Finding Solutions for Growing Businesses

MARKETING

The best product or service in the world will not guarantee success for your business. Potential customers must purchase your product or service in order for you to survive and grow. Developing and implementing a marketing strategy is a necessary process for a successful business. This process begins as you start your business, and it must remain an ongoing process throughout the life of your business.
Marketing is neither sales nor advertising, although both of these may be part of a marketing strategy. Instead, marketing is the thought process by which you:

IDENTIFY THE PRODUCT OR SERVICE YOU REALLY SELL

This step is the foundation of all that follow. They key here is to identify your "market niche", not only in terms of the specific service or tangible product you sell, but in terms of the needs you fill. For instance, a residential lawn service provides lawn cutting, fertilization and so on. One need this business fills is the need for convenience on the part of the :time poor" homeowners.

IDENTIFY YOUR COMPETITORS

Your competitors are those businesses who fill the same need you do. They may or may not be in the same business you are. For instance, companies providing guard services to warehouses and those selling alarm systems to warehouses are to some extent competitors, even though they are not in the same industry.

UNDERSTAND WHY CUSTOMERS BUY YOUR PRODUCT OR SERVICE

Customers buy different products or services for different reasons, including: price, quality, convenience, prestige and others. You must understand the basis on which customers make buying decisions related to your type of product or service.

KNOW WHY CUSTOMERS WILL CHOOSE YOU

Based on the above analysis, you must determine the nature of your competitive advantage. If, for instance, your potential customers buy solely on the basis of price, are your prices the lowest? If not, how will you compete? Be cautious in this analysis. Your potential customers probably have established buying patterns which do not include you. You must give them sufficient reason to break these established patterns and buy from you if your business is to succeed.

DETERMINING THE MOST EFFICIENT METHODS TO REACH BUYERS

Having determined why potential customers buy your type of product or service and why they will choose you, you are in a position to identify how they make their buying decision. Do they typically buy because they've seen an advertisement in the telephone book or because they have driven by your place of business? Is this type of product or service generally purchased on the recommendation or another individual? Knowing how people will "find" you ensures that your marketing dollars are spent in the most productive way possible.

DETERMINE EFFECTIVE DELIVERY METHODS

The most enthusiastic purchaser is unlikely to become a repeat customer if the product or service does not live up to expectations, or if it is not delivered in a timely fashion.

DEVELOP AN ACTION PLAN

You know what you need to do. Now you must develop specific deliverable steps that will enable you to do it. For assistance in developing your own marketing plan contact the MI-SBDC Headquarters at (313)964-1798 for a referral to your local Small Business Development Center or for a copy of the "Small Business Guide to Effective Marketing Communications".
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