or your service should cost exactly how many? Here you must calculate very exact! The reason: Here you decide how profitably you economize whether your income covers your issues and whether you achieve profit.

And what concerns the subject "Marketing": Here you also decide whether the market accepts your product or your service how well or how badly you sell this. Consider: a too high price can lead to the fact that you remain sitting on your products or services, because your customers cannot apply so much money or your competition is lower-priced. Certainly, a too low price brings conversion, but possibly you cannot cover so your expenses any more.

Market price
If you want to set down your product or your service actually in the market, your customers must be ready to pay your price of it. This means: They must find out, how many your customers are to be paid ready.
To determine the market price and of it dependent the maximum cost price, you can start own polls and use appropriate empirical values of your branch association. Where the "pain threshold" of your customers lies, first of all also depends on the fact which prices your competition requires for comparable products and services. Is important: They must orientate themselves at all costs by the price structure of your market.

Cost price
If you know how the market price is for your product or your service, also know at the same moment, how many your products or your service may cost. Now all activities which are necessary to produce a product and to produce a service must orientate themselves by this aim size.
Find out: which expenses are connected to produce your product or your service or to produce and to sell? How high should your profit be, in addition? How these expenses positions fall out, you can investigate with the help of the expenses kinds bill.
Besides, your conditions of delivery and terms of payment (e.g., discount payment, purchase by instalments, discounts) also belong to the expenses. They are undoubtedly an attractive marketing means with which you can win customers or hold, however, reduce your proceed. Is important: They must cover of course about your price your expenses (exception: temporary special offers as a sales instrument).

If the cost price lies over the market price
If he lies (economically necessary) the cost price lies over the market price, you must decide as a rule between two alternatives. Consider:
• Which customers would pay the cost price? Who are these customers?
• How can you reduce the expenses? Possibly the market price can be regarded if the expenses are reduced. Where and how expenses can be saved?

Respect: the finally more important factor is the market price. He decides on whether products and services can be set off or not.

Threshold prices
A special variant of this strategic selling price calculation are the threshold prices in such a way specified. Here a price is lowered under a psychological "sound barrier" to make a buying decision easier to the customer. Example: 9.99 Euros.

Terms of payment and supply
Conditions of delivery and terms of payment are a general component of the terms of trade of a supplier. Broadminded conditions of delivery and terms of payment like purchase by instalments or discounts go at the expenses of the offer price, however, are for the placing of order an important argument and paragraph-political means.

Price strategies
Apart from the fact that you just(exactly) must calculate your price after expenses and market, some strategic options remain to you:
• Permanent high policy on prices / permanent low policy on prices: You can – e.g., with particularly high-quality or vice versa to less high-quality products or services durably in a high or lower price segment. This depends, first of all, on your customers and the use which you promise you: high quality, special image for better situierte customer (e.g., to dual income family budget without children) or, however, simpler goods to affordable prices of less "well-heeled" customers (e.g., families with children). On which strategy you decide, depends not least on the fact which customers you want to reach.
• Penetration policy on prices: You can penetrate first with low product prices into the mass market, win shares of the market and edge out competitors. In this case – e.g., for opening a shop or restaurant, for the introduction of this product – the price of a product can be lowered first below the cost price and if necessary even below the market price to raise the paragraph(sale): such a price reduction does as a rule, however, only for a limited period sense. You must realize later naturally about the masses of the sold products or higher prices your profits.
• Absorption policy on prices: You can get first – e.g., because of an innovation projection – with high product prices into the market to adapt the prices with rising competition downwards