1) Product

• When most people think of a “product,” they think of an apple, or a car wash, or a money market account.  However, “products” are much more than the tangible goods or services transferred between people or companies.  A complete “product” is a medley of ingredients, including function, quality, branding, reliability, reputation, and any future assurances that attach to the product itself. When a woman buys a coffee maker, she isn’t just acquiring a means of having a daily cup of joe. After all, she could do that by spending an extra ten minutes and four or five dollars to stop at the local coffee shop on her way to work.  Instead of mere kitchen counter decor, she is purchasing the luxury of never having to interrupt her commute for a coffee shop detour again. Her purchase is about convenience, efficiency, stress-relief, and productivity - all of which doubles as a sense of justification for the underlying premise of self-indulgence: she likes coffee, and she’s now able to have coffee whenever she wants from the comfort of her home! Any marketer can identify a need, and most can even cater to a target market. But only the savvy salesperson appreciates and takes into full account the ballooning cascade of benefits that a consumer hopes to acquire with any single purchase, however large or small. In our context, the product is intangible. For better or for worse, it’s even been branded as somewhat elusive and abstract: “cloud” computing. For this reason, it is even more critical that you highlight and capitalize on the many benefits of cloud computing that really are tangible, like boundless access to files and applications, or transcendence beyond business hours and time zones. That way, your customers know that the Cloud is a very real product with immediate benefits that warrant their investment.

2) Price

• The word “price” usually conjures up that familiar image of numbers, decimal points, and dollar signs presented neatly on a little paper tag. However, the concept of price is much more complicated than that. Price combines two ideas: cost and value. Cost includes not only the total amount of money exchanged for a product, but also any financial terms and incentives, such as discounts, down payments, installments, and conditions. However, value is far more important than cost. While cost is just an absolute monetary figure, value is much more fluid and subjective counter-weighing of the customer’s sacrifice (money) versus the customer’s acquisition (product). A product doesn't have to be the least expensive to be the most successful. Instead, it has to offer the most benefits in exchange for its cost. For example, we’ve all been the victim of the “buy one, get the second for half-off” deal, right? Why is it that this timeless promotion has never lost its appeal? Why does this offer compel shoppers to buy two pairs of shoes, even though they only wanted one pair, and even though they have to spend more money for a second pair that they don’t even need? It’s because of that addictive, victorious feeling of reaping far more than they’ve sown. And that is the very definition of good value: a product’s ability to make customers feel like they’ve gotten an enormous amount of bang for their buck. If you price your products based solely on aspirational profit margins or overhead clearance, then you’re only selling the product itself. If instead you sell the exponential value of cloud computing by convincing customers that their investments will pay off manifold, then not only will you attract more customers, but you may also be able to justify higher pricing.

3) Place

• Every business emerges from a foundational “who, what, when, where, and how.”   “Place” is the proverbial “where” in that equation. And especially in the modern age of e-commerce, “place” involves a bit of the “how” as well.  This concept refers to not only your location (whether physical or virtual), but also the distribution channels for getting your product or service to the customer. Insofar as accessibility is concerned, office parks, strip malls, and cargo ships are now giving way to the virtual infinity of cyberspace.  Still, the concept of “place” remains largely unchanged.  The first component is visibility. Where visibility was once achieved by strategic signage and prime real estate, it now hinges heavily on search engine optimization, sponsored ad campaigns, and even social networking.  Work hard to anticipate the keywords and search terms that your potential customers might use when exploring their options for virtual storage or information management. That way, customers can not only find you, but they can find you precisely when they need to - or even before they realize they need your product in the first place. The second component is distribution. Will your customers download products directly from your site, or will you ask them to wait for a disc to arrive in the mail or a technician to come to their office? Can you efficiently get your product or service to the consumer? Can you tailor the delivery to fit your customer’s schedule and profile?  To accelerate the benefits your customer hopes to gain from purchasing your product?  Always be sure that your distribution and delivery methods allow for the sort of instant gratification that is so highly-prized and profitable in today’s fast-paced world.

4) Promotion

• The communication of product benefits, the creation of brand awareness, and the effective management of a respectable business reputation are all part of promotion. Cloud hosting vendors are by definition technologically sophisticated, so the very nature of your products and services may lead you to overlook some of the oldest and most effective promotional methods - which also happen to be the most low-tech. Above fancy websites and expensive ad campaigns, the most tried and true promotional vehicle is word of mouth. And the only way to make WOM work to your advantage is to go out of your way to keep your customers happy. Positive customer support enables businesses to efficiently and credibly extend their promotional efforts far beyond their original plans, beyond their immediate reach, and beyond their allocated budgets.  This is especially true in e-commerce of any kind, and Cloud hosting is no exception. However, businesses cannot ignore the flip side of that coin.  Negative customer reviews can ruin a business - which is evident by the recent emergence of online reputation management services across the country.  E-businesses must be ever-vigilant in the defense of their reputations, and the best way to overcome negative customer reviews is to give customers no reason to view your business negatively in the first place (this ties in to the next “P” as well). Building promotional campaigns on cutesy gimmicks or celebrity endorsements may catch the eye of a few new customers. But a more effective strategy is to start with customer satisfaction and promote from there, not the other way around. Even the cleverest tag line and the most impressive web graphics feel somehow devoid of credibility without real customers to back up their promotional message.

5) People

• The fifth and final “P” stands for “People” - the invaluable human resources that bring your business to life. The human face and character of an otherwise purely corporate and often entirely virtual identity can be the most consequential element of your marketing approach.  Even if your sales are fully web-based and automated, your customers will still derive some perception of customer service from their experience with your company. A strong, professional family of loyal team-members will always work hard to reach the mutual goals of both the customer and the company.
  
  Why is your company’s customer service so important? It’s simple: happy customers lead to positive promotion (see the previous “P”), and thus they can boost your business many times over. Your people are even more powerful than your product, because only they can manage, meet, and exceed the very human element of customer expectations - both before and after product delivery. Dissatisfied customers can stifle your promotional efforts, lower the perceived value of your cloud hosting service, lower the prices you can reasonably demand, and even turn your prime virtual real estate into a sounding board for profit-repelling complaints. The only thing standing between you and this tragic eventuality is your team members. Arm your business with quality employees who are personally invested in Cloud services and will transfer that enthusiasm to your customers.  Only then will you see skyrocketing repeat business and new referrals.