Vicki's Soapbox

Marketing is a State of Mind

noreply@blogger.com (Vicki Lynne Morgan) — Thu, 28 Jan 2010 00:25:00 +0000

Marketing comes before selling. It’s quite simple: No marketing, No sales. Even if you have the most incredible product or service in the world, you might as well close your doors if you don’t market first.

Customers buy for a combination of reasons: (1) They need the product, (2) They have the authority to buy, (3) They have money, and (4) They TRUST. Trust comes from having reached a level of comfort in the relationship with the seller – a partnership -- that induces them to buy. That requires marketing!

What is marketing? The definition of marketing can be applied to a wide array of ‘top of the mind’ strategies, the purposes of which are to attract and keep customers.

Marketing is a cheerful attitude and voice on the phone. Marketing is press releases and editorials for exposure. Marketing is networking. Marketing is knowing your industry. Marketing is knowing your customers’ habits and personalities. Marketing identifies needs and wants. Marketing solves problems. Marketing is knowing the competition. Marketing is empathic. Marketing is professionalism. Marketing is knowledge and awareness. Marketing is delivering on time. Marketing is keeping commitments. Marketing is ethics. Marketing is participating in trade organizations. Marketing is progressive, inventive, and creative. Marketing maximizes core competencies. Marketing is fluid. Marketing is energy, passion and vision. Marketing creates brand awareness and niches. Marketing is an end run around the competition. Marketing is developing relationships and partnering with customers. Marketing builds trust. Marketing is quality, value, and/or service – whatever is most important to the individual customer. MARKETING IS OPTIMUM CUSTOMER SERVICE AND SATISFACTION.

Marketing philosophy and its strategies must pervade all elements of a business. The concept is grounded in the belief that a company should dedicate all of its policies, planning, and operation to the satisfaction of the customer with the belief that the final result of all business activity should be to earn a profit by satisfying the customer. Where does the responsibility for formulating and implementing a company’s marketing program begin? AT THE TOP!

Who is responsible for carrying out the marketing plan? EVERYONE IN THE COMPANY! That includes the telephone operator and receptionist; office, administrative, data systems, and accounting staff; marketing, PR, and advertising departments; manufacturing, packaging, shipping, and receiving personnel; assembly line, mail room, and janitorial staff; and, of course, all members of the executive management and sales staffs. Everyone must march to the same beat. Who did we leave out?

BOTTOM LINE: Marketing is finding and keeping customers. Marketing reminds customers that they made the right decision to do business with you. MARKETING CREATES OPPORTUNITIES FOR A LIFETIME.

QUESTION: What is your marketing plan? Is everyone in your company tuned into a top-down marketing philosophy? What marketing is effective and can it be expanded. What marketing is not working?

MARKETING IS A STATE OF MIND ~ Is it time to re-write your own marketing plan?

Author’s Note: Thanks and credit for this provocative statement, MARKETING IS A STATE OF MIND, go to Domenic Salvemini, a good friend, entrepreneur, and fellow member of the Somerset, New Jersey, Chapter of NAWBO, National Association of Women Business Owners. Reprints by Permission Only.

The Cost of Low Price

noreply@blogger.com (Vicki Lynne Morgan) — Wed, 27 Jan 2010 23:24:00 +0000

Those of us who are students of selling philosophies and strategies will concur that a common premise in selling is to offer customers quality, service, and value – usually translated into price – low price.

Clearly, many of our competitors in the pet industry strive to compete on the best, lowest price to get business in today’s market. But what is the cost of low price? And exactly where do quality and service fit into this picture?

Price is determined by the value of a product, including direct and indirect costs related to quality and service. In order to offer low price, the seller has no choice but to rethink his commitment to quality and service. Surely, there has to be compromise in quality and service in order to achieve low price and to remain profitable for the long term.

Frankly, customers who make buying decisions based on the lowest price are, historically, fickle. Since they are driven by securing low price, there is no guarantee that the low-price vendors they patronize today will be their vendors tomorrow. And, arguably, perpetually low price will most likely take its toll on the seller.

Andrew E. Serwer wrote an article for the June 13, 1994, issue of Fortune magazine entitled, "How to Escape a Price War." The article details the dangers of competing on low price alone. He concludes:

You can’t—presto!—offset lower prices with higher volume. Elasticity of demand won’t stretch far enough to pull you back. According to work done by McKinsey consultants Mike Marn and Bob Garda, the typical S & P 1000 company would need a 12% increase in sales to offset a 3% price cut. That’s because variable costs that come along with increased volume drag down profits. Typically, unit cost won’t fall until sales increase about 20%. In fact, Marn says a price cut of 3% usually produces only a 5% to 6% increase in volume. (Serwer 1994)

Furthermore, national business surveys have shown that the most important customer buying motives have nothing to do with price. In one survey, it was determined that buyers make decisions on vendors based on: (1) business expertise and image – 29%; (2) dedication to the customer – 25%; (3) account sensitivity and guidance – 23%. In truth, there is an infinite number of customer buying motives one could list. The concern for low price is frequently at the bottom.

So perhaps it is time to rethink value as it relates to price. In the long run, customer satisfaction comes from the acquisition of quality (product performance) and service (capabilities and resources) at a reasonable price. Perhaps, herein lies the stability and long-term success for which we all strive. Isn’t it time to reconsider our commitment to the cost of value?

There is hardly anything in the world that some man cannot make a little worse and sell a little cheaper, and the people who consider price only are this man’s lawful prey. (Nierenberg 1992)

Trade Shows: Win-Win Payoff

noreply@blogger.com (Vicki Lynne Morgan) — Wed, 27 Jan 2010 03:50:00 +0000

Trade shows are sound investments for attendees who know in advance what they want to accomplish. Those who follow a well-defined ‘game plan’ will reap rewards that lead to successful business for a lifetime. Exhibitors who are prepared enjoy a win-win payoff, too!

Unique opportunities will surface for retailers, wholesalers, sales reps, and manufacturers who follow a ‘game plan’ that includes (1) pre-show preparation, (2) focused conduct on the show floor, (3) post-show follow-up.

Here is a list of suggestions to define your own ‘game plan’ when you visit exhibitors. Some points will be more important than others, while some may be vendor-specific.

Ask if the exhibitor is a manufacturer, marketer, importer, or distributor.
Meet the owner, sales manager, etc.
Discuss positioning in the marketplace and their marketing and ad programs.
Explain your business and your role.
Tell them if you carry their line or plan to do so.
Ask for an overview of product line.
Ask for product features and benefits.
Discuss selling techniques.
Inquire about availability of training services.
Ask for recommended add-ons.
Request samples.
Request hands-on demos.
Ask for suggested retail prices.
Ask if there are new applications for old products.
Ask about product improvements.
Request literature.
Inquire about co-op ad programs.
Determine availability of consumer samples.
Set up in-store demo days.
Add your name to their mailing lists.
Inquire about availability of coupons.
Discuss competitive strategies.
Learn return policy and guarantees.
Record names of distributors who handle lines, full or partial.
Determine origin of product, USA or import.
Ask if product is the ‘original’ or ‘knock-off’.
Share ideas for product improvements.
Discuss resolution of problems.
Ask if there are merchandising contests.
Look for new items that your customers would buy.
Identify fads and trends and buy accordingly.
Arrange future appointments.

Much that can be accomplished on the trade show floor. The opportunities for rewards are enormous. Every minute counts, so it may be necessary to pursue some of these matters after the show. Nonetheless, these guidelines will lead to your "Win-Win Payoff" on the show floor.

Focus on Selling - Generational Strategies

noreply@blogger.com (Vicki Lynne Morgan) — Wed, 27 Jan 2010 03:43:00 +0000

Understanding the Customer

To understand customers and the seemingly dumb things they do, you need to have a broader understanding of people in general. You don’t have to be a psychologist, but it would help to know some basic things psychologists know. For example, psychologists tell us that "everything a person does seems like a good idea to that person at that time." In other words, people don’t do dumb things on purpose.

The things a person does which seem dumb to us only appear that way because we are looking at the world or that situation from our point of view. If we understood how a person viewed and interpreted a particular situation, we would have understood why the person acted a certain way in that situation. This does not mean that you would have done the same thing or even agree with it. But you would understand why the person did it.

One simple truth about selling is that you will only get maximum cooperation from your customers if the things you want them to do make sense to them. This means that your analysis of all selling situations must be from the customer’s (or prospect’s) point of view.

From Why Customers Don’t Do What You Want Them to Do and What to Do About It, by Ferdinand F. Fournies (McGraw-Hill, Inc., New York, NY)

Commentary

Successful sales representatives understand three basic factors that together serve as a foundation for their individualized selling style. Those factors are: (1) product knowledge, (2) understanding customer needs, and (3) ability to meet those needs by selling the appropriate features and benefits of the product. Perhaps, we’ve left out a key pivotal factor – generational selling strategies.

Rocking the Ages, a book by J. Walker Smith, Ph.D., and Ann Clurman, suggests that generationally-determined lifestyles and social values exercise as much (or more) influence on buying decisions as more commonly understood demographic factors such as: income, education, and gender. Common experiences of a generation create specific sensibilities that effect its members in some way. Perhaps by knowing the motivations and values of three clearly-defined generations, we would be better prepared to customize our presentations for goods and services to meet our customers’ specific needs.

The authors have identified and named these generations. ‘Matures’ were born between 1909 and 1945; ‘Boomers’ were born between 1946 and 1964; and ‘Generation X-ers’ were born after 1965. Each of these generations has been affected differently by factors such as: advancements in research and technology, prosperity and depression, political and economic conditions, trends, fads, war and peace.

The challenge for those of us in marketing, advertising, and sales is to identify the deeply implanted preferences of each of these three generations and to adjust our presentations accordingly. We must also realize that as each group enters a new stage of life, their buying decisions will continue to be affected by their reactions to factors that have influenced their specific generations.

People - The Differentiating Factor

noreply@blogger.com (Vicki Lynne Morgan) — Tue, 27 Jan 2009 03:36:00 +0000

As a passionate student of state-of-the-art marketing and selling strategies, I have coined the term full-circle™ as it relates to a comprehensive program that is essential for a 'lifetime of success'. A significant element in today's customer-driven environment, People serve as the 'glue' that synchronizes this full-circle concept.

Marketing is the 'in your face' strategy that creates a presence, a brand promise, an inducement to buy, and a validation of the buying decision. Marketing is a dedication of all policies, planning, and operation for the purpose of attracting and keeping customers.

Selling is the act of getting and keeping customers. Selling requires a personal/corporate philosophy* that clearly defines strategies related to: relationships, customer needs, products, and presentations (including customer service). People on the staff -- every one of them -- must appreciate and implement these strategies.

Marketing plans include eight clearly-defined elements, four of which are considered to be most important: Product, Price, Place, and Promotion. The power of the fifth element often overshadows the rest -- it's the People. By connecting and implementing full-circle™ marketing and selling strategies, People have the power to form quality partnerships with customers.

Today, there is a resurgent emphasis on marketing and selling strategies that build enduring customer relationships. Ongoing relationships are consistently more profitable, more enduring, more resilient, and more readily leveraged. The key element in this scenario is the People -- every member of the staff, regardless their role in a company.

With appropriate leadership and vision, People can affect a synergy between the elements of a 'full-circle' strategy to create brand identity, trust, long-term customer loyalty and profitability. Considering the recent evolution of 'dot com' companies, ebusiness cannot accomplish this alone. It's the People that make the difference -- those who touch the customer.

The Bottom line:

This is the era of personal/partnership selling -- an era that is not readily supported by the impersonal nature of the internet. People are the most powerful marketing resource available to achieve brand identity and customer commitment. People are the differentiating factor.