We are back to 2021 and I would like to share with you what I stated also in my book Value in Cable Business as far as the marketing mix is concerned.
When we speak about the Marketing Mix we mainly speak about the 4P, but what do they refer to?
Marketing mix is an old marketing concept but still valid in our Business which is linked to the old economy and commodity.
4Ps are the initial letters of the following nouns:
• PRODUCT
• PRICE
• PLACE
• PROMOTION
If these 4Ps business aspects are well balanced, we can say that we have higher probabilities to get more success in our business.
And what about copper and cables business? Are the 4Ps valid? Or our sector is different from the others?
Let’s briefly check one by one:
Cable as Product
From the intrinsic point of view cables respond to norms and regulations, this means that we are partially “safe” with the hope that the product can absolve to its main functionalities, which are the ones of energy or data transmission.
Obviously, we cannot talk only about intrinsic functionalities but also other NON intrinsic aspects the cable should comply with to be considered a good product.
What are these aspects? Well, for sure quality at 360 degrees, but also BRAND NAME; an example? think about the ControlFlex® brand name or Ölflex® brand name which paved the way to other cables’ brands in our sector which are known as flexible and oil resistant.
But also, other aspects are important within the products’ peculiarities which can make the product GREAT!
What do you think about packaging, cable lengths and formats, typology of drums warranties and varieties of ranges such as colors etc.
Is your cable like this? Have you ever thought about this to fulfill your clients’ needs? You had better to think about it as I mention in my book a cable is not only a “price” but also made or value on top of its intrinsic functionalities.
Cable as a Price
When we deal with cable Price is not only the single issue. Obviously, it very important but is not the only aspect to be considered in our business.
More than price there is Value, and I would like to shed a light on this only by placing some questions to everybody with the idea to trigger our minds to take into consideration some other important aspects.
Is the cable the result of a well structure R&D process? Is the cable the outcome of a solid and in-depth research of new and more performing compounds? Are the compounds tested either from the producer and the company itself but also from the end clients?
If you are an electrician or a distributor? How do you select and choose the cable to be used in your tenders or projects? Are you always looking for the prices? If so, you are on the wrong side. A cheaper cable does not mean that the project overall is cheaper! Or eventually run with profitability.
I don’t want to prolong this too much but only show you that there are massive rage of parameters which should be really taken into consideration before choosing a cable only for a good price and eventually save few Euro on a project with the risk that eventually is going to fail.
Cable as Place
Well in the past I have been working for few companies as Network Development Manager, and for sure this aspect and the enlargment of the sales network was for me, as it is now, the quintessence of the sales distribution.
We cannot produce cables, or if you are a cable distributor, distribute them with the idea to sell them locally and eventually on the spot abroad.
A well-structured and well serviced network need to be properly and strategically developed even in our cables’ sector such as in all other sectors.
At the time I am writing there are companies in Europe which distribute cables within one hour from the order (placed with an APP on a cellular phone), and directly to the building yard. Don’t you think that this is not a part of a well-structured distribution and sales network service?
Establish as solid and sound distribution channel is also important as it reduces the entrepreneurial risk and give stability to your sales. In the past I met producers, distributors and occasional sellers which really sell cables just for the sake of selling without even respecting the way a network is structured and with this I mean selling directly to end clients with no respect. This is not the way a structured sales network is working. In other terms supports your sales network to sell cables (SELL-OUT) and do not consider it as a SELL-IT only network or it will never support your business.
Cable as Promotion
Finally, there is a common way of thinking in our cables’ sector with which many players think about marketing activities like Promotions, Publicity, PR activities and even Web marketing, and also Customer Relation Management; they really think that these marketing aspects are not important as the cable as product is part of the old economy and in the old economy such marketing activities are not working.
Nothing is more wrong than this! and a matter of fact we can see every day that big cables producers and the worldwide cables distributors are constantly and intensively investing in new way of promotions like social networks etc. These players know the new marketing parameters like how much it costs getting new leads, new clients, and the way how to use them even if they are part of the old economy.
Even if you are a small electrician developer distributors or cable producer never stop doing promotions and if you did not start yet, follow my suggestion, start now or you really run the risk of being out of your business very soon.
If you want to know more about my book you can check it here