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