| Introduction | | | | excite the customer. |
| Organizations that are successfully executing | | | | Relational Marketing |
| customer-centric strategies while seeking competitive | | | | As previously discussed, one of the most important |
| edges and innovative strategies do one thing in | | | | things a company can do is to develop a long-term |
| common that will lead to their long term success: | | | | personal relationship with each customer through the |
| They place the customer as the prime reason for | | | | use of a variety of tools. As clients continue to return |
| every action they take within the organization. From | | | | and make repeat purchases the per-customer cost |
| the accounting department, through production and | | | | for advertising decreases dramatically. It costs five |
| sales, into marketing and even the executive | | | | times as much to get one new customer to buy as it |
| boardroom the customer is the most important focus | | | | does to get a repeat customer to make the same |
| for each and every activity that occurs. | | | | purchase. |
| In order to do this effectively the organization must | | | | By creating these personal relationships the customer |
| develop a marketing plan that creatively incorporates | | | | will give the company a huge amount of data that can |
| customer values on many different levels. | | | | then be fit into the marketing plan so that the needs |
| The Marketing Plan | | | | are met even better than before. As we get to know |
| The successful entrepreneurs know that they have an | | | | the client, they will provide us with more personal |
| advantage over the larger companies when it comes | | | | information which can then be used to provide |
| to the customer. They have the ability to get to know | | | | personal marketing to each and every client (birthday |
| each and every client by collecting as much | | | | discounts, anniversary sales, etc.) Their feedback is |
| information about their spending habits, as well as their | | | | one of the most valuable "purchases" that the |
| personal preferences and then utilizing that information | | | | company can make therefore it is essential to invest in |
| to make the customer feel special. The larger | | | | every action possible to gain their confidence. Once |
| companies often are focused on a greater | | | | again, make the customer feel special, important, and |
| mass-market target and cannot target individually, but | | | | satisfied. Small companies have the means to do this |
| the small companies run by the smart people, know | | | | while large companies tend not to. Capitalizing upon this |
| how essential it is to take the time to get to know the | | | | difference will allow the smart entrepreneur to gain a |
| customer and everything about them. | | | | bigger customer base and improve profits. |
| The Marketing Mix | | | | Plotting a Market Strategy and Building the Competitive |
| Every successful marketing plan must encompass at | | | | Edge |
| least the following four essential points through | | | | Companies that want to develop a competitive edge |
| answering these questions: | | | | focus on the customer in the following ways: |
| 1) Product - What kind of product or service will meet | | | | 1) Focus on the customer, not the product. - 67% of all |
| the target market needs? | | | | lost business is due to a rude employee. 96% of all |
| 2) Place (Distribution) - How can we get the product | | | | dissatisfied customers will never tell the company why |
| service to the customer in an efficient and timely | | | | they are dissatisfied and 91% of them will never buy |
| manner? | | | | again. 100% of unhappy customers will tell at least nine |
| 3) Price - What kind of pricing system will best fit the | | | | people of their dissatisfaction and this is a huge loss to |
| needs of the market to induce maximum sales | | | | business. Poor treatment loses 15-30% of all gross |
| profitability and maximum customer satisfaction? | | | | sales so by cutting the losses in profits through |
| 4) Promotion - What kind of marketing strategies will | | | | expending money, time and resources on creating |
| be most successful in getting the message to the | | | | very happy customers, in the end the company cuts |
| target segment? | | | | costs and improves profits. It is essential to build this |
| Do all marketing strategies need to be expensive? Not | | | | into the employees on a very deep level so the |
| anymore. Even the company of one can develop | | | | concept is not just "lip service". Ask the customer |
| excellent affordable marketing plans by utilizing guerilla | | | | what can be done to improve. |
| marketing strategies. | | | | 2) Develop quality in products and services, not as the |
| Guerilla Marketing Strategies | | | | company defines it, but as the customer sees it. - This |
| L. Conrad Levinson wrote a book about "guerilla | | | | must be a Total Quality Management development |
| Marketing" a few years back where he explained how | | | | that works its way through every single aspect of the |
| small companies can battle the bigger, more | | | | business and every single relationship. There must be a |
| slow-moving entities through cheap marketing tactics. | | | | continual drive for quality improvement in everything. |
| The prime points he specified are as follows: | | | | 3) Make the experience as convenient as possible for |
| 1) Find a niche market and fill that market. - Trying to | | | | the consumer. - Develop convenient locations for the |
| be everything to everyone will fail. | | | | customer to shop. Make the shopping hours |
| 2) Don't just sell, entertain the client. - Provide | | | | convenient and appropriate to the market segment. |
| added-value experience through "atmospherics". | | | | Offer special services such as valet parking or a pick |
| 3) Be unique in your product, service, and how you | | | | up and drop off service. Make payment easy and pain |
| offer. - This will get you remembered and the | | | | free. Be polite, efficient and speedy in every |
| customer will come to you to see what is different. | | | | transaction. Allow employees to make their own |
| 4) Create a business identitythat the customer can | | | | decisions to solve problems rather than always having |
| relate to. - People like relating to things. | | | | to look for a supervisor. Focus on the customer. |
| 5) Connect with customers on an emotional level. - It | | | | 4) Concentrate on innovative products/services. - This |
| has been proven that 72% of all purchases are made | | | | is importantin order to continually excite the customer |
| on impulse regardless of how much prior research is | | | | and keep them coming back for more. It also keeps |
| done on a product in advance, therefore target the | | | | the rivals one step behind. This is one of the greatest |
| impulse triggers: emotions. | | | | strengths of entrepreneurism. |
| By focusing everything on the customer, the guerilla | | | | 5) Dedicate every aspect of the business and every |
| marketer will create an unforgettable experience for | | | | single personnel in the company to service and |
| the customer which will bring them back. | | | | customer satisfaction. - Astonish customers. Listen to |
| Market Research | | | | them. Define superior service in their mind. Set |
| Small companies can utilize very few resources and | | | | standards and measure the performance against |
| develop comprehensive market research in order to | | | | them. Hire the right employees and train them. Use |
| design their business plan. The internet is an excellent | | | | technology to improve service. Reward employee |
| way of collecting cheap, detailed information on the | | | | superior service to empower them to work harder on |
| market segments that the company wants to get | | | | customer satisfaction. Get top management support |
| involved in.Perform the due diligence to collect as much | | | | and not just lip service. View the customers as an |
| information as possible on the market, the segment, | | | | investment and not as an expense. |
| the clients, the products and the services bydefining | | | | 6) Emphasize speed in every aspect of the business. - |
| theproblem and thenthinking about how to solve that | | | | Most individuals have "no time" to wait and would |
| problem. Here are some steps on what kind of | | | | rather go somewhere else than waste a minute or so |
| information to collect: | | | | anywhere in the purchase experience (parking, looking |
| 1) Collect the market data on individuals. - The ultimate | | | | for goods, asking questions about prices, checkout, |
| market niche is "one to one" where companies can | | | | bagging, etc.). Reengineer all processes in the business |
| target individuals to design products that meet their | | | | to speed things up by cutting out waste. Create |
| special needs. Dell Computers is an excellent example | | | | cross-functional teams to solve problems creatively |
| of this kind of marketing. | | | | and innovatively. Set difficult to achieve goals and push |
| 2) Provide detailed product and service information to | | | | for them, sticking to the schedules. Redesign the |
| the customer. - This will allow them to make | | | | supply chain (Wal-Mart is the God of supply chain |
| comparisons on the rival offerings and give feedback | | | | efficiency). Use the latest technology to speed up all |
| to the company. | | | | aspects of work. |
| 3) Improve service through following through on | | | | It is absolutely essential that the company ingrains this |
| customer complaints. - It is difficult to "fix" something | | | | into the essence ofeach and every employee in the |
| that is right, but it is important to "fix" something that is | | | | business. This includes the executives, the managers, |
| wrong. If you accept complaints gracefully and then | | | | the HR department, accounting,the line workers; |
| act on them, solving them and reporting back to the | | | | everyone must be devoted to the customer be |
| client, you can improve the product/service and show | | | | prepared to do whatever it takes to delight them. |
| them that their voice was important. This | | | | Understanding the Product Life Cycle |
| customer-centric feedback will impress the customer. | | | | It is essential for a successful marketing attack to |
| 4) Astonish customers through exemplary service and | | | | understand that like people, all products have a |
| products. - Don't just sell them something they need, | | | | lifecycle that affects the profitability from sales: |
| make them so absolutely happy with the product that | | | | 1) Introduction Stage. - Customers are hesitant at first |
| they utilize the most powerful marketing technique: | | | | but then excited. The company must spend a lot of |
| word-of-mouth to spread the word to their friends. | | | | money at this stage on product development, |
| Dissatisfaction kills business far faster than satisfaction | | | | marketing and distribution. This is a capital-heavy time. |
| produces it. | | | | 2) Growth and Acceptance Stage. - Product |
| 5) Know the customer's buying cycles and time | | | | becomes known and marketing costs decrease. |
| releases. - Develop a "Just in Time Marketing" system | | | | Repeat purchases increase raising profitability to the |
| to decrease wasted costs through inventory control | | | | maximum level. |
| and bring only that which the customer wants to the | | | | 3) Maturity and Competition Stage. - Other companies |
| market when they want it. This is an excellent way to | | | | enter the market to take a piece of the pie. Profits |
| cut costs and gain a competitive advantage. | | | | peak here because more money must be spent on |
| 6) Calculate the long term value of each client. - It is | | | | marketing tools to keep the customers from defecting |
| possible to determine which customers are profitable | | | | to the competition. Competition forces prices down, |
| and which are not through simple calculations. Spend | | | | and organizations need to find ways to cut costs in |
| more time and effort on your profitable clients, and let | | | | order to maintain profits. |
| the less-profitable ones go away to the competition. | | | | 4) Market Saturation Stage. - At this stage the market |
| Frank Purdue developed a very good way to | | | | reaches maximum saturation, costs must be cut to |
| determine how much buying power his average | | | | continue profitability. Profits decline and the product |
| customer had over their shopping lifetime and he then | | | | loses some appeal. |
| developed a system that focused on them. | | | | 5) Product Decline Stage. - New and more innovative |
| 7) Collect personal information about the customer. - | | | | products enter the market to replace the older |
| Learn what customers like and dislike and increase | | | | products. Customers migrate to the newer technology |
| their target likes. Get to know their names and thank | | | | and improved quality, service and lower price. The |
| them personally at the cash register to make them | | | | product enters the death phase and profitability is |
| feel special. Use membership cards for this purpose. | | | | usually negative. |
| Note the names on credit cards at the register and | | | | The entrepreneur that understands this cycle will be |
| offer thanks (e.g. "Thank you Mrs. Dill, please come | | | | able to develop a timely exit strategy in order to leave |
| again."). Make the customer feel good about coming | | | | the market before they start to lose more than they |
| into the business and making a purchase. | | | | make, and before the rivals leave, forcing the barriers |
| It is possible through data mining techniques to gather | | | | to exit higher. This strategy must be planned during the |
| huge amounts of "competitive advantage data" | | | | overall strategic marketing plan that the company |
| through mining, or looking through the customer buying | | | | develops into the business model. |
| habits on the data base and making relational | | | | Conclusion |
| correlations to products and services. Use that | | | | Everything discussed above has one common thread: |
| information wisely to improve the circumstances for | | | | the customer is king and all attention should be |
| the customer. | | | | focused on making the customer as comfortable, as |
| Pinpoint Target Marketing | | | | happy, and as satisfied as possible while not only |
| Larger companies tend to market more to the | | | | meeting their needs, but exceeding them. There are |
| masses. If a customer's tastes are different, they must | | | | many ways to achieve this outcome and all of these |
| compromise their needs and buy something that is not | | | | tools should be employed to exceed the needs and |
| exactly what they want. The smart entrepreneur can | | | | expectations of clientele. |
| exploit this hole in the marketing plan by pinpointing a | | | | "To prosper while exceeding the needs and |
| target market that is very specific, determining how | | | | expectations of clientele and associates in all aspects |
| they can fill that hole by meeting the specific needs of | | | | of cooperation through mutually beneficial Win-Win |
| the customer with their product or service. They can | | | | agreements. |
| then create a clear image of the target and jump in to | | | | |