Marketing: The Fundamentals.
So … we hear the term “marketing” all the time. But what does it actually mean? What’s the point of it? Do you have to do it? How does one do it? And more importantly, can be done cheaply?
Over the course of this article, we're going to try and answer these questions and hopefully to leave you with some practical tips of how to relate “marketing” to your own activities, and to effectively put your own programme in place.
What is marketing?
Well, marketing is the all-encompassing term for business activities such as branding, digital, advertising, and PR. We break these elements into four main sections to make it easier to manage, but they could arguably be split other ways. In fact, it doesn’t make much difference at this point, because simply naming the areas of marketing does not provide a structure to plan a campaign – that’s coming shortly. The most important fact about this slide is that there are no other alternatives to choose from when you come to plan your campaign, other than those in front of you.
Ok, so finally we have some transparency as to what the term “marketing” actually means, in practical terms.
An important tip
There are two types of marketing communications: there is the “reactive” and there is the “proactive”. Reactive, also known as collateral, are the tools that don’t necessarily generate the business, but are the elements without which business is much harder to generate – for instance a corporate image or logo, a business card, a sign, or perhaps a brochure. Proactive tools are those that go into the written or spoken word. They seek to communicate what it is you do, with a view to generating customers, wanting to find out more information or to buy your product or service.
The tip here is that many new businesses do not differentiate between the two, when they are planning their marketing effort. Too much is often spent on the reactive and not enough on the proactive. Be sure that you achieve a good balance between the two.
Ok, so we know what marketing consists of and the nature of each of those elements but…
What is the point of marketing?
Well, there are many definitions of marketing, some are very long and academic and hard to relate to. I define marketing as this: Marketing simply “creates the opportunity to sell”. It is not about making the sale; it’s about providing the tools necessary to allow your business the opportunity to make a sale. In other words it “underpins the sales process”.
If the purpose of marketing is to support the sales process, it makes the planning of a campaign much simpler, because all you need to do is to understand the sales process that is relevant to your business. Achieving this will provide a structure that will include the correct marketing elements to use, and at which stage of the process to use them.
Buying Decision Process
One of the basic principles good marketers employ is the concept of the “customer buying decision process”. This is the path or steps a potential customer takes from “discovering” a company or product, through to actually making a “purchase” decision. Failure to understand these clear series of steps in our view is the reason why much small business marketing material falls short of its objectives – that is to make sales.
The cross depicts the point where a potential customer has not heard of your product or service, and the tick shows where they buy something from you. The number of stages in between depends on the value of your product. Obviously the process to buy an ice cream requires the customer to make fewer decisions than when considering for example, a new luxury car – although they both probably involve the same amount of guilt!
A common mistake made by many new businesses is to bypass the progressive sales process, in an attempt to make the “sale” in the first communication. It is unlikely that someone would commit to a purchase after simply reading one marketing message. And if that’s the case, we’re actually not selling much if anything, in the first communication. The aim should be to explain what their problem is and how we can solve it, and if they’re interested, we can point them in the direction to discover more information out. From our perspective, we are moving the prospect to the second stage of the journey. Through promotions and incentives we can be more aggressive but essentially we’re trying to achieve the same thing…to start the sales conversation that will stimulate interest and result later on in a sale.
On this basis, it is surprising that so many companies try to incorporate their entire sales information into their brochure or a website, without considering what exactly a prospective customer really needs to know at the time that they read it.
Providing too much information, too soon, indicates a fundamental misunderstanding of the marketing and sales process.
Marketers need to understand and predict the stages of this “journey”. Successful marketing campaigns follow this path by providing suitable communications with appropriate messages at each step. These messages are designed to drive prospective customers further along the path towards the purchase decision.
Using marketing to support the sales process
Branding or perhaps just a logo is an essential start point for a new business. Direct mail, advertising, PR and website optimisation, are all excellent marketing methods to generate leads and interest. This is not a definitive list of course, networking could for instance be included, particularly if you are a consultant.
It’s crucial that each of these communications includes a strong call-to-action. In our recent experience, encouraging people to visit the web is very successful. It’s the one place they can go (especially in the business-to-business area) to find out more and validate their suppliers online. They can do this without having to give their details away or be sold to by someone in person or over the phone. The presence and quality of the website provides some additional evidence, albeit superficial that they are making the right purchase decision.
A poor website in terms of design, layout and navigation, or indeed no website at all, undermines credibility and places doubt in their minds. Whilst a disappointed visit to a site is a missed opportunity, surely a positive reaction creates the potential to do business.
The web is therefore an ideal medium to actively engage a prospective customer. Get the website right and the most sceptical individual can become an advocate and loyal supporter. Whether it’s simply a four-page brochure site or contains sophisticated animated graphics, relevant information can be delivered simply, attractively and effectively in ways that other affordable media cannot.
Finally, the brochure. Either downloaded from the website or obtained by online registration. This is vital when someone requires additional information. Also its cost less – reduced wastage – because producing brochures can be expensive – especially when they are randomly distributed and don’t create business.
Here’s another tip – many people use pdfs which are online versions of brochures, simply to avoid costly print runs. Instead, a pdf on their website (which is easily done) can be downloaded whilst viewing the site and when interest is aroused.
But, we have concerns with this. We’ve already established that the more opportunities we have to communicate with a prospective customer, the more opportunity we have to convert them from not knowing about your product or service into actually buying something. By offering a PDF on a website we are effectively losing a whole step in sale process. If a brochure is sent out by post, this effectively becomes another communication, as time elapses between viewing the website and then being reminded of the company when the brochure arrives. It also creates another opportunity to impress.
If the quality and look of the brochure is good, then this could be just enough to encourage the recipient to contact you. Conversely, as they’ve had to enter their details in your website to request the brochure, and you have asked for the correct permissions, you can now follow up and see whether you can arrange a meeting. This is clearly a business-to-business example, but the principle remains true not only of impressing at every stage, but the collection of data and different communication methods can result in sales-generation.
Ok, so we now know what all the marketing strategy and planning is leading to; it’s arriving at the point where you can select from a list of marketing alternatives, to ensure that you can generate leads and convert them into business.
Direct Mail Example
I have three examples to show you. This is what’s called a pocket seat. It’s an inflatable cushion designed for use at outdoor events. Our client believed that it represented a great opportunity for major brands to buy in quantity, to brand-up in their own colours and identity and then distribute at outdoor concerts and sporting events during summer months.
The marketing process
Let’s talk specifics. There are 4 key parts to the marketing process.
research and planning
selection of the right marketing tools to use – that is the tactics (and there are two types – acquisition and retention – which we’ll come back to discuss
execution
and adaptation to tweak the campaign to concentrate on those methods that were most successful at creating business.
Research and plan
Here are some questions we use then venture capitalists pass business plans to use for review of the marketing strategy. This is again, not a definitive list but it goes some way to demonstrating the sentiment
• Is there an appetite for your product or service?
• If so, how big is it or could it be?
• Are there competitors already in the market?
• Who buys it or who would buy it?
• How do these or would these people/companies view it?
• If there is existing supply, how do they view the competition?
• How can you get in front of the target audience?
• How long is the sales process?
• For how much could it be sold?
• What are the company’s strengths and opportunities?
• How should you position your product or service?
• How much will they need to spend?
GETTING HELP
But hang on a sec, I’m assuming something here. I’m presuming that you are willing to spend money on marketing your business. But marketing is surely an investment. If people recognised your brand, that must certainly hold a value, especially if the perception they have of that brand is a positive one. If you’re creating business and making sales, you company has a worth. Build a profile through communication and this has a worth.
IMAGE IS EVERYTHING: and if you’re serious about your business as I am sure you are, then in our experience of seeing firms come and go, you should also be very serious about your marketing.
Remember that having a state-of-the art computer sitting on your desk, with an all-singing and dancing software package is well and good. But unless prospective customers know of your existence, then it’s all been a waste of resources. Your marketing message must be out there.
Let’s not forget that anyone’s initial purchase of your product or service will be to some extent, a “leap of faith” on their part. You may not consider the image of your business to be of critical importance, but consciously or unconsciously, it does to your “prospect”. (legal firm example). To positively assist the customer in making a purchase decision, businesses need to address the way they present themselves, but unfortunately there has to be a cost, but not necessarily a ransom. It really doesn’t have to be much, but it is crucial that the results represent your company appropriately and professionally.
Whilst cost savings are high on all our agendas, there is a fundamental misjudgement in cutting the wrong corners in pursuit of good housekeeping. It is certainly not difficult to design your own logo and business card or to get a friend to cheaply knock up a website, but the impression generated from these efforts however, is unlikely to create sales and in all probability will send the wrong message to prospective customers – I know, because we get calls on this subject every day.
Regardless of the size of the budget, standards should never be compromised. It’s better to have fewer communication tools of a higher standard than it is to have many mediocre ones – these will actually undermine rather than promote your company.
That old adage is highly relevant here – “he who buys on price, pays twice” - an amateurish or inappropriate communication will eventually need to be reformulated by a professional. And in the words of Oscar Wilde “Quality is long remembered after the price has been forgotten”. For those of you that are unfamiliar with the gentlemen, he was not in the marketing business.
From our experience of those that have belatedly understood, marketing should be regarded as part and parcel of the start-up investment. It’s not a luxury; it’s an essential element of the business. And often the results are what gives the business its value.
GETTING HELP: Marketers should become as vital and essential part of the business team as your other professional advisors. Accountants and lawyers are known for being “creative”, but not in the same way as your marketing team. Many businesspeople are dismissive of the need to work with an agency. However, the available experience and expertise makes the difference between obtaining a return from an investment in marketing, and throwing good money after bad.
Thanks for reading this short introduction to marketing. As this was for free, imagine how much useful information you could get from just talking to us. Call Stuart today on 0845 123 2900 or email team@new2marketing.com.