Last month I covered the first of the Five Pillars of Business Success: Your Plan.
In this post I discuss the second of the Five Pillars of Guaranteed Business Success: Marketing Strategy.
What is Marketing? There are hundreds of definitions of marketing, but I like to keep it really simple.
Definition: Marketing (noun): Finding and Attracting people who want to buy what you want to sell for the price you want to charge.
Marketing is not a single event, it’s a sequence. The first step might appear to be the Finding and Attracting, but there is a qualifier. The right kind of people.
So firstly, who are the right kind of people? The people who want to buy what you want to sell for the price you want to charge.
Which brings us to what you want to sell and the price you want to charge, that is, your offer. But if there are others with similar offers, how do you stand out? What are your Points of Difference? If you don’t have any, you will only be able attract buyers by being the cheapest.
So as you define your offer, you must be able to answer the question, “Why should I buy from you?” Are you quicker, better, cheaper? Do you save them more time, money? And how can you prove that to your buyers?
Some buyers will be more attracted to certain benefits than others. For example, if they are in a hurry, they might pay a premium for an express service, otherwise not. Who are the buyers that are in a hurry?
Having defined your offer, and identified your Points of Difference, you can determine who would most value your offer. Then the question is, “Where will I find these buyers and how ill I attract them to my business?”
There are just four ways of attracting buyers:
- Public Relations
- Word of Mouth
- Cold Calling
All marketing tactics are one of or a combination of these four tactics. Depending on your buyers some will be far more effective in time and cost than others. Measuring your cost (in time and dollars) to generate qualified enquiries is a critical factor in choosing the right tactics. Finding where your ideal buyers congregate can greatly reduce the time and cost of your marketing tactics so they are more laser focused rather than a costly scattergun approach which may not reach any of them.
The final step is to convert them from buyers to customers using a productive Sales Pipeline. The ultimate measure of success here is the cost per sale.
My preferred system of bringing all these strategies together is the Five Profit Driver System. Did you know that with just a modest 15% increase in each of your Profit Drivers will double your profit?
Some ask why profit and not turnover? Because too many businesses have profitless turnover in one or more of their products and services, and increasing turnover can actually reduce profitability. Your bottomline is Profit, not Sales.
How will you use the Five Profit Drivers to Double Your Profit?
May Your Business Be –As You Plan it!
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Dr Greg Chapman is the Director of Empower Business Solutions and is Australia's Leading Advisor on Emerging Businesses and provides Coaching and Consulting advice to Australian Small Business Owners in Marketing & Business Strategies Planning & Systems. He is also the author of The Five Pillars of Guaranteed Business Success and Price: How You Can Charge More Without Losing Sales.
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