Marketing Strategy Defined
Core message summary
The most effective Marketing Strategy begins with figuring out what people want to buy that is not being offered anywhere else.
Overview
You won’t find a lot of “how to” information in this part however it’s important to understand what I mean by the words “marketing” and “strategy” so that when you complete the Action Exercises throughout this book, you’ll be much better prepared.
Definition of Marketing
Most people think that marketing is all about getting new clients in the door but my definition of marketing extends further than that:
“Marketing is any activity that does one or more of the following:
1. Brings in more clients
2. Has them buy more often
3. Has them spend more when they buy
4. Has them stay longer
By this definition therefore, both sales and customer service functions are a part of marketing and, indeed, virtually all other business functions have an impact as well. For ex- ample, if logistics or billings are sloppy the customers are unlikely to come back and buy more.
Marketing versus Selling
A useful distinction to note is that whereas both marketing and sales aim to increase revenue it’s a prerequisite of winning marketing strategy that you first figure out what it is that people really want to buy. (And if that thing is not offered by competitors then so much the better.)
On occasion I’ve been approached by the owner or CEO of a business whose inquiry can be paraphrased as: “Can you help us sell more stuff?”
And whilst I may be able to answer that question in the affirmative, it contains an inherent danger in that it assumes that people want to buy the “stuff” that is on offer.
And that helps to clarify what marketing is versus what selling is.
Effective Marketing is about creating a magnet-like at- traction whereas selling is more like hunting.
To illustrate the point let’s use bees as a metaphor for clients. There are two ways you can catch bees. Firstly you can grab a net and go hunting for them or you can put out a honey pot and have the bees fly in.
Selling is what salespeople do: life insurance salespeople, photocopier salespeople, multi-level marketing people and so on. And selling accelerates revenue growth IF the marketing strategy has been well crafted prior to the sales teams being set lose.
In order for selling to be effective it must come after the marketing
Big or small, every VP of Sales should report to the VP of Marketing. And if you are a solopreneur or a micro business owner that simply means you need nail your marketing strategy first and then ensure that all sales and advertising activity is aligned with that strategy.
For example is you decide that you can out-perform competitors on value for money, then all presentations and advertisements need to clearly articulate that advantage.
Definition of Strategy
Strategy is how you will capture Market Share, stated in broad terms.
Implicit in the capture of Market Share is taking revenue from competitors, of which there are three categories: direct, indirect and doing nothing.
For example a Financial Planner faces direct competition from other Financial Planners and indirect competition from Stock Brokers, Banks and Property Developers.However he or she has a third competitor which is called “doing nothing”.
Either way, a winning Strategy influences someone to putting their money into your bank account rather than leaving it in their own or putting it somewhere else.
A winning Marketing Strategy must overcome all three forms of competition.
The difference between Strategy and Tactics
Your Strategy is a plan, whereas Tactics are your methods of executing the plan. Whereas Strategy is primarily about “how”, Tactics is about “what, when, who, where”.
Just like Selling needs to come after the Marketing has been figured out, so too Tactics need to come after the Strategy has been created. Otherwise it’s like the proverbial cart before the horse in that it simply isn’t going to take your business anywhere.
Examples of Marketing Strategy
Key Points
Winning Marketing Strategy figures out firstly what people want and seeks to create or refine a product so that it delivers it in a way which is both appealing and differentiated from competitors (see Part Three).
Attempting to sell or advertise a product prior to creating a winning Marketing Strategy makes sustainable success all but impossible.
Action Items
Make a list of three businesses that are dominant in their market. Alongside each name write down what you think their core strategy is. For example Wal-Mart clearly has a Strategy of lower prices plus extensive range.
Describe what you will do differently and/or better that will cause you to outperform your competitors. Be as specific as possible. For example instead of “better service” you might write “60 minute response time” and instead of “better quality” you might write “10 year unconditional guarantee”
The most effective Marketing Strategy begins with figuring out what people want to buy that is not being offered anywhere else.
Overview
You won’t find a lot of “how to” information in this part however it’s important to understand what I mean by the words “marketing” and “strategy” so that when you complete the Action Exercises throughout this book, you’ll be much better prepared.
Definition of Marketing
Most people think that marketing is all about getting new clients in the door but my definition of marketing extends further than that:
“Marketing is any activity that does one or more of the following:
1. Brings in more clients
2. Has them buy more often
3. Has them spend more when they buy
4. Has them stay longer
By this definition therefore, both sales and customer service functions are a part of marketing and, indeed, virtually all other business functions have an impact as well. For ex- ample, if logistics or billings are sloppy the customers are unlikely to come back and buy more.
Marketing versus Selling
A useful distinction to note is that whereas both marketing and sales aim to increase revenue it’s a prerequisite of winning marketing strategy that you first figure out what it is that people really want to buy. (And if that thing is not offered by competitors then so much the better.)
On occasion I’ve been approached by the owner or CEO of a business whose inquiry can be paraphrased as: “Can you help us sell more stuff?”
And whilst I may be able to answer that question in the affirmative, it contains an inherent danger in that it assumes that people want to buy the “stuff” that is on offer.
And that helps to clarify what marketing is versus what selling is.
Effective Marketing is about creating a magnet-like at- traction whereas selling is more like hunting.
To illustrate the point let’s use bees as a metaphor for clients. There are two ways you can catch bees. Firstly you can grab a net and go hunting for them or you can put out a honey pot and have the bees fly in.
Selling is what salespeople do: life insurance salespeople, photocopier salespeople, multi-level marketing people and so on. And selling accelerates revenue growth IF the marketing strategy has been well crafted prior to the sales teams being set lose.
In order for selling to be effective it must come after the marketing
Big or small, every VP of Sales should report to the VP of Marketing. And if you are a solopreneur or a micro business owner that simply means you need nail your marketing strategy first and then ensure that all sales and advertising activity is aligned with that strategy.
For example is you decide that you can out-perform competitors on value for money, then all presentations and advertisements need to clearly articulate that advantage.
Definition of Strategy
Strategy is how you will capture Market Share, stated in broad terms.
Implicit in the capture of Market Share is taking revenue from competitors, of which there are three categories: direct, indirect and doing nothing.
For example a Financial Planner faces direct competition from other Financial Planners and indirect competition from Stock Brokers, Banks and Property Developers.However he or she has a third competitor which is called “doing nothing”.
Either way, a winning Strategy influences someone to putting their money into your bank account rather than leaving it in their own or putting it somewhere else.
A winning Marketing Strategy must overcome all three forms of competition.
The difference between Strategy and Tactics
Your Strategy is a plan, whereas Tactics are your methods of executing the plan. Whereas Strategy is primarily about “how”, Tactics is about “what, when, who, where”.
Just like Selling needs to come after the Marketing has been figured out, so too Tactics need to come after the Strategy has been created. Otherwise it’s like the proverbial cart before the horse in that it simply isn’t going to take your business anywhere.
Examples of Marketing Strategy
- Faster delivery time e.g. pizza
- More reliable e.g. vehicle
- More accurate e.g. watch
- Cheaper prices e.g. home furnishings
- Easier to use e.g. video camera
- More knowledgeable e.g. newspaper
- More durable e.g. car tyres
- Customized e.g. bespoke tailors
- More distribution outlets e.g. soft drink
- Easier access e.g. drive through fast food
- More glamorous e.g. premium handbags Safer e.g. car
- More environmentally friendly e.g. energy
- 24/7 international support e.g. credit card
- More innovative e.g. smart phone
- Better long term return on investment e.g. property
- Save return on investment e.g. banking
- More luxurious e.g. air travel
Key Points
Winning Marketing Strategy figures out firstly what people want and seeks to create or refine a product so that it delivers it in a way which is both appealing and differentiated from competitors (see Part Three).
Attempting to sell or advertise a product prior to creating a winning Marketing Strategy makes sustainable success all but impossible.
Action Items
Make a list of three businesses that are dominant in their market. Alongside each name write down what you think their core strategy is. For example Wal-Mart clearly has a Strategy of lower prices plus extensive range.
Describe what you will do differently and/or better that will cause you to outperform your competitors. Be as specific as possible. For example instead of “better service” you might write “60 minute response time” and instead of “better quality” you might write “10 year unconditional guarantee”
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