So, just what is marketing exactly?
By Christopher Smith
Friday, April 23, 2004
Is marketing magic?
Marketing is not a science yet nor is it one of the black arts. You do not need any magical powers to market successfully; all it really takes is commonsense.
Can anyone do marketing?
If you are in business, you are doing some marketing already even if you think you are just selling. You may not have a marketing department or even a formalized marketing plan but if you are thinking about the needs of your customers then you are ‘marketing’.
What does marketing involve?
You have probably encountered some seemingly scary marketing jargon – CRM, Pareto’s principal, CPC, customer segmentation, etc. However, there is no need to be alarmed. Put simply, marketing is:
“The management process of identifying and satisfying the needs of customers profitably.”
This process is based around the 5 ‘Ps’ (7 ‘Ps’ if you provide services instead of products):
1. Product
Your product or service has to meet the needs of your customers. It has to be of appropriate quality and customers should be happy with it.
Focus on your customers; talk to them and find out their needs.
2. Price
You have to find a price that is acceptable to your customers. The price you set must also allow you to make a profit whilst competing with prices set by your competitors.
If you cannot compete on price, consider adding value. Remember that the price you charge tells customers where you are positioned in the market place and allows them to make assumptions about the quality of your product or service.
3. Place
Sometimes also referred to as ‘distribution’. This is where customers purchase your product or service. It could be a physical location or an online one. Like the product or service itself, it must meet their needs and the product or service must be available there.
4. Promotion
This is the way you tell customers about your product or service, detail its features and explain its benefits.
As you know, there are many different ways to promote your product or service but the goal is always the same. You want customers to be able to identify the benefits of your product or service and understand how this will satisfy their needs.
5. People
‘People’ are you and any of your staff, especially those who come into contact with customers.
Customers perceive your people as part of the product or service. If your people are inadequately trained, de-motivated or not good at interacting with others, this could have an adverse effect on how customers perceive your business.
6. Process
The ‘P’ of process covers every aspect of the customer’s interaction with your business. Take a good look at it and ask yourself ‘”Do any stages cause delays?” Is the order process unnecessarily complicated? Do we give customers the right information? How good are we at keeping promises made to customers?
7. Physical evidence
This is particularly relevant if you sell services, i.e. intangibles. The image of your business can have an effect on the way customers perceive it. If the paperwork you give customers is inaccurate, misleading or just full of spelling mistakes, what will they think? If your service vehicle is battered and rusting, what does this say about the quality of your workmanship? If your receptionist is curt and unfriendly, what impression does this give of your business?
As can be seen from the 7 ‘Ps’ above, marketing affects every area of your business. Every person in your company is to a varying degree ‘doing’ marketing.
If that is the case, why is it necessary to create a marketing plan?
A plan helps you to communicate ideas to other people. It helps you to repeat activity consistently over time. The act of creating a plan forces you to examine your business, your customers and your competitors in depth. All of this can only be good for your business.
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This article is copyright © 2004, Christopher Smith
Christopher Smith is a marketer and copywriter based in the UK but associated with Mano Design in Vancouver, Canada.
