| One of the
basic needs of a business is to market and sell its product
or service. Long-term business success is based on the ability
to build a growing body of satisfied customers. This guide
provides a general introduction to marketing and selling in
your business.
The basis of marketing is that business policies and activities
should be aimed at satisfying customer needs, which depends
upon being able to:
- determine the needs of customers,
- establish where you have an ‘edge’ –
a competitive advantage,
- select specific markets to serve ie target your market,
- decide how best to satisfy customer needs through a framework
that is known as “the marketing mix”.
Marketing is often seen as the reserve of large corporations.
But this guide will show that many of the tools and techniques
used by larger companies can be used effectively by smaller
businesses too.
To help you think about marketing in your business, here
are four areas that must be covered:
Area 1 – market research
Having good information about your market is vital. Can you
answer the following questions? Could other people in your
business answer them?
- What do your customers like and dislike about what you
do?
- When did you last check this perception with your customers?
- What do you do better than your competitors and what do
they do better than you?
- Is the information you hold on competitors current and
correct?
- Are there many new entrants into your marketplace?
- What is the most effective way of communicating with current
and potential customers?
- What are your customers likely to want more of in the
future?
- Is demand for your product going to increase or reduce
in the next 12 months?
If you do not know or are not satisfied with the answers, then
you have a clear need to undertake market research.
Market research need not be expensive or complicated. Here
are some ideas for carrying out your own research about you
and your business, using customers as a source of information:
- A short questionnaire issued to all current and prospective
customers.
- Telephone interviews – call up your top ten clients
and ask them a set of prepared questions.
- Customer satisfaction survey issued to all customers at
the end of a project, contract or assignment.
People will generally enjoy the opportunity to give you feedback
– it is vital that you act upon it!
Area 2 – developing a marketing strategy
“Marketing strategy” sounds a grand term –
it means methodically establishing which markets you wish
your business to develop into and outlining how you are going
to achieve this.
A good understanding of the market and needs of your customers
will help you decide which is the right direction to take.
Area 3 – target marketing
Businesses need to identify a market that they can serve
better than their competitors. Once this group (or target)
has been identified then it should be possible to customise
your products or services accordingly. There are different
ways of thinking about target markets including:
- geographical areas,
- age and income groups,
- particular industries,
- particular interest groups.
Area 4 – the marketing mix The marketing
mix describes the main areas that a business needs to manage
in order to market its products and services effectively.
The marketing mix is also known as the “four Ps”:
- product,
- promotion,
- placing (distribution),
- pricing.
Product (or service) You may choose to
concentrate on a very narrow service or product line, or you
may decide to develop a highly specialised product or service.
Promotion
How do you currently promote your business? There are numerous
ways to get your business known to new customers – examples
include:
- Advertising (local papers, Yellow Pages).
- Referrals – get satisfied customers to promote your
service.
- Direct mail to potential clients.
- Radio advertisements.
- The Internet.
Which of the above do you currently undertake? Which is most
effective for you? Think about your customers – what other
media can you use to promote your product or service?
Place (distribution)
How do you get your product or service to market? Are there
opportunities to work through established distributors or
agents in order to get to market?
Price
Have you priced your service correctly? What do your competitors
charge? Can you charge more if you adapt your product so customers
perceive it to be worth more? An example of this is that smaller
businesses can often command higher prices due to the personalised
service they can offer.
Tools and techniques – the marketing effectiveness
checklist
How well do you understand the needs of your customers?
- What do they like about your product or service?
- What do they think you could improve?
- What do they think of your competitors?
- What do you know about your competitors?
- What do they do better than you?
- What do you do better than them?
- What do they charge?
How do you keep up to date with market and environmental changes,
for example changes in legislation? How have you factored these
developments into your plans?
- What sources of data do you use?
- How frequently do you do this?
Do you target your marketing activities?
- Are there any areas where you have an advantage?
- Does this market know about your product or service?
- How do others target this market?
Do you need to develop your product or service?
- How can you create increased perceived value?
- Can you use your expertise to develop new products or
services?
How well do you promote your product?
- Can you use others to promote your business?
- Are there other ways of advertising, for example, the
Internet?
Are there new ways of getting your product or service to market?
- Partnering with other businesses?
- Using agents to sell your services?
Tools and techniques – the skills of selling
Selling is the opportunity you will get if you have marketed
your product or service successfully.
There are many manuals and frameworks that you can follow
to guide you through the sales process.
Here, we introduce some of the basic personal skills needed
to sell:
Be yourself
Everyone has a different personality, just as everyone has
different fingerprints. So, when developing your sales personality,
be yourself. Do not try to imitate other people.
Be adaptable
When selling, you meet various types of people. One interview
may be with a quietly-spoken individual; the next may be with
an aggressive domineering person. Do you think that you could
adapt your manner of speaking so that you deal effectively
with each of those types? You must be able to assess the type
of customer with whom you are dealing and act accordingly.
Alertness
You must constantly keep your eyes and ears open to spot
new opportunities to get more business.
You also need to be alert to possible changes of mood in
a customer or prospect. If you sense that their attitude has
changed, perhaps from favourable to doubtful, think quickly
whether their change of mood is due to something that you
have just said. Then act promptly to bring them back to a
favourable frame of mind.
Authority
You should always give the impression that you are in control
of every situation. Never let your prospects suspect that
you are uncertain or unsure. One way of doing this is to know
your product thoroughly. You can then meet any objection with
confidence and authority.
Confidence
As authority is supported by a thorough knowledge of your
own products and services, confidence is generated through
being able to demonstrate a clear understanding of competitor
products. An ability to demonstrate understanding of customers’
businesses will also build confidence and improve customer
relationships.
Enthusiasm
Enthusiasm, for both your business and the products you sell,
is essential. When you have a thorough belief in your product,
when you see exactly how your product will help your customer,
when you have a real desire to serve your customer, then your
enthusiasm will come naturally. Let it show in the words you
use, your voice and your manner. Remember: enthusiasm is infectious!
Integrity
Honesty is essential in ensuring that what you sell to the
customer will really serve their needs. If you do not do this,
then you may win the sale but you will have unsatisfied customers
who will probably be very vocal in their criticism of your
business.
Patience
Learn to be a good listener. Listen to customers’ points
of view and learn from them to find the best way of selling
your products. They may tell you facts that you did not already
know. Their opinion of your product may be misinformed, or
based upon a sense of grievance, giving you a chance to correct
their impression. Equally, they may highlight a selling-point
that you have overlooked.
Perseverance
Whatever difficulties you may meet, always persevere. There
will be times when, in spite of all your efforts, you will
not make a sale. The resilient person analyses why their efforts
failed and determines never to let that same set of circumstances
arise again.
Pleasantness
Far too many salespeople are concerned with being polite
instead of friendly and pleasant. Pleasantness is impossible
without a friendly smile. Politeness is cold and formal. Pleasantness
is warm, friendly and sincere. Even the most hardened buyers
are not entirely immune to charm!
Sincerity
When approaching a customer, and discussing your products
with them, you must have a sincere desire to help them. If
your understanding of your products is right and you have
a real desire to serve your customer, your sincerity will
be genuine and obvious.
A survey focused on small to medium-sized businesses identified
the following traits in the most successful sales people:
- They spend 60% to 70% of a sales contact spent letting
the customer talk.
- They are better than others at recognising and responding
to objections ? even silent ones.
- They are more effective than others at identifying and
prioritising customer needs.
- Typically they offer product or service recommendations
after 40% of the sales contact has elapsed.
- They present recommendations more in terms of customer
benefits than in terms of product features.
- They talk more frequently about what they’ve achieved
than about what they haven’t done.
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