What do we mean by the term ‘marketing’?
I suspect if I did a poll, there would be a scarily wide range of responses. So, let me repeat the definition I have evolved over 45 years, which would not be found in any textbook.
‘Marketing is the identification, development, protection and leveraging of competitive advantage that adds value’
This is different from the ‘purpose’ of marketing, which to my mind is to create the opportunity and motivation that, when conditions are right, will build relationships and create opportunities, that lead to transactions. That transaction might be a sale, a subscription, a vote, a referral; it can be many things, with the common element that it is an outcome of the so called marketing activity.
Let me use the metaphor of the expert gardener.
This gardener has a process by which he/she manages their gardens.
- They decide what it is they want, what the end product should look like, at least in general terms.
- They pick the ground they will cultivate.
- They prepare the ground in the manner appropriate for the outcome they have visualised.
- When conditions are right, they plant the seeds.
- They nurture the seeds and resultant seedlings until they are ready to harvest.
- They repeat the process, incorporating the things they learnt on the way through.
This process is the same for growing broadacre grain as it is for growing a few decorative flowers in the back yard. As it is for marketing. The process is the same whether the product is a tub of yoghurt or a power station, a national effort, or a local one. Only the scale of the investment, implementation details, and time frame differ. Try to take a shortcut, and you end up with dead flowers, or at best, substandard ones.
So how does that rather vague stuff translate into your world of marketing the products and services of your SME?
When I first encountered ‘Marketing’ at University, 50 years ago, the core of it was ‘The 4 P’s of marketing’. Product, Price, Place, Promotion. Everything sprang from those 4 elements. A lot of water has passed under the bridge since then, and the expressions used may have changed a bit, the processes of achieving them changed radically, but the core remains.
The architecture of the 4 p’s of marketing are a bit like the Model T Ford. It redefined the notion of the car, and how to manufacture it. Over time, the expression of the car has changed enormously, but the basic architecture remains.
However, to me it makes sense to see ‘marketing’ from the perspective of the customer, and to do so, we need to answer a few simple questions:
- What is the problem my customer has that I can solve with my product/service? This will answer the further question of why should my customer do business with me and not my opposition, which is all about the value you can create while being differentiated from the competition. You need to define it from the perspective of the customer. The costs, of all types, created by the problem, and the benefit to them of a solution.
- Who is my ideal customer? Your ideal customer will see your differentiated value proposition, as being made for them. This takes focus and always hard choices about who you will service, and who you will not; it is the customer Pareto at work. If you have defined both the problem and the ideal customer, i.e. the one who has more of the problem, or feels it more acutely than most, when they see your value proposition, their instinctive response is ‘at last, this is for me’, or something similar.
- How do I apply leverage to my marketing investment? It is at this point you are considering which messages, delivered to who, via what media, and how do you do that while getting the biggest bang for your buck possible. It is where the marketing rubber hits the road.
- How do I make a profit? Profit is a simple equation: revenue minus cost.
Still the same four items, or ‘P’s, it is only the articulation and perspective that has changed. The primacy of the ‘p’s remains.
The common denominators in each of the four, required for success, are choice and iteration. You must make often very difficult choices, implement, learn from that experience, and apply the learning for the next iteration. This need to make choices, and enable the manner in which you deploy your modest marketing resources to evolve based on the experience, is perhaps the largest marketing hurdle for every SME I have ever seen. Many SME owners have had a bad experience with marketing snake oil, and are reluctant to try again, and others who have hit on something that seems to work are reluctant to change anything, so you get a lack of optimisation, not as much leverage as you could.
As you consider your marketing, given the small scale of business, and budgets available, do not let your thinking be dominated by the mass models of the past. These are simply not appropriate for you. Way more appropriate are small, niche models, an artisanal approach. Why? We have become sceptical, untrusting, demand to know the real provenance, and only rely on those we know personally, and trust because they have earned that trust.
The original social media, word of mouth, subsumed by digital for the past 15 years is making itself heard again. Therefore it follows that you, the business owner, need to be seen and heard, tell your story, use the digital tools, but be personal and human. However, this does not mean you should turn your back on digital, by any means. The data and tools we have now could not have even been imagined 15 years ago, let alone 50 years ago. The practise of marketing has changed radically, the foundations remain the same, just way more exposed and subject to interrogation and automation than they were, and you have to be in there just to keep up.
As Einstein said, ‘Everything should be as simple as possible, no simpler’. What could be simpler than providing a great product and service that solves a problem, and having those problem liberated people tell their friends, and most particularly those with a similar problem? That is how to market at the grass roots.
