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| PREVENT
tHE SPIRAL oF MARKETING FAILURE |
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If you believe statistics, between 50-80% of all business failures
are directly attributed to lack of marketing or inappropriate marketing
initiatives.
The three most common questions we are asked are:
- What are the benefits of marketing?
The benefits of marketing have been well documented in past tips.
- How much should we spend on marketing?
The answer to the next question is about 10% on either internal,
external marketing or a combination of both.
- What steps can we take to prevent
marketing failure?
To prevent marketing FAILURE, it is essential to take the following
steps.
FUNDAMENTAL
features of products or services form the basis of all business
success. When a business diversifies and offers a large product
range, the result may be an ill fit in the product mix. The ill-fitting
products are often financed by high value adding products. Unless
the products have significant spillover benefits to products with
a high profit margin, it is prudent to eliminate them. It has been
estimated that the intrinsic marketability or market attractiveness
of products is about 60% important in the marketing success of your
business.
ACTION plans to implement
marketing initiatives need to increase turnover as well as change
customer awareness. There is a close relationship between creating
a high reputation and increasing turnover growth. In service industries
the quality of providers and the method of delivery can be used
to create competitive advantages.
INVESTMENT in marketing
needs to increase turnover in the long term. As there is a flood
of communication material out there it may take 8-12 months for
the effects of a well balanced and well operated marketing plan
to increase the bottom line.
LEADERSHIP in customer
services, unique products/services, new ideas, market reputation
and specialised knowledge are essential to market success. Firms
that are seen by the customers as being the same - the "me-too"
firms are rarely successful in the long term.
UNIQUENESS of services
or products is critical to market success. Customers use trial and
error methods to select businesses that appear to be the "same"
but they flock to firms that are seen to be different and unique.
RESEARCHING the market
is a critical success factor for companies that plan to survive
for a long time. Success orientated companies need to spend 1-2%
per cent of turnover on researching the following aspects:
- Customer need and perceptions
- Prospective customers
- Competitors new products or services
- Staff training needs
- Competitive pricing
- Perceptions
- Image
- Customer service
ENVIRONMENTAL factors
conducive to marketing need to be created within the organisation
as well as in external marketing. By developing effective marketing
systems business increases the odds towards marketing success. Three
essential marketing systems that need to be developed:
- Tracking source of inquiries
- Recording lost sales
- Recording customer complaints
Maria Charlton B Com MBA AFAMI CPM
Managing Director - MAP Marketing
+61 2 4929 7766
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