MARKETING This is one of a series of Fact Sheets about marketing. The series comprises (including this one): Market Research Marketing Marketing and Supply Networks Marketing: Direct Marketing Marketing: Exhibitions and Fairs Marketing: The Place Marketing: The Product Marketing: The Price Marketing: The Promotion Newspapers Presentations Press Releases Telephone Use
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A vital part of the business plan will cover marketing - based upon the results of market research, showing both yourself and others, such as potential backers, that you have done your homework and thoroughly researched the business. The (simplest) definition is that marketing is the process by which a business identifies, anticipates and satisfies the needs of its customers at a profit which satisfies its needs. This means finding out what the customers want, and providing it to them at a profit to the business. Marketing activities include market research; pricing; (all forms of) advertising, including public relations and sponsorship; distributing; selling; after sales service. The vital elements of a marketing strategy are: The right PRODUCT Distributed in the right PLACE At the right PRICE PROMOTED in the right way To the right PEOPLE You can also say that successful marketing depends upon: Being served by the right PEOPLE - staff and how customers are treated are also an important part of a marketing strategy. • Each element of the mix must satisfy the needs of the customer, or he will go elsewhere. • Each element of the mix must give the business an edge over the competition, to discourage the customer from going elsewhere. If you do not take care of your customers somebody else will.
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The product, or service, must be
better more effectively (beneficially) promoted sold at a better price (not necessarily cheaper) at a better (more convenient) location.
A marketing campaign or strategy needs a plan with a timetable and a budget. For a successful strategy (marketing mix), the (small) business needs to consider: • Marketing objectives – see below. • Message to be put across – identify the competitive advantage which makes the product or service better, and why customers should buy from the business and not from the competition. Compile a list of the ways in which the product(s) and/or service(s) of the business are better than the competition. • Conducting market research - to find out what customers want. • Choosing the ‘right’ way to promote, that is, get the message to the (target) customers. This could be by advertising; by direct mail; by (targeted) mail shots; by press releases; by newsletters; by seminars; by attending exhibitions and fairs; and by (small-scale) hospitality and entertainment. • Selling - having persuaded customers to (willingly) meet with and/or talk to the business, the business must then know what to say to them (that is, how to make a sale). • Achievements - has the marketing been a success, (and therefore worth repeating)? All prospective (new) clients should be asked ‘Where did you hear about us?’ All clients should be researched about the effectiveness of any part of the campaign, such as a newsletter, to persuade them to buy more products or use a wider range of services. Ask also friends, colleagues and even other businesses. Marketing objectives can be: Increasing sales (a specific goal/target can be set) Raising (confidence in) brand awareness Emphasising value and customer care. Attracting new clients. Finding new dealers/buyers. Building up the customer database (consolidating market share). Cementing relationships with existing clients/customers (consolidating market share). Reminding existing client and customers of products and services (consolidating market share). Targeting buyers and customers not easily accessible or not frequently called upon. Enhancing company (corporate) image. Increasing awareness Launching and testing of new products and services. Raising confidence in a new product or service Supporting (or complementing) other marketing campaigns – such as having a leaflet dropped or mailed before the salesman knocks on the door. 2
Businesses which are good at marketing see things from the point of view of their customers. The main focus is not profit, or efficiency, or productivity, or technical innovation, or sales turnover, or management information, but the customer. Many existing businesses tend to spend more of the marketing budget on prospective customers than on existing clients; whereas the marketing plan should focus more resources on existing clients. For a new business, initially, it may be that marketing has to concentrate on raising the business profile - and a very cost effective medium (especially when measured against the cost of advertising) is public relations, if it can be used effectively. Public relations can be defined as the management of processes and activities that help to build and protect the reputation of the (business) organisation. [Organisations are just like people in that both want other people to think well of them.] Making and keeping a customer is certain defence against the opposition. A good business aims for perfection, to create a better business, to increase the number of satisfied customers. It is said that it costs from between five and ten times as much money to win a new customer than it does to do business with an existing one. It is also said that highly satisfied (that is, ‘delighted’) customers are six times more likely to repurchase than merely satisfied customers. Customer-first policies are now being adopted by (large) businesses. Customers’ needs and views are the most important. Correctly researched, they will ensure that the business is correctly focussed - towards the provision of those products, services, and facilities which will best satisfy expectations. Talk to existing customers – find out what they like about the (business) service; that is, what criteria do they use to judge quality. It may be the efficiency of the order system; or that delivery is kept to promised times; or the technical support. Talk to the staff – what have they found that customers like/dislike. Satisfied customers can be turned into highly satisfied ones by changing the way (parts of) the business is operated. Some changes can be easy to implement – such as an extra telephone line to provide better and speedier responses to customer calls. Some changes may be more difficult (fundamental) – thus, if long delivery times cause complaint, and most of that time is waiting on suppliers, then it may be that alternative suppliers need to be found, to reduce waiting time to that which is acceptable to the business’s own customers. It is very difficult to create and maintain good customer service - no two customers are the same; but if your customer services are to a very high standard, then recommendations to others will follow, and produce a constant flow of new clients And the people in business are not always perfect - they can, and do, fail. It is a necessary aspect of a customer-first policy that the people who work with and for the business are well trained, motivated, and satisfied employees. Helpful, friendly advice from the business and its staff will be more appreciated than indifference – if the client feels that the business and its staff do not care if a purchase is made or not: and the purchase is usually not made.
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If clients are your external customers, then employees are your internal customers. The introduction of customer care policies and programmes can help to maintain (good) services- to include having staff trained in dealing with people (customers) politely and courteously; and in product knowledge. CHOOSE YOUR CUSTOMERS NARROW YOUR FOCUS DOMINATE YOUR MARKET As it is difficult to organise a business around the customer, firms are beginning to use ‘Customer Managers’. Traditional salesmen, and even traditional product managers may be increasingly marginalised, as the Customer Manager moves to the ‘front’. The focus is, not on products, but on customers - deciding what should be said, and offered, to whom and when. The customer data(base) will become a strategic asset of the company, as valuable as the brand it supports. Market position can be determined by price and quality – some businesses can be successful with low quality and low prices; but most businesses try to be in the top (right) quarter, where both price and quality are high. Price (high) * * * (high) Quality
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(low) A market leader follows one of only three identified value disciplines. It might be difficult (if not impossible) to excel at more than one discipline at a time: 1 Operational Excellence - having a broad based market appeal with competitively priced products, offering a simple service. • 2 Product Leadership - concentrating on products that are leaders in their field and attractive on performance and/or style, but not on cost, because the product is the best. • 3 Service Excellence - giving the customer all he wants from a service and support network, which comes with the purchase of the product. •
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USEFUL ADDRESSES Chartered Institute of Marketing Headquarters Moor Hall Cookham Maidenhead Berkshire SL6 9QH Telephone 01628 427500 Facsimile 01628 427499 Web site www.cim.co.uk Devon and Cornwall Branch Telephone (Chairman) 01803 55479 or (Secretary) 01822 616324 Cornwall County Council Trading Standards Department County Hall Truro Cornwall TR1 3AY Telephone 01872 322000 Institute of Sales and Marketing Management National Westminster House 31 Upper George Street Luton Bedfordshire LU1 2RD Telephone 01582 411130 Facsimile 01582 453640 E-mail ismuknet@nildram.co.uk Institute of Sales Promotion Arena House 66-68 Pentonville Road Islington London N1 9SH Telephone 020 7837 5340 Facsimile 0171 837 5356 Website www.isp.org.uk Sales Promotion Consultants Association 47 Margaret Street London W1N 7FD Telephone 020 7580 8225 Facsimile 0171 580 8189 Trading Standards – see Cornwall County Council
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PUBLICATIONS Marketing Managers Yearbook - useful for sourcing suppliers and advisers From AP Information Services Telephone 020 8455 6381 Successful Marketing for Small Businesses by Peter Hingston UK Small Business Marketing Bible – a ‘how-to’ manual from Cobweb Business Information Services of easy to understand marketing ideas, strategies and tactics. Cobweb Information Ltd Telephone 0191 461 8000 Facsimile 0191 461 8001 E mail enquiries@cobwebinfo.com Web site www.cobwebinfo.com
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