Whilst the words ‘marketing’ and ’selling’ are often used interchangeably in the everyday language of business there is much more to marketing than just selling.
Marketing is all about addressing customer needs and providing them with benefits. Successful marketing campaigns and plans are usually based on carefully establishing the particular preferences of customer groups and targeting the marketing mix to satisfy these wants and needs. A combination of market research, customer satisfaction surveys and sales trend analysis are generally used to determine the best marketing plan. Marketing strategies should answer the customer’s question: “What’s in it for me to do business with you?”
The Marketing mix
The components of a business marketing plan is usually comprised of five main elements:
Product: The range and depth of products and/or services to be offered and how these are differentiated from competitors by offering features and benefits - including quality, brand name, packaging, options, finance, after sales service, warranties, returns.
Price: Pricing strategy for a product or service is usually influenced by six major factors - cost, competition, innovation, the balance between supply and demand, long-term strategy for the product or service, and government regulation.
Promotion: The creative element involving campaigns, sales promotion, advertising, direct marketing, publicity, trade shows etc. It is important that these are well planned and outcomes are measured.
Placement: Requires channel decisions about market coverage, locations, physical distribution, marketing intermediaries (agents ,brokers, wholesalers and retailers), warehousing and inventory levels.
People: The selling organisation - marketing manager, size of sales force, structure, coverage, compensation, retention and motivation.
Are your employees involved?
Many employees think that their company’s marketing effort is done by an individual or small group of marketing personnel whose job it is to call on existing customers and prospects to generate sales.
However, all employees are walking, talking advocates for your brand. Despite this most companies spend very little time, attention or money on internal marketing and customer service, such as making sure employees understand what their company’s brand stands for and how to communicate this when they deal with customers. When your employees are ‘brand champions’, they create brand differentiation for your customers - something hard for your competitors to easily copy.
Undertaking market research
Market research is conducted for a variety of reasons. For example, results from quantitative research (eg questionnaires) and/or qualitative research (eg focus groups, probe interviews) can be used to support decisions regarding consumer acceptance of new products, packaging or advertising. In planning, market research assists the SWOT and competitor analysis. Although there are many firms and consultants who specialise in conducting market research, a considerable amount of valuable research can be done on a cost-effective basis internally by any business.
Types of market data
Primary data - this is data obtained directly from existing and potential customers, collected directly from field research, questionnaires, surveys, trade shows etc. (This data is also known as field research).
Secondary data - is primary data which has previously been collected, processed and published. This data is held in libraries, industry associations, government departments, universities, research institutes, suppliers, trade publishers, exhibition organisers, list brokers, databases (ie Kompass, Jobsons or APN) and leading market research organisations such as the ABS, BIS Shrapnel and IBIS World. (This data is also referred to as desk research). There are also published annual reports of corporations and many company websites which provide valuable information.
Market research process
There are six main stages to conducting market research. These are:
1. Define your research objectives - What do you wish to know? Who do you want to reach?
2. Conduct exploratory research - make a list of possible sources of secondary data and conduct some preliminary desk research. Redefine your research objectives if necessary.
3. Formal survey design - design a draft questionnaire or survey instrument, define the target audience reach and critique it internally. I can help you with this stage.
4. Pilot or test the survey - conduct a small sample test of your questionnaire or survey to gauge its reliability. Modify if necessary before wider application.
5. Field research - conduct the survey in the field. Remember that some parties may prefer to only provide answers to an independent person. You may choose to use me for stages 4 and 5. You will also need to be cognizant of the Privacy Laws.
6. Data Analysis and Interpretation - all survey responses and pertinent desk research data is analysed and relevant strategic decisions made. I can help you here also.
Common errors when doing market research
Beware of the following pitfalls when doing market research:
1. Speaking to or surveying everyone except the actual potential buyers or end users
2. Failing to notice early warning signals, as you are convinced that your project will work
3. Asking loaded questions, the answers to which just confirm your ideas or beliefs without revealing hidden agendas in the minds of survey respondents
4. Assuming that you will be able to compete effectively simply by lowering your prices or reducing quality
5. Failing to recognise the potential reaction of competitors or to overlook potential competitors
6. Underestimating how long it can take to enter a new market,
7. Ignoring the old 80/20 Rule - the fact that often 20% of your customers provide 80% of revenue.
