What you need to know about Marketing your Product or Service? Part1 of 2 Articles

What is marketing?

The success of your business depends largely on your marketing efforts. The market consists of customers and potential customers for your products and services. Marketing is the process of making your business and its products and services attractive to those customers and prospects. Marketing activities come in various forms and may include everything your business has to do to get its products and services into the hands of your customers and prospective customers. These activities may include: designing your products so they will be attractive to your customers, conducting market research, and pricing and promoting your products and services so potential customers will know about them. Some of the tools you can use to promote your products and services are advertising, public relations, marketing communications, sales, and distribution.

Typically, marketing activities will be based on decisions and strategies you make about what products and services you will offer to your targeted market and how you will inform your customers. Marketing is a company-wide effort--the various departments throughout your company and the people who make up those departments all play a role in getting your products and services to your customers.

Segment and target your market

You may have limited funds to spend on your marketing efforts. Rather than trying to be all things to all people in all places, you should consider segmenting your market. Generally, segmenting the market may occur in two ways. First, you may want to target your market by geographic location (e.g., a particular city, state, or region) and thereby focus on the needs of customers within a defined area. This may also help keep your advertising and promotional costs down because you would be restricting those efforts to a specific area as well.

Second, you may target a specific customer group (for example dog owners, users of public transportation, or managers above a certain income level) by identifying and directing your promotional activity to those specific groups. You may narrow your target further not only by targeting your customer groups but also by focusing on those groups, within a particular geographic area. Segmenting and targeting your marketing efforts help your business in the following ways:

·         Marketing your products and services to the wrong potential customers can result in increased overhead

·         Correctly targeting your products and services can result in increased sales

·         Identifying your present and potential customers may present opportunities for additional needs in the market

Distinguish your business, product, or service from others

It is important that your business take on its own identity. This can be especially important if there are other businesses offering similar products or services. A distinctive image can help your marketing efforts. There are several ways you can make your business, product, or service noticeable:

·         One way to differentiate your products and/or services from your competitors is by carefully choosing a name for your business or product. You may want to conduct a market survey to be sure the chosen name appeals to your present and potential customers. You also may be able to protect the use of your product name.

·         You may want to pay attention to how your business presents itself to customers. This can be accomplished through the use of a distinctive logo. Marketing materials such as letterhead, business cards, and mailing labels can be used to identify your business, product, or service.

·         What is your business mission statement? Is it unique and sincere? Communicating your business's message should be an ongoing business function. By developing new and unique ways of delivering your message to your target markets you can help your business stand out from the rest of the pack.

 

Create public awareness of your business in a positive way: develop a website

 

You can use traditional marketing activities in combination with other techniques rooted in technology. Traditional marketing activities may consist of direct mailings, telemarketing calls, or even distributing your business cards to potential customers. High-technology methods may include marketing via the Internet. You can use your website to present general information to potential users of your product/service (for example, why someone might want the product or service) along with specific information about your business (for example, how your business can deliver the needed product or service better than another company).

 ·         Include your business website address on your letterhead, business cards, and other marketing materials. This will let customers know about your site and may encourage them to visit it.

·         Be sure your business letterhead, business cards, and marketing materials complement your website, and that all work together to create your business identity. Including your logo on all materials and within your website can build name recognition.

·         Continue marketing your business with traditional marketing activities such as direct mail, telemarketing, advertising, and referrals. Relying solely on your website to market your business may not be successful initially--not everyone has access to the Internet.

 Example(s):         If you own the local animal hospital, the Internet may not be the first place a customer would look when in need of emergency animal care services. While the Internet can be a useful way to present information about your service, the yellow pages may be more effective when the customer's need is immediate.

  What is the difference between sales and marketing?

 The marketing process is very broad. It usually consists of determining what services or products customers want or need, and developing products or services to fulfill those needs. An important part of marketing is researching the competition--including how your competitor's product or service differs from yours and what developments are taking place in the market. Marketing also includes the process of pricing your product or service in the market. You may choose a low price strategy to penetrate the market and gain a large market share, or you may choose a higher price strategy in an effort to maximize your profits and build an image of prestige before competitors enter your arena. Promotional activities are geared to increase public awareness of your product or service. The sales function is part of the marketing process (and marketing activity supports sales) and involves educating potential customers about your product or service. Delivering the product or service and engaging in any related follow-up service are also parts of the marketing strategy.

  What is market research?

 Market research can be thought of as the process of gathering, recording, and analyzing information related to your target market, customer base, and competitive environment. The information can be used to spot potential issues, help you make business decisions, find sales opportunities, and develop a plan of action. Market research activity can be formal or informal, and can be conducted internally or externally (by contracting with a market research firm).

 Informal methods

 Market research may be as informal as talking to your customers about their needs and wants. Your suppliers can be a source of information about trends in the marketplace. Another valuable source of information can be your employees, especially those who deal directly with your customers or suppliers. Trade journals and newspapers can provide valuable information about the economy, the industry in which your business operates, and even about your competitors and their products.

 Formal methods

 Formal market research may involve the use of detailed tracking of business activity--how many businesses operate in a geographic area, how many people are employed in the field, sales figures, and other data. Research is often conducted by trade associations, which may provide the information to association members. This information may also be found in your public library (check the business reference section). You may even use a marketing research firm to help your marketing efforts. Such a firm may compile and analyze data using complex statistical modeling and analysis, surveys, and focus groups.

...Article continued in What you need to know about Marketing your Product or Service? Part 2

  

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