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Home Business Articles - By Stone Evans

Understanding the Difference Between Marketing and Promotion
Copyright © Stone Evans, The Home Biz Guy
http://www.replaceyoursalary.com/pips.html

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.

PRODUCT

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 dream.

Historically, every major corporation in the world was started by an entrepreneur with a dream and the drive to make it a reality.

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 created.

The only entrepreneurs who withstand the pressure to move more carefully are those who have maintained majority control over their companies.

PLACE

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.

PRICE

Selecting a price is determined first on a basis of whether the company wants to be seen as a discount or a value company.

Take for example Wal-Mart and Staples.

Wal-Mart is 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.

Testing 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 testing.

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.

Our challenge is to determine the best rate at which to sell our product.

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.

At $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.

With the 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 long haul.

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 product's prices.

PROMOTION

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 promotional dollars.

HEADS UP!

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 time!

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 $45!

ARE YOU TRULY A MARKETER OR ARE YOU JUST A PROMOTER?

Most 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 marketer.

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 earned.

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 fail.

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 emulate.

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Stone Evans will help you setup your very own money making
website today that's 100% ready to take orders and pull in
MASSIVE PROFITS for you right now...GUARANTEED! Plus, you'll get
your own pre-written ezine-in-a-box customized and setup for you
absolutely free WITHIN 24 HOURS!! Get started immediately at:
http://www.replaceyoursalary.com/pips
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Reprinted with permission from the Plug-In Profit Site Free Website Builder.


More Home Business Articles

Promoting Your Business with a Copper Wire? Think Again.
So many people launch their first or second business with the misconception that they can survive without advertising. It is their fear of failure that almost single-handedly assures their failure. They fear spending the money that they need to get and keep their business running during those early years of their operation.
[read more...]

How to Calculate ROI (Return On Investment)
ROI (Return on Investment) is probably the most important calculation one needs to make to ensure the long-term viability of their business. It is not enough to build in a profit margin on the product or service being offered. One must track with proficiency the amount of dollars being invested into attracting sales and how much ROI those dollars put back into the business.
[read more...]

Tracking Offline Advertising Success by Measuring ROI
The great promise of online advertising has always been that advertisers will now be able to effectively track the successes and failures of their online advertising efforts. This promise has been met.
[read more...]

How To Measure Advertising Success Online
It is easy for me to tell you that you need to track the success of your online advertising. It is also easy for me to tell you that you must do so in order to know which of your advertising is helping you to make a profit, to break even, or to break the bank. Far too many advertisers get caught in the online money
pits in an effort to develop their online business.
[read more...]

How to Maximize the Value of Your Time
How is your business doing? Is it growing, stagnating or losing ground? If your business is not growing, it could be the result of a poor business idea or plan, a lack of advertising, or the mismanagement of your business’ resources.
[read more...]

 


Feature Article: By Alan Mater, Site Owner

Feature Article: Create the Right Mindset to Succeed with a Money Making Home Business

Copyright © Alan Mater - ReplaceYourSalary.com

Alan Mater

There are many reasons to start a money making home business. Some for the extra money, others for the freedom. While the reasons differ, there is one thing that seems to always be true.

You must have the right mindset. No matter what your intentions are for starting your own home online business, without the right mindset you're setting yourself up for failure. Harsh, but true.

According to the U.S. Small Business Administration (http://www.sba.gov/starting_business/startup/areyouready.html), over 50% of small businesses fail in the first year and 95% fail within the first
five years.

This is very sad. It has nothing to do with not having the right intentions. You can dream big and have realistic goals that you want to achieve, but there is an underlying factor involved, and it is the key to your success.

"Whether you think you can or whether you think you can't, you're right!" - Henry Ford

So many people go into business with the wrong mindset. Sometimes their goals are just plain unrealistic. For most though, they have a lot of doubt; they have a lot of fear of the unknown.

Fear is healthy, but it shouldn't stop you from accomplishing your goals. If you have the mindset that you want to succeed, then you will. If you have the mindset that you will fail, then you already have.

I started this website with a lot of unknowns, but that didn't stop me from accomplishing my goals. I take the doubt that I have and transform it into positive energy. I put that positive energy to good use. A positive mindset is a good mindset to have.

You can accomplish anything with a positive mindset. If you're looking to earn extra money from home by getting paid to take surveys, data entry jobs or start an online business, then what is stopping you? The only thing keeping you from your goals is yourself.

Do you have the right mindset?

When searching for a home business online opportunity or ideas to earn money with the internet, don't think that you can't do it or that you're not good enough. The truth is that ordinary people just like you are making a very nice income from the comfort of home.

The good news is that you can too. Just find the right making money online opportunity that will help you achieve your goals. With the right mindset, nothing can stop you!

About the Author:

Alan Mater is a freelance proofreader and an affiliate making money online. He is a proud member of the Plug-In Profit Site and is always looking to help others achieve success online. Sign up for his free newsletter and be sure to visit Alan's Home Money Making Blog.