Showing posts with label Marketing 101. Show all posts
Showing posts with label Marketing 101. Show all posts

Friday, February 27, 2015

Marketing 101

Source: SBA

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In order to successfully grow your business, you’ll need to attract and then work to retain a large base of satisfied customers. Marketing emphasizes the value of the customer to the business, and has two guiding principles:
  1. All company policies and activities should be directed toward satisfying customer needs.
  2. Profitable sales volume is more important than maximum sales volume.
To best use these principles, a small business should:
  • Determine the needs of their customers through market research
  • Analyze their competitive advantages to develop a market strategy
  • Select specific markets to serve by target marketing
  • Determine how to satisfy customer needs by identifying a market mix
Marketing programs, though widely varied, are all aimed at convincing people to try out or keep using particular products or services. Business owners should carefully plan their marketing strategies and performance to keep their market presence strong.
Conducting Market Research
Successful marketing requires timely and relevant market information. An inexpensive research program, based on questionnaires given to current or prospective customers, can often uncover dissatisfaction or possible new products or services.
Market research will also identify trends that affect sales and profitability. Population shifts, legal developments, and the local economic situation should be monitored to quickly identify problems and opportunities. It is also important to keep up with competitors' market strategies.
Creating a Marketing Strategy
A marketing strategy identifies customer groups which a particular business can better serve than its target competitors, and tailors product offerings, prices, distribution, promotional efforts and services toward those segments. Ideally, the strategy should address unmet customer needs that offer adequate potential profitability. A good strategy helps a business focus on the target markets it can serve best.
Target Marketing
Most small businesses don’t have unlimited resources to devote to marketing; however, the SBA wants you to know that you can still see excellent returns while sticking to your budget if you focus on target marketing. By concentrating your efforts on one or a few key market segments, you’ll reap the most from small investments. There are two methods used to segment a market:
  1. Geographical segmentation: Specializing in serving the needs of customers in a particular geographical area.
  2. Customer segmentation: Identifying those people most likely to buy the product or service and targeting those groups.
Managing the Market Mix
Every marketing program contains four key components:

  1. Products and Services: Product strategies include concentrating on a narrow product line, developing a highly specialized product or service or providing a product-service package containing unusually high-quality service.
  2. Promotion: Promotion strategies focus on advertising and direct customer interaction. Good salesmanship is essential for small businesses because of their limited advertising budgets. Online marketing is a cheap, quick, and easy way to ensure that your business and product receive high visibility.
  3. Price: When it comes to maximizing total revenue, the right price is crucial.  Generally, higher prices mean lower volume and vice-versa; however, small businesses can often command higher prices because of their personalized service.
  4. Distribution: The manufacturer and wholesaler must decide how to distribute their products. Working through established distributors or manufacturers' agents is generally easiest for small manufacturers. Small retailers should consider cost and traffic flow in site selection, especially since advertising and rent can be reciprocal: a low-cost, low-traffic location means spending more on advertising to build traffic.
The aforementioned steps combine to form a holistic marketing program.
The nature of the product or service is also important in citing decisions. If purchases are based largely on impulse, then high-traffic and visibility are critical. On the other hand, location is less of a concern for products or services that customers are willing to go out of their way to find. The Internet makes it easy for people to obtain goods from anywhere in the world, so if you’re worried about reaching a certain market, selling your product online may do wonders for your business.

Wednesday, July 18, 2012

Can Facebook & Social Media Help GM Sell More Vehicles

On May 22, 2012 I wrote a blog asking the public if GM made a wise choice dropping its 10 million dollar advertising spend from Facebook.  (For the entire blog visit: http://deliverymaxx.wordpress.com/2012/05/22/did-gm-make-a-wise-decision-dropping-facebook-as-an-advertising-medium/ )  My position then as it is now is that GM and many automotive dealerships are not utilizing Social Media Marketing correctly in particular Facebook.

In my youth, I lived in a small country town in Texas for a few years.  Often, I would hear the expression, “you can put lipstick on a pig, but it is still a pig…”Decisions regarding advertising by GM look like they are changing, but marketing strategy looks to be the same when you wipe away the “lipstick”.

Pig_in_lipstick

Often, I quote Albert Einstein’s definition of insanity which is “doing the same action continuously and expecting different results.”

Einsteininsanity

Companies have two schools of thought as to whether it’s worth the investment for paid advertising on Facebook or bypass it and continue using their business fan page which doesn’t cost anything to use instead.  This blog is not entertaining this debate; it is stating that to take part in this particular debate would be the wrong battle to fight altogether.

Advertising 101 says that the more eyes that view your product will give you the exposure to help you sell your product.  It is a law of numbers.  Marketing 101 tells us that the best message that resonates with your audience will help you sell more of your product.  When GM spends hundreds of thousands of dollars in their next advertising & marketing retreat developing the direction of their message, I can’t help to think about how the answer is right in front of their nose.

Advertising 101

Let’s discuss Advertising 101 first.  The more eyes that view your product will give you the exposure to help you sell your product.  Taking this principle to the core- Facebook has over 900 million active users.  Facebook is the world’s largest URL.  Facebook has captured over 75% of Social Media Users.  Your read this correctly.  FACEBOOK is NOT the ONLY GAME in TOWN!  Business must utilize Social Networking sites to market to their potential consumers.  GM needs to develop a strategy that encompasses all of the market.  Most companies try a shot gun approach without truly diving into the analytics of consumer behavior within the confines of Social Networking Sites.  Web 2.0 will allow companies to create a strategy that will weave throughout the web to reach your desired audience.  The key is to create a net large enough that will reach all of your potential consumers.

Marketing 101

Now for the Marketing 101 discussion, I am not going to pretend to have all of the answers for every company’s needed message that they should deliver to the audience.  However, I will stick to the basics.  If a company has a good product or service, a fair price, and exceptional customer care then their brand and reputation will fly through the air like a Michigan cold front in October. The consumer will be the companies best (or worst if one of the three business principles are not met) marketer.

Business 101

Assuming a company has a good product or service, fair price, and exceptional customer care it is necessary to combined Advertising and Marketing like peanut butter and jelly into a strategy that will create the unique taste the consumer is looking for.  Companies need to look at creating a forum (see advertising 101) for their consumer (see marketing 101) to share the benefits and advantages of their product or service.

Results

Key results for automotive dealerships (but you can replace automotive dealerships with any type of company) include strong CSI scores, increased sales, repeat business, more referrals, additional fixed operation revenue, domination of the web or Search Engine Optimization (SEO) value, published positive online reviews or strong Online Reputation Management (ORM), and overall exceptional Customer Loyalty and Retention.  It is about the emotion of the sale isn’t it?  Why not take advantage of what you do the best, and have your customers work to help you sell more vehicles (or product).

About DeliveryMaxx

DeliveryMaxx understands the needs of Automotive Dealerships.  They create real customized solutions that utilize both traditional media and innovative technology that helps dealerships realize tremendous results in turning “one-time customers” into “LIFE-TIME CUSTOMERS”.

For more information, visit http://deliverymaxx.com

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