What is Marketing Definition

Marketing Definition is the process of interesting potential customers and clients in your products and/or services.

The key word in this marketing definition is "process"; marketing involves researching, promoting, selling, and distributing your products or services.

It's a huge topic, which is why there are tomes written on marketing, and why you can take a four-year marketing degree. But essentially marketing involves everything you do to get your potential customers and your product or service together.

When you're putting together a marketing program for your business, concentrate on the marketing basics, the four key components of any marketing plan:

• products and services
• promotion
• distribution
• pricing.

The name of the game in marketing is attracting and retaining a growing base of satisfied customers. Creating and implementing a marketing plan will keep your marketing efforts focused and increase your marketing success.

Marketing Plan for the Independent Inventor

Many first-time business owners think that by simply placing an ad in a local newspaper or a commercial on a radio or a television station, customers will automatically flock to purchase their product or service. This is true to a certain extent. Some people are likely to learn about your invention and try it, just out of curiosity. But hundreds, even thousands, of other potential customers may never learn of your business. Do develop an adequate marketing program. What you as a potential business owner must do is maintain a thorough understanding of your marketing program, and use it to extract advantages from the marketplace. Go over different strategies and techniques until you understand how to apply them to get the results you desire. Remember, your aim is not only to attract and keep a steady group of loyal customers, but also to expand your customer base by identifying and attracting, new customers and to reduce risks by anticipating market shifts that can affect your bottom line.

The Four P's of Marketing

To help you accomplish this aim, your marketing plan should include strategies typical of any marketing plan. The plan should especially include what marketers dub as the four P's of Marketing:

• PRODUCT
• PRICE
• PLACE
• PROMOTION

Review your plan. Make certain it contains the strategies listed below and on the next page and then determine how these strategies will be applied by you. Include a brief explanation for
each strategy.

Describe Your Target Market

• By age
• By sex
• By profession or career
• By income level
• By educational level
• By residence

Identify and describe your customers (target market) by their age, sex, income/educational levels, profession/career and residence. Know your customers better than you know anyone - their likes, dislikes, expectations. Since you will have limited resources target only those customers who are more likely to purchase your product. As your business grows and your customer base expands, then, you may need to consider modifying this section of the marketing plan to include other customers.

Identify Your Competition

• By market research data
• By demand for product
• By your nearest direct and indirect competitors
• By the strengths and weaknesses of competitors
• By an assessment of how competitors businesses are doing
• By a description of the unique features of your product
• By the similarities and dissimilarities between your product and competitor's
• By a pricing strategy for and comparison of yours and the competition's

Identify the five nearest direct competitors and the indirect competitors. Start a file on each identifying their weaknesses and strengths. Keep files on their advertising and promotional materials and their pricing strategies. Review these files periodically determining when and how often they advertise, sponsor promotions and offer sales.

Describe Your Product

Try to describe the benefits of your goods from your customer's perspective. Emphasize its special features - i.e., the selling points. Successful business owners know or at least have an idea of what their customers what or expect from them. This type of anticipation can be helpful in building customer satisfaction and loyalty.

Develop A Marketing Budget

• For your advertising and promotional plan
• For costs allocated for advertising and promotions
• For advertising and promotional materials
• For a list of advertising media to be used

Operating an effective marketing plan requires money, so you will have to allocate funds
rom your operating budget to cover advertising, promotional and all other costs associated with marketing. Develop a marketing budget based on the cost for the media you will use, and the cost for collecting research data and monitoring shifts in the marketplace.

Describe Location (Place)

• description of the location
• advantages and disadvantages of location

Again, try to describe the location of your business from your customer's perspective. Describe its assets -- i.e., the convenience, whether or not public transportation is accessible, the safety aspects - street lighting, well lit parking lot or facility, decor, etc. Your location should be built around your customers, it should be accessible and should provide a sense of security.

Develop Pricing Strategy

• pricing techniques and brief description of these techniques
• retail costing and pricing
• competitive position
• pricing below competition
• pricing above competition
• price lining
• multiple pricing
• material costs
• labor costs
• overhead costs

Although your pricing strategy may be based on the strategy devised by others, you should study this plan and the strategies used by competitors. That way you will acquire a thorough understanding of how to price your product, and you can determine if your prices are in line with competitors, if they are in line with industry averages and what adjustments you can make to bring them in line.

The key to success is to have an well-planned strategy, to establish your policies and to constantly monitor prices and operating costs to ensure profits. Keep abreast of changes in the marketplace because these changes can affect your bottom line.

Develop an Effective Promotional Strategy

• advertising media
• print media (newspaper, magazine, classified ads, Yellow Pages advertising, brochure)
• radio
• television
• networking
• business cards
• tee shirts, hats, buttons, pens

Develop a promotional strategy that uses various media for promoting your business. Monitor the different media identifying those that most effectively promote your business. Concentrate on developing material for these formats that clearly identifies your services, its location and price.

Since financial institutions weigh the soundness of your marketing plan when deciding whether your business is a good risk for their money, it is important that you prepare and present credible market data that shows there is a need in the community for your business and that demonstrates your ability to compete.

6 Common Market Research Mistakes of Small Business

Whether expanding a new line or starting a business, market research for your small business is a necessary component for success. As any business owner learns soon enough, risks are part of business. With limited resources, entrepreneurs know risk needs to be calculated. Employing market research helps you sort out the risks involved.

The benefits of market research for small business range from finding hidden niches and preserving capital to building customer loyalty and identifying more business opportunities with existing customers.

Before you take the path to greater customer understanding by market research, it's
important to know the common pitfalls encountered by small business. Avoid these 6 common mistakes in market research for small business.

Think It's Costly: Bob Kaden, market research expert and author of "Guerrilla Marketing Research" knows too well the challenge small business owners face to afford the costs of conducting market research. Small businesses believe focus groups and surveys are unaffordable. Marketing research costs can range from a few thousand dollars to $25,000 annually.

Should you hire a professional or go it alone? "If you have the time and interest to learn what it takes to do effective research, there is no reason you can't execute the studies yourself at a fraction of the cost it would take you to use a professional," states Kaden in "Guerrilla Marketing Research." On the contrary, Kaden feels a solid market research professional is invaluable. Spend the time to learn what you don't know and need to know.

Try Secondary Research Only: Research comes in 2 forms: primary and secondary. Primary research is first hand knowledge you gain directly from the marketplace and often uses techniques as focus groups and surveys. Secondary research is usually published studies available online or from your library providing broad knowledge about your markets. Learning about your business and industry from secondary research is a good start but primary research allows you to target your efforts and understand customers' attitudes in real time.

Use Web Searching: The Internet has opened up a flood of business information that was once available to big companies or those with money. No doubt conducting secondary market research on Yahoo or Google saves time and money for small business. Search engines mine only a portion of the web and often the good info you need will be part of the deep web or on a paid search like Lexis Nexis. To save money, visit your local library, business center, or college to gain access to the quality information you need at zero cost.

Hit the Wall: Any sizable research project runs into the U-shaped curve. Your enthusiasm and motivation are high at the beginning but as the project progresses you reach a wall. As you start to take in more information, the level of complexity rises. At this point it's easy to lose motivation and cut the research efforts short. Those who persist soon realize it all comes together in the end. To best manage your cycle of motivation for the project, start your secondary market research by getting an understanding of your industry. Don't wait too long to get in the field and talk to potential customers.

Rely on Family Focus Group: A common mistake of new startups is asking those close to you for feedback on your product and service. Those who know you will want to guard your feelings. Friends and family make the worst possible selection of a focus group. You need to talk to real customers about the pros and cons of your offer and use your friends and family as support not market research.

Big Company Attitude: You spent years in your industry and understand customers... who needs market research? You carry plenty of baggage and preconceived notions of customers needs and wants. Test your assumptions on the market for real insight on customer attitudes and behavior.

All too often business owners will downplay the importance of gaining customer insight by market research. It's absurd how many businesses are launched without ever talking to a single potential customer. Avoid the common errors and use market research wisely to position your business for success.

Methods of Market Research

Because of the expense of primary market research, most firms rely on secondary data sources. The three following recommendations will help you obtain useful secondary information:

1. Keep abreast of world events that influence the international marketplace, watch for announcements of specific projects, or simply visiting likely markets. For example, a thawing of political hostilities often leads to the opening of economic channels between countries.

2. Analyze trade and economic statistics. Trade statistics are generally compiled by product category and by country. These statistics provide the U.S. firm with information concerning shipments of products over specified periods of time. Demographic and general economic statistics, such as population size and makeup, per capita income, and production levels by industry can be important indicators of the market potential for a company's products.

3. Obtain advice from experts. There are several ways of obtaining this advice:

• Contact experts at the U.S. Department of Commerce and other government agencies.

• Attend seminars, workshops, and international trade shows.

• Hire an international trade and marketing consultant.

• Talk with successful exporters of similar products.

• Contact trade and industry association staff.

Gathering and evaluating secondary market research can be complex and tedious. However, several publications are available that can help simplify the process. The following approach to market research refers to these publications and resources that are described later in this chapter.

Market Research

To successfully export your product, you should examine foreign markets through research. The purpose is to identify marketing opportunities and constraints abroad, as well as to identify prospective buyers and customers.

Market research encompasses all methods that a company can use to determine which foreign markets have the best potential for its products. Results of this research inform the firm of: the largest markets for its product, the fastest growing markets, market trends and outlook, market conditions and practices, and competitive firms and products.

Your firm may begin to export without conducting any market research if it receives unsolicited orders from abroad. Although this type of selling is valuable, the company may discover even more promising markets by conducting a systematic search. If your firm opts to export indirectly by using an intermediary such as an Export Management Company (EMC) or Export Trading Company (ETC), you may wish to select markets to enter before selecting the intermediary. Because many intermediaries such as EMCs and ETCs have strengths in certain markets, it is valuable to select the intermediary after deciding on markets to enter. You may also want to do market research if you export indirectly.

A firm may research a market by using either primary or secondary data resources. In conducting primary market research, a company collects data directly from the foreign marketplace through interviews, surveys, and other direct contact with representatives and potential buyers. Primary market research has the advantage of being tailored to the company's needs and provides answers to specific questions, but the collection of such data is time-consuming and expensive.

When conducting secondary market research, a company collects data from various sources, such as trade statistics for a country or a product. Working with secondary sources is less expensive and helps the company focus its marketing efforts. Although secondary data sources are critical to market research, they do have limitations. The most recent statistics for some countries may be more than two years old. Moreover, the data may be too broad to be of much value to a company. Statistics may also be distorted by incomplete data-gathering techniques. Finally, statistics for services are often unavailable. Yet, even with these limitations, secondary research is a valuable and relatively easy first step for a company to take. It may be the only step needed if the company decides to export indirectly, since the intermediary firm may have advanced research capabilities

Developing a Marketing Plan

As you can imagine, many foreign markets differ greatly from the United States. Some differences include climatic and environmental factors, social and cultural factors, local availability of raw materials or product alternatives, lower wage costs, varying amounts of purchasing power, the availability of foreign exchange, and government import controls. Once you have decided that your company is able and committed to exporting, the next step is to develop a marketing plan.

A clearly written marketing strategy offers six immediate benefits:

1. Because written plans display strengths and weaknesses more readily, they are a great help in formulating and polishing an export strategy.
2. Written plans are not easily forgotten, overlooked, or ignored by those charged with executing them. If deviation from the original plan occurs, it is likely to be due to a deliberate and thoughtful choice.
3. Written plans are easier to communicate to others and are less likely to be misunderstood.
4. Written plans allocate responsibilities and provide for an evaluation of results.
5. Written plans are helpful when seeking financial assistance. They indicate to lenders that you have a serious approach to the export venture.
6. Written plans give management a clear understanding of what will be required of them and thus help to ensure a commitment to exporting. Actually, a written plan signals that the decision to export has already been made.

This last advantage is especially noteworthy. Building an international business takes time. It usually takes months, sometimes even several years, before an exporting company begins to see a return on its investment of time and money. By committing to the specifics of a written plan, top management can make sure that the firm will finish what it begins and that the hopes that prompted its export efforts will be fulfilled.

What to Include When Writing a Marketing Plan

For those new to marketing plans, the thought of writing a marketing plan from start to finish may feel daunting. It need not. The level of detail you choose to include will depend on your resources and situation. If you have extremely limited manpower or other resources, you may be constrained to a "broad brush," basic marketing plan approach. If your plan must support your claims to others in the company, more back-up detail in your marketing plan may be appropriate.

Writing a Basic Marketing Plan

Include a summary at the beginning. Like any business report, your plan write up should begin with a summary. The traditional executive summary is one option.

I prefer to include - either in addition to or instead of the executive summary - a one-page table. The table makes everyday use of your plan easier. In one glance you can be reminded of your marketing challenges, objectives, strategies, and tactics as well as budgets and deadlines. Also, as your plan evolves throughout the year, the table makes it easier to modify the plan.

Other features of a basic plan include the following:

• Explain your reasoning. Make some reference to why you chose the specific objective(s) and strategies in your marketing plan. This will make it easier to justify the plan to others (if necessary). It will also help you make smarter, strategic decisions.

• Identify your target customers. By doing so, you will be better able to develop effective advertising messages.

• Write one or more positioning statements. In the statement(s), specify the customer needs you are fulfilling, benefits your products/services offer, and features that deliver those benefits.

• Explain key issues and opportunities when you write a marketing plan. These can best be identified through industry and/or competitive analyses.

• Include preliminary budgets and timelines for your action plans / programs.

Write an Advanced Marketing Plan - Expanded Content

By including detailed analysis and arguments to substantiate your plan, you can write an expanded marketing plan:

• Describe the strengths, weaknesses, opportunities, and threats your business faces (SWOT analysis).

• Explain the business environment. What are your competitors’ strategies? What potential substitutes are available?

• Include the trends in your industry and how they affect both online and offline activity. Show growth projections.

• Detail the financial aspects when you write the marketing plan. Include break even analysis for your products or company as well as for the tactics included in your plan. Discuss assumptions made when completing your financial analysis. Show how implementation of your plan will be profitable to your business.

• Include a calendar of events that shows milestones in the coming weeks or months.

You can be as detailed or top-line as needed when you write a marketing plan. In any case remember that your marketing plan is always a work in progress. It may be current, but it is never "done."

How to Get Started on Your Marketing Plan

When developing or updating a marketing plan, knowing where to start is often a challenge. To better develop effective marketing strategies, begin by gathering information about both your business and the larger business environment (competition, trends, statistics, etc).

Internally, the amount of information you gather about your own business will depend on your company size. Information can include business strategies and plans; company marketing plans; pricing; and income statements. Employee knowledge is also a valuable resource. As you gather information, if you at first turn to internal sources then expand your understanding through external resources you will do fine.

External information about the business environment often takes the form of existing research, articles, competitive information, and industry news. While these are often available in both print and digital, the focus here is finding information online.

Gathering Information Online - Getting Started

The numerous news sources and billion or so Web pages available on the Internet make finding information much easier than in pre-Internet days. Before the Internet, gathering information meant trips to the library, purchasing expensive publications and reports, and commissioning your own primary research. Now, it is a matter of knowing where to search.

You can start searching the Internet by looking in each of the general areas below. Organize useful material as you find it. Purchase, bookmark, or file each resource so you can draw upon it during marketing plan development.

These external resources, together with your internal company information, will be your initial knowledge base as you develop your Marketing Plan. As you progress along the planning process and the specific information you need become clearer, these initial resources are likely to be jumping-off points for gathering more specific information.

Information Sources

Annual Reports and other SEC Filings. These documents are required by publicly held U.S. companies and often include statistics and other industry information.

Books. Books can often provide detailed insight and analysis you cannot find elsewhere.

The Government. At last count 100 U.S. Federal agencies had statistical programs, many with data available on the Web. You can find the complete list at fedstats.gov/agencies/index.html.

Message Boards and Newsgroups. You can pick up on trends, hot topics in the industry, and competitor information by following discussions.

News Articles. These often give clues to the business environment and can lead you to additional information sources.

Newsletters. By reading and subscribing to competitor and industry newsletters you can get insight into current promotional tactics and other activities.

Research Sites. Archives, press releases, newsletters, and executive summaries on these sites can provide relevant research findings and statistics.

Search Engines and Directories. Search by keyword or drill down into directory sub-categories to find information.

Subject Sites. There are some general sites - suite101.com, about.com, and business.com to name three - with numerous topic-specific pages. Check for pages relating to your industry or product.

Trade Associations and Publications. You will often find industry information, statistics, and membership lists online.

White Papers and other Company Publications. Companies will sometimes publish free white papers that summarize the industry trends or other information.

Search these resources and follow a sound marketing plan strategy for greater business success.

Top 100 Creative Marketing Ideas and Selling Tips

GENERAL MARKETING IDEAS

Never let a day pass without engaging in at least one marketing activity.

Determine a percentage of gross income to spend annually on marketing.

Set specific marketing goals every year; review and adjust quarterly.

Maintain a tickler file of ideas for later use.

Carry business cards with you (all day, every day).

Create a personal nametag or pin with your company name and logo on it and wear it at high visibility meetings.

TARGET MARKET

Stay alert to trends that might impact your target market, product or promotion strategy.

Read market research studies about your profession, industry, product, target market groups, etc.

Collect competitors’ ads and literature; study them for information about strategy, product features and benefits, etc.

Ask clients why they hired you and solicit suggestions for improvement.

Ask former clients why they left you.

Identify a new market.

Join a email list related to your profession.

Subscribe to an Internet newsgroup that serves your target market.

PRODUCT DEVELOPMENT

Create a new service, technique or product.

Offer a simpler/cheaper/smaller version of your (or another existing) product or service.

Offer a fancier/more expensive/faster/bigger version of your (or another existing) product or service.

Update your services.

EDUCATION, RESOURCES AND INFORMATION

Establish a marketing and public relations advisory and referral team composed of your colleagues and/or neighboring business owners to share ideas and referrals and to discuss community issues. Meet quarterly for breakfast.

Create a suggestion box for employees.

Attend a marketing seminar.

Read a marketing book.

Subscribe to a marketing newsletter.

Subscribe to a marketing teleseminar.

Subscribe to a marketing blog.

Train your staff, clients and colleagues to promote referrals.

Hold a monthly marketing meeting with employees or associates to discuss strategy, status and to solicit marketing ideas.

Join an association or organization related to your profession.

Join a leads club. If you can't find a good one, start one.

Maintain a consultant file for designers, writers and other marketing professionals.

Hire a marketing consultant to brainstorm with you. (John says "Pick me! Pick me!")

Take a "creative journey" to another progressive city or country to observe and learn from marketing techniques used there.

PRICING AND PAYMENT

Analyze your fee structure; look for areas requiring modifications or adjustments.

Establish a credit card payment option for clients.

Give regular clients a discount.

Learn to barter; offer discounts to members of certain clubs/professional groups/organizations in exchange for promotions in their publications.

Give "quick pay" or cash discounts.

Offer financing or installment plans.

MARKETING COMMUNICATIONS

Publish a newsletter for customers and prospects.

Develop a brochure of services.

Include a postage-paid survey card with your brochures and other company literature. Include check-off boxes or other items that will involve the reader and provide valuable feedback to you.

Remember, business cards aren’t working for you if they’re in the box. Pass them out! Give prospects two business cards and brochures -- one to keep and one to pass along.

Produce separate business cards and sales literature for each of your target market segments (e.g. government and commercial, and/or business and consumer).

Create a poster or calendar to give away to customers and prospects.

Print a slogan and/or one-sentence description of your business on letterhead, fax cover sheets and invoices.

Develop your own Web site. (We can help you do that at very low cost.)

Create a "signature file" to be used for all your e-mail messages. It should contain contact details, including your Web site address, and key information about your company that will make the reader want to contact you. Be creative - make a few of them for different target markets.

Include "testimonials" from customers in your literature, on you site, andin your presentations.

Test a new mailing list. If it produces results, add it to your current direct mail lists or consider replacing a list that's not performing up to expectations.

Use colored or oversized envelopes for your direct mailings. Or send direct mail in plain white envelopes to pique recipients' curiosity.

Announce free or special offers in your direct response pieces. (Direct responses may be direct mail, broadcast fax, or email messages.) Include the offer in the beginning of the message and also on the outside of the envelope for direct mail. Make it stand out by being creative.

MEDIA RELATIONS

Update your media list often so that press releases are sent to the right media outlet and person.

Write a column for the local newspaper, local business journal or trade publication, so that people begin to view you as an expert in your industry (which you are, right?).

Publish an article and circulate reprints.

Send timely and newsworthy press releases as often as needed.

Publicize your 500th client of the year (or other notable milestone).

Create an annual award and publicize it – such as an outstanding employee of the year.

Get public relations and media training or read up on it.

Appear on a radio or TV talk show.

Create your own TV program on your industry or your specialty. Market the show to your local cable station or public broadcasting station as a regular program. Or, see if you can air your show on an open access cable channel.

Write a letter to the editor of your local newspaper or to a trade magazine editor.

Take an editor to lunch.

Get a publicity photo taken and enclose with press releases.

Consistently review newspapers and magazines for possible PR opportunities.

Submit "tip" articles to newsletters and newspapers.

Conduct industry research and develop a press release or article to announce an important discovery in your field.

Create a press kit and keep its contents current.

CUSTOMER SERVICE AND CUSTOMER RELATIONS

Ask your clients to come back again.

Return phone calls promptly.

Set up an email autoresponder and/or a fax-on-demand system to automatically respond to customer inquiries and capture an inquirer's contact information for your prospect list.

Use voice mail or an answering machine to catch after-hours phone calls. Include basic information in your outgoing message, such a business hours, location, etc.

Record a memorable message or "tip of the day" on your voice mail or answering machine message.

Ask clients what you can do to help them.

Take clients out to a sports event, a show or another special event, or just send them two tickets with a note or appreciation card.

Hold a seminar at your office for clients and prospects.

Send hand-written thank-you notes.

Send birthday cards and appropriate seasonal greetings (put your database to work).

Photocopy interesting articles and send them to clients and prospects with a hand-written "FYI" note and your business card.

Send a book of interest or other appropriate business gift to a client with a handwritten note.

Create an area on your Web site specifically for your customers.

Redecorate your office or location where you meet with your clients.

NETWORKING AND WORD OF MOUTH

Join the Chamber of Commerce or other business organization and participate.

Join or organize a breakfast club with other professionals (not in your field) to discuss business and network referrals.

Mail a brochure to members of organizations to which you belong.

Serve on a city board or commission.

Host a holiday party.

Hold an open house at your place of business.

Send letters to attendees after you attend a conference.

Join a Web community email list that attracts your target market and get involved.

ADVERTISING

Advertise during peak seasons for your business.

Get a memorable phone number, such as "1-800-WIDGETS."

Obtain a memorable URL and email address and include them on all marketing materials.

Provide Rolodex® cards or phone stickers pre-printed with your business contact information.

Promote your business jointly with other professionals via cooperative direct mail.

Advertise in a specialty directory or in the Yellow Pages.

Write an ad in another language to reach a non-English-speaking market. Place the ad in a publication that such a market reads, such as a French, Italian or Hispanic newspaper.

Distribute advertising specialty products such as pens, mouse pads or mugs.

Mail "bumps," photos, samples and other innovative items to your prospect list. (A bump is simply anything that makes the mailing envelope bulge and makes the recipient curious about what’s in the envelope!)

Create a direct mail list of "hot prospects."

Consider non-traditional tactics such as the back of buses, billboards or popular Web sites that attract your target market.

Project a message on the sidewalk in front of your place of business using a light directed through words etched in a glass window.

Consider placing ads in your local newspaper’s classified section.

Get a vanity automobile licence plate with your company name on it.

Create a friendly bumper sticker for your car.

Code your ads andkeep records of results.

Run split-test ads -- always try to come up with a better performing ad by testing new ads against your best performing ad until you find one that works even better. Then test more new ads against that one and record the response rates.

Improve your building signage and directional signs inside and out.

Invest in a neon sign to make your office or storefront window visible at night.

Create a new or improved company logo or "re-color" the traditional logo.

Sponsor and promote a contest or sweepstakes.

SPECIAL EVENTS AND OUTREACH

Get a booth at a fair or trade show attended by your target market.

Sponsor or host a special event or open house at your business location in cooperation with a local non-profit organization. Describe how the organization helped you.

Give a speech or volunteer for a career day at a high school. Teens are very influential.

Teach a class or seminar at a local college or adult education center. (Be the expert.)

Sponsor an "Adopt-a-Road" area in your community to keep roads litter-free. People who pass by the area will see your name on the sign announcing your sponsorship.

Volunteer your time to a charity or non-profit organization.

Donate your product or service to a charity auction.

Appear on a panel at a professional seminar.

Write a "How To" pamphlet or article for publishing.

Create an educational audio CD or multimedia DVD.

Publish a book.

SALES IDEAS

Start every day with phone calls to two new prospects.

Read newspapers, business journals and trade publications for new business openings and for personnel appointment and promotion announcements made by companies. Send your business literature to appropriate individuals and firms.

Give your sales literature to your lawyer, accountant, printer, banker, temp agency, office supply salesperson, advertising agency, etc. (Expand your sales force for free!)

Put your fax number on order forms for easy submission.

Set up a fax-on-demand or email system to easily distribute responses to product inquiries.

Follow up on your direct mailings, email and faxes with a friendly telephone call.

Try using email delivery instead of direct mail.

Using broadcast fax or email messages to notify your customers of product service updates.

Extend your hours of operation.

Reduce response time. Send reminders to reorder. Provide pre-addressed envelopes.

Display product and service samples at your office.

Remind clients of the products and services you provide that they aren't currently buying.

Call and/or send mail to former clients to try to reactivate them.

Take sales orders from your web site and accept credit card payments online.

Learn some selling skills - See our Sales Training section.

Marketing Plan

Plan that details a company's marketing effort; also called marketing strategy. The marketing plan may be laid out for an individual product or for the entire company and all its products. In either case, the plan specifies the marketing goals and objectives to be achieved over a specific time period and then lays out the various strategies to be followed in achieving them. It will also delineate the responsibilities for carrying out the plan. The strategies will involve the proposed development of the product(s), the definition of the target market(s), and the types of media and sales promotions to be used.

How to develop a marketing concept

Unfortunately, there is still a misunderstanding about the word marketing. Many people, including top executives, use it as a sophisticated term for selling. Marketing representative is commonly used in ads to recruit salespeople. Actually, marketing is a way of managing a business so that each critical business decision is made with full knowledge of the impact it will have on the customer.

Here are some specific ways in which the marketing approach differs from the classic, or sales, approach to managing a business.

1. In the classic approach, engineers and designers create a product, which is then given to salespeople who are told to find customers and sell the product. In the marketing approach, the first step is to determine what the customer needs or wants. That information is given to designers who develop the product and finally to engineers who produce it. Thus, the sales approach only ends with the customer, while the marketing approach begins and ends with the customer.

2. The second major difference between the sales and marketing approaches is the focus of management. The sales approach almost always focuses on volume while the marketing approach focuses on profit.

In short, under the classic (sales) approach the customer exists for the business, while under the marketing approach the business exists for the customer.

The marketing concept is a management plan that views all marketing components as part of a total system that requires effective planning, organization, leadership and control. It is based on the importance of customers to a firm, and states that:

All company policies and activities should be aimed at satisfying customer needs.
Profitable sales volume is a better company goal than maximum sales volume.
In order to conduct a successful marketing program you must be able to answer the following questions:

What type of business are you in (manufacturing, merchandising or service)?

What is the nature of your product(s) or service(s)?

What market segments do you intend to serve? (Describe the age, sex, income level and life-style characteristics of each market segment.)

What strategies will you use to attract and keep customers?

• Product

• Price

• Place

• Promotion

• Persuasion (personal selling)

What is your unique selling proposition (USP)?

Who is your competition, and what will you do to control your share of the market?

Marketing Strategy: Doing the two step - Part 2

A two step approach to marketing may be much more successful than the currently used my most companies. Employing a two part marketing strategy may often require a radical departure in thinking for many business people. Having prospects self select themselves as customers is just too appealing to pass up, however, even for the most traditional marketer.

An entrepreneur often must be convinced to try a two step marketing program. The two or more step system will very often run counter to the instincts of many business people. Two step marketing is based on giving something away for free, with the hope of getting something back in return. For many business owners and managers, the idea of giving away freebies with no guarantees of returning revenue, runs counter to their nature. There will almsost certainly be objections to this innovative relationship marketing plan.

One objection, as expected, will be that the current marketing program is working very well already. While the current system may be capturing customers, it is very likely not a targeted approach. When you ask the one step marketer who are their customers, they will usually respond that everyone is a prospect. Of course, this is easily proven incorrect. For example, people who don't own homes are not prospects for home improvements or lawn care. A targeted approach will not only bring in more customers and clients, but may also be cheaper to operate as well.



The next objection will be one based on cost. The concern will state that if a business offers free booklets of information, e-books, courses, guides, and samples of products or services, the company's out of pocket expenses will rise. While the initial cost may appear to be higher, very often the overall expenditure will remain the same. Advertising and marketing costs can be transferred from previously unproductive areas to the newer systems. At the same time, many of the items offered as giveaways may have no cash costs involved in delivery.

A third objection will regard the time delay between the giving of the item and the receiving of any business. Of course, the person requesting the information may not be in the market for your product or service immediately. The value of the two step system regarding time is how business prospects are developed over time, creating future customers and clients. While some customers may not appear for a year or more, there will always be some arriving almost immediately. Once the first time lag is past, there will be a steady stream of customers and clients at your company's doorstep.



Another objection arises as to why anyone would believe a two step system would ever work at all in the real world. When a person requests your free booklet on travel safety advice for women, for example, you are providing real value to people. You are also building a relationship built on trust.

The free information recipient will now trust you as a source of knowledge and valuable information. At the same time, the woman needing safe travel tips is very likely to be in the market for travel in the near future. Instead of contacting any of a myriad of travel services, your business will be the first one considered by the female traveler. You have already demonstrated that you have her individual needs and concerns in mind.

It's time to put a two step marketing system in place for your company. Give a little and the rewards will be great for both you and your company's customers.

It's a win-win relationship marketing plan where everyone benefits in the end.

Marketing strategy: Doing the two step - Part 1

You've seen the advertisements in the yellow pages, newspapers, and on brochures. You know the ones. They have several common and recurring themes. There is usually a featured photo of the business owner; and is very often accompanied by a picture of the store or company head office. The ad states prominently how many years the company has been in business, and lists proudly any award received since the beginning of time.

Stating that their business service is the best, their people superior, and their products unmatched is almost required by law for ads of this type. All too often, these traditional style ads provide results that are very disappointing. The owner is left in head scratching mode, and at a loss to explain the ineffectiveness of the expensive marketing program. There has to be a better way to market your products and services.



The advertisements mentioned have several factors in common. The first and most obvious similarity, is the focus being placed on the business, and not on the potential customer or client. While the company is important to the entrepreneur, it is not the centre of the universe in the eyes of the customer. In fact, neither the business nor the owner is important to the prospect at all. For many business owners, that realization is like a splash of cold water in the face.

Customers care about themselves and their needs. The concerns and accomplishments of the business are irrelevant at best. More likely, the company-centric marketing approach turns away more new customers than it gains. If the customer doesn't see their concerns being met, then the customer moves on to the next business. If the entrepreneur fails to focus on the customer or client, an untold amount of business is being let walk past the door, straight to a customer focussed competitor.



There has to be a better way. It's time to try the two step.

Two step marketing is different fundamentally from the ubiquitous single step marketing employed by most companies. One step marketing place an advertisement or places a cold call, for example and expects a resulting sale. Very often, the one step system will work well. All too frequently, however, one step marketing brings in fewer customers than projected by the marketing plan. It's time for a two step approach.

From the beginning, many advertisements and sales calls do not focus on the needs and desires of the potential customer. One step marketing practices are notorious for self concern, rather than on the needs of the prospects. Two step marketing programs, not only shines the spotlight on the needs of the clients, but has the customers select themselves for you as well. Self selected clients are not just found in a dream world, but they are a realistic idea for your business. Two step marketing is practical and can be easily applied to any business plan.

Marketing Plan

The information for this article was derived from many sources, including Michael Porter's book Competitive Advantage and the works of Philip Kotler. Concepts addressed include 'generic' strategies and strategies for pricing, distribution, promotion, advertising and market segmentation. Factors such as market penetration, market share, profit margins, budgets, financial analysis, capital investment, government actions, demographic changes, emerging technology and cultural trends are also addressed.

There are two major components to your marketing strategy:

• how your enterprise will address the competitive marketplace
• how you will implement and support your day to day operations.

In today's very competitive marketplace a strategy that insures a consistent approach to offering your product or service in a way that will outsell the competition is critical. However, in concert with defining the marketing strategy you must also have a well defined methodology for the day to day process of implementing it. It is of little value to have a strategy if you lack either the resources or the expertise to implement it.

In the process of creating a marketing strategy you must consider many factors. Of those many factors, some are more important than others. Because each strategy must address some unique considerations, it is not reasonable to identify 'every' important factor at a generic level. However, many are common to all marketing strategies. Some of the more critical are described below.

You begin the creation of your strategy by deciding what the overall objective of your enterprise should be. In general this falls into one of four categories:

• If the market is very attractive and your enterprise is one of the strongest in the industry you will want to invest your best resources in support of your offering.
• If the market is very attractive but your enterprise is one of the weaker ones in the industry you must concentrate on strengthening the enterprise, using your offering as a stepping stone toward this objective.
• If the market is not especially attractive, but your enterprise is one of the strongest in the industry then an effective marketing and sales effort for your offering will be good for generating near term profits.
• If the market is not especially attractive and your enterprise is one of the weaker ones in the industry you should promote this offering only if it supports a more profitable part of your business (for instance, if this segment completes a product line range) or if it absorbs some of the overhead costs of a more profitable segment. Otherwise, you should determine the most cost effective way to divest your enterprise of this offering.

Having selected the direction most beneficial for the overall interests of the enterprise, the next step is to choose a strategy for the offering that will be most effective in the market. This means choosing one of the following 'generic' strategies (first described by Michael Porter in his work, Competitive Advantage).

• A COST LEADERSHIP STRATEGY is based on the concept that you can produce and market a good quality product or service at a lower cost than your competitors. These low costs should translate to profit margins that are higher than the industry average. Some of the conditions that should exist to support a cost leadership strategy include an on-going availability of operating capital, good process engineering skills, close management of labor, products designed for ease of manufacturing and low cost distribution.
• A DIFFERENTIATION STRATEGY is one of creating a product or service that is perceived as being unique "throughout the industry". The emphasis can be on brand image, proprietary technology, special features, superior service, a strong distributor network or other aspects that might be specific to your industry. This uniqueness should also translate to profit margins that are higher than the industry average. In addition, some of the conditions that should exist to support a differentiation strategy include strong marketing abilities, effective product engineering, creative personnel, the ability to perform basic research and a good reputation.
• A FOCUS STRATEGY may be the most sophisticated of the generic strategies, in that it is a more 'intense' form of either the cost leadership or differentiation strategy. It is designed to address a "focused" segment of the marketplace, product form or cost management process and is usually employed when it isn't appropriate to attempt an 'across the board' application of cost leadership or differentiation. It is based on the concept of serving a particular target in such an exceptional manner, that others cannot compete. Usually this means addressing a substantially smaller market segment than others in the industry, but because of minimal competition, profit margins can be very high.

Pricing
Having defined the overall offering objective and selecting the generic strategy you must then decide on a variety of closely related operational strategies. One of these is how you will price the offering. A pricing strategy is mostly influenced by your requirement for net income and your objectives for long term market control. There are three basic strategies you can consider.

• A SKIMMING STRATEGY
  If your offering has enough differentiation to justify a high price and you desire quick cash and have minimal desires for significant market penetration and control, then you set your prices very high.
• A MARKET PENETRATION STRATEGY
  If near term income is not so critical and rapid market penetration for eventual market control is desired, then you set your prices very low.
• A COMPARABLE PRICING STRATEGY
  If you are not the market leader in your industry then the leaders will most likely have created a 'price expectation' in the minds of the marketplace. In this case you can price your offering comparably to those of your competitors.

Promotion
To sell an offering you must effectively promote and advertise it. There are two basic promotion strategies, PUSH and PULL.

• The PUSH STRATEGY maximizes the use of all available channels of distribution to "push" the offering into the marketplace. This usually requires generous discounts to achieve the objective of giving the channels incentive to promote the offering, thus minimizing your need for advertising.
• The PULL STRATEGY requires direct interface with the end user of the offering. Use of channels of distribution is minimized during the first stages of promotion and a major commitment to advertising is required. The objective is to "pull" the prospects into the various channel outlets creating a demand the channels cannot ignore.

There are many strategies for advertising an offering. Some of these include:

• Product Comparison advertising
  In a market where your offering is one of several providing similar capabilities, if your offering stacks up well when comparing features then a product comparison ad can be beneficial.
• Product Benefits advertising
  When you want to promote your offering without comparison to competitors, the product benefits ad is the correct approach. This is especially beneficial when you have introduced a new approach to solving a user need and comparison to the old approaches is inappropriate.
• Product Family advertising
  If your offering is part of a group or family of offerings that can be of benefit to the customer as a set, then the product family ad can be of benefit.
• Corporate advertising
  When you have a variety of offerings and your audience is fairly broad, it is often beneficial to promote your enterprise identity rather than a specific offering.

Distribution
You must also select the distribution method(s) you will use to get the offering into the hands of the customer. These include:

• On-premise Sales involves the sale of your offering using a field sales organization that visits the prospect's facilities to make the sale.
• Direct Sales involves the sale of your offering using a direct, in-house sales organization that does all selling through the Internet, telephone or mail order contact.
• Wholesale Sales involves the sale of your offering using intermediaries or "middle-men" to distribute your product or service to the retailers.
• Self-service Retail Sales involves the sale of your offering using self service retail methods of distribution.
• Full-service Retail Sales involves the sale of your offering through a full service retail distribution channel.

Of course, making a decision about pricing, promotion and distribution is heavily influenced by some key factors in the industry and marketplace. These factors should be analyzed initially to create the strategy and then regularly monitored for changes. If any of them change substantially the strategy should be reevaluated.

The Environment
Environmental factors positively or negatively impact the industry and the market growth potential of your product/service. Factors to consider include:

• Government actions - Government actions (current or under consideration) can support or detract from your strategy. Consider subsidies, safety, efficacy and operational regulations, licensing requirements, materials access restrictions and price controls.
• Demographic changes - Anticipated demographic changes may support or negatively impact the growth potential of your industry and market. This includes factors such as education, age, income and geographic location.
• Emerging technology - Technological changes that are occurring may or may not favor the actions of your enterprise.
• Cultural trends - Cultural changes such as fashion trends and life style trends may or may not support your offering's penetration of the market

The Prospect
It is essential to understand the market segment(s) as defined by the prospect characteristics you have selected as the target for your offering. Factors to consider include:

• The potential for market penetration involves whether you are selling to past customers or a new prospect, how aware the prospects are of what you are offering, competition, growth rate of the industry and demographics.
• The prospect's willingness to pay higher price because your offering provides a better solution to their problem.
• The amount of time it will take the prospect to make a purchase decision is affected by the prospects confidence in your offering, the number and quality of competitive offerings, the number of people involved in the decision, the urgency of the need for your offering and the risk involved in making the purchase decision.
• The prospect's willingness to pay for product value is determined by their knowledge of competitive pricing, their ability to pay and their need for characteristics such as quality, durability, reliability, ease of use, uniformity and dependability.
• Likelihood of adoption by the prospect is based on the criticality of the prospect's need, their attitude about change, the significance of the benefits, barriers that exist to incorporating the offering into daily usage and the credibility of the offering.

The Product/Service
You should be thoroughly familiar with the factors that establish products/services as strong contenders in the marketplace. Factors to consider include:

• Whether some or all of the technology for the offering is proprietary to the enterprise.
• The benefits the prospect will derive from use of the offering.
• The extent to which the offering is differentiated from the competition.
• The extent to which common introduction problems can be avoided such as lack of adherence to industry standards, unavailability of materials, poor quality control, regulatory problems and the inability to explain the benefits of the offering to the prospect.
• The potential for product obsolescence as affected by the enterprise's commitment to product development, the product's proximity to physical limits, the ongoing potential for product improvements, the ability of the enterprise to react to technological change and the likelihood of substitute solutions to the prospect's needs.
• Impact on customer's business as measured by costs of trying out your offering, how quickly the customer can realize a return from their investment in your offering, how disruptive the introduction of your offering is to the customer's operations and the costs to switch to your offering.
• The complexity of your offering as measured by the existence of standard interfaces, difficulty of installation, number of options, requirement for support devices, training and technical support and the requirement for complementary product interface.

The Competition
It is essential to know who the competition is and to understand their strengths and weaknesses. Factors to consider include:

• Each of your competitor's experience, staying power, market position, strength, predictability and freedom to abandon the market must be evaluated.

Your Enterprise
An honest appraisal of the strength of your enterprise is a critical factor in the development of your strategy. Factors to consider include:

• Enterprise capacity to be leader in low-cost production considering cost control infrastructure, cost of materials, economies of scale, management skills, availability of personnel and compatibility of manufacturing resources with offering requirements.
• The enterprise's ability to construct entry barriers to competition such as the creation of high switching costs, gaining substantial benefit from economies of scale, exclusive access to or clogging of distribution channels and the ability to clearly differentiate your offering from the competition.
• The enterprise's ability to sustain its market position is determined by the potential for competitive imitation, resistance to inflation, ability to maintain high prices, the potential for product obsolescence and the 'learning curve' faced by the prospect.
• The prominence of the enterprise.
• The competence of the management team.
• The adequacy of the enterprise's infrastructure in terms of organization, recruiting capabilities, employee benefit programs, customer support facilities and logistical capabilities.
• The freedom of the enterprise to make critical business decisions without undue influence from distributors, suppliers, unions, creditors, investors and other outside influences.
• Freedom from having to deal with legal problems.

Development
A review of the strength and viability of the product/service development program will heavily influence the direction of your strategy. Factors to consider include:

• The strength of the development manager including experience with personnel management, current and new technologies, complex projects and the equipment and tools used by the development personnel.
• Personnel who understand the relevant technologies and are able to perform the tasks necessary to meet the development objectives.
• Adequacy and appropriateness of the development tools and equipment.
• The necessary funding to achieve the development objectives.
• Design specifications that are manageable.

Production
You should review your enterprise's production organization with respect to their ability to cost effectively produce products/services. The following factors are considered:

• The strength of production manager including experience with personnel management, current and new technologies, complex projects and the equipment and tools used by the manufacturing personnel.
• Economies of scale allowing the sharing of operations, sharing of production and the potential for vertical integration.
• Technology and production experience
• The necessary production personnel skill level and/or the enterprise's ability to hire or train qualified personnel.
• The ability of the enterprise to limit suppliers bargaining power.
• The ability of the enterprise to control the quality of raw materials and production.
• Adequate access to raw materials and sub-assembly production.

Marketing/Sales
The marketing and sales organization is analyzed for its strengths and current activities. Factors to consider include:

• Experience of Marketing/Sales manager including contacts in the industry (prospects, distribution channels, media), familiarity with advertising and promotion, personal selling capabilities, general management skills and a history of profit and loss responsibilities.
• The ability to generate good publicity as measured by past successes, contacts in the press, quality of promotional literature and market education capabilities.
• Sales promotion techniques such as trade allowances, special pricing and contests.
• The effectiveness of your distribution channels as measured by history of relations, the extent of channel utilization, financial stability, reputation, access to prospects and familiarity with your offering.
• Advertising capabilities including media relationships, advertising budget, past experience, how easily the offering can be advertised and commitment to advertising.
• Sales capabilities including availability of personnel, quality of personnel, location of sales outlets, ability to generate sales leads, relationship with distributors, ability to demonstrate the benefits of the offering and necessary sales support capabilities.
• The appropriateness of the pricing of your offering as it relates to competition, price sensitivity of the prospect, prospect's familiarity with the offering and the current market life cycle stage.

Customer Services
The strength of the customer service function has a strong influence on long term market success. Factors to consider include:

• Experience of the Customer Service manager in the areas of similar offerings and customers, quality control, technical support, product documentation, sales and marketing.
• The availability of technical support to service your offering after it is purchased.
• One or more factors that causes your customer support to stand out as unique in the eyes of the customer.
• Accessibility of service outlets for the customer.
• The reputation of the enterprise for customer service.

Conclusion
After defining your strategy you must use the information you have gathered to determine whether this strategy will achieve the objective of making your enterprise competitive in the marketplace. Two of the most important assessments are described below.
Cost To Enter Market
This is an analysis of the factors that will influence your costs to achieve significant market penetration. Factors to consider include:

• Your marketing strength.
• Access to low cost materials and effective production.
• The experience of your enterprise.
• The complexity of introduction problems such as lack of adherence to industry standards, unavailability of materials, poor quality control, regulatory problems and the inability to explain the benefits of the offering to the prospect.
• The effectiveness of the enterprise infrastructure in terms of organization, recruiting capabilities, employee benefit programs, customer support facilities and logistical capabilities.
• Distribution effectiveness as measured by history of relations, the extent of channel utilization, financial stability, reputation, access to prospects and familiarity with your offering.
• Technological efforts likely to be successful as measured by the strength of the development organization.
• The availability of adequate operating capital.

Profit Potential
This is an analysis of the factors that could influence the potential for generating and maintaining profits over an extended period. Factors to consider include:

• Potential for competitive retaliation is based on the competitors resources, commitment to the industry, cash position and predictability as well as the status of the market.
• The enterprise's ability to construct entry barriers to competition such as the creation of high switching costs, gaining substantial benefit from economies of scale, exclusive access to or clogging of distribution channels and the ability to clearly differentiate your offering from the competition.
• The intensity of competitive rivalry as measured by the size and number of competitors, limitations on exiting the market, differentiation between offerings and the rapidity of market growth.
• The ability of the enterprise to limit suppliers bargaining power.
• The enterprise's ability to sustain its market position is determined by the potential for competitive imitation, resistance to inflation, ability to maintain high prices, the potential for product obsolescence and the 'learning curve' faced by the prospect.
• The availability of substitute solutions to the prospect's need.
• The prospect's bargaining power as measured by the ease of switching to an alternative, the cost to look at alternatives, the cost of the offering, the differentiation between your offering and the competition and the degree of the prospect's need.
• Market potential for new products considering market growth, prospect's need for your offering, the benefits of the offering, the number of barriers to immediate use, the credibility of the offering and the impact on the customer's daily operations.
• The freedom of the enterprise to make critical business decisions without undue influence from distributors, suppliers, unions, investors and other outside influences.

Preparing for a Recession: How to Survive a Recession

Here are a few things that you can do to stay ahead during a recession and maintain the success of your small business.

Improve Customer Service

Make sure that each and every customer gets special treatment and leaves your store or office satisfied that you have delivered much more than what was expected.

Your employees should also understand that tough times require a gentler touch and your customers need to be treated as VIPs now more than ever.

Since all your competitors may be selling the same products that you are, it will be your satisfied customers who will not only bring in repeat business, but also new customers.

Improve Your Knowledge and Skills

Now would be a good time to build on your knowledge and learn new skills regarding the technical and financial aspects of your business. Your customers should be impressed with your product knowledge.

This not only will enhance your reputation as an expert, but will also ensure that they come to you if they run into difficulties.

Control Your Expenses

Now is the time for you to tighten up the controls on all your expenses, especially those that are not crucial to keeping your business going. It certainly is not a good time to indulge in luxury items; that can wait until the situation improves.

You should also split large expenses into smaller ones so that they become more manageable. Even when purchasing inventory, try to get longer credit periods or better rates by comparing prices offered by different suppliers.

Start Accepting Payments by Credit Card

If you are dealing in consumer goods, then you probably already have a credit card machine; but if you are dealing in industrial items and do not have the ability to process credit card date, then now would be a good time to make that change.

Many of your smaller customers might need to pay you by credit card if they are experiencing a cash flow problem. Recent surveys have shown that more people are using credit cards as a way to deal with the financial downturn.

Lower Your Profit Margins

Keeping in mind that it will only be temporary, this is a good time to lower your profit margins. Notify your existing and potential customers that you are making this move.

You’re going to need more sales to make up the difference, and their goodwill is more important than ever. You can always raise your prices once the recession shows signs of easing.

Use the Power of the Internet

Use the Internet to advertise your products. In comparison to traditional media such as newspapers and television, the cost is very reasonable.

Hire experts who can ensure that your firm is always on top in product searches, and make your website attractive and interactive.

Motivate Your Staff

Your staff should be made aware of your business’ situation in the current recessionary market. They will be motivated to work extra hard to achieve the desired results, if they are convinced that their participation can save the business - and their jobs.

You should also put in extra effort and hours, so your staff will know that you are going the extra mile yourself.

Use these ideas and seek others on your own so your small business will survive the downturn. Only businesses with a solid foundation and foresight survive the inevitable bad times that go along with managing a business. You want to be one of them.

Marketing Management

Enterprise Marketing Management defines a category of software used by marketing operations to manage their end-to-end internal processes. EMM is subset of Marketing Technologies which consists of a total of 3 key technology types that allow for corporations and customers to participate in a holistic and real-time marketing campaign.

EMM consists of other marketing software categories such as Web Analytics, Campaign Management, Digital Asset Management, Web Content Management, Marketing Resource Management, Marketing Dashboards, Lead Management, Event-driven Marketing, Predictive Modeling and more. The goal of deploying and using EMM is to improve both the efficiency and effectiveness of marketing by increasing operational efficiency, decreasing costs and waste, and standardizing marketing processes for an accurate and predictable time to market. The benefit of using an EMM suite rather than a variety of point solutions is improved collaboration, efficiency and visibility across the entire marketing function, as well as reduced total cost of ownership. Depending on the variable combinations of solutions, EMM can mean several different things to specific brands and industries. Enterprise Marketing Management allows for corporations to put in place a baseline of their operations that will allow them to begin evolution towards a holistic solution that incorporates customer experience, expectation and brand value associated with Marketing Technologies.

MARKETING GUIDE : GUIDE TO SUCCESFULL FOR BUSINESS MARKETING

One great need of small business managers is to understand and develop marketing programs for their products and services. Long term small business success depends on the ability to maintain a strong body of satisfied customers while continually increasing this body with new customers. Modern marketing programs build around the marketing concept, which directs managers to focus their efforts on identifying, satisfying, and following up the customer's needs - all at a profit.

THE MARKETING CONCEPT
The marketing concept rests on the importance of customers to a firm. All company policies and activities should be aimed at satisfying customer needs while obtaining a profitable rather than maximum sales volume.

To use the marketing concept, a small business should:

• Determine the needs of their customers (marketing research).
• Develop their competitive advantages (market strategy).
• Select specific markets to serve (targetmarketing).
• Determine how to satisfy those needs (marketing mix).
• Analyze how well they've served their customers, and then return to step 1 (marketing performance).

MARKET RESEARCH
The aim of market research is to find out who the customers are, what the customers want, where and when they want it. This research can also expose problems in the current product or service, and find areas for expansion of current services to fill customer demand. Market research should also encompass identifying trends that may affect sales and profit levels.

Market research should give you more information, however, than just who your customers are. Use this information to determine matters such as your market share, the effectiveness of your advertising and promotions, and the response to new product developments that you have introduced into the market.

For once, small business holds an edge. While larger companies hire professionals to do their research, small business managers are close to their customers. They can learn much more quickly the likes and dislikes of their customers and can react quickly to change in customer buying habits.

What to look for, Market research should investigate four areas: customers, customer needs, competition, and trends. The research conducted should answer questions like:

Customers. Identify their:

• Age
• Income
• Occupation
• Family size
• Marital status
• Residence
• Interests and hobbies

Customers wants

• Is the product needed for a limited time (diapers, for example)?
• Are customers looking for quicker service?
• Do customers want guarantees with the products?
• Will customer come frequently (for example a grocery store) or seldom (a car dealership)?
• Are customers looking for a wider distribution or more convenient locations?

Competition

• What is the competitions' market share?
• How much sales volume do they do?
• How many similar firms exist?
• What attracts customers to them?
• What strengths do they advertise?

Trends. Are there:

• Population shifts? (Baby boom, for example) Legal or regulatory developments?
• Changes in the local economic situation?
• Lifestyle changes? (single parents, working women, smaller family size)

Where to get it
There are two general sources of information that can be gathered: data already available and data that can be collected by the business.
The following sources may provide already accessible data:

• Local area Chamber of Commerce
• Trade associations in the line of business
• Professional market research services
• Local library

Data can also be obtained by the business' own research efforts through the following means:

• Telephone surveys
• Local and national newspapers
• Surveys sent by mail
• Questionnaires
• Local TV and radio stations
• Interviewing
• Customer service cards

Market research doesn't have to be sophisticated and expensive. While money can be spent to collect research data, there are many inexpensive ways to collect this data that are easily accessible to the small business owner. Several of these methods are:

Employees.

This is one of the best sources of information about customer likes and dislikes. Usually employees work more directly with customers and hear complaints that may not make it to the owner. They are also aware of the items customers request that the business doesn't offer. They can probably also give a pretty good customer profile from their day-to-day contacts.

Customers.

Talk to the customers to get a feel for you clientele, and ask them where improvements can be made. Encouraging and collecting customer comments and suggestions is an effective form of research. By asking the customers to explain how the product could improve to fill their needs, constructive market research is done, as well as instilling customer confidence in the product.

Competition.

Monitoring the competition can be a valuable source of information. Their activities may provide important information about customer demand that were overlooked, and they may be capturing part of the market by offering something unique. Likewise, small business owners can capitalize on unique points of their products that the competition does not offer.

Company records and files.

Looking at company records and files can be very informative. Look at sales records, complaints, receipts, or any other records that can show you where your customers live or work or how and what they buy. One small business owner found that addresses on cash receipts allowed the pinpointing of customers in his market area. With this kind of information he could cross reference his customers' address and the products they purchased. From this information he was able to check the effectiveness of his advertising placement. However, realize that this information represents the past. Present or future trends may mean that past information is too obsolete to be effective.

Your customers' addresses alone can tell you a lot about them. You can pretty closely guess your customers' life-style by knowing what the neighborhoods they live in are like. Knowing how they live can give you solid hints on what they can be expected to buy.
In addition, check returned items to see if there is a pattern. Check company files to determine which items sell best, and which sell poorly.
The key to effective marketing research is neither technique nor data it's useful information. Customers likes and dislikes are shifting constantly so this information must be timely. It's much better to get there on time with a little than too late with a lot.

A MARKET STRATEGY
With the research information gathered, the next step is to develop a market strategy. Use this information to determine areas where the competition doesn't adequately fill consumer demand or areas where a new product or different product promotion would capture part of the market.
A new business may capture a significant market share by aiming their market strategy on areas not focused on by the competition.
Some examples of the various areas of emphasis include offering a:

• Better or wider distribution
• Specialized instead of a broad product line (or vise versa)
• Lower price
• Modified product (improved)
• Better value for the consumers money (quality)
• More dependable product or service
• Customer support service

As a new business can enter an industry and capture a share of the market, an established business can use the same strategies to increase their market share as well.

TARGET MARKETING
When the marketing strategy is developed, determine with which customer group this would be most effective. For example, a "better value for the money" may be more appealing to the "family" consumer group while a "wider distribution" would be more attractive to consumers who travel. Remember that different market strategies may appeal to different target markets. Therefore, apply the collected data to choose the combinations that will work best. The market is defined by different segments.
Some examples are:

• Geographic: Specialize products to customers who live in certain neighborhoods or regions, or under particular climates.
• Demographic: Direct advertising to families, retired people, or to the occupation of consumers.
• Psychographic: Target promotion to the opinions or attitudes of the customers (political or religious, for example).
• Product benefits: Aim marketing to emphasize the benefits of the product or service that would appeal to consumers who buy for this reason in particular (low cost or easy access, for example).
• Previous customers: Identify and promote to those groups who have purchased the product before.

THE MARKETING MIX
Before the marketing mix decision is made, determine what purpose these marketing efforts are going to serve. Are they to:

• Deepen the customer base?
• Increase the market share? If so, by how much?
• Increase sales? If so, by how much?
• Reach new geographic markets?
• Increase customer traffic?
• Sell remaining inventory to prepare for a new product line?

After these objectives are established, determine a date for accomplishing the objective. The marketing mix allows owner-managers to combine different marketing decision areas such as products and services, promotion and advertising, pricing, and place to construct an overall marketing program.

Products and Services
Use the product or service itself as a marketing resource. Having something unique provides motivation behind advertising. While the ideas mentioned under market strategy apply here, another option is to change or modify the product or service. Additional attention may be given to a product if it has changed color, size, or style, while a service may draw similar attention by modifying the services provided. Remember sales and promotional opportunities are generated by product differentiation.

Promotion and Advertising
With a marketing strategy and clear objectives outlined, use advertising to get the message out to customers.
Advertising can be done through:

• The yellow pages
• A press release
• Sponsoring a civic event or activity
• The newspaper
• Billboards or posters
• Flyers or handbills
• Direct mail advertising
• The radio

One element of advertising is promotional activities. These activities not only advertise, but they offer added incentive for customer patronage.
Some examples are:

• 2 for 1 offers
• Coupons
• Special sale prices
• Rebates
• Sweepstakes
• Give-aways

Try to reach the largest number of people with the money allocated to advertising and promotion. This may be accomplished by using several different methods of advertising. Remember to be creative and implement ideas.

Pricing
Determining price levels and pricing policies is the major factor affecting revenue. Factors such as the demand for the good, the market price, and customer responsiveness to price changes influence the price levels. Other factors such as a convenient location or more personalized service may allow a small business to charge a higher price. Make sure your price is competitive, however, by checking to see what competitors' prices are.

Place
The manufacturer and wholesaler must decide how to distribute their products. Working through established distributors or manufacturers' agent generally is most feasible for small manufacturers. Small retailers should consider cost and traffic flow as two major factors in location site selection, especially since advertising and rent can be reciprocal. In other words, low-cost, low-customer traffic location means you must spend more on advertising to build traffic.
The nature of the product or service also is important in locational decisions. If purchases are made largely on impulse (e.g., flavored popcorn), then high customer traffic and visibility are critical. On the other hand, location is less a concern for products or services that customers are willing to go out of their way to find (e.g., restaurant suppliers). The recent availability of highly segmented mailing lists (purchased from list brokers, magazines, or other companies) has enabled small businesses to operate anywhere - and serve national or international markets.

MARKETING PERFORMANCE
After the marketing mix decision is implemented, the next step is to evaluate performance. With a detailed list of company objectives, monitor how well the decisions are developing.
Evaluate objectives such as:

• Market share. Has the increased share been captured?
• Sales Volume. Was the increase reached?
• Strategy. Did the combinations of target markets and strategy work effectively? Which ones didn't?

Also, evaluate the following decisions and others:

• Did advertising efforts reach the target groups?
• Were promotions timely?
• Did customers respond to sales, coupons, or rebates?

Additionally, consider the following:

• Is the company doing all it can to satisfy the customer?
• Do the employees make sure the customer's needs are truly satisfied, leading to the vial repeat purchase and customer loyalty?
• Is it easy for customers to find what they want at a competitive price?
• If these objectives were not reached, what were the reasons?
• If they worked well, what elements were most effective?

By evaluating performance after decisions, there is reference for future decision-making, based on past results. In addition, periodically assess customers' feelings and opinions toward the business and how well their needs are being satisfied. This can be done through surveys, customer comment cards, or simply by asking them, "How are we doing?"
Assessing performance and asking for customer input brings us back around market research again. Your marketing plan is a continuous effort to identify and adapt to changes in markets, customer taste, and the economy for the success of your small business.