Understand your product or service

Filed under: Marketing, Printing, Small Business — Tags: , — trevor @ 28/03/2010 2:50 pm

Alot of effort is required to effectively promote a product or service so its really important that you understand what you are actually selling. Only when you understand the core reason people are buying your product or service that you can use marketing technique to increase demand. This post is highlighting the importance of understanding your core product for small business, because small business needs to maximise its investment in limited marketing budgets. This concept is best illustrated with a simple example below.

Why does a customer by a drill from a hardware store? Not because they want to own a drill , it is because they need a hole in the wall.

Generally a product or service can be broken into 3 levels,

Three product levels

Three levels of product or service

  • Core benefits or service  - this is what the customer is actually buying. Its the problem solved or benefits the customer gets when they buy the actual product or service. In the example above its the ability to create a hole.
  • Actual product or service – is generally the product or service purchased by the consumer. In the example above its the actual drill purchased from the hardware.
  • Augmented product  - these are customer valued extras which are designed to add value to the customer. Examples of augmented products include warranties, customer services, trading terms, delivery, installation etc.

Most small businesses understand actual and augmented product but take the core benefit for granted. This results in marketing effort concentrating on the benefits of the actual product rather than addressing the reason people are buying the product.

Customers tend to see products or services as complex bundles of benefits.

Why should you even care?

Its important to understand all this because combined it is your value proposition to customer. Most competition these days is around the augmented products and services it is where companies create a competitive advantage.

Also it is easier to increase demand for a product or services if you understand the core benefit your customers expect to get from buying your product or services. Marketing should be targeting the core benefits and augmented products because these are where customers will decide how to spend their hard earned.

Case Study: Style Communications

The following diagram is used internally as a way to clearly communicate to our staff the business we are in and how we add value to our customers.

Style value proposition

As this diagram shows the products we sell are in the ring surrounding our core benefit which is solving our customers communication needs. Print related materials is all about communicating and we are experts in this area. We believe our competitive advantage comes from the outer circle because this is how we add more value to our customers than the competition.

Its clear to us where we need to

  • Spend our marketing budget
  • Develop our staff
  • Invest in our product
  • Why our customers choose us over our competitors.

At Style we understand our products and why you need them. We can also help you understand your product or services and develop a unique value proposition for your customers.

How can small business use marketing?

Filed under: Marketing, Small Business — Tags: , , — trevor @ 21/03/2010 2:02 pm

The marketing process is typically what “marketers do”. This post attempts to explain the marketing process for small business who can not afford the luxury of a specialised marketing resource. Most small businesses are performing many tasks considered marketing without realising it.

A market is defined simply as a place where sellers and buyer come together to exchange goods and services. Your market is where you compete for customers.

The typical marketing process

  • analysing market opportunities – this involves looking for a niche market where your small business can compete and dominate. This may be a new product, geographic location, special service. If you are in a small business chances are you have already selected your opportunity. If your business is struggling to compete for any reason it may be time you start looking for another market in which you should devote your time.
  • selecting target markets – within any market there are sub-groups of customers, therefore it is the role of a business to select which target market to concentrate its efforts on. Remember it is not possible to be all things to all customers so you need to focus on where your business has its greatest competitive advantage. By selecting smaller number of target markets a business can focus its product, services and marketing directly at these smaller customers segments.
  • developing the marketing mix – this is the day to day activities of marketing and the topic of this blog.
  • managing the marketing efforts – there is no point in investing in marketing if you are not prepared to track and measure how that investment has performed.

Marketing segmentation

This is the process of dividing a market into direct groups of customers who might require separate product, services and marketing mixes. There are a number of ways to group customers including geographically, demographically and behaviourally. The process of segmentation is important for small business who should be focusing efforts of the group which is most profitable. The scatter approach rarely works and tends to confuse customers.

The result of market segmentation is the “target market” which becomes the focus of your marketing mix.

The Marketing Mix

The marketing mix is the elements controllable by your business which attempts to get your target market to buy your product or service. This is what you control to increase demand for your product. Remember a marketing mix will have no impact if you do not have a market to begin with.

Four P's of Marketing

The marketing mix

Four P’s of the Marketing mix

  • Product or service – these are the goods or services being offered to the market.
  • Price – the amount customers have to pay to obtain the product or service
  • Placement – these are logistics and marketing actives concerned with making and distributing the finished product or service
  • Promotion - activities that communicate the benefits of the product and persuade target market to buy it.

Some marketing professionals advocate extending the 4p’s of marketing to include

  • People – important for small business where you and your employees have more direct influence over a customers experience with your company. This would be considered one of the advantages of small business over larger businesses.
  • Process – not just the process of making the product but the experience using it.

Often small business think marketing is all about “promotion”. Promotion is only one of the levers you control to increase demand for your product.

The most effective marketing involves looking at all 6 and considering what strategy you will use to increase demand for your products.

At Style we can help you with placement and promotion. We have a service designed to provide you with practical marketing tasks which you can use to put your product or service in the best place and sell the benefits of using your product or service follow link.

Build profitable customer relationships

Filed under: Marketing, Small Business — Tags: , , — trevor @ 28/02/2010 2:16 pm

The key to building profitable relationships is to retain customers as it is far more difficult and expensive to get new customers over servicing existing customers. Small business owners should be developing strategies aimed at retaining customers.

The long term perspective towards building customer relationships which aim not to have one successful transaction with a customer but many will be far more profitable for your business.

How do you retain customers?

  1. Don’t over promise in marketing
  2. The expectations customers have (the value they expect) effects their satisfaction and if they decide to come back. Therefore satisfaction depends on your product or service relative to the buyers expectations.

    Your marketing materials and branding should accurately reflect your product or service performance. Over promising and under delivery will only lead to dissatisfied customers who will not return.

  3. Know which customers provide the greatest value
  4. Its not possible to pursue and satisfy every customer, the trick is knowing which customers or market provides the greatest business value and servicing that customer or market. This is the similar concept to finding your businesses niche in the market and concentrating on servicing it better than everyone else.

    You can not be all things to all people so find your place and go for it

  5. Provide superior Customer Service to key customers
  6. Customer service involves going above and beyond what customers expect. Live by the saying “the customer is always right”. Alot can be found on how provide superior customer service so it will not expand in this blog . Remember that some companies sell products or services where superior customer service is not expected eg compare Aldi to Coles.

  7. Build Loyalty
  8. You should be looking to provide a reason that your customers should keep returning.  The loyalty marketing techniques used depend on the product, service and market in which you operate. At Style we have used loyalty cards, trading terms and targeted direct mail specific to the customer.  At Style we can provide you assistance to use the right technique for your product, service or market.

    Also remember that not every customer want a relationship with your business.

At Style we can help you build profitable relationship with your customers through our knowledge of marketing solutions.

Persuasion – a key skill in business

Filed under: Marketing, Small Business — Tags: , , — trevor @ 25/10/2009 12:30 pm

This article will list key techniques used when persuading people. Persuasion is a skill that all business people need to develop in order to become more successful.

When is persuasion used in Small Business?

Persuasion is a important skills that most successful business people have and develop without even realising it. All the situation below require the skill of persuasion.

  • Persuasion techniques are used heavily in the sales process – It good to know when these techniques are being used on you.
  • Managing staff
  • Working with peers
  • Dealing with banks

Persuasion or influencing techniques

I am highlighting these techniques to point out not only so you can use them but also to recognise when they are being used on you. These techniques come from a famous management book written by Robert Cialdini called “influence”.

1) Perceptual Contrast - this is a highly effective technique used in the sales process. When we make decisions, we tend to do it by contrasting between the decision item and reference items. When two things appear close to one another, we will tend to evaluate them against one another more than against a fixed standard.

Using it in the sales process

To make something look good, first show something of inferior quality. To get someone to buy something expensive, first show them something even more expensive.

Defending against it

When you make a decision, think about the comparison standards you are using. If it is something you have recently seen, consider whether the person who showed you the first thing is using it for the contrast effect.

2) Rule of Reciprocity – firmly states that we are all bound, even driven, to repay debts of all kinds. It is an almost automatic reaction.

Using reciprocity

The formula for using the Rule of Reciprocity to your benefit is simple: Give something away – a gift, a service, valuable information, assistance, or anything – to create in the other person a feeling of indebtedness. Once the other person feels indebted to you, then you ask for what you want and let the “Rule of Reciprocity” go to work.

Defending against

Accept initial favors or concessions in good faith, while also remaining prepared to see through them as tricks, Once seen in this way there is no longer a need to feel the necessity to respond with a favor or concession.

3) Commitment and consistency – people have a desire to look consistent through thier words, beliefs, attitudes and actions.

Using commitment and consistency

The formula for using this technique is the “initial” commitment. After making the commitment most people will be able agree to requests that are consistent with the initial commitment. Once a stand is taken, there is a natural tendency to behave in ways that are stubbornly consistent with the stand.

Defending against

To recognise and resist the undue influence of consistency pressures require listen for signals and the ability question the initial commitments.

4) Social Proof – this is one way in which people determine what is correct by finding out what others believe is correct.

Using social proof

Social proof is most influencial under two conditions:

  1. Uncertainty – when people are unsure and the situation is ambiguous they are more likely to observe the behavoiur of others.
  2. Similarity – people are more inclined to follow lead of other who are similar.

Defending against

You need to be sensitive to counterfeit evidence, that is what others are doing or their behaviour should not form sole basis for decision  making.

Using it
To make something look good, first show something of inferior quality. To get someone to buy something expensive, first show them something even more expensive.
Defending
When you make a decision, think about the comparison standards you are using. If it is something you have recently seen, consider whether the person who showed you the first thing is using it for the contrast effect.

How to connect with customers

Filed under: Marketing, Printing, Technology — Tags: , , , — trevor @ 25/06/2009 9:48 pm

Its important for small business to stay connected to customers, the problem is how?  This post provides a list of practical ways to stay connected to customers.

The importance of staying connected was discussed in my “What is marketing?” post.

Below is some practical ways to stay connected with customers

1) Pick up the phone.

A great way to stay connected to your best customers is simply pickup the phone and call them.  You will be amazed how open people will be with feedback if you explicitly ask for it.

Ask your customers a few questions;

  • What are we good at?
  • How could we improve?

2) Work in the customer service / sales function of your business

If your business has a retail or customer service function spend some time in that area listening to customers. You will be amazed what you will learn

  • Customer Service – this area of your business gets more feedback from customers than any other. The old saying here is happy customer tell 2 people and unhappy customer tell 10. It pays to be on top of unhappy customers.
  • Sales team – its important to know why you win jobs, but even more important to know you didn’t win. Lost sales give you feedback about what the market thinks of your products or services compared to your competitors.

3) Invest in CRM technology.

CRM stands for Customer Relationship manager. CRM systems make staying in contact and recording conversations with customers easy. Its important to track customer through the sales process into the support process.

CRM provide a wealth of information about how your business deals with customers.

  • Who your biggest customers are?
  • Who your most profitable customers are?
  • Sales pipeline reporting – what the future holds
  • Sales conversion reporting – how effective your sales team is?
  • Customer service levels – how you are servicing your customers?

Even micro business can benefit for keeping accurate information about customers. You will be amazed how effective sending a small gift to a customer on their birthday.

4) Customer Feedback

Ask your customers for feedback via surveys, but be careful not to overuse this method. One way to make this more effective is to offer a prize for the feedback.

Different types of surveys

  • Automated web surveys – see a great free web survey site called survey monkey
  • Paper based survey in the retail
  • Mail survey cards with return address envelopes

5) Direct mailing using customer information

Direct mailing is a cost effective method of connecting with you customers.  Its possible to create a design incorporating your customers details and preferences. Its called variable data digital printing, every printed page is customised to the individual which grabs their attention and increase your response.

6) Start a Blog or Newsletter on your website

Blogging is a great way to communicate with customers en-masse. The trick with blogging is having something that your customers actually want to read.  Content on blog pages must be short and punchy.

Blogging actually takes a significant amount of time so don’t underestimate the effort required.

Final word

At Style we are experts in marketing and printing so we can help you connect with your customers. Connecting with your customers will help you understand them, support them and sell to them.

What is Marketing?

Filed under: Marketing, Small Business — Tags: , , — trevor @ 01/05/2009 3:17 pm

The traditional definition of Marketing is ” the activity and processes for creating, communicating, delivering, and exchanging products or services that have value for customers”. Therefore marketing is extremely important for the survival of all businesses because its “marketing” that drives revenue.

Marketing is generally thought of as a task that only medium and large companies can afford to worry about, but if small businesses want to survive they need to understand the best way to add value to customers. My view of marketing is that the process (marketing plan) helps small business identify how and where they add value, and what makes customer buy from you and not your competitors, therefore in many ways its a reflective process.

The problem is that small business does not have the resources to dedicate to the task of “marketing” so this blog is designed to demystify what is meant by the word marketing for small businesses.

I like to use a simple definition of marketing for clarification:

“find out what the customer wants and give it to them”

Marketing has moved from the notion of “telling and selling” to that of building long-term relationships. Small business is perfectly placed to build long-term relationships with customers because they;

  1. Generally have smaller customer bases
  2. Can remain closer to customers 
  3. Often have passionate owners who are involved in the business

Small business can excel at marketing if they spend adequate time and resources on all three of the following.

  • understand customer needs
  • develop products or services that offer superior value
  • communicate effectively

My view is small business is often good at one or two of these but struggle to excel at all three. The key to success is  you must have all three.

Now the above list sounds obvious but small businesses often fail because they are so focused on developing superior products or services  but they fail realise that either; its not really what the customer wanted, or customers don’t know about the great product or service offered.

1) Understand customer needs

When was the last time you asked a customer for an honest feedback.?

Have you lost a sale recently did you ask why?

Its not good enough to ask existing customers for feedback, you need to know what potential or lost customers think of your product or service offering.

Do you involve your customers in new products or services decisions?

Many technique exist for knowing what your customers want, often the simpliest is a simple call directly asking for honest opinion from your customers.

2) Develop products or services that offer superior value

This is the area most small business focus all time and resources to and therefore most do this well. The problem comes when you spend all your time doing this and nothing else.

2) Communicate effectively

These two words describe many activities in the marketing process. This is the part of the marketing process Style can help you with. At Style we are experts in providing small business with print related marketing material which is a big part of communicating effectively.

Style new blog

Filed under: Marketing, Printing, Small Business, Technology — trevor @ 30/04/2009 12:05 pm

This is Style’s new blog which is deadicated to providing useful information to our customers. The content of the blog will be designed to answer common questions about the printing industry.

Over time we will add to the site any information we think is relevent.

Feedback on the usefulness of this blog is welcome

Powered by WordPress

 Subscribe in a reader