Here is an introduction to marketing. Its sole purpose is to help newcomers to orientate their thinking and understand some fundamentals of marketing. Sure, at its most basic, maketing helps people to find your product or service and encourages them to buy. But how do you achieve this successfully?
In marketing we attempt have two simple objectives:
- Creating and increasing exposure
- Creating and increasing value
Marketing objective 1: Exposure (Create and increase it)
Creating and increasing exposure (or awareness) is probably what you normally think about when you think of marketing. Basically here we are talking about using varios forms of advertising and promotion to reach more people (specifically your target market, i.e. those most likely to be interested and also most likely to purchase).
There are three golden rules to increasing exposure:
a) Get as TARGETED as possible.
Know your customer. Not just someone who may be interested in the goods or service, the people who are most likely to make a purchase. The ones to which the benefits of your product/service are most relevant. They are called your Target market. Think about what you are selling and to which group of people it would hold the greatest value (see value below).
b) Get as MUCH exposure as possible.
Reach as many of your target market as possible. One of the ways to do this is to make sure you advertising budget is spent on spreading you message using a medium which most aptly reaches your target market. i.e If your target Market is over 65 year olds you might want to spend less on an internet campaign and more on print media. Also increasingly important in this world of social sharing (Facebook, Twitter, Pinterest etc) is to engage and relate to your customers. If you can make your marketing interesting enough people will share it on social networking sites giving you extra coverage for free.
c) Control your costs.
Every dollar you don't waste on one piece of marketing becomes either profit or more money to spend on different kinds of marketing. Because Marketing is a cost of the sale, the less you spend on Marketing the higher the profitmargin. Keep in mind that profit is the reason we are marketing a product/service in the first place. Also, don't get this confused with "spend as little as possible on marketing" because you might miss out on potential sales if you spend too little. Instead, make sure you don't pass the point of diminishing returns, where more money spent will have little additional effect on sales above that which you are already achieving.
In marketing we commonly use a metric called "Return on Investment" (R.O.I.). There are more complicated (and therefor more accurate) ways of working this out, but it is basically the amount of gross profit made through sales, divided by the amount spent on marketing. It shows how effectual the campaign was. You should strive for highly effectual campaigns which generate maximum sales for as little cost as possible (i.e. a high ROI).
Identify your target market and concentrate your efforts on putting your message in front of as many of them as you can without wasting money. Make sure you information is engaging and interesting as possible to take advantage of today's social networking tools to garner free exposure. Maximise your R.O.I.
- Next >>