Nancy H. Bull
Gregory R. Passewitz
Marketing is more than advertising or selling. It is a complex process involving three steps: (1) determine what customers want or need; (2) supply the customer with the goods and services to satisfy these wants and needs; (3) do so at a price that shows a profit to the business. Good marketing starts before a product is produced or a service delivered.
First, determine if there is a market for the product or service. This is one of the most critical questions for any business. Then, analyze the market to understand customers, competitors and the supply network. Next, look closely at the product or service. Try to be as objective as possible. Ask the following questions:
Once these questions are answered satisfactorily, a more in-depth look at potential customers begins.
Who will the customer be? One way to decide is to ask people if they would buy the product or service. Why would they buy it? How much would they be willing to pay?
Search out special niches of customers not being served, such as handicapped people who need clothing alterations. These special niches or groups of people are called market segments. Each group may differ from another on expected benefits. The better defined the market segment, the better a marketing plan will be able to focus on the segment and attract customers to the business. Dividing customers into market segments is called target marketing. Each segment is distinct in its need for product, price, distribution and promotion.
How can you reach these customers? Will the product or service sell to them? Will customers make a commitment? Look for a void in the market; this may be the product or service niche.
What makes this business different from the competition? Why would a customer choose to buy this product or service? Customers select a business based on quality, speed, flexibility, convenience, personal service or price.
Talk to other business owners about what has worked. Most are more than willing to talk about their business, especially if the business is not perceived as the competition. One way to learn a great deal about business and customer satisfaction is to listen to what people say.
What geographic area will the business serve? How far will customers drive to purchase the product or service? Are there other competitors in the same area? Outside the area? Shop the competition, see what is offered, the prices charged, and how customers are attracted.
Consider possible product or service niches in the target market area. Who needs and wants the product or service? What features and benefits of the business are most attractive to customers? Look at customer attitude, lifestyle and uniqueness. Determine how the business can best meet or satisfy the needs of the customers. What do customers think of the product being sold? Market the product or service based on what the customer thinks is important. Every potential customer asks, "What is in it for me?" Customers buy the end result or the benefit. Try to view the product or service as a bundle of benefits customers will buy. People do not buy 1/4-inch drill bits; they buy 1/4-inch holes. Effective marketing is oriented to the user, not the seller.
Complete the following grid with information about your business and the business environment. Be honest and open as you complete each block.
| My Business | Its Environment Strengths | Opportunities | |
|---|---|---|---|
| 1. | |||
| 2. | |||
| 3. | |||
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Success in the business means getting the customer to the business and making the sale. Repeat business indicates success and builds a solid customer base. New customers expand that base. Success occurs when both the customer and the business person feel good about the transaction.
Marketing must be simple. If the product or service already exists in the industry, find a niche that makes the product or service unique. If the product is not first, at least be different.
Marketing encompasses advertising and selling. What benefits will customers receive from purchasing the product or service? Remember, customers buy benefits such as convenience, fun, sex appeal and good health. So sell the benefits, not the features of the product or service. Benefits give potential customers reasons to buy, so feature them in your advertising.
Business is profit and risk. Understanding the market can lessen the risk. To be successful in business, identify the target market, determine benefits customers perceive to be important, and communicate those benefits to potential customers.
Helt, J. and Safrit, D. (1991) The Ohio 4-H Program and Surroundings. Handout.
Engel, J.F., Blackwell, R.D. and Miniard, P.W. (1990) Consumer Behavior. 6th. Ed., Chicago: Dryden Press.
Wills, G., Kennedy, J.H., Cheese, J., Rushton, A. (1989) Maximizing Marketing Effectiveness. MCB University Press Limited.
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