Understanding the Difference Between Marketing and Promotion

Written by Stone Evans

Are you an online marketer? Or do you simply promote affiliate programs? Marketing is trulyrepparttar most misunderstood word in use today onrepparttar 117027 Internet. Let me see if I can clarify this issue just a bit.

In Marketing 101 at your local university, marketing is actually repparttar 117028 process of Product, Place, Price and Promotion.


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

In a nutshell, entrepreneurs arerepparttar 117029 people who believe in a product, service or idea, so much that they are willing to invest their lives intorepparttar 117030 development of their dream.

Historically, every major corporation inrepparttar 117031 world was started by an entrepreneur with a dream andrepparttar 117032 drive to make it a reality.

However, there comes a time inrepparttar 117033 life of every corporation when those who fearrepparttar 117034 gambling nature of their founder, squash repparttar 117035 entrepreneurial drive that maderepparttar 117036 company a viable concern inrepparttar 117037 first place. The entrepreneur will either submit torepparttar 117038 careful nature ofrepparttar 117039 stockholders, or he will be forced to leaverepparttar 117040 company he created.

The only entrepreneurs who withstandrepparttar 117041 pressure to move more carefully are those who have maintained majority control over their companies.


Inrepparttar 117042 offline world, place is defined by location. Onrepparttar 117043 Internet, place is defined by domain name andrepparttar 117044 web hosting service chosen.

Both online and offline, place can make or break a company without respect torepparttar 117045 quality and value ofrepparttar 117046 product, service or idea.


Selecting a price is determined first on a basis of whetherrepparttar 117047 company wants to be seen as a discount or a value company.

Take for example Wal-Mart and Staples.

Wal-Mart isrepparttar 117048 lead discounter inrepparttar 117049 marketplace. Staples on repparttar 117050 other hand isrepparttar 117051 specialist in office supplies.

Both sell a significant number of office supplies despiterepparttar 117052 fact thatrepparttar 117053 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.

Sorepparttar 117054 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 selectingrepparttar 117055 best price for your product or service will require a certain amount of testing.


Let's assume we are selling a product. Let us also assume that we know thatrepparttar 117056 product can be sold for $10 or $50. Let us also assume that ifrepparttar 117057 price dips below $10 or rises above $50, then repparttar 117058 product sales fall off significantly.

Our challenge is to determinerepparttar 117059 best rate at which to sell our product.

Testing has shown us that we can sell 1000 items a week at $10. Testing has also shown that we can sell 500 items per week at $50. And testing has shown that we can sell 650 items per week at $45.

Your Home Business: Turning Pennies into Dollars

Written by Stone Evans

Henry Ford taught us that to simplifyrepparttar manufacture of automobiles, thatrepparttar 117026 best way to do so was to installrepparttar 117027 assembly line. That one change revolutionizedrepparttar 117028 auto manufacturing industry permittingrepparttar 117029 industry to build cars at a cost whereasrepparttar 117030 average person could afford to buy one.

The lesson we should take from this is that havingrepparttar 117031 ability to improverepparttar 117032 process of gettingrepparttar 117033 job quicker and cheaper, without compromisingrepparttar 117034 quality ofrepparttar 117035 job being done, will help catapultrepparttar 117036 person who simplifiedrepparttar 117037 process torepparttar 117038 top of his/her field.

Pennies saved in your home business can turn into dollars atrepparttar 117039 end ofrepparttar 117040 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 inrepparttar 117041 profit margin of a home business? Of course repparttar 117042 right answer is "it depends on how many transactions are done in a year, utilizingrepparttar 117043 savings ofrepparttar 117044 two fifths of one penny."

You only have to think back a couple of decades to really appreciate this question. Do you rememberrepparttar 117045 nut that lived and died in a Las Vegas hotel room? You knowrepparttar 117046 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 onrepparttar 117047 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 inrepparttar 117048 design of their food can to reduce repparttar 117049 amount of tin necessary to make a single can.

Asrepparttar 117050 story goes --- if my memory serves me correctly ---repparttar 117051 reduction in tin usage equaled a saving of two fifths of one penny per can. Howard --- beingrepparttar 117052 really smart businessman that he was --- decided that he would not be so greedy as to keep all ofrepparttar 117053 savings for himself. What Mr. Hughes did do was to keep half ofrepparttar 117054 savings for himself, and giverepparttar 117055 other half to his customers. The incredible thing about Mr. Hughes decision is that by saving his customers an extra one fifths of one cent per can, he managed to take more market share away from his competition --- netting his company an additional and substantial portion ofrepparttar 117056 total market share inrepparttar 117057 canning industry.

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