A critical tool in building any successful business is an effective marketing strategy—one with an ongoing focus on creating new customers while increasing sales from existing customers.
By definition, the marketing umbrella covers many business functions other than selling: market research, pricing, packaging, distribution, quality control, public relations, advertising and customer service. Businesses that focus primarily on the selling function must continually try to change their customers’ buying requirements to fit their products and services. Don’t make this mistake. Implementing an effective marketing strategy requires a good understanding of the overall marketing function and the many activities it includes. Formulating your marketing strategy doesn’t have to be a complex or burdensome task.
Keep it simple. Start by addressing the four basic marketing questions:
1) Who Are Your Customers? Begin by creating a list of existing and potential customers. You may want to sort the names on this list by industry, region, or market segments. What sales and corresponding profit potential exists within each market segment? Will your future customers be the same as today’s customers?
2) What Are Your Customers’ Needs?
Understand that customers have both real and perceived needs. A real need might be an automobile for transportation; a perceived need might be a luxury automobile. Be sure that the products and services you are currently providing are adequately meeting your customers’ needs. When approaching new customers, find out if your competitors are adequately meeting their needs. If they fall short, determine how you might adapt your products, for example, through design or technological improvements to better meet their needs.
3) What Do Your Customers Value?
Determine what features and benefits your customers value in terms of price, quality, service, technical expertise, on-time delivery, responsiveness, financial stability, length of time in business, reputation, etc. Learn how your customers feel about the value of your products and services compared to those of your competitors. Develop new features and benefits which “add value” to your products and services.
4) How Do Your Customers Buy?
Determine who makes the buying decision for your products and services, and who does the purchasing. Do your customers buy as needed or for stocking purposes? When, where, and how do they buy?
Once you have developed your marketing strategy, it should then be incorporated into a marketing plan that includes specific and quantifiable objectives, and an action plan for implementing your strategy.
For maximum benefits, back your marketing strategy with action, not just words. This requires a firm commitment from the top, including the necessary resources to facilitate effective implementation. Remember—keep it simple, but make it effective. You’ll see the results in an increased customer base and enhanced growth and prosperity for you and your business.