Price is real but its perception is subjective. If marketers understand how customers interpret the price; they will keep their prices more firm and less negotiable.
In no other city in India can you rely on public taxi service as you can in Mumbai. You get a taxi within minutes; on most streets. You dont ask the cabbie how much he will charge before getting into it. You do not need to haggle when you get down - you only need see the meter. You don’t feel ripped off. May be that is why the market for cab-travel is more developed in Mumbai.
When the customers feel that the pricing in a market is fair and well-managed, customers tend to come oftener to such markets. When you want to develop a product category, it helps if the price is standardised.
Many markets remain undeveloped precisely due to this reason. Take the example of toy market. I was the CEO of a toy company called Funskool once; and I remember discussing pricing practices with my Marketing Head Raghavan Shrinivasan and my Sales Head Ashok Samant. The prices fluctuate so much between different stores for the same toy that this uncertainty drives the customers away from the market and they land up buying some other gift! The funny thing is that a toy customer generally feels she is charged unreasonably even if a dealer has given her a genuinely low price. No wonder the Indian toy market has remained underdeveloped.
Is a fixed price better than a price open for negotiation? I say, yes. In the TV market, a few years ago, almost no one quoted the best price upfront. They got “quotations” from different dealers and played one dealer against another. In those days, the dealers did not display their real rates, but only official ones, on the models. When the customer came in, they “sized up” the customer and accordingly played the game. Soon, the dealers realised that when the customer walked out to get another quote, she may never came back. So, many dealers have now changed their tactics and are giving their “best quote” upfront. Slowly, these new pricing tactics are sinking into the collective psyche of the customers and they are responding positively. The Francis Kanoi research showed that people are visiting less number of shops now compared to before - confidence in the product category is increasing.
In fact, laments from the sales people notwithstanding, I firmly believe that when the category is growing, one should generally not play the price card. When the category is growing, the product, it’s utility, and benefit to the customer must become the Centre of marketing attention. That is why in Eureka Forbes, where I headed marketing, we never ever gave any price discount. Any negotiability in price at the selling point distracts from the value of the product - and the sales conversation centres around the price - instead of the value.
For Direct marketing firms it is important to keep the prices steady because many of them sell "concept products" which have not been accepted by the masses yet. Such products can be sold only if the sales dialogue focuses on the product and its value and not on price.
Even if you are selling through a channel / network price clarity is equally important. There are dozens of examples among the FMCG crowd where giving more discounts to the trade only increases the price undercutting. This reduces the confidence of the dealers who start wondering whether the company or the wholesaler is the right source to buy from because the wholesaler’s price is better than the company’s prices. This reduces the hold of the sales force over the market. The sale of slow moving products suffers. The display and merchandising suffers. The relationship suffers.
I have noticed that firms which are trying to become more brand-oriented (as distinct from sales-oriented), find it difficult to tell their sales departments that they should reduce the schemes and discounts. It is not only a question of money but also of customer confidence. The more the price fluctuation, less the brand confidence.
What do you think? Comments, agreements, brickbats, views are welcome.
Sep 26, 2009
Sep 24, 2009
Excuse me, your brief is showing !
What can the clients do to get the advertising that works? They must understand their own customers well & share this knowledge with their agency. They also must resist the temptation to try to do the agency's job.
What can clients do to get better and more effective advertising from their ad agency? They must give their ad agency an advantage of their own area of expertise by giving a proper brief in the first place. Then they must insist that the agency builds on this brief by using its own area of expertise. Simple and obvious.
I remember Glaxo releasing an ad, several years ago, in the Sunday supplement of The Times Of India Mumbai. The headline was “Too tired to lift even lift a finger? It could be diabetes.” I dare say this ad did not take into account two imporant factors. First, the people who are potentially interested in diabetes, like me, are likely to be above 40 and the copy of the ad was set in such a small typeface that they would surely lose interest before reaching the final “action line” inviting people to ask for a free booklet on diabetes. Secondly, it overlooked that on a Sunday morning, a typical target customer may prefer to talk to someone on the phone than reaching for a pen to ask for a booklet. Are these minor aspects you say ? I do not think so. These two insights about the customers, if shared and applied, would have resulted in more impact and more demand for the booklet. All that was needed was an increase in the font size, and putting in a phone number. And, of course, someone to be there to take down the names and addresses of the callers on a Sunday morning.
It is a myth that only the ad agency is responsible for good advertising. The client also makes a major contribution through his own area of expertise - his superior knowledge about his own customers and how his business revolves around these customers. A client’s deep knowledge about his customers’ frame of mind, lifestyle, behavior etc enables him to get better advertising. Although many clients say they advertise to increase sales, very few can actually brief their agencies about their model of how their advertising is supposed to work on the mind of the customer and how it is likely to lead to more sales.
For example, for an FMCG product like a Cadbury’s chocolate, which I handled once upon a time as Product Manager, it is possible for a sale to be “completed” through an ad - the customer can choose the product he wants to buy based on an advertising exposure. For such a low-ticket product, the customer behavior is impulsive and all that remains to convert the awareness into sale is visiting a retailer. On the other hand, for a high-ticket durable like an Onida TV, where I was heading marketing, sales and service functions, the product sale could not be “completed” in a similar fashion. Francis Kanoi Research showed that a person visits retailers at least 3.2 times before final purchase happens. In such a case the role of advertising is not to sell the product itself but to sell the idea of visiting the showroom and it is the dealer who would consummate the sale after demonstration and question answer session.
It is due to these fundamentally different behaviors of the customers in different markets that the role of advertising is different for different companies and industries. Ever wondered why FMCG firms are into product branding whereas durable firms are into corporate branding? The answer is that FMCG firms aim to sell the product whereas the durable firms aim to pull the customer to their showroom. The showrooms are always under corporate name.
The root of successful advertising is really into the customer psychology in each market. A long time ago I remember going through the market survey findings of Anacin; to discover a remarkable feature. For such products where people seek “relief” from an unpleasant situation , the customers’ expectations are expressed in very brief and simplistic language. The customers cannot generally talk more than 2-3 sentences about “what they expect from an ideal product”; and that too grudgingly. On the other hand, for “shopping” products - say Alan Solly shirt - they would happily and spontaneously talk for several minutes.
Such observations from the client give a sound navigation for the agency to follow. The advertising for Anacin has to be quick, should have less copy, but will need more frequency to reach such a “reluctant” audience. On the other hand, the shirt advertising needs to be an indulgent showcase. People need to savor the good looks, interesting texture; at a leisurely pace. This insight automatically suggests that shirt advertising should have press ads, color, good pictures and interesting copy. Instead of incorporating such fundamental insights in their briefs, the clients’ normally second-guess the agency and tell them how to do their job : creation of advertising.
In my 34 years of industry life, I have seen many briefing situations where the client assembles product samples, a list created by R&D of various product features, articles that appeared in new papers and industry magazines to support his point of view, a tome about the magic ingredient XYZ. And, without fail, loads of ideas on the which model, storyboard plots, clever lines etc that the client has conjured himself and would love to see in his advertising.
A long time ago I was a witness to a two hour briefing session in Delhi for a company making a milk additive powder for children's nutrition. Except for the first few minutes spent in looking at the products and related facts; the entire time was spent by the client animatedly briefing about various headlines, shots, angles, models etc. Finally, the agency asked " who the advertising was aimed at" and the client was shocked. His product manager had clearly included one line: “Target audience : all women having school going children”. Wasn’t that sufficient?
The agency persisted that such boiler-plate description was insufficient and they wanted in-depth appreciation of what kind of a frame of mind the customer was in. Finally, the client seemed to understand and said "we will send it later". Next day an office peon came to the agency carrying a large suitcase of startegy files, tour reports, market research reports, ORG reports, guard-books, clippings, annual target sheet and also a file on consumer complaints. The covering note said “Kindly do the needful". This happened twenty years ago and over the years I have noticed that the brand kept declining and is not even seen these days. However, during this slow death, three agencies were judged by the client as incapable and terminated.
When the chief strategist himself does not know who his customer is, I wonder how he can ever recognize a good ad from a bad one? In spite of the 1001 rules about what makes good advertising, there is only one that has withstood the test of time. Just as beauty is in the eyes of the beholder, the power of the ad is in the eyes of its target customer!
So, what do you think? Comments, applause, brickbats, viewpoints are welcome.
What can clients do to get better and more effective advertising from their ad agency? They must give their ad agency an advantage of their own area of expertise by giving a proper brief in the first place. Then they must insist that the agency builds on this brief by using its own area of expertise. Simple and obvious.
- Clients should be experts in the area of knowing the market and their business. They should know and share with their agency - who their customers are, what these customers desire, and what needs to be done - and said - to attract the customers.
- Clients should then leave the agency to use its own areas of expertise - knowing how to communicate to various types of customers and through what media.
I remember Glaxo releasing an ad, several years ago, in the Sunday supplement of The Times Of India Mumbai. The headline was “Too tired to lift even lift a finger? It could be diabetes.” I dare say this ad did not take into account two imporant factors. First, the people who are potentially interested in diabetes, like me, are likely to be above 40 and the copy of the ad was set in such a small typeface that they would surely lose interest before reaching the final “action line” inviting people to ask for a free booklet on diabetes. Secondly, it overlooked that on a Sunday morning, a typical target customer may prefer to talk to someone on the phone than reaching for a pen to ask for a booklet. Are these minor aspects you say ? I do not think so. These two insights about the customers, if shared and applied, would have resulted in more impact and more demand for the booklet. All that was needed was an increase in the font size, and putting in a phone number. And, of course, someone to be there to take down the names and addresses of the callers on a Sunday morning.
It is a myth that only the ad agency is responsible for good advertising. The client also makes a major contribution through his own area of expertise - his superior knowledge about his own customers and how his business revolves around these customers. A client’s deep knowledge about his customers’ frame of mind, lifestyle, behavior etc enables him to get better advertising. Although many clients say they advertise to increase sales, very few can actually brief their agencies about their model of how their advertising is supposed to work on the mind of the customer and how it is likely to lead to more sales.
For example, for an FMCG product like a Cadbury’s chocolate, which I handled once upon a time as Product Manager, it is possible for a sale to be “completed” through an ad - the customer can choose the product he wants to buy based on an advertising exposure. For such a low-ticket product, the customer behavior is impulsive and all that remains to convert the awareness into sale is visiting a retailer. On the other hand, for a high-ticket durable like an Onida TV, where I was heading marketing, sales and service functions, the product sale could not be “completed” in a similar fashion. Francis Kanoi Research showed that a person visits retailers at least 3.2 times before final purchase happens. In such a case the role of advertising is not to sell the product itself but to sell the idea of visiting the showroom and it is the dealer who would consummate the sale after demonstration and question answer session.
It is due to these fundamentally different behaviors of the customers in different markets that the role of advertising is different for different companies and industries. Ever wondered why FMCG firms are into product branding whereas durable firms are into corporate branding? The answer is that FMCG firms aim to sell the product whereas the durable firms aim to pull the customer to their showroom. The showrooms are always under corporate name.
The root of successful advertising is really into the customer psychology in each market. A long time ago I remember going through the market survey findings of Anacin; to discover a remarkable feature. For such products where people seek “relief” from an unpleasant situation , the customers’ expectations are expressed in very brief and simplistic language. The customers cannot generally talk more than 2-3 sentences about “what they expect from an ideal product”; and that too grudgingly. On the other hand, for “shopping” products - say Alan Solly shirt - they would happily and spontaneously talk for several minutes.
Such observations from the client give a sound navigation for the agency to follow. The advertising for Anacin has to be quick, should have less copy, but will need more frequency to reach such a “reluctant” audience. On the other hand, the shirt advertising needs to be an indulgent showcase. People need to savor the good looks, interesting texture; at a leisurely pace. This insight automatically suggests that shirt advertising should have press ads, color, good pictures and interesting copy. Instead of incorporating such fundamental insights in their briefs, the clients’ normally second-guess the agency and tell them how to do their job : creation of advertising.
In my 34 years of industry life, I have seen many briefing situations where the client assembles product samples, a list created by R&D of various product features, articles that appeared in new papers and industry magazines to support his point of view, a tome about the magic ingredient XYZ. And, without fail, loads of ideas on the which model, storyboard plots, clever lines etc that the client has conjured himself and would love to see in his advertising.
A long time ago I was a witness to a two hour briefing session in Delhi for a company making a milk additive powder for children's nutrition. Except for the first few minutes spent in looking at the products and related facts; the entire time was spent by the client animatedly briefing about various headlines, shots, angles, models etc. Finally, the agency asked " who the advertising was aimed at" and the client was shocked. His product manager had clearly included one line: “Target audience : all women having school going children”. Wasn’t that sufficient?
The agency persisted that such boiler-plate description was insufficient and they wanted in-depth appreciation of what kind of a frame of mind the customer was in. Finally, the client seemed to understand and said "we will send it later". Next day an office peon came to the agency carrying a large suitcase of startegy files, tour reports, market research reports, ORG reports, guard-books, clippings, annual target sheet and also a file on consumer complaints. The covering note said “Kindly do the needful". This happened twenty years ago and over the years I have noticed that the brand kept declining and is not even seen these days. However, during this slow death, three agencies were judged by the client as incapable and terminated.
When the chief strategist himself does not know who his customer is, I wonder how he can ever recognize a good ad from a bad one? In spite of the 1001 rules about what makes good advertising, there is only one that has withstood the test of time. Just as beauty is in the eyes of the beholder, the power of the ad is in the eyes of its target customer!
So, what do you think? Comments, applause, brickbats, viewpoints are welcome.
Sep 23, 2009
Strategy makes it possible. People Make it work.
The strategists set the direction using logical and cerebral methods but what makes it work is the energy, hearts and aspirations of the people in the organization. A mere textbook strategy does not work well.
It is so easy to forget that a strategy works not only because it is logical but also because it captures the hearts of the people who make it work. The wellspring of our actions is frequently in our hearts and not in our heads. You may have experienced - sometime in your life - the feelings felt by those 17 athletes who broke the record of running four minutes a mile in 1954. Roger Bannister was the first in the world to break the four minute barrier (for a mile) - a feat that was claimed to be "impossible" by experts. And then, within a few days, 17 people all over the world broke the same record! Yes !! What prevented those 17 people to do the same just two weeks earlier? It was the mindset!
All of us act based on our mindsets. There are some plans which "leap out" at us as being possible. There are some others which we think are not possible. Then it becomes a self fulfilling prophesy. Somebody rightly said that “if you can see it, you can believe it. If you can believe it, you can become it”. For a strategy to become successful, it should be backed not only by a sound marketing head but an energetic and committed heart as well.
In 1991 the mosquito repellent mat market was an annual 150,000 cases. At Balsara, where I headed marketing and sales then, we had just introduced Odomos mats and had kept a very safe and conservative target of 4000 cases for the whole nation for the whole year and it worked out to be only 1000 cases every quarter. I remember finding myself in the first quarter review meeting and wondering, along with our Sales Head Daulat and Product Manager Geeta Sethi, why we could not achieve even such a paltry target in spite of our national distribution and Odomos being an establsihed brand.
As usual, the culprit appeared to be the strategy. It is a time honored tradition in the industry to blame the strategy when the targets are not met. I heard the usual ones - the product is not up-to the mark, sales returns, poor word of mouth, price too high, less advertising, aggressive competition etc. But such logical discussions frequently go nowhere. We were stuck in the meeting.
That is when I tried a different approach. I said to the group that - if any of the four regional managers came forward and voluntarily took an “astronomical” target of 10000 cases for just one region - I would go all out and "do anything" to support him. The least expected regional manager - Manian from south - came forward hesitatingly and said he would try and do 8000 cases in his region in the remaining three quarters. All that he asked was 2% scheme for a few months as an "extra". It turned out to be far less than I had feared he would ask for. I sanctioned it on the spot.
Believe it or not, by year end he had done 6000 cases - when all other three regions - togther - struggled to do 2000 cases. The effect of this unusual and unexpected achievement was electric in the annual conference. Manian became our Roger Bannister and lit the way for the rest to follow. Within an year we had crossed 25000 cases in 1992. There was a new optimism about this product in the sales force. Geeta Sethi was ecstatic and wrote in her annual plan how the "test market” in South India was successful and provided us with a "new successful strategy" for growth.
But, from my perspective, facts were different. 2% scheme was not a strategy at all because we could have done it at any time for any region. Did 2% produce the results? No. It was Manian's devotion and commitment to the strategy!! I am clear we could not have produced results and discovered how good our strategy really was - had it not been for him! We created the torch but he lit it and went around showing the light to all of us.
All that I can say is that, for any given strategy, if I had the option of fielding my strategy in Market 1 where the analysis suggests there is maximum potential - and in Market 2 where the team is very keen on implementing the strategy - I would not let the analysis eclipse the heart and I will choose Market 2 first. Because then the team in Market 2 would “Bannister” my strategy and hopefully other teams would take their cue from this winning team and make us succeed nationally.
It is so easy to forget that a strategy works not only because it is logical but also because it captures the hearts of the people who make it work. The wellspring of our actions is frequently in our hearts and not in our heads. You may have experienced - sometime in your life - the feelings felt by those 17 athletes who broke the record of running four minutes a mile in 1954. Roger Bannister was the first in the world to break the four minute barrier (for a mile) - a feat that was claimed to be "impossible" by experts. And then, within a few days, 17 people all over the world broke the same record! Yes !! What prevented those 17 people to do the same just two weeks earlier? It was the mindset!
All of us act based on our mindsets. There are some plans which "leap out" at us as being possible. There are some others which we think are not possible. Then it becomes a self fulfilling prophesy. Somebody rightly said that “if you can see it, you can believe it. If you can believe it, you can become it”. For a strategy to become successful, it should be backed not only by a sound marketing head but an energetic and committed heart as well.
In 1991 the mosquito repellent mat market was an annual 150,000 cases. At Balsara, where I headed marketing and sales then, we had just introduced Odomos mats and had kept a very safe and conservative target of 4000 cases for the whole nation for the whole year and it worked out to be only 1000 cases every quarter. I remember finding myself in the first quarter review meeting and wondering, along with our Sales Head Daulat and Product Manager Geeta Sethi, why we could not achieve even such a paltry target in spite of our national distribution and Odomos being an establsihed brand.
As usual, the culprit appeared to be the strategy. It is a time honored tradition in the industry to blame the strategy when the targets are not met. I heard the usual ones - the product is not up-to the mark, sales returns, poor word of mouth, price too high, less advertising, aggressive competition etc. But such logical discussions frequently go nowhere. We were stuck in the meeting.
That is when I tried a different approach. I said to the group that - if any of the four regional managers came forward and voluntarily took an “astronomical” target of 10000 cases for just one region - I would go all out and "do anything" to support him. The least expected regional manager - Manian from south - came forward hesitatingly and said he would try and do 8000 cases in his region in the remaining three quarters. All that he asked was 2% scheme for a few months as an "extra". It turned out to be far less than I had feared he would ask for. I sanctioned it on the spot.
Believe it or not, by year end he had done 6000 cases - when all other three regions - togther - struggled to do 2000 cases. The effect of this unusual and unexpected achievement was electric in the annual conference. Manian became our Roger Bannister and lit the way for the rest to follow. Within an year we had crossed 25000 cases in 1992. There was a new optimism about this product in the sales force. Geeta Sethi was ecstatic and wrote in her annual plan how the "test market” in South India was successful and provided us with a "new successful strategy" for growth.
But, from my perspective, facts were different. 2% scheme was not a strategy at all because we could have done it at any time for any region. Did 2% produce the results? No. It was Manian's devotion and commitment to the strategy!! I am clear we could not have produced results and discovered how good our strategy really was - had it not been for him! We created the torch but he lit it and went around showing the light to all of us.
All that I can say is that, for any given strategy, if I had the option of fielding my strategy in Market 1 where the analysis suggests there is maximum potential - and in Market 2 where the team is very keen on implementing the strategy - I would not let the analysis eclipse the heart and I will choose Market 2 first. Because then the team in Market 2 would “Bannister” my strategy and hopefully other teams would take their cue from this winning team and make us succeed nationally.
Sep 20, 2009
Advertising is only the tip; look at the whole iceberg!
How important is it for the CEO to get involved in what are the sales messages going out of the company? Is it only a marketing matter or a corporate matter? How does it help the CEO to run the company?
A friend of mine was trying to create a press ad to be released in the Times of India for his office-use products. Since his company was medium sized, the press ad would have burnt a hole in his pocket and he was keen to have my advice on the ad.
When I entered his office, my friend, his wife and some of his managers were seated around the table. A smart client servicing executive and a creative person from the ad agency were also there. The discussion centred around which layout, which headline and which model was good. My freind hoped I will be helpful in coming up with the right layout, right headline etc.
I said I would like to know a little more about the market before I gave an opinion on these matters. I asked who, around the table, had gone out and met a potential customer during the last 6 months for the purpose of selling the products. I was surprised to find that no one had done that !
That stopped me in my tracks because I wanted to ask relevant questions like
I give a lot of importance to what the business tells its salesmen / ad agencies to say to their customers - either verbally or in print. Many would think it is best to leave these matters to the advertising or marketing executives and the agencies. I differ. I feel even the CEO should sit in on these meetings once in a while to know how the company is coming across to its customers.
It is indeed a matter of grave concern when your company cannot tell your salesmen or your ad agencies what they should say to your potential customers. When you do not know what to tell your customers to convince them to buy your products, your customers begin telling you that they will buy your products only if the price is right - and that is the starting point of decline in margins.
It is a serious matter : if you are not profitably priced, your ability to invest in new products and new capabilities - as well as in repairing and renewing your existing business - comes under pressure. And, although I have raised this issue in the context of selling and advertising, this is only the tip of the iceberg ! The real issue is far deeper.
How will you know what features to put in your products and hence what kind of equipment and factory you should have? How will you know what kind of service is needed and hence what kind of service network to have? How will you know what kind of people you need to hire and what kind of training and objectives to give them? In fact, you may not know how to run any part of the business unless you are clear about what kind of customers you want to serve and how.
This is where the Positioning comes in. But I will talk about it in some other blog.
A friend of mine was trying to create a press ad to be released in the Times of India for his office-use products. Since his company was medium sized, the press ad would have burnt a hole in his pocket and he was keen to have my advice on the ad.
When I entered his office, my friend, his wife and some of his managers were seated around the table. A smart client servicing executive and a creative person from the ad agency were also there. The discussion centred around which layout, which headline and which model was good. My freind hoped I will be helpful in coming up with the right layout, right headline etc.
I said I would like to know a little more about the market before I gave an opinion on these matters. I asked who, around the table, had gone out and met a potential customer during the last 6 months for the purpose of selling the products. I was surprised to find that no one had done that !
That stopped me in my tracks because I wanted to ask relevant questions like
- what are the top 3 concerns and pain points of his customers?
- what features in his products will make his customers feel they made the right choice?
- what would make his customers feel they made a better choice buying my friend’s products than of his competitors?
I give a lot of importance to what the business tells its salesmen / ad agencies to say to their customers - either verbally or in print. Many would think it is best to leave these matters to the advertising or marketing executives and the agencies. I differ. I feel even the CEO should sit in on these meetings once in a while to know how the company is coming across to its customers.
It is indeed a matter of grave concern when your company cannot tell your salesmen or your ad agencies what they should say to your potential customers. When you do not know what to tell your customers to convince them to buy your products, your customers begin telling you that they will buy your products only if the price is right - and that is the starting point of decline in margins.
It is a serious matter : if you are not profitably priced, your ability to invest in new products and new capabilities - as well as in repairing and renewing your existing business - comes under pressure. And, although I have raised this issue in the context of selling and advertising, this is only the tip of the iceberg ! The real issue is far deeper.
How will you know what features to put in your products and hence what kind of equipment and factory you should have? How will you know what kind of service is needed and hence what kind of service network to have? How will you know what kind of people you need to hire and what kind of training and objectives to give them? In fact, you may not know how to run any part of the business unless you are clear about what kind of customers you want to serve and how.
This is where the Positioning comes in. But I will talk about it in some other blog.
Business Development Advice For Start Ups !
Small start-ups should not use the marketing styles used by large and profit making companies. Instead, they must use their advantage.
Presenting your offer to potential customers is important in any business – big or small . Marketing is therefore very important in any business.
However I see many start up firms spending far too much money and time on what they see around them – fancy stationery, sleek brochures, good looking web sites, glitzy booths at tradeshows, buying listing space in target industry directories and sometimes even advertising. They do not realize that these activities are undertaken by businesses where owners are making enough sales and profits already to hire a separate marketing department - or an ad agency - to focus on these activities which improve their visibility, create awareness and attract customers. But the case of start ups is different - and in a positive way.
They are the main (sometimes the only) resource of their businesses and when they go out there and begin talking to their potential customers, their infectious energy and sense of purpose rubs off on their customers. Nothing can ever substitute the power of person to person conversation.
If you are the kind of business I am talking about, you should not come from the viewpoint that you are stooping down to sell. You should speak from the conviction in your value proposition. Speak from the sense that you are serving your customers in a unique way which they have not been served before. Speak like a doctor and uncover the goals and challenges of your clients and tell them how what you are offering; helps. Communicate what your product will do for them.
Before you talk to your customer write down on a card the following (1) your value proposition (2) in what way you will serve them the way they have never been served before (3) what challenges and problems of your customers you will address (4) what success, in their own language, they will get when they deal with you.
Now go out and locate customers. Do not be discouraged if everyone does not buy. Take that as an opportunity to learn in each contact and then use to improve yourself and your activities. You will make progress faster in this way than through traditional marketing of media and materials.
Presenting your offer to potential customers is important in any business – big or small . Marketing is therefore very important in any business.
However I see many start up firms spending far too much money and time on what they see around them – fancy stationery, sleek brochures, good looking web sites, glitzy booths at tradeshows, buying listing space in target industry directories and sometimes even advertising. They do not realize that these activities are undertaken by businesses where owners are making enough sales and profits already to hire a separate marketing department - or an ad agency - to focus on these activities which improve their visibility, create awareness and attract customers. But the case of start ups is different - and in a positive way.
They are the main (sometimes the only) resource of their businesses and when they go out there and begin talking to their potential customers, their infectious energy and sense of purpose rubs off on their customers. Nothing can ever substitute the power of person to person conversation.
If you are the kind of business I am talking about, you should not come from the viewpoint that you are stooping down to sell. You should speak from the conviction in your value proposition. Speak from the sense that you are serving your customers in a unique way which they have not been served before. Speak like a doctor and uncover the goals and challenges of your clients and tell them how what you are offering; helps. Communicate what your product will do for them.
Before you talk to your customer write down on a card the following (1) your value proposition (2) in what way you will serve them the way they have never been served before (3) what challenges and problems of your customers you will address (4) what success, in their own language, they will get when they deal with you.
Now go out and locate customers. Do not be discouraged if everyone does not buy. Take that as an opportunity to learn in each contact and then use to improve yourself and your activities. You will make progress faster in this way than through traditional marketing of media and materials.
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