by Rudolf Kotek
Four elements play a role in a customer’s decision to buy a product: the product itself, the price of the product, the place and the promotion of the product.
Product:
What is the physical product?
What additional features are needed?
What are the functions or uses of the product?
What services need to be provided?
Does the customer expect guarantees or warranties?
How should the product be packaged for shipment?
How should it be packaged for the consumer?
What images should the product project?
What brand name should be used?
Price:
What price is needed to make a profit?
What price will customer be willing to pay?
Who determines the price customers will pay?
Should discounts and allowances be provided?
Should coupons, rebates, markdowns or sales be used?
Should credit be extended to customers?
How should the business respond to competitor’s prices?
Place:
How will the product reach the customer?
How will products be handled, stored, displayed and controlled?
How will orders be processed?
Who will be responsible for products that are damaged or not sold?
What kind of traffic pattern fit the buying patterns of target customers?
Promotion:
What information do customers need?
Should promotions be informational or persuasive, or merely reminder messages?
Do all customers need the same information?
What combination of advertising, personal selling, sales promotion, and publicity is needed?
Will mass or individual promotion be most effective?
What media should be used?
How often must information be communicated to franchisees and customers?
Rudolf Kotik is the founder of RK Franchise Consultancy Inc, who developed more than 350 Filipino Companies into Franchise Systems. Tel. (02) 912.2946, 912.2973, (032) 273.3827, 238.3933 email: rk@rkfranchise.com; websites: www.rkfranchise.com, www.franchise.ph
