The Money Generating Simple Method
A Money Generating Method is a strategic approach or system implemented by businesses to consistently generate revenue and maximize profitability. It involves diversifying income streams, leveraging technology, employing effective marketing and sales tactics, fostering innovation, and prioritizing financial planning and management. This method aims to create sustainable cash flows, mitigate financial risks, and achieve long-term financial success for businesses.
Now you need to focus on the following business elements for money generation.
RP + RC + RP + RS = Generate Money
RP = Right Product
RC = Right Customer
RP = Right Placement
RS = Right System
1. Right Product: Your product can be called the right product only when it solves the customer’s specific problem. Like ‘Uber’ to the city of Jam. If you can create an effective product or service, then money generating is just a matter of time. Profit will come when your product or service is ”Pro-fit”, which means that the product or service will fulfill the customer demand.
Factors that make a product market fit-
- User-friendly design
- Highest Quality
- Perfect functionality
- Marketability
- Being within the purchasing power of TG
- Credibility
2. Right Customer: Right product for the right customer If it is not reached, it is not possible to meet the sales target of that product. Because every person’s needs and priorities are different.
All you have to do- find people who are fit for your product. 80% of marketing failures are due to going to the wrong market. If you offer him what he does not need, rejection will come. Again targeting everyone is too expensive. So find your right customer by segmenting the customer.
It is said, ‘If you cannot define them, you cannot find them.’
Customers can be divided into four segments-
- Demographic
- Psychographic
- Geographic
- Behavioral
Demographic: Segmentation based on age, gender, income, occupation, education, and marital status is called demographic segmentation.
This segment can only be defined by answering the Who. For example, personal care items such as soap, shampoo, face wash, etc. are marketed differently based on age. Johnson, Codomo markets children’s cosmetics. Dove, Loreal deals with adult cosmetics.
Customer segments are also differentiated based on income. For example, BMW focuses on high-income people, while Toyota is aimed at middle-income people. Again, the marketing plan is different for men and women based on gender.
Psychographic: When customers are differentiated based on psychological characteristics is done. This segment clarifies the answer to The Why. For example, social class, lifestyle, personality, daily activities, hobbies, entertainment, reading, etc. For example, Samsung for Android lovers, and iPhone for premium customers. Rolex is for people with a luxury lifestyle.
Geographic: Customers based on different geographic units can be separated. This segment is identified by the Where. For example, the tastes, preferences, and needs of customers in urban and rural areas are different. Marketing policy changes based on climate and season. For example, a company that sells room heaters in a cold country, the same company also targets AC sales in a hot country.
Behavioral: Based on the behavior of the buyer when the customer is separated. Called behavioral segmentation it answers the How. This segment is very important for e-commerce and digital business. These customers are differentiated based on data with psychographic segments. For example, user status, purchase habits, browsing history, spending habits, number of page visits, etc. For example, different sites have one type of offer set for first-time visitors and another type of offer for returning customers. For example, ‘Amazon’ offers different types of offers for each customer according to the behavioral segment.
Design the marketing plan for your specific customer segment. Sales will increase, and branding will be much easier. if your capital is low, then target specific groups. Best choice for small entrepreneurs working in niche markets.
‘You need to be the big fish in a small pond.’
3. Right Placement: The product should always be within reach of the customer. Availability matters a lot. Various business models have been invented around the world to ensure this availability.
It is not just keeping the product quality good but also needs to notice the right placement.
If you want to build a big brand, placement will give great mileage for you. The best strategy is to get very close to the TG.
Nestle’s strategy in this regard is- ‘We have to ensure our products are available whenever, wherever, and however the consumer wants them.’
Again, when you place your product in a shop, you must always select a place that is visible to the buyer. Because Eye level Buy level.
Product placement is also very important online. Displaying attractive products on the homepage, matching products with categories, enabling dynamic search, etc. – Whether the customer searches in any language or English, the desired product is found.
So whatever business you start, there is no way to generate money without proper placement.
4. Right System: Now, has done the right product, the right buyer, right placement. But this method will not work if there is no proper procedure.
If you analyze the best companies in the world, you will see that they have built the best system to build a sustainable business. A system is the entire process from manufacturing a product to reaching the consumer.
Communication plays a very effective role in the system. If you do everything but the customer does not know that you have the right solution to his problem, then all the arrangements are in vain.
Remember, if you can’t communicate well with the customer, you won’t sell a good product. Let the customer understand that you have the best solution for him.
