MARKETING IS NOT SELLING
Develop a Market Plan for Yourself and Your Business?
1. Marketing - is the process by which a product or service originates and is then priced, promoted, and distributed to consumers. In many large corporations the principal marketing functions precede the manufacture of the product or service. In the case of a product they involve market research and product development, design and testing.
2. Marketing - includes planning, organizing, directing and controlling the decision-making regarding product lines, services, pricing, promotion and servicing of the product.
3. Marketing - is the process that brings ideas, goods and or services to the marketplace through planning, pricing, coordinating, promoting, selling and distribution. It includes all the activities involved in the transfer of goods or services from the producer or seller to the consumer or buyer.
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When we get down to the basics the purpose of marketing is to identify potential customers for your products and services in enough numbers, in a sustainable way, so you can make your business successful and profitable for the long term. A well thought out marketing plan is a key investment in your future business. No matter how good your products or services may be, you still have to practice careful and planned marketing to avoid problems along the way. Slow sales growth or slumping sales and gross profit are marketing problems. Loss of market share is a marketing problem. Not having a defined targeted market direction is a marketing problem and not knowing how you are going to get your product or service to the marketplace is a marketing problem. Where marketing once stopped with the sale, today businesses believe that it is easier and more profitable to sell to existing customers than to new one. As a result, marketing now also involves finding ways to turn one-time purchasers into lifelong customers.
Keep in mind that the marketing planning process defines the strategic direction of your company. The sales plan and strategy is just one part of the marketing plan. You develop the marketing plan first then the sales plan. The marketing strategy (or plan) defines the process by which a business decides what products(s) or service(s) it will sell, to whom, when and how. For any plan to be successful, the mix of the four “Ps” must reflect the wants and desires of the consumers in the targeted market. Successful marketing depends on marketing research, both formal and informal, to determine what consumers want and what they are willing to pay for.
The four Ps are:
· Product: The product management and marketing deals with the specifications of the actual good or service and how it relates to the end-user’s needs and wants.
· Pricing: This refers to the process of setting a price for the product based on value to the end user and what the market for that product will bear.
· Promotion: This includes advertising, sales promotion, publicity and personal selling and refers to the various ways of promoting the product, the brand and/or the company.
· Placement or distribution: Refers to how the product gets to the customers. Where is it sold, in what market area or industry and to whom?
Walk with me through the following process and questions. The input will act as the foundation in developing the marketing plan. Keep in mind that the most important driver of the marketing plan is the ultimate “return on your investment, both time and money”.
1. What business are you in?
If Southern Pacific railroad had known that they were in the “transportation business” and not the “railroad business” there would probably be Southern Pacific Airlines or Southern Pacific Cruise Lines by now. Instead they are out of business.
· Know what product or service you will provide and what its’ benefits are to the end user.
· What does success in that business look like to you?
· What would success look like to your customer or client using you product or service?
· What do you want to be doing each day, and how will you know you are satisfying your customers or clients?
· What is the vision and mission statement of your company? When you decide, write them both down, frame them and look at them daily. It will ultimately be your directive and hopefully you’re operating culture. Share it on a constant basis will everyone in your organization.
2. What are your products or services? Describe them in writing.
· How is what you or your products do unique versus what other companies do?
· What benefits and/or value does your product or service provide to the customer or client?
· What makes you uniquely qualified to provide these products or service to the intended customer/client?
· Tie your product or service to a “return on investment” for the customer/client.
3. Based on the above, prepare a 15-second “elevator speech” to explain what your company does and what benefits it provides the customer/client.
The objective of your “elevator speech” should be to gain enough interest that it results in a subsequent meeting with the potential client so they can learn more about your product(s) or service(s). It is important that you are able to articulate what your company does so that the potential client understands what your service can mean to them. What is it that you can say that will want them to find out more?
4. Who is the target audience for your product and/or service?
Once you determine where you want to sell your products and services you will direct everything you do to that particular market segment or segments. Tie the benefits you provide to the needs of your customer.
5. Develop a marketing plan.
The market plan will further focus you on the marketing issues: defining the products and services, who your target markets are, who is your competition as well as the direction you want to go and the daily methodology you will need to get there. Market plans are developed for different reasons, i.e. to borrow for the business but also to create a roadmap for running your business, this article addresses the latter.
Determine what your SWOT is, i.e. your strengths, your weaknesses, your opportunities and your threats. You should also do a SWOT analysis on your competition so that you know where and how to target your strategies. Always look for a competitive advantage.
Operating your company without a marketing plan is like building a house without a blueprint, or driving to a specific place in California
6. Develop effective marketing tools and activities.
Remember that marketing is not selling. Marketing is the act of creating a need among potential customers for the goods and services you offer. The difference between what a customer thinks he wants and what they really need is the value you provide. You must drive the customer to come to you because they feel you will be able to fill both their stated and unstated needs. If you market well, you don’t have to sell.
The key to successful marketing is to develop the plan and then consistently work that plan.
Like it or not, we are in the marketing business as well as the selling of goods and services. Establish appropriate marketing tools to fit the market or markets you are targeting (Find a good graphic designer as well as a good printer).
· Business cards – Your business card should give the potential customer/client enough information so that they know what you do and how to get in touch with your. The card should be elegant in its simplicity.
· Stationary, second sheets, envelopes and address labels should all be the same stock, color and texture and consistent with your name, address and logo. You can buy custom designed labels which can be used for larger envelopes and packages.
· Create a client presentation kit, using a professional looking folder. You can have your logo and name on it, but keep it simple and elegant. It should have two pockets and usually a die-cut for your business card.
· Testimonials – Potential customer want to know that you are capable of accomplishing what you say you will do. Even if just starting out you should be able to develop a handful of satisfied clients. Ask them to state the value they experienced as a result of doing business with you.
· Give workshops, seminars and speeches. In the area of services, whether it be business or legal, give talks and seminars. Join organizations, the more exposure you get the more you will be recognized as an authority in your field, whether it be in an industry or on a particular subject matter.
· Write articles and white papers – Write on issues in which your are proficient, Send them out to known business contacts, newsletters and publications. When you write on subjects you know about, you are considered knowledgeable on that particular subject.
· Biographical sketch – If you are a consultant or lawyer etc performing services you should have a biographical sketch. This is not a resume and should not look like one. It should be a brief description of who you are and what you specialize in, as well as what you have accomplished and what is being said about you. You will add to this as you experience new successes.
· Maximize your visibility – Try to contact everyone in your target market with constant communications on issues pertinent to their needs.
- Network by attending trade associations and getting on the board. Be a contributor to
your Chamber of Commerce meetings and business organizations, focus on the
industries you want to service.
- Make yourself known and available for interviews with industry magazines as well as
radio and TV stations.
- Develop “targeted” brochures as a “leave behind” that will discuss what services and
results you provide. It’s a known fact that people you present to will forget 80% of
what you talked about one hour after you leave. The brochure will serve as a reminder
of your services, products and benefits long after you’ve gone..
- Publish and/or advertise in trade magazines, newspapers, as well Chamber of
Commerce, association and corporate newsletters.
Most people don’t get this simple marketing truth: Marketing’s job is to facilitate the prospect’s decision-making process and cause them to say, “I would have to be a fool to do business with anyone but you…regardless of price”. People need to hear what they actually need to know: What makes you and your company special, what makes you different from the competition and why come to you instead of your competition. All of the above stated points will help you to differentiate you from the rest. You don’t have to sell anyone. Define yourself and your value and let them sell themselves.
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Jack Hoffmann is the President and founder of Milestone Solutions LLC, a consulting firm assisting companies of all sizes to maximize their business and people performance.. Jack serves on corporate and community Boards and is a frequent speaker at industry and company events.
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