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

Friday, June 1, 2012

Defining your customer

For some companies, the question "Who is your customer?" strikes them as too simple.  They sell to everyone. They sell to people with two feet (everyone).  They sell to people concerned with money (almost everyone).  People with a home (everyone).  People in the United States (not everyone, but still pretty big).  You should definitely have something more substantial than that!

Benefits of a Defined Customer

  • You can really get to know exactly what your customer wants.  This applies to all of the marketing concerns - price, product, promotion, placement.  
  • You can reduce spending on advertising and promotions by targeting where and when your customer is most receptive.  
  • Your employees have a clear idea of who will buy, making them better able to focus.  
  • You can calculate the value of a customer, and decide how much you want to spend on each. 
  • Your people will have a better idea of what you do.  
  • If you do it well, others may gravitate to your offering just because it has a strong, desirable image.  

Creating Segments

The key is to segment the total market into chunks you feel you can serve well.  I'd suggest starting with a geographic region, such as the USA or New York City.  Then you can further subdivide that group into smaller segments that fit your product.  You can use combinations of the following factors, or any other way of distinguishing people that makes sense.  They generally fall into two categories.
  • Demographics - age, sex, race, income
  • Psychographics -  personality, values, attitudes, interests, lifestyles
There have been many text books and business books written about the customer. I suggest you give your customer some thought, and if you want to get deeper into talking about your customer, start by reading the wikipedia page about Market Segmentation.  If you really want to get deep into it, the book Market Segmentation: How to do it, how to profit from it by Malcolm McDonald is a great, thorough text.  

Friday, April 13, 2012

5 Differences between Marketing and Sales

In my experience, there is often a correlation drawn between Marketing and Sales.  In fact, in some organizations, they are put into the same functional silo.  Traditionally, they are distinct functions, which can require significantly different skill sets. 

First, lets start of by discussing what they are. 
  • Marketing is any activity that influences the customer opinion of your product or service.  This includes everything from sales to advertising to fulfillment to customer service.  
  • Sales is the act of pursuing and completing the goods exchange with the customer.  That means it includes the entire sales cycle of finding prospects, pitching, and closing.  That is the end of the sales function in many companies. 
Whenever I talk about "Marketing" or "Sales" below, I specifically refer to the people within the function, not the actual function itself.  Below I've listed some of the key differences between Marketing and Sales.  When you read these, think about how they relate to the definitions I gave above.  

Sales brings in money directly - Marketing brings in brand awareness and recognition.

The first, most important, difference to consider is what they bring to the organization.  Sales, of course, brings cash.  And without cash, your company would grind to a halt quicker than you can start a chant by saying "Chapter?"... and waiting for a response.  Marketing works to get your brand into the mind of the customer.  Without it, you may get sales, but they will be significantly less, especially in B2C.  

Sales talks directly with customers - Marketing influences markets

Next, we have to discuss how each group connects with the customer.  Sales often has a direct line to the product buyer, be it end user, distributor, or other.  They hear the complaints and answer the objections.  Marketers work on a macro-scale.  They try to influence a group, from hundreds to millions, by broadcasting to the public and leading the company's actions. 

Sales is internally competitive -Marketing is unified.

Every company is unified around a message, and often Marketing is able to state that goal in the clearest way possible.  And a big part of their job is getting every customer-facing group to live their message.  They work together to convince others.  Sales is on the opposite spectrum.  They are chasing the same goal, but sales people are fiercely competitive.  A good sales person likes to stand alone, on their merits, because they have pride in their competitive sales skills.  


Sales capitalizes on Marketing - Marketing capitalizes on Operations.

One of the most interesting things to me about organizations is that sometimes individuals or groups can convince themselves that a certain function or skill set isn't as important as another.  But every group capitalizes on the skills of another to function well.  Sales needs Marketing to make the brand sticky in your mind.  Marketing needs Operations to fulfill the product promise implicit in the marketing message. 

Sales requires skill in selling - Marketing requires skill in marketing.

Sales skill involves a lot of procedure and memorization.  It also requires a personality that is dedicated, independent, and self-confident.  On the flip side, Marketing skills include trend tracking, number analysis, design, psychology, leadership, IT, and others.  In fact, Marketing people can have a variety of different skill backgrounds.  And their personalities can range across the board, and many different personalitiy types thrive.  


Conclusion

I want to remind you of the definitions of Marketing and Sales I gave at the beginning.  Marketing touches every point of customer interaction, while Sales is a very specific point of customer focus.  Their importance in formal organizations varies, but they are both indispensable. 

Do you have any other thoughts on how Marketing and Sales differ? 

Friday, March 16, 2012

Traditional Media

I'd like to talk about traditional media.  Just to recap: Traditional Media (aka Mass Media) is any communication channel that reaches a broad audience and is inherently a one-way communication channel.  This includes:

  • Newspaper
  • Television
  • Radio
  • Internet Banner Ads
  • Billboards
  • Magazines
  • Point-of-Sale Displays
Traditional media is no longer the powerhouse it once was.  In the past, it was very effective because there were a limited number of communication channels, so an advertiser could use one and reach a large percentage of their audience while also reaching a large percentage of the general population.  Traditional Media's reach has slowly declined for a number of reasons, including the proliferation of options in a given communication channel, invention of new communication channels, and the desire to have a 2-way communication relationship with customers.  

I'm not saying that Traditional Media is dead (yet), but when you choose to use them, you have to:
  • Be sure you are reaching your target market.
  • Have a strong marketing message that has been tested for effectiveness.
  • Be willing to make a substantial investment in a small number of media channels. 
  • Smoke cigars, drink scotch, and pretend you are in the 1950's.