Marketing 101

I decided to call this posting "Marketing 101" because I want to talk about basic marketing. Maybe the term "basic marketing" is redundant. Is marketing really something that is basic? Do most business people try to make marketing too complicated? Sometimes, I think they do.

I think there really are four concepts that have to be incorporated into a marketing plan - and they are easy to understand.

CONCEPT ONE: Marketing is an on-going process. There is no magic wand !!!! There is no one promotion, or one advertisement, or one slogan, or one whatever that will cause customers to come running to your business to buy your product or service which over the long term will make you successful. Yes, you can have a promotion (buy one get one, 50% off, free gas fill up with purchase, etc.) that may give a short term boost to your sales. But what happens when that ends? I was naive when I first got into business and started looking for the magic wand. I wanted to find that one slogan, or ad, or promotion that was going to make my sales soar. I never found it. I did find the answer though. I discovered that marketing is an on-going process.

It is a process - not an item. It has no ending as long as you are in business. A promotion, a slogan, a sale, an advertisement are all part of that process. Marketing is the sum of all the parts. It is a process that must be coordinated so all of the parts work in unison.

CONCEPT TWO: You need to decide what you want to be. You can't be all things to all people. You need to have a niche and you have to have your business positioned in the marketplace. Some business owners resist having a niche because they think they are losing opportunities. However, by having a niche, you are perceived as an expert. If you read a lot of marketing books you will find many on the subject. One of the best in my opinion is "Positioning" by Al Ries and Jack Trout. I strongly suggest you read it before you develop your next marketing plan.

Just think of yourself as a customer. Do you want to go to a "jack-of-all-trades" or do you want to go to an expert? Can you imagine a surgeon having a sign that says "Heart operations, back operations, brain surgery, gall bladder removals, dental surgery - all performed here." How confident would you feel? Yes, that example is an extreme. But it helps get the point across that you should want your business to be known as an expert.

Imagine if Sears decided to advertise that they sold "high fashion, upper end clothing for the sophisticated buyer." How many men do you think would be willing to pay $2,000 - $5,000 for a suit at the same place where they bought their chain saw and their refrigerator? Position your business and find a niche.

CONCEPT THREE: Never make price your major competitive advantage. If you do, you will only have customers until your competitor reduces his prices so they are less than yours. People who buy from you because of price alone will leave you as soon as someone else's prices are less than yours. That is as basic marketing 101 as you can get. Nothing else needs to be said.

CONCEPT FOUR: You don't market to your current customers the same way that you market to potential customers. When I talk to business owners about marketing, all I hear them talk about is getting new customers. For some reason, they choose to take the current customers for granted.

I don't believe that one size fits all in a marketing plan. I do not market the same way to current customers as I do to potential customers. If you are shaking your head in disbelief, let me ask you this question: If you were a piano teacher, would you teach a new student who has never played a note on the piano the same way you would teach someone who had been taking lessons and practicing for five years? Of course not ..... and that goes for teaching anything else as well. You should think of marketing the same way. Why would you market to a customer who has been buying your product or service for five years the same way you would to someone who has never heard of your company?

If you are still having trouble with this concept, try thinking about it this way. Suppose you were going to take your best customer to dinner and there were five restaurants in your area from which to choose. Three of them you have used many times before and two of them you have never used. Would you be more likely to take him or her to one of the three restaurants that you have used many times before .... or would you go to one of the two restaurants where you have never eaten before? That is a no-brainer. You are not going to gamble with the business of your best customer. No coupon, BOGO, or other promotion is going to influence you. Which one of the three you choose will depend on how they market to you as a current customer. When you call for reservations, which one automatically gives you the time and table you request? When you enter, which restaurant has a hostess that always calls you by name (Welcome, Mr. Smith or Good evening Ms. Jones)? Which owner or manager comes to your table during the meal and acknowledges you in front of your guest as an important customer of the restaurant? Whichever one markets to you best as a current customer will get your business.

Now suppose it is just you and your spouse going to dinner one evening. Would you be willing to try someplace new? What would it take for you to try a new restaurant? It will certainly take something different than the marketing example above because you have never been there before. By now I hope you get the point that marketing to new customers is different from marketing to current customers.

At this time I suggest you read or re-read the three postings on customer retention and on business advisors (those would be your customers). It is important to understand customer retention and how to get marketing information from your customers. For some reason, business owners separate themselves from their customers. It is as if they are performing and must stay in character. Your customers are a great resource. They will tell you why they buy from you. They will tell you why they buy the products that they buy. Customers will be honest with everything EXCEPT one thing. If you sell an upper end product or service, customers almost never admit that they can't afford it. I know quite a few people who gave up their country club membership (coincidentally) when their business was declining. What reasons do they give? "The food is bad ... I don't play enough golf .... my back has been bothering me ... my spouse says I spend too much time away from the family ..... etc." None of them said they quit because they could no longer afford it. Thus, when you are talking to a customer and they say "I don't buy Product A because it doesn't come in green," make sure you ask, "If I make it in green, will you buy it?" If they still won't commit, you will know what the real reason is.

Those are my four concepts of marketing 101. I would really like to hear from marketing experts out there as to whether they agree or disagree or if they would like to add more to my four concepts. You can post your comments directly on the blog or you can email me at ron@sentrabusinesssolutions.com.