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When asked what marketing is, most people immediately think it is about advertising, or printing brochures, or telling customers what you do.
Marketing is bi-directional; it is about listening to customers and the marketplace, understanding needs and wants, seeing if there is a market potential that you can fill, and then building a business for the long term.
It is about capturing new clients, and it is also about retaining current ones.
But overall, it is about creating and growing profit more effectively and efficiently than your competitors.
Remember the definition of marketing from Sergio Zyman:
“The sole purpose of marketing is
to get more people
to buy
more of your product [or service],
more often, for more money.”
- The first thing you must understand is your own internal constraints. You must know your capability (what you can do) and your capacity (how much you can do).
In the early days, many small businesses will take on work to generate cash flow, which takes them away from their core skills. Focus on what you can do the most effectively and efficiently.
Know your capacity – it is great to have a high number of customers who want to buy your product or use your service, but if this demand overstretches your capacity to deliver, then you will “un-market” yourself, create a negative reputation or drive your customers to your competitors.
- Whatever you offer, you must understand the problem or the need you are fulfilling and the benefits of your product or service – not from your own perspective, but from your customer’s viewpoint.
You MUST communicate the benefits from your customer’s perspective. For everything you offer, ask yourself “So what?”. What difference will it make to the customer from their perspective.
- The key to capturing new business is to know who your current and potential customers are, who they talk to and what they value. This will help you to tailor your message and to understand the path your message will have to travel for your customers to hear about you. Always communicate the value of your product or service to the customer.
- Think about your key differentiators, also called your USP’s (Unique Selling Points), which must be relevant to the customer, to fit the customer’s needs and wants.
Many growing businesses have great USP’s, but then think they must offer their product or service at a very low price to be competitive. The reality is that every USP or differentiator you have in your product or service incurs a cost to you – and should also have a value to the customer. Small businesses cannot afford to operate at both ends of the cost–differentiator continuum at the same time; only large, multinational businesses can afford to sell highly differentiated products or services at a low price.
If you have a USP or differentiator that is valued by your clients, then do not be afraid to set your prices accordingly. It is the USP that makes you competitive, not the pricing.
- Everyone goes through the process of making a decision which is summarised in the acronym AIDA: Attention, Interest, Desire, Action. Ensure you cover all these areas in all your communications – and most importantly, do not forget the “call to action”.
The majority of businesses forget the call to action – you MUST ask for the order !
- Some of the most important details your customer will be looking for are what I call the “trust elements” of the marketing mix:
People: Who they will be dealing with, their qualifications, motivation and experience.
Process: How easy it will be to do business with you.
Physical Evidence: Proving that you can do what you say you can do and highlighting your success with previous customers.
- Remember that people normally have to encounter your message between 5 and 7 times before they will start to think about you. Build a strategy so that you keep giving useful information to your customers.
- Use low cost strategies to get your message out there.
Use direct response adverts or brochures:
If you use adverts and brochures – make sure they outline an offer to the customer and a reason they should contact you. Do not just tell people you are here – this does not generate a response. Use the AIDA approach in all your communications.
Try using PR to get your message across:
Submit a newsworthy article for print to your local press or industry journal.
Ask current customers for referrals:
This can be one of the most effective marketing approaches, but people can be wary of using it as they do not know how to ask. Simply say to your customer “as you are satisfied with us, do you know anyone else who you could recommend who would be interested in our product/service…..”. Get the potential clients details, contact them and say who referred you to them – this will give you a very strong opening.
Learn to up-sell:
Once people are buying from you, then the easiest thing is to get them to spend more. When you are in a fast food restaurant, and ask for a burger – the next thing the server asks is “do you want fries with that?” then “anything to drink?”, and “Would you like a large portion for an extra 50p?”. This is up-selling – and it works. Build in an up-selling strategy to your marketing.
Use internet advertising:
One of the most cost effective ways to advertise is using internet advertising as it only costs you if someone clicks on your advert. And if they do click on your advert, then you have a qualified customer who is interested in buying from you. All you have to do is ensure your website takes them through the AIDA process, and ask for the order!
- Networking:
It’s not who you know, it’s who know you !
Do not underestimate the power of networking. People buy from people; the personal touch will always make a difference.
Be aware of the time it takes to network, and choose your networking events carefully.
Look for your target audience, and develop a networking strategy so that you remain focused on your objective. Measure the effectiveness of the event; do not be afraid to adjust your strategy, or your message to take advantage of all opportunities.
Marketing is not rocket science; it is common sense and understanding your customer. It can be as simple as you need, and it does not need to cost the earth…
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