1. Product
   • What is it?
   • Who needs it?
   • How and why is it different, etc.?
2. Price
   • Anything having to do with setting the sell price.
   • What price will consumers be willing to pay?
   • Will it be a premium item or a value product?
   • High volume or custom pricing?
3. Place
   • This can be a physical space, a specific media platform, or a vertical market.
4. Promotion
   • How will the customers be made aware of the product offering and motivated to purchase?

Traditionally, the four P’s are included as a component of the Marketing Plan, similar to the Executive Summary and SWOT Analysis. However, it is not typically considered to be a useful decision-making tool for the everyday. Additionally, the four P’s are widely considered a marketing or advertising tool, and are not often used for other areas such as sales and business development.

When I was going to school for my MBA, I was a part-time student while also working in AV full-time. At the time, I was a Business Development Manager, and I was tasked with launching a new line of private label mounts for flat panel displays and projectors. To be completely honest, the product line was nothing special and certainly had no advantages over competing products in terms of functional attributes. Frankly, it were to be compared to competing products based on features and specs, the competition would win 10 times out of 10. From a pricing perspective, we could certainly be priced lower comparatively to other broad-featured brands, but there were plenty of “value brands” available already.

My task was simple: Figure out how to sell it.

The first thing I did was to put together a SWOT analysis.
See my last blog for more on SWOT.

Next, I decided to establish the Four P’s.

The Product seemed self-evident at first—display mounts?!?! But as looked back at the SWOT, the weaknesses of the product were overwhelming. I had to shift my focus to the strengths and opportunities columns. I kept coming back to the same few strengths and opportunities: dealer profit, one-stop-shop, private brand. As I considered these advantages, it occurred to me that I was not offering a physical, functional item. I was offering a tool that integrators could use to win more business. Essentially, we weren’t selling mounts, we were offering dealers a way to make more money.

When considering Price, I knew that we could not fetch the same price for this line that we would for a premium brand. I also knew that if we priced the product to be the lowest on the market, there would be no profit for the dealer and our product would be compared with cheap, inferior products that were not intended for professional use. Looking back at the newly defined product offer being a sales tool vs. a physical product, I looked at pricing in a similar way. Instead of a strategic price level—low, middle, high, etc.—it seemed to make more sense to again relate the price to the customer vs. the market. We would set a MAP (minimum advertised price) that was designed to deliver a significantly higher-than-average profit margin to our dealer. So, of course, the product had a price, but the focus was on dealer profit vs. end user cost.

Deciding the Place, or who and where we would sell the product was probably the most difficult decision. The easy answer would be to sell the product through as many outlets as possible, including online, to maximize sales. But if we were to do that, our dealers would face more competition and pricing pressure, which would result in less sales and profit. The decision was made to sell ONLY to professional integrators and NEVER to offer the product online.

Finally, it was time to look at Promotion. In the previous three P’s, we established our brand story, but now we needed a platform to tell that story. We deployed a direct sales approach that focused on communicating the value proposition—more sales—directly to the dealer. We would promote the product line through call campaigns, on all AV projects that included a display, in industry publication ads and during live tradeshows.

Slowly but surely, we began to see sales grow, and now twenty years later, the product line is still active, dealers are still making outstanding profits and end users have still never heard of it!!! Just how it was intended.

If you’re interested in finding out more about this product line, feel free to reach out to me directly. But this is not the right place for me to promote this product and we never advertise our price online.

Check out these links for more information the Four P’s:

• https://www.investopedia.com/terms/f/four-ps.asp
• https://www.ama.org/marketing-news/the-four-ps-of-marketing/

Tom Keefe | CTS, DMC-D-4K, DSCE

Category Manager – dvLED

Supported Manufacturers: Direct View LED

I was recently asked to prepare a business plan. It is something I really enjoy doing, but not something I do often. In M.B.A. courses, the components of a proto-typical business plan are covered ad nauseam, and there are A LOT of steps to preparing one. Executive Summary, Situation Analysis, Target Markets, Demographics, Trends, Competition, Product Offering, Mix, Forecast, Strategies, Tactics. The list goes on. And on… I’ll be honest, it was great to learn and be exposed to the “generally accepted” principles of building a business plan, but in practice, I only use a handful of them in my role. By far, the S.W.O.T. Analysis is my “go-to.”

(Yes, I have kept my old textbooks…)

So why the S.W.O.T.? First, it’s fun to say, “SWOT!” But really, I use it as a tool to help me come up with a systematic, structured approach to making strategic decisions. It can be used in a variety of scenarios outside of the formal Business Plan. Honestly, you could apply the S.W.O.T. to almost any problem or decision in life and it would be helpful.

But I digress, this is an AV blog, not a life coaching session. So how can we apply the S.W.O.T. outside the Business Plan?

Let’s consider the following scenario:

You just met with a prospective client that is considering upgrading their large staff training room to an Executive Conference Center. They have a large projector and 180-inch screen installed currently, and when in use, they have controlled overhead lighting to darken the room and accommodate the projection screen. This is fine for training sessions, but for executive sessions, the room will need to accommodate conferencing and collaboration, so having the lights turned down is not practical. In addition, a new training space will not be added, and the client would still like to be able to use the room to hold trainings when necessary. We need to design a space that includes the necessary technology, furniture, and layout that will accommodate the new environmental demands. Here is how we can apply the S.W.O.T. as a decision-making aid — or S.W.O.T. it out.

Executive Conference Center – Current State

As illustrated above, the S.W.O.T. provides a vessel to flesh out the pros and cons in a systematic way, that allows for creative solutions to arise. In this example, the strategy and tactics may look something like this:

Strategy:

• Create a high-end, executive conference room that leverages an aesthetically and technologically elevated environment to encourage collaboration and creativity.

Tactics:

• Replace the existing projection system with a large-format, 21:9 dvLED display to eliminate lighting challenges and accommodate the MS Teams Front Row platform.
• Install Modular furniture to accommodate several layouts and meeting formats.
• Commission a Teams compatible video conferencing and unified communications system that includes PTZ cameras and overhead mics to allow for remote participation.
• Remove window shades to accentuate skyline views and bring in ambient light to elevate the meeting room environment.

This is, of course, a bit of a crude example, but it demonstrates how the S.W.O.T. can be brought into the planning and decision-making process in a myriad of situations outside of the formal business plan.

I appreciate you taking some time out of your day to S.W.O.T. it out with me!

Here is a great S.W.O.T. resource: https://www.investopedia.com/terms/s/swot.asp

Tom Keefe | CTS, DMC-D-4K, DSCE

Category Manager – dvLED

Supported Manufacturers: Direct View LED