What is marketing?
Tracy Pomfret DipM MCIM
Marketing Consultant (Freelance). Helping SMEs to grow their businesses profitably
To begin with, I'd like to start with what marketing is NOT! It is not advertising! Advertising is a tool used by marketers.
The official CIM definition of marketing is
" Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably."
I like to think of it as boiling down to this: getting the right products/services to the right people at the right time in the right place at the right price.
Start by asking questions and keep on asking them!!
Market research is key, you have to understand who your customers are, what they want and need, and crucially how to reach them. Products and services should be developed to meet those needs and your promotional activity should also be tailored to their preferences.
Once you have developed a good understanding, created a profile or persona (basically an avatar of your ideal customer), you need to keep re-visiting it because wants and needs change. People's behaviours change too - hence the decline of the high street as people move to online purchases.
Why do you need to bother with marketing?
Essentially, marketing helps you:
More than promotion
Almost every MD or business owner I've worked for/with has understood marketing to be about promotion. Advertising, PR, events etc. There's a lot more to it than that and a good strategic marketer should have a seat at the top table when discussions are made about pricing, new product development, growth strategies, distribution- this is all marketing.
The Marketing Mix - 4 Ps (now 7)
Product
Price
Place
Promotion
plus recent additions:
People
Process
Physical evidence
As you can see promotion is one aspect and a good marketing strategy assesses all aspects of the mix to ensure you are providing the right products/services at the right price to the right people in the right way.
Product
You should find products or services that meet the needs of your customer or potential customer! Ask them what they want. Test your products on them. Consult them.
What makes your product stand out for your target audience?
Price
Price should be competitive, but that DOESN'T mean the cheapest! If you are targeting the right people, they will be comparing your offering with other companies positioned at your end of the market.
You want to make a profit to remain viable and to reinvest in future developments. Pricing is the only element of the marketing mix that generates revenue, everything else is a cost.
Existing customers, used to a great service are less price sensitive so look to build relationships with repeat buyers.
"Turnover is vanity, profit is sanity"
Place
Where your customer buys from - your showroom, shop, online store, back of your van....
Think about this in the context of your customer. A BMW garage has comfortable seating, cappuccinos and newspapers for people to read while they wait. Think about styling, decor if you have physical premises. Think about ease of navigation if it's online. Consider your delivery partners - getting the product to the customer - it's all part of the customer journey.
Promotion
The thing that everyone understands as marketing! How you communicate what you are offering to your customers. Advertising, PR, exhibitions, direct mail, social media etc.
This has changed a lot over the years as people consume information in different ways. This is why research is important. Ask your customers what magazines they read, which tv channels they watch, what social media they use.
Digital promotion - emails, text messages, targeted social media ads feature heavily as people move away from printed materials and advertisements.
The principles are the same though. You need to grab attention, create interest, build desire and ultimately get them to act by buying what you are offering.
Now the new kids on the block...
I first studied with CIM about 30 years ago. Back then there were only 4 ps. Now we have....
People
Anyone that comes into contact with your customers makes and impression on them. The reputation of your brand is in the hands of your people. They need to understand the role of the customer, wherever they are in the organisation and marketing should present at their induction explaining the role they play in the customer experience.
Process
The actual process of providing your products/services - how easy do you make it for people to buy from you. How many hoops do they have to jump through? What about your returns process? Customer complaints process? All of this impacts on the customer experience and ultimately determines whether they buy from you again in the future.
Physical evidence
This is proof to potential customers that your products/services live up to their promises. Case studies and testimonials are great for this. Add them to your website, include them on your socials, have them sign written on your vans. People are increasingly checking sites like Trustpilot and google reviews. Make sure you are responding and tracking this.
That's probably enough for one session! Look out for future articles where I'll share everything I've learnt about marketing in the past 30 odd years.
Thanks
Tracy