Top Four Marketing Strategies for Small Business - Literature review Example

Top four Marketing Strategies for small business The summary In the article Top four marketing strategies for small business, Janet Becker who has been named Australian Marketer of the Year by the association of Marketing Communications Executive International shared her thoughts and ideas on top marketing strategies for small businesses. Janet Becker is an authority n the field of marketing strategy as she has started with only two clients and currently she has now helped more than 7000 business owners. Her own business sets the example for it has been growing continuously and, in fact, since its inception it has grown more than 100 per cent each year. Ms. Becker has given four smart strategies that can be used by small businesses in their marketing. Before starting with the strategies, she first suggested that you should know your problem. When she talks of problem, she is referring to the concerns of your potential customers that you are willing to solve for them. She said, "As business owners what we are really about is solving problems. It is that simple really. If people have a problem they are willing to pay for someone to solve and you have that solution - then you have a business” (p1). After knowing the problem, she has given the marketing strategies that are necessary that in tackling ‘the problem’. These are; first, create a tarket. A 'tarket' is an imaginary person. But it is not just any imaginary person. They are a composite of your ideal customer. This is the person you imagine you are writing to when you create any marketing messages. Describe them to detail and even give them a name (p 2). Second, concentrate on list building first. This will allow you to keep in touch by mail, e-mail or phone with your customers and potential customers. This strategy serves two purposes. One is to keep in touch with your customers and second is use the contact information surveys or getting to know what other products your customers use. Third is knowing your numbers. By knowing what are the actual results of your advertisements or campaign adds, you get a clearer picture or perspective of what really works for product. She suggests that separate codes and tags be used in tracking each advertisement so that you will have a better idea where most of the sales are coming from. Finally, ask yourself ‘what are you doing for your business?’ this is a common lapse among small businesses. Normally, what they do is that they just do it and pray hoping that things will turn out fine. They do things without carefully mapping out the strategies that they will be using for the business. In the she strongly commends that “plan your ideas carefully but, most importantly, ensure you implement them!” (p 3) The application The article is an instance of the theory of developing marketing strategies and plans. This theory presupposes that there is a very high risk of failure for a company to just do business. Since it is like going to a battle unprepared. As marketing strategy (or competitive marketing strategy) refers to how a business chooses to deploy marketing resources at its disposal to facilitate the achievement of competitive position advantage (s) in the marketplace (Varadarajan & Yadav, 2002), it is not surprising that it is something that should not be performed haphazardly but must be taken with outmost care. And this is what the theory of developing marketing strategies and plans affirms and is all about – care in the disposal of marketing resources so as to create a competitive advantage for the company in the market. This particular theory has been concretely utilized in the article via its practical application in real life. Janet Becker’s strategy starts after you have identified the problem or the concern that your business intends to address or find solution to. Once this filed is clear, Becker states that you have to create a tarket. As mentioned earlier, the tarket is your ideal customer who will be the primary customer for your business. It is like creating a profile that will help you identify who your clients really are. The second strategy that she mentioned is to create a building list, which is technically your targeted list. You can do this by enticing “them with an ethical bribe (a.k.a. gift) that only your target market would want. For example, samples of your product or information report that solves one of their most common problems.” (p 3). The third know your numbers. This is applied via creating a system wherein it will be easy for the company to keep track of the number of customers that have responded from a particular add or advertisement. What she proposes to do is keep an individual tag or code for each campaign add so that it will be a lot easier for you to see where are you selling more – from add A or Add B. This is simply being systematic with the data that you will be receiving out from the marketing strategy that you will be implementing. Finally, she also said that you should know what you are doing to your business. In addition, you can do this by planning way ahead what you intend to achieve way before the actual implementation of the plans. What Janet Becker is telling us that if we want our business to be competitive and successful in the market we cannot leave everything to luck or chance. Everything has to be carefully planned and developed so that will be missed. The theory SOURCE: Yoram & Robertson, 1983 The theory of developing marketing strategies and plans is an holistic approach that looks into all internal and external factors that may influence the competitiveness of the company in the market. In the figure above it shows that there are numerous aspects that are being taken into consideration as companies apply into practice the theory of developing marketing strategies and plans. The complexity of the process shows us that it involves the analysis of the market opportunities and business strengths. Once that this is known, then the next phase which involves the added marketing dimensions which involves elements such as market segmentation, analysis of the market segmentation, synergy analysis, functional analysis and portfolio analysis. All of these when clarified is the used in coming up with objectives and strategy generation and evaluation process. Considering this scenario, it is not surprising that sometimes the very strategy of the company becomes its very own philosophy (Varadarajan & Yadav, 2002: Yoram & Robertson, 1983). Furthermore, it should be noted that developing marketing strategies and plans entails extant research in marketing, strategic management, and industrial organization economics focusing on understanding, explaining, and predicting business performance (Varadarajan & Yadav, 2002). Thus, it becomes necessary that the relationship of the following elements are clarified, identified, understood, delineated and explained so that a clearer and better perspective of the possible strategies that will be developed can account for other extenuating factors. The following are the important elements taken under consideration in developing strategies and plans: 1. competitive strategy pursued by the business, 2. structural characteristics of the industry in which the business competes, 3. distinctive skills and resources of the firm, 4. characteristics of the product offerings of the business, 5. characteristics of buyers and the buying environment, 6. marketplace performance, 7. financial performance, and 8. macro environment. SOURCE: Varadarajan & Yadav, 2002 In the end, Becker has noted that all strategic planning ensures that we create our own niche in the business world. However, everything is senseless if not implemented. Thus she claims, “plan your ideas carefully but, most importantly, ensure you implement them!”( Top 4…, 2009) The fortune is in the follow up The summary In the article The fortune is in the follow up the author is basically laying down the formula on how a particular business may guarantee growth through providing and maintaining the right customer service. In this particular article, the author is proposing the idea that customer relation and satisfaction does not end when the purchased is made or the deal is closed. In fact, it only begins there for a total and authentic customer relation and service is keeping in touch with the customer in continued manner through follow up even after the deal is done. This is so, since, the fortune is in the follow up. Normally, it is claimed that business’ transaction ends when the customer has already made the purchase of the product that is being sold. However, in the article the author claims that real business, in fact, begins the moment that the customer has made the purchased and the deal is closed. This may seem new to some or even odd but this particular idea makes sense as it deals with not just the satisfaction of a particular need at a particular time but it is also the anticipation of that may arise after the satisfaction of a particular need. In this case, the author is telling us that the best way to anticipate the needs, wants and ‘desires’ of the customer is to follow up. Unfortunately, the article recognizes that the idea of follow up is not much used and appreciated by some businesses as they are still working within the framework of once purchased is made, the dealing with the customer is done, as such, misses opportunities that may easily translate into profit. Thus, recognizing the power and benefit of connecting with the customer, the author proposes strategies/ or questions that can be used in order to beef up efforts for enterprises in keeping connection or contact with the customer. These are: first, ask what the customer’s next logical purchase is. After customers have made their purchase with you, what other services or products that, you can provide following their initial purchase from you. Second, ask yourself if you can automate your customer data. Then, utilize the information to contact the customer for possible other products that may suit his/her preferences or lifestyle. Third, know what other products your do customer wants or prefer. With this knowledge, you can easily eliminate products that are not suitable for your targeted clients and gives you more room to develop further what your customers really prefer. Finally, the feel good factor - customers who know and feel that they are being valued and considered as an integral part of the cycle of marketing and not just as the source of profit, then, customers feel happy. Knowing that they are important to you and that you consider their satisfaction of utmost importance is the best connection that you can establish with your customer. When customers feel that they are appreciated, then they will also show their appreciation to you. In addition, this is shown not just by continued patronage but also by sharing to others their experience with you – a free advertisement. In the end, following up is a marketing strategy that is full of potential and should be seen as one of the most viable options or tools that may be used as a means for success. The application In the article The fortune is in the follow up, the theory of connecting with the customer is brought into play and discussed. The theory of connecting with the customer highlights the central and one of the most important factor, if not the most important factor in marketing, customer relation. In the article, it is presented that customer relation does not end in the purchase or in the closing of the deal. It has presented that customer relation really begins the moment that the deal is done. It is the high time to establish a relation with the customer through following up. Via following up, you get to respond not just to one particular need of the customer but you may be able to address his/her other concerns. And is you are able to satisfy his/her further or other needs, then you have created an experience that the customer will surely return for and share with others. And all of these benefits can be attained simply by keeping connected with your customers via following up. Moreover, the article is not just a simple theory but that it has provided actual experience of the strategies that are utilized in order to connect with the customers via following up. The first strategy is know the next logical purchase of your customer. In the article, a center for writing offers Creative Writing 1. In anticipation for those who will be finishing or who have finished Creative Writing 1, they have also created a module whose topic deals with Creative Writing 2. The second strategy is try to automate your marketing. In the article, they encourage buying systems such as Business Catalysts or Interface which will enable to you know the preferences of your customer base on the initial purchase that she/he has with you. It will identify what kind of consumer your customer is. For example, your customer’s initial purchase is an eco-friendly cleaning commodity. Using the system, You can create an automatic response that will send an email to them after a certain period of time - let's say two weeks - which asks them whether they are finding the cleaning products useful and suggests another popular eco-friendly product that they might like to buy. With this system, you can also incorporate expiration dates of the products so that you can inform your consumer when they can make their next purchase. The third strategy is know what other products do your customers purchase. By using online surveys like Survey Monkey or you can ask them to fill out a survey form, which will take only a minute to do, then you will gain an idea on the other products that your customer buys. Finally, the feel good factor is that results from all of these efforts to keep in touch with your customers via following up. Customers deeply appreciate it if they feel that they are valued and appreciated. The theory The theory of connecting with the customer is basically keeping in touch with them, letting the customers know that they are important to you not only when you are convincing them to do the purchase but that they are the most important factor in the marketing process. This theory is a move away from the general and traditional sense of “the subject of marketing which is the ex-change of goods or services for other goods or ser-vices or for money” (Kotler & Zaltman, 1971; 4). It becomes an affirmation of the new paradigm of marketing which has revolutionised the field in the past 50 years – the recognition of the importance and catering to the preferences and satisfaction of the clients or customers, via “listening to consumers and taking care to understand their point of view" (Hastings & McDermott, 2006; 1210). Moreover, their importance is not only limited to being end users, but that they are the all important factor if an effective delivery of the product is to be attained (Donaldson et al, 2001). Moreover, this is all due to the fact, that the customer is central to firms as they shift from being product centered to customer- centered (Rust et al, 2004). Thus, connecting with the customer through follow up is recognizing that the heart of business and marketing is the customers themselves. Brand positioning for a better night’s sleep The summary The article Brand positioning for a better night’s sleep introduces us to the concept of building strong brands employing not just high quality products that satisfy the costumers but is also the slogans used by that will easily be remembered by their costumers or consumers. The article starts with an interview of the Senior Vice President of Hilton Hotel. He has been asked what is a brand. In a sense, what will distinguish a Hilton from a Sheraton, an Omni or a Ramada? And the answer that he has given is that a brand is defined “if we collectively give people an experience that says, yes, I’m proud of what it says about me to stay here, it makes me feel good; I’m in charge of my stay’(p 1). Although, the author seems to manifest dissatisfaction with the definition given by the senior vice president of company that spends $45 million for marketing, still can be said is that when people or costumers think of a particular brand it sticks into their mind. Since, it is how the people perceive the brand. That is why sometimes, the leader in the category becomes the referent of the object itself. For example, some people instead of calling toothpaste, toothpaste they call it Colgate or Crest. This point to the fact that some brands have become so strong in the mind of the people that even unconsciously they refer to the brand ehen in fact they are referring to the object. The article provided numerous examples of brands that basically enable it to be distinguished from the category where it belongs. For instance, Kleenex in tissue. Heinz in ketchup. Campbell’s in soup. Morton’s in salt. Arm & Hammer for ‘baking soda.’ Mentadent for ‘baking soda/peroxide.’ Sensodyne for ‘sensitive teeth.’ Rembrandt for ‘high-end’ toothpaste. Close Up, a second choice for ‘fresh breath.’ Ultra Brite for ‘whiter teeth.’ And Pepsodent for the older crowd who remember when it was one of the best-selling toothpaste brands. (p 2) In the same sense, when asked, What’s a Volvo? A safe car. What’s a BMW? A car that’s fun to drive. What’s a Barilla? Italy’s No. 1 pasta. (p3) And other numerous examples have been given by the author to highlight the fact that the created image of a brand in a particular category is something that is supposed to distinguish from other products in the same category and at the same time help the consumers to easily recall the brands name. As such, some brands have packaged their slogans in such a way that it becomes the effective packaging of the product itself. For example, BMW got a lot of favorable publicity for their legendary 2002 model, which combined the practicality of a family sedan with the drivability of a sports cars. They could have positioned the brand as a good ‘driving’ car, but they did not. Instead, they wrapped bacon around the ‘driving’ idea with the slogan, ‘The ultimate driving machine.’ When Federal Express decided to focus on their overnight business, they could have said, ‘The overnight delivery company,’ but they did not. Instead, they wrapped bacon around the ‘overnight’ idea with the slogan: ‘When it absolutely, positively has to be there overnight.’ De Beers could have said ‘The hardest substance on earth,’ but they did not. Instead they wrapped bacon around the ‘hardest substance’ idea with the slogan: ‘A diamond is forever.’ This again exemplifies how brands capitalize not only on the assured quality but also on the created image of the brand left in the minds of the people. Thus, brand positioning is simply not just “Value, loyalty, and quality’ (p 4). It is about differentiating, distinguishing the brand from other products within the same category. The application Brands go through a lifecycle (Brand positioning, 2009; Kay, 2006). Normally, the leading brand is the one that can offer innovation. Of course, unless your brand is the first brand in a new category, you cannot introduce a new brand by claiming leadership (Brand positioning, 2009). In the case of Hilton, Conrad Hilton opened his first hotel in Texas in 1919. A decade later, he had eight hotels, all in Texas. By the 1960s, Hilton was the best-known name in the hotel business. Now was the perfect time to answer the most important question in marketing, ‘What’s a Hilton?’ (Brand positioning, 2009). The article claims that 40 years after the nascent of Hilton and still they cannot speak of any word or symbol that encapsulates the image of Hilton. The particular theory behind this particular article is building strong brands. the whole concept behind this is that a brand is "brand, when used as a noun, can refer to a company name, a product name, or a unique identifier such as a logo or trademark. In a time before fences were used in ranching to keep one's cattle separate from other people's cattle, ranch owners branded, or marked, their cattle so they could later identify their herd as their own” (Dolak, nd:¶1). This traditional conception of brand has long changed into A brand is an identifiable entity that makes specific promises of value. In its simplest form, a brand is nothing more and nothing less than the promises of value you or your product make. These promises can be implied or explicitly stated, but none-the-less, value of some type is promised (Dolak, nd). Being such, powerful, long-lasting brands are built by owning a word in the mind (Brand positioning, 2009). It technically owns a word in mind and building strong brands anchor its success on the created image of the brand. What’s a Rolex? An expensive watch. What’s a Starbucks? An expensive cup of coffee. (Also known as Fourbucks.) What’s a Red Bull? An energy drink. ( Brand positioning, 2009) The theory Building strong brands is how the company is perceived by the consumers (Hemingway, 2002; Wood,2000). This maybe a term, or a design or symbol that will identify a company or service provider from other competitors within the same industry (Argenti & Druckenmiller, 2004). For example, The Body Shop, their mantra is feel good, naturally. Regardless of how this is interpreted, whether it pertains to their corporate image or to the personal feeling of the consumer who patronises The Body Shop, or to the ingredients of their products, what is important is that the image stays with the consumer and it can be one of the reasons for loyalty (Argenti & Druckenmiller, 2004). As such, This is important since, this is how consumers perceived the corporation. So if, the consumers have a negative perception of the company it will not be patronised. Whereas, a company that is true, consistent and honest with its corporate image is patronised. (Argenti & Druckenmiller, 2004; Hemingway, 2002). Here are just a few benefits you will enjoy when you create a strong brand: • A strong brand influences the buying decision and shapes the ownership experience. • Branding creates trust and an emotional attachment to your product or company. This attachment then causes your market to make decisions based, at least in part, upon emotion-- not necessarily just for logical or intellectual reasons. • A strong brand can command a premium price and maximize the number of units that can be sold at that premium. • Branding helps make purchasing decisions easier. In this way, branding delivers a very important benefit. In a commodity market where features and benefits are virtually indistinguishable, a strong brand will help your customers trust you and create a set of expectations about your products without even knowing the specifics of product features. • Branding will help you "fence off" your customers from the competition and protect your market share while building mind share. Once you have mind share, you customers will automatically think of you first when they think of your product category. • A brand is something that nobody can take away from you. • Brands also help people connect with one another. • A strong brand can make actual product features virtually insignificant. A solid branding strategy communicates a strong, consistent message about the value of your company. A strong brand helps you sell value and the intangibles that surround your products. • A strong brand signals that you want to build customer loyalty, not just sell product. A strong branding campaign will also signal that you are serious about marketing and that you intend to be around for a while. A brand impresses your firm's identity upon potential customers, not necessarily to capture an immediate sale but rather to build a lasting impression of you and your products. • Branding builds name recognition for your company or product. • A brand will help you articulate your company's values and explain why you are competing in your market._________ SOURCE: Dolak, nd REFERENCE: Argenti, P. A., & Druckenmiller, B. (2004). Reputation and the corporate brand, Corporate Reputation Review,Vol. 6, No 4, 368 – 374. Dolak, D. (nd). “Building a strong brand: Brands and branding basics”. Retrieved from www.brand-advice.com. Accessed on 8 January 2010. Donaldson, K.M., Ishii, K., & Sheppard, S.D. (2001). “customer value chain analysis”, Research in engineering Design, 16, 174 – 183. Hastings, G., & McDermott, L. (2006). Putting social marketing into practice, BMJ, 332, pp 1210 -1212. Hemingway, C.A. (2002). 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