By Steve Lauterback
While hosting a business round-table discussion recently, I was asked to explain the difference between advertising and marketing. The question made me realize that marketing really is a mystery to most people.
In its simplest definition, marketing is every activity that contributes to finding new prospects and selling more to existing customers. Advertising is only one part of the process. It’s the part where different tools from the promotional mix are employed to communicate to prospects and customers. But, it is not the first step.
Building a comprehensive marketing program begins with an examination of the inside and outside of the company. On the inside, we want to find out what prospects and customers really want from the products and services offered by us and by our competitors. Only then can we structure our business to make and deliver what we learned our market values.
A word of caution here, don’t rely on instincts or on your “years of experience” in the business. Things are constantly changing and only a complete, unbiased, and up-to-date examination will either confirm your assumptions or will tell you what changes have been taking place in your industry. “If you keep doing what you have been doing you are likely to keep getting what you have been getting.”
Have you ever given thought to what a competitor could do that would really hurt your business? What if you did it first? If you are not already offering what the market would absolutely love, think in terms of how to create it.
It’s always easier when a company’s products or services are unique or have some definable edge. But what about the typical wholesaler, the commercial lighting contractor, or one of the many business services companies, how can they define themselves?
Here are Some Suggestions to Optimize you
Effectiveness and Better Target your Prospects:
- Segment your current account base into groups; consider such things as dollar volume, ease of servicing them, and the products and services they buy from you.
- Analyze these profiles and determine what they have in common.
- Find lists of businesses or individuals that have the same qualities of the best from each category. If these lists don't exist create your own.
- Now, develop a consistent message that your potential customers are likely to respond to.
- Communicate this coordinated message through a variety of means including direct mail, print, and various direct sales methods.
- Repeat the message in a timely manner until you get sick of it. Then keep doing it. (Your prospects are likely to begin to hear your message long after you tire of it), Statistics show it can take up to 20 impressions before you get a reasonable response.
Every company will do better when it emphasizes unique features and category-beating benefits to make an impact on customers and prospects. With so many competitors in almost every category, the seller must continually innovate and seek differentiations on which to base his or her value proposition. In highly competitive businesses with little to distinguish one company from another, this could be anything from a helpful receptionist to a “thank you” note for an ordinary reorder.
In today’s competitive climate, your industry, your engineers, or even your ego does not set the standards of performance. Success depends on meeting the customer’s expectations. Marketing cannot be expected to substitute for an aging product or substandard service.
It is marketing’s responsibility to interpret customer expectations, evaluate competitor’s products, and then be instrumental in internally raising the bar.
How refreshing would it be if the post office emulated the Disney World model for service, or if all cars came with the reliability of a Honda? Who sets the standards for your company?
In the absence of the meaningful differences that add perceived value, buyers make choices on price. It is not just the product or the service anymore, it is the entire purchase experience, from first customer contact to the final payment that retains customers and builds brand loyalty.
Once we have examined the internal operation and have structured the company to offer meaningful goods and services, only then can we work on the outside of the company, utilizing the direct selling function and promotional mix to communicate these important distinctions to our target audience.
In addition to the fact that business people misunderstand marketing, the practice of marketing has never been more difficult. In a study done several years ago it was determined that the average person in an urban environment was exposed to 3,000 promotional messages of all types: retail store signs, ads on television, radio, and in newspapers, as well as direct mail, promotional specialties and the like. With all that overwhelming commercial “noise” how will your customers hear you?
The game has changed. Traditional advertising just isn't as effective as it once was. Even if you had a comparatively large promotional budget, chances are that your regular advertising is facing the law of diminishing returns.
If you’re not satisfied with current revenue and profit levels, it may be time to institute an up-to-date marketing program tailored to your business.
In the broadest sense, marketing is all the activities required to find and retain customers. The problem for some businesses today is that this critical activity has been left to chance.
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