How Marketing can help sales

how marketing is different from selling and how marketing affects business and how marketing affect customer value and what marketing is all about
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LavanaThomson,United Kingdom,Professional
Published Date:15-07-2017
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A brief summary of marketing and how it worksMarketing and the 7Ps: A brief summary of marketing and how it work “ Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.” 2 Marketing and the 7Ps – © CIM 2015 Marketing and the 7Ps: A brief summary of marketing and how it work 01 What is marketing? Every product we buy, every store we visit, every media message we receive and every choice we make in our consumer society has been shaped by the forces of marketing. CIM (The Chartered Institute of Marketing) oers the f ff ollowing definition for marketing: “ The management process responsible for identifying, anticipating and satisfying customer requirements profitably.” Sometimes people assume marketing is just Getting close has become more important than about advertising or selling, but this is not the ever as digital and mobile technology make whole story. It is a key management discipline inroads into all aspects of life. This revolution that ensures producers of goods and services has also provided new tools to make marketing can interpret consumer desires and match, or more targeted, relevant and effective. exceed them. Today, as competitive pressures increase, The marketing process is central to the business marketing skills have never been more highly performance of companies, both large and small, valued. What was once seen as a departmental because it addresses the most important aspects activity is now regarded as a frontline business of the market. It is about understanding the attitude for all employees. competitive marketplace and ensuring you can The professionals who shape and implement tap into key trends, reaching consumers with the marketing strategy contribute directly to right product at the right price, place and time. the economy. Their skills attract and retain Clever marketing has led to many customers, build sales and increase profits recent business success stories - from – generating wealth for all. pharmaceuticals to airlines, sports brands to food and drink, business-to-business companies to small, niche players. Conversely, history reminds us that without proper marketing, you can’t get close to customers and satisfy their needs – and if you can’t, a competitor surely will. Marketing and the 7Ps – © CIM 2015 3Marketing and the 7Ps: A brief summary of marketing and how it work 02 Why marketing? Many organisations – especially small firms - are already marketing without realising it. You might not be advertising your services, but Applying a simple marketing framework is vital. you probably do make an effort to know your It enables you to plan your activities in advance, customers well. Your instincts tell you that find out what works, then use them again when figuring out what every customer wants, and and where they are most effective. meeting those expectations, will keep you in The rest of this article will help you to do business. You know that you need to improve just that, giving you suggestions for practical and extend existing products, and sometimes marketing that builds on what you are develop new ones. already doing. If this description rings true, your marketing activity closely fits the classic definition used by CIM. But is this kind of ‘unconscious’ marketing adequate? If you don’t understand that you’re ‘doing’ marketing, it’s hard to keep things consistent over time. This isn’t an obvious problem for very small organisations, but marketing on the hoof becomes less feasible as you grow. How do you create a proper marketing strategy for the future? How can you keep up with your competitors, exploiting all the latest technological developments at a time of rapid change? 4 Marketing and the 7Ps – © CIM 2015 Marketing and the 7Ps: A brief summary of marketing and how it work It deals with what a company is going to Product produce; how much it is going to charge; how P1 There is no point in developing a it is going to deliver products or services to product or service that no one wants to buy, yet the customer; and how it is going to tell its many businesses decide what to oer first, then ff customers about its products and services. hope to find a market for it afterwards. Traditionally, these considerations were known as Successful companies find out what customers the 4Ps — Product, Price, Place and Promotion. need or want and then develop the right As marketing became a more sophisticated product with the right level of quality to meet discipline, a fifth ‘P’ was added — People. their expectations, both now and in the future. More recently, two further ‘P’s were added A product does not have to be tangible – an – — Process and Physical evidence. Originally insurance policy can be a product. formulated for the service industry, they are The perfect product provides value for the – just as important in other sectors. customer. This value is in the eye of the In the 1990s, as experts realised that business beholder — we must give our customers what had to become more customer-centric, an they want, not what we think they want. alternative ‘4 Cs’ of marketing was proposed. Ask yourself whether you have a system in – Correlating almost directly with the original 4PS, place to regularly check what your customers they were: Customer, Cost, Convenience and think of your product and your supporting Communication. The 7Ps model, however, has services. endured and more than adequately incorporates today’s customer-first marketing world. Find out what their needs are now and – whether they believe these will change in future. Beware the product quality trap – don’t take – it too far by trying to sell a Rolls-Royce when the customer really wants a Nissan Micra. Marketing and the 7Ps – © CIM 2015 5Marketing and the 7Ps: A brief summary of marketing and how it work Price Place P2 P3 A product is only worth what The product must be available in the customers are prepared to pay for it. The price right place, at the right time and in the right needs to be competitive, but this doesn’t mean quantity, while keeping storage, inventory and you have to be the cheapest in your market – distribution costs to an acceptable level. small businesses can compete with larger rivals The place where customers buy a product, and by oering a mor ff e personal service, value-adds the means of distributing your product to that or better value for money. place, must be appropriate and convenient for You also need to make a profit. Pricing is the customer. This applies to brick-and-mortar the only element of the marketing mix operations, but is even more important that generates revenue — everything else in e-commerce. represents a cost to you. Customer surveys show that delivery – When considering the price of your product, performance is one of the most important it’s important to look at it from the customer’s criteria when choosing a supplier. perspective: Place also means ways of displaying your – Price positions you in the marketplace product to customer groups. This could be in – — it tells customers where to place you in a shop window, but it could also be online. relation to your competitors. E-commerce operations that sell exclusively – The more you charge, the more value or on the internet must place even more – quality your customers will expect for emphasis on the company website and their money. other online activities, as there are fewer points where the customer will interact This is a relative measure. If you are the most – with the company. expensive provider in your market, customers will expect you to provide a better service. For the same reason, all firms that sell online – should consider how the product will be Everything that the customer sees must – delivered to the consumer – even if this is be consistent with these higher quality handled by a third party. expectations — packaging, environment, promotional materials, website, letterheads, Mobile is an increasingly important – invoices, etc. purchasing channel for consumers, so it may be a good time to optimise your website. Existing customers are generally less – Does yours conform to the latest standards? sensitive about price than new customers For example, Google search now penalises — a good reason to look after them well. websites that are not optimised for mobile, potentially making it more difficult for consumers to find you. 6 Marketing and the 7Ps – © CIM 2015 Marketing and the 7Ps: A brief summary of marketing and how it work Promotion P4 Promotion is the way a company A brochure isn’t necessarily the best way – communicates what it does and what it of promoting your business. Unlike your can oer customers. It includes branding, ff website, the information is fixed once a advertising, PR, corporate identity, social media brochure has been printed. A more cost- outreach, sales management, special oers and ff effective and flexible option might be a folder exhibitions. Promotion must gain attention, be with a professionally designed sheet inside, appealing, send a consistent message and - over a series of your own information sheets above all - give the customer a reason to choose produced in-house. These sheets can be your product rather than someone else’s. customised by varying them to suit the target customers and/or changing them as required Good promotion is not one-way communication – — it paves the way for a dialogue with Promotion does not just mean communicating – customers, whether in person or online. with your customers. It is just as important to communicate with sta/f ff ellow Promotion should communicate the benefits – employees about the value and attributes that a customer receives from a product, not of your products. They can then pass on the just its features. knowledge to their customers. Your website is often the customer’s first – experience of your company – you only have one chance to make a good first impression, so make sure that information on the site is always kept up to date and the design is updated to keep it fresh. Explore new channels – from traditional print – ads to the latest social media trends, there is now a world of possibilities to explore. The important principle is to always advertise where your target consumer goes. Printed promotional material must grab – the attention of your customers. It should be easy to read and enable the customer to identify why they should buy your product Marketing and the 7Ps – © CIM 2015 7Marketing and the 7Ps: A brief summary of marketing and how it work People Process P5 P6 Everyone who comes into contact Many customers no longer simply buy with your customers will make an impression. a product or service - they invest in an entire Many customers cannot separate the product experience that starts from the moment they or service from the staff member who provides discover your company and lasts through to it, so your people will have a profound effect — purchase and beyond. positive or negative — on customer satisfaction. That means the process of delivering the – The reputation of your brand rests in product or service, and the behaviour of – the hands of your sta. They must be ff those who deliver it, are crucial to customer appropriately trained, well-motivated and satisfaction. A user-friendly internet have the right attitude. experience, waiting times, the information given to customers and the helpfulness of All employees who have contact with – staff are vital to keep customers happy. customers should be well-suited to the role. Customers are not interested in the detail – In the age of social media, every employee – of how your business runs, just that the can potentially reach a mass audience. system works. However, they may want Formulate a policy for online interaction and reassurance they are buying from a reputable make sure everyone stays on-message. or ‘authentic’ supplier. Likewise, happy customers are excellent – Remember the value of a good first – advocates for your business. Curate good impression. Identify where most customers opinion on review sites. initially come into contact with your Superior after sales support and advice company - whether online or offline - and – adds value to your oering, and can give ff ensure the process there, from encounter to you a competitive edge. These services will purchase, is seamless. probably become more important than price Ensure that your systems are designed for – for many customers over time. the customer’s benefit, not the company’s Look regularly at the products that account convenience. – for the highest percentage of your sales. Do Do customers have to wait? Are they kept – these products have adequate after sales informed? Is your website fast enough and support, or are you being complacent with available on the right devices? Are your them? Could you enhance your support people helpful? Is your service efficiently without too much additional cost? carried out? Do your staff interact in a manner appropriate to your pricing? Customers trying to reach your company – by phone are a vital source of income and returning value; but so often they are left on hold. Many will give up, go elsewhere and tell their friends not to use your company - just because of the poor process. 8 Marketing and the 7Ps – © CIM 2015 Marketing and the 7Ps: A brief summary of marketing and how it work Physical evidence P7 Choosing an unfamiliar product or Some companies engage customers and ask – service is risky for the consumer, because for their feedback, so that they can develop they don’t know how good it will be until after reference materials. New customers can then purchase. You can reduce this uncertainty by see these testimonials and are more likely to helping potential customers ‘see’ what they purchase with confidence. are buying. Although the customer cannot experience – A clean, tidy and well-decorated reception the service before purchase, he or she can – area – or homepage - is reassuring. If your talk to other people with experience of the digital or physical premises aren’t up to service. Their testimony is credible, because scratch, why would the customer think your their views do not come from the company. service is? Alternatively, well-shot video testimonials and reviews on independent websites will The physical evidence demonstrated by an – add authenticity. organisation must confirm the assumptions of the customer — a financial services Each of the ‘ingredients’ of the marketing mix is product will need to be delivered in a key to success. No element can be considered in formal setting, while a children’s birthday isolation — you cannot, for example, develop a entertainment company should adopt a more product without considering a price, or how it relaxed approach. will reach the customer. The process of considering the seven Ps and together to form a cohesive strategy is called marketing planning. Marketing and the 7Ps – © CIM 2015 9Marketing and the 7Ps: A brief summary of marketing and how it work 04 Planning a marketing strategy Marketing focuses on the fundamental The marketing strategy is then formalised practices that every company has to carry within a specific plan of action, which is out - identifying customers, researching their constantly revised and updated, and the needs and preferences, analysing factors marketing campaign progresses. that influence their purchasing decisions and Planning an effective marketing strategy is persuading them to buy products and services intimately bound up with the planning process from you rather than a competitor. for the entire business, because it is linked All this requires a strategy that is coordinated, to overall corporate strategy and requires considered and realistic in terms of making endorsement from the top. The strategy also the most effective use of the resources and needs to be continually reviewed. Therefore, budgets available. collaboration between marketing and other “ Planning a marketing strategy starts with a detailed and ongoing investigation of the market and its sub-markets or segments. ” Planning a marketing strategy starts with a corporate activities such as finance, research, detailed and ongoing investigation of the market development and production, is important to and its sub-markets or segments. Companies effectively implementing the marketing strategy. look at the social, political, economic, cultural Marketing is a team effort requiring the and technological trends which are shaping orchestration of a range of different skills, the market, their own position within it and outlooks and personalities. Some aspects of the resources they can marshal to change or marketing deal solely in facts and finance; influence it. This is sometimes known as the others explore the ambiguities and uncertainties marketing audit. of changing consumer styles. A coherent A marketing plan defining objectives, targets marketing strategy is essential to managing and performance measures is then developed, change, as companies everywhere operate in along with a financial budget. When specific technological, legislative, corporate and market goals have been defined, alternatives to the environments of rapid transition and change. status quo can be discussed, and ways to achieve those alternatives can be chosen. 10 Marketing and the 7Ps – © CIM 2015 Marketing and the 7Ps: A brief summary of marketing and how it work 05 Future trends in marketing We live and work in a world of unprecedented Distinct trends for the future of marketing social and technological upheaval, which has have emerged in recent years, and continue to introduced new levels of competition for all develop. First, renewed emphasis is being placed kinds of organisations. Business is becoming on the collection, analysis and use of more (and global, customers are more demanding, many better) marketing information. mature markets oer little r ff oom for growth, The explosion of data available to companies brand valuation is recognised on financial thanks to the internet has complicated the issue, balance sheets and environmental pressures but also oers incr ff edible opportunities to reach are growing. Compounding every other difficulty, consumers in a targeted way. the pace of change is quickening all the time – speed of market introduction and acceptance Second, more importance is being attached to are important factors. measuring and monitoring performance, and more sophisticated tools are being developed The economic context is changing, so marketing to do the job as part of the general drive to is changing too. New social trends and corporate be more accountable. ‘Big data’, analytics and structures have opened up fresh avenues of measurement are playing ever greater roles in opportunity for marketers to become even marketing strategy. more central to business success. Only recently, technologies including database marketing, Thirdly, there is growing investment in sta ff direct-to-plate printing and video-conferencing, training and development, with particular the Internet and intranets were buzzwords for emphasis on continuing professional marketers. Since then, viral campaigns and social development so that companies can more media have become everyday terms. Technology effectively defend the competitive advantage today oers e ff xciting opportunities that would that successful marketing gives them. have been out of reach a generation ago. What One of the strengths of marketing is the way will tomorrow look like? it constantly adapts and responds to changing As organisations introduce streamlined conditions. Though our changing world creates management hierarchies and flexible working unexpected challenges, the modern marketer practices, the marketing approach is proving a will continue to overcome them with new tools valuable interdisciplinary asset to companies that and techniques, helping companies to defend want to break down internal boundaries to focus their competitive advantage. exclusively on what the company is good at. “ One of the strengths of marketing is the way it constantly adapts and responds to changing conditions.” Marketing and the 7Ps – © CIM 2015 11T +44 (0)1628 427500 E Moor Hall W Cookham CIMinfo Maidenhead Berkshire, SL6 9QH The Chartered Institute of Marketing (CIM) United Kingdom © CIM 2015. All rights reserved. Permission to reproduce or extract material from this publication must be sought from CIM.

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