Whether you are a start-up or a 100-year-old company, there are some basic principles of marketing that every business needs to know. Marketing tactics may change but the principles are tried and true.
Many companies are doing an amazing job and others are trying really hard. Marketing isn’t rocket science but it is part art and part science. It does require a certain amount of business savvy and a whole lot of knowledge about the marketplace. Get the foundation right and you are doing better than most.
Marketing is not sales and it is definitely not advertising. Both of these promotional elements are critical to marketing but the sooner you realize they are not marketing the more quickly you will be able to identify and incorporate functional “marketing” strategies. Many promotional elements happen sooner than they should. If you haven’t laid the groundwork, chances are good your promotional elements are costing you far too much in both $’s invested and lost opportunities. Promotion – advertising, sales, direct marketing, public relations, social media – are all intended to educate and engage your customers, not “misinform or misguide” them! Make sure you’re getting the right information to the right people in the right way that will resonate with them.
Know your customers. Good marketing starts with a very clear understanding of your customer. Knowing your customer is the essence of providing good products, great service, ideal delivery, spot-on pricing, and a message that will get a response. One of the best ways of gaining this invaluable information is through market research. Too often companies get off track by incorporating “their own opinions” on their prospective customer wants and needs. A measured, unbiased and relevant research sampling from your targeted prospects is an absolute essential but often overlooked step. Having no information about your customers but trying to connect with them is like trying to date someone you’ve never seen, never talked with and don’t even know their name. All your efforts will fall flat.
I’m working with a business in a new development. The person they hired to do the marketing lives several hours away and has little or no relevant research data, which is proving to be a major barrier to the development of effective marketing. Without customers there is no product and therefore nothing to market. Know your customers and you have the keys to creating an effective and efficient marketing strategy that will produce results.
Develop a Compelling Brand. Just the other day I had a conversation with a gentleman claiming to be a branding expert. As he was telling me that branding is marketing and that branding drives marketing, I began to fear for the customers he had already fooled with his “expertise”. Branding is a component of marketing and all good branding should come as a result of carefully developed marketing. Your brand is the sum of experiences a customer encounters when doing business with you. The brand is developed through great marketing strategy. How does your marketing strategy help to set and define your brand? How does your brand deliver in the market and against your competition?
Be Easy for Your Customers. I think everybody has heard it said in real estate…location, location, location. Well, it also applies to marketing. How does your delivery of the product help your customers to buy from you? Are you easy to access? This goes for everything. In a world that is 24/7 how do you serve your customers? Are you where they want you to be? You may need multiple options for your market segments. As an example, Colleges and Universities are approaching this ideal with both online and on-campus options for the populations they serve. This represents a real change in traditional thinking – especially for an industry very deep in culture. What do your customers want?
Know Your Costs and Your Price Threshold. One of my first marketing jobs was working for a lady looking to make it big in the toy industry. Unfortunately she didn’t understand this marketing basic about cost and price. Her costs were high but her customer price threshold was low – she was operating in the toy industry, not too many parents want to spend a lot on a toy that will be discarded after a couple of weeks. Sometimes you may have a good idea but if it can’t be implemented it may forever be just a good idea. The implementation will come when there is a big enough market that demands your product and is willing to pay the price that will actually provide you with enough profit to be viable. Understand the market when setting your price.
Obviously these basics can run deep, but understanding and knowing of their existence will help you avoid high costs with low results. Operating your business with these “basics of marketing” will save you money, time and avoided heartache down the road.