Marketing is More Than Advertising
Marketing is a business process about which much is written, however is often not completely understood. Many think that "marketing" and "advertising" are interchange-able words. This is not the case. Marketing is really a complete, integrated approach to doing business.
Many businesses operate on the basis of a "product driven" approach. That is, the business has an ability to produce or provide a particular product and tries to find a market for that product. The enterprise is driven from the orientation of the business and its product.
A "marketing" approach however is based on customer needs. In a marketing approach, the business identifies a particular need that exists in the marketplace and endeavours to find a product or service that meets that need. Let me use a simple illustration. The local hamburger store sells hamburgers. But what do McDonalds sell? The sale of hamburgers is only a part of the McDonalds experience for the customer. The McDonalds' system provides the customer with much more than the hamburger. It provides a hamburger that the customer knows will be of the same quality time after time. The customer will experience prompt and friendly service, time after time. If you look at what McDonalds have done, you see that they have discovered many "needs" apart from the basic need of the customer to get a hamburger. There are many local shops that sell hamburgers, mostly run by very hard working owners, but their product driven approach limits their success. McDonalds' market driven approach has enabled them to become "the most successful small business in the world".
Now, you may not want your business to become another McDonalds, but there is much that can be learned by examining their approach. Adopting a marketing oriented outlook means that you look at the needs of your customers, beyond the physical need that your product or service meets. What are the other needs that your customers are looking to satisfy in their dealings with your business? What are they looking for in terms of the way they are treated in the purchasing process? Are your salespeople helpful and courteous? How is your telephone answered? What can customers expect about the quality of your products, delivery, installation, after sales service, warranties, etc?
The marketing approach sees every aspect of your business as being a tool to create more or higher value sales. The marketing approach enables you to differentiate your business from your competitors, not by selling a different product, but by providing customers with a different experience when they deal with your business. When you find the answers to the questions we have just asked and find ways to consistently provide quality in product and service aspects your business will attract more customers who are willing to pay more to have their needs met.
A recent PIMS survey (Profit Impact of Marketing Strategy) found that businesses who were perceived by their customers to provide better service could charge an average of 9- 10% more for the same basic product or service. It was also found that they grew twice as fast as competition and gained market share at an average of 6% per year while competitors lost ground.
The situation is clear. Becoming a marketing organisation, focussing on finding solutions to customer needs, is today's approach to achieving better results.
(c) 2003 Greg Roworth, Progressive Business Solutions
Greg Roworth is the Managing Director of Progressive Business Solutions Limited, a business development consultancy firm with branches in Wellington and Auckland, New Zealand. Greg has created a unique business development program that assists business owners transform their business from a state of total dependency on them to a state where the business works so well they don't have to.
Greg is also the author of "The 7 Keys to Unlock Your Business Profit Potential," which descibes the fundamental keys a business needs to achieve this transformation. Find out more, get 2 free chapters, or buy the book online at http://www.small-business-success.ws
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