In Marketing 101 at your local university, marketing is actually process of Product, Place, Price and Promotion.

PRODUCT

No business can exist without a product or service to sell.

In a nutshell, entrepreneurs are people who believe in a product, service or idea, so much that they are willing to invest their lives into development of their dream.

Historically, every major corporation in world was started by an entrepreneur with a dream and drive to make it a reality.

However, there comes a time in life of every corporation when those who fear gambling nature of their founder, squash entrepreneurial drive that made company a viable concern in first place. The entrepreneur will either submit to careful nature of stockholders, or he will be forced to leave company he created.

The only entrepreneurs who withstand pressure to move more carefully are those who have maintained majority control over their companies.

PLACE

In offline world, place is defined by location. On Internet, place is defined by domain name and web hosting service chosen.

Both online and offline, place can make or break a company without respect to quality and value of product, service or idea.

PRICE

Selecting a price is determined first on a basis of whether company wants to be seen as a discount or a value company.

Take for example Wal-Mart and Staples.

Wal-Mart is lead discounter in marketplace. Staples on other hand is specialist in office supplies.

Both sell a significant number of office supplies despite fact that lowest price can usually be found at Wal-Mart. As a value dealer, Staples can afford to charge more for their products than Wal-Mart.

So question for you is whether you want to position your company as a discount or value company.

Testing has shown that products and services can be sold at any number of prices and still reach a significant number of people.

The challenge of selecting best price for your product or service will require a certain amount of testing.

UNDERSTANDING THE PRICING EQUATION

Let's assume we are selling a product. Let us also assume that we know that product can be sold for $10 or $50. Let us also assume that if price dips below $10 or rises above $50, then product sales fall off significantly.

Our challenge is to determine best rate at which to sell our product.

The lesson we should take from this is that having ability to improve process of getting job quicker and cheaper, without compromising quality of job being done, will help catapult person who simplified process to top of his/her field.

Pennies saved in your home business can turn into dollars at end of day, and dollars can quickly multiply into hundreds or thousands of dollars over time.

Doubt me if you will, but let me ask you a question. Do you think a saving of two fifths of a penny could make any real difference in profit margin of a home business? Of course right answer is "it depends on how many transactions are done in a year, utilizing savings of two fifths of one penny."

You only have to think back a couple of decades to really appreciate this question. Do you remember nut that lived and died in a Las Vegas hotel room? You know one who was a billionaire, and was so worried about germs that he died of starvation? If you guessed Howard Hughes (1905-76), pat yourself on back.

Now Howard did not make all of his money on his two fifths of one penny. He did however make a ton of money from his two fifths of one penny. It seems Howard owned a can manufacturing company. And one day, Howard's team figured out how they could make one minor change in design of their food can to reduce amount of tin necessary to make a single can.