Marketing.

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How can we define marketing? Simply it is a process of convincing customers to buy your product/service

From a new venture perspective we need to focus on understanding that Marketing is the process by which you decide ◦ what you will sell, ◦ to whom you will sell it, ◦ when and ◦ how you are going to sell your product or service, and ◦ then doing it.

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Marketing basics In order to achieve this, we need to ensure that the “4 P’s” of marketing are applied. i.e.:ProductPricePlacePromotion.

In addition, customer service must be added to the above mix

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Marketing Basics

To succeed, entrepreneurs must attract and retain a growing base of satisfied customers.

Marketing programs, though widely varied, are all aimed at convincing people to try out or keep using particular products or services.

Business owners should carefully plan their marketing strategies and performance to keep their market presence strong.

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Marketing basics Marketing is based on the importance of customers to a

business and has two important principles: 1. All company policies and activities should be directed

towards satisfying customer needs.2. Profitable sales volume is more important than

maximum sales volume.

To best use these principles, a small business should:

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MarketingoDetermine the needs of their customers through market research oAnalyze their competitive advantages to develop a marketing strategy oSelect specific markets to serve by target marketing oDetermine how to satisfy customer needs by identifying a market mix

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Market Research

Successful marketing requires timely and relevant market information. An inexpensive research program, based on questionnaires

given to current or prospective customers, can often uncover dissatisfaction or possible new products or services.

Market research will also identify trends that affect sales and profitability. Population shifts, legal developments, and the local

economic situation should be monitored to quickly identify problems and opportunities.

It is also important to keep up with competitors' market strategies.

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Marketing Strategy oA marketing strategy identifies customer groups which a particular business can better serve than its target competitors, and tailors product offerings, prices, distribution, promotional efforts, and services toward those market segments. oIdeally, the strategy should address unmet customer

needs that offer adequate potential profitability. oA good strategy helps a business focus on the target markets it can serve best.

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Target Marketing

Owners of small businesses usually have limited resources to spend on marketing.

Concentrating their efforts on one or a few key market segments - target marketing - gets the most return from small investments.

There are two methods used to segment a market: 1. Geographical segmentation - Specializing in serving the

needs of customers in a particular geographical area. For example, a neighborhood convenience store may send advertisements only to people living within one-half mile of the store.

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Target marketing2. Customer segmentation - Identifying those people most likely to buy the product or service and targeting those groups.

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Managing the Market Mix

Every marketing program contains four key components: ◦ Products and Services ◦ Promotion ◦ Pricing ◦ Distribution

These are combined into an overall marketing program:

Products and Services - Product strategies may include concentrating on a narrow product line, developing a highly specialized product or service, or providing a product-service package containing unusually high-quality service.

Promotion - Promotion strategies include advertising and direct customer interaction. Good salesmanship is essential for small businesses because of their limited ability to spend on advertising. Good telephone book advertising is also important. Direct mail is an effective, low-cost medium available to small business.

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Marketing program

Price - The right price is crucial for maximizing total revenue. Generally, higher prices mean lower volume and vice-versa; however, small businesses can often command higher prices because of their personalized service.

Distribution - The manufacturer and wholesaler must decide how to distribute their products. Working through established distributors or manufacturers' agents generally is easiest for small manufacturers. Small retailers should consider cost and traffic flow in site selection, especially since advertising and rent can be reciprocal: A low-cost, low-traffic location means spending more on advertising to build traffic.

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Marketing Performance

After implementing a marketing program, entrepreneurs must evaluate its performance. Every program should have performance standards to compare with actual results.

Entrepreneurs should audit their company's performance at least quarterly. The key questions are:

1. Is the company doing all it can to be customer-oriented?

2. Do employees ensure the customers are satisfied and leave wanting to come back?

3. Is it easy for the customer to find what he or she wants at a competitive price?

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Marketing Plans

A sound marketing plan is key to the success of your business. It should include your market research, your location, the customer group you have targeted, your competition, positioning, the product or service you are selling, pricing, advertising, and promotion.

"You're in business to serve a customer need," says Derek Hansen, founder of American Capital Access. "If you're not sensitive to customers, don't know who your customers are, how to reach them and, most of all, what will convince them to buy your product or service, get help."

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Marketing plan

Effective marketing, planning and promotion begins with current information about the marketplace. Talk to customers, study the advertising of other businesses in your community, and consult with any relevant industry associations.

This interactive tool will help you assess your marketing strengths and weaknesses.

Once you have all the necessary information, write down your plan:

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Marketing plans

1: Define your business Your product or service Your geographic marketing area - neighborhood, regional or national Your competition How you differ from the competition - what makes you special Your price The competition's promotion methods Your promotion methods Your distribution methods or business location

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Marketing plan

2: Define your customers Your current customer base: age, sex, income, neighborhood How your customers learn about your product or service - advertising, direct mail, word of mouth, Yellow Pages

Patterns or habits your customers and potential customers share - where they shop, what they read, watch, listen to

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Marketing plan Qualities your customers value most about your product or service - selection, convenience, service, reliability, availability, affordability

Qualities your customers like least about your product or service - can they be adjusted to serve your customers better?

Prospective customers whom you aren't currently reaching

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Marketing plan

3: Define your plan and budget Previous marketing methods you have used to communicate to your customers

Methods that have been most effective Cost compared to sales Cost per customer Possible future marketing methods to attract new customers Percentage of profits you can allocate to your marketing campaign

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Marketing plan

Marketing tools you can implement within your budget - newspaper, magazine or Yellow Pages advertising; radio or television advertising; direct mail; tele-marketing; public relations activities such as community involvement, sponsorship or press releases

Methods of testing your marketing ideas Methods for measuring results of your marketing campaign The marketing tool you can implement immediately

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Marketing plan

The final component in your marketing plan should be your overall promotional objectives: to communicate your message, create an awareness of your product or service, motivate customers to buy and increase sales, or other specific targets. Objectives make it easier to design an effective campaign and help you keep that campaign on the right track. Once you have defined your objectives, it is easier to choose the method that will be most effective.

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Marketing activities On completion of your marketing plan, you (and anyone who reads your plan for that matter), should be in a position to answer the following questions clearly:“What are you going to sell?”“Who are you going to sell this to?”“How are you going to sell it?”“How much is it going to cost you?”“How much are you going to sell it for?”“What will your profit be?”

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activities

The following should be considered as part of your regular marketing activities:Competitor analysis- you will need thorough competitor knowledge to help you to ensure your pricing is competitive, your product quality/service offering is comparable/ superior. You need to ensure you stay one step ahead.Perform Product Differentiation – make your product different to competitors products.

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activities

Distribution: This is the process whereby you are going to get your product or service to the customer.

Once again, your research will guide you on how you are going to distribute your product.

It can be:Manufacturer ConsumerManufacturer Retailer ConsumerManufacturer Wholesaler Retailer Consumer

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Activities

Product Marketing / Promotions, etc.

Careful targeted promotion of your product is essential in order to create consumer awareness and thus influence the sustainability of your venture. Promotions are often costly, so careful consideration must be made of the financial implications.

Advertising: Radio, TV, Newspaper, Posters, Flyers, Billboards etc.

Promotions: Competitions, Free samples, T-shirts, pens, calendars, key rings with your logo.

Public relations: Organising tournaments, sponsorships etc.

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Selling techniques

Devising and implementing the correct selling techniques is another critical skill in your armoury for a successful venture.

The important thing is to understand your products and proposition in terms that your customer will recognise as relevant and beneficial to them

Customers generally value the following benefits higher than all others; Making money, Saving money and Saving time.

If your sales approach cannot be seen as leading to any of the above, then customers will not be very interested in you.

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techniques

Once you have clearly identified who you are selling to , one or a combination of the following techniques can be used:Sales Networks – ‘piggy backing’ on existing networks. Mainly when your product or service is complimentary to certain existing products or services.Direct Selling – You will have information during your market research on potential customers. You then approach the customer directly.Cold Calling – You literally approach any potential customer even if you have no information about the customer

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Common marketing problems.1. Lack of brand image: Consumers are guided by brand image. Small entrepreneurs may find it difficult to penetrate the market due limited propaganda.

2. Lack of sales force: Small units cannot afford to maintain a well oiled sales force manned by efficient personnel.

3. Product quality: Small scale business units in the initial stages have a serious limitation of product quality – because quality testing is costly and not easy.

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Problems

4. Credit sales: Mostly are forced to sell on credit. However when it comes to purchasing inputs they are denied credit facilities.

5. Low prices: Price determination is by bargaining so that at least you may be able to sell as compared to large enterprises who have large sales volumes.

6. Local and limited market: Small enterprises generally cater to the needs of the local and limited market due to prohibitive cost of creating a wider distribution network. The addition of transport cost will make the product non competitive in upcountry markets.

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Professionalism and Customer service

Professionalism means that your conduct has to remain above question at all times-and has to fit in with the circumstances and situation.

Many business deals have been lost due to unintentional lack of manners, ignorant, unintentional behaviour, causing people to feel disrespected or abused. Organisations and business leaders thus loose money and respect.

You may never be given a second chance to find out what went wrong.

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Professionalism

You need to make it your business to know as much as possible about the client’s culture and expectations. This requires understanding and commitment to:Acting professionally at all times in the workplace and with clients.Better business manners.Improving your imageMinding your mannersImproving your own skills & knowledgeActing respectfully at work & with clientsCommunicating with integrityBe caring and compassionate.

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Professionalism

Within the business environment, it is generally accepted that professional behaviour is measured by the following criteria:AppearanceEtiquette (manners)PunctualityDeliveryConfidentiality It doesn’t matter how well you know your client, you have to make sure that your conduct is utterly professional.

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Customer Service

Political freedom has created a spirit of “ freedom of choice” – in all respects. When this spirit flows into a business, it creates a more aggressive customer who no longer feels scared and has the democratic right to say, “NO – I won’t accept this.”

People are getting more & more critical of the quality of service they experience in their everyday lives, and they want something done about it.

We quickly realize that quality service touches our lives in two ways: the service we give and the service we receive.

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Customer service

The art of turning customer service into service excellence is nothing more than consistently meeting and exceeding your customer’s expectations in every way. This must therefore include every aspect of the service provided, the product, your attitude and your professionalism.

To help transform ordinary customer service into service excellence, thereby giving you the competitive edge over your rivals we need to consider the10 general commandments of customer service

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The10 general commandments of customer service.

We obtain customers by giving or producing high/good quality products and keep them by providing superior customer service.

It is your job to satisfy the needs, wants and expectations of your customers and whenever possible, address their fears and resolve complaints.

Customers are the lifeblood of your company. Remember the customer is a person with feelings and emotions, just like you, so treat them better than you would want yourself to be treated.

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commandments

Provide the customer with the best service because they deserve the most attentive treatment.

The customer does you a favor by visiting your company. You are not doing them a favor by serving them, but keeping your business growing.

The customer is the purpose of your work. You are dependent on the customer, not them on you. You actually work for the customer. Service is both marketing and a management tool for your business.

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