Same burger, same price, two districts: office workers Downtown and students in the University District. Why would one crowd line up and the other walk past? The guide's district table already hints at the answer.
Learning objectives. After this week you can (1) build a marketing mix with the 4 Ps; (2) choose a target market by segmentation; and (3) write a value proposition and test it with research.
Remember this: you cannot sell to everyone. Pick a customer, then make all four Ps speak to them.
1) The marketing mix: the 4 Ps
Marketing Mix = Product + Price + Place + Promotion
| P | What it means | On your truck |
|---|---|---|
| Product | What you sell and its quality | Your main item, side and drink |
| Price | What you charge, and the value it signals | The prices on your decision form |
| Place | Where and when the product reaches customers | Your district and day |
| Promotion | How you communicate: ads, social media, word of mouth | Your marketing account |
A higher price than rivals can work when the product offers more perceived value or quality.
2) Segmentation and the target market
Segmentation splits a market into groups with similar needs: by demographics (age, income), geography (Downtown vs. campus) or behavior (weekday regulars vs. weekend tourists). The target market is the segment you choose to serve; a small, specialized one is a niche. Positioning is how customers see you compared with rivals.
3) Value proposition, brand and research
A value proposition is one sentence on why a customer should choose you. Your brand (name, look, reputation) builds recognition and loyalty. Test both with market research: primary data you gather yourself (watching your own sales) and secondary data from published sources. Your Sold line is primary research, and it shows what customers actually reward:
Item Share of Revenue = Units Sold × Price ÷ Total Revenue × 100
A day sells 120 burgers at $8.50 ($1,020), 70 fries at $4.50 ($315) and 59 drinks at $2.80 ($165.20), for $1,500.20. The burger's share is 1,020 ÷ 1,500.20 ≈ 68%.
Quick self-check
(a) Which P covers your social-media posts? (b) You sell 90 mains at $8.00 on a $1,200 day: what is the main item's share? (c) Is "anyone who is hungry" a target market? (Answers: Promotion; 720 ÷ 1,200 = 60%; no, it is everyone, which is no one.)
Common mistakes
- Targeting "everyone." Appealing to all customers usually means appealing strongly to none.
- Treating Price as the only P. Place and Product move sales as much as a price tag.
- Confusing a brand with a logo. A brand is the promise customers believe you keep.
This week in the arena
Take one Daily Report's Sold line and your prices from the decision form. Work out each item's revenue and its share of the day. Then write your value proposition in one sentence and name the crowd it is aimed at. Does the item your customers rewarded match the customer you think you serve?