Marketing for Professionals

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MM-boy-custom

Several years ago, I was riding the Metro subway in Washington, DC and got off at the end of the line.  The location was in a depressed area, and few businesses were there for commuters.  As I waited for my ride, I saw these two boys carrying a huge box of M&Ms in hopes of selling to weary commuters.

I found it amusing that these young men were hustling in such a manner. Yet, this spoke to the spirit of entrepreneurs.  The boys found an unmet need in the market.  Yes, with no stores located in the immediate area, these young men sold a lot of M&Ms to hungry commuters.

With increasing competition abroad, today’s professionals cannot afford to be ignorant in understanding business practices such as marketing.  The problem is that marketing is not second nature for all business professionals.

Sadly, most business owners do not have the time to take a long, drawn-out college course, while others want a simple process for understanding the basic concepts until they can take more formalized courses.  In fact, when you do not have a lot of money to spend on advertising your product, you have to be smarter and more creative in order to stay ahead of the competition. 

Marketing is the cornerstone of understanding today’s economic changes. Philip Kotler and Kevin Keller, authors of Marketing Management, argue the important of understanding marketing concepts for today’s professionals: “The first decade of the 21st century challenged firms to prosper financially and even survive in the face of an unforgiving economic environment.  Marketing is playing a key role in addressing those challenges…Thus financial success often depends on marketing abilities.”

Consequently, marketing gives individuals the ability to understand how to locate these opportunities and what to do with them when you find them.  According to the American Marketing Association, marketing can be defined as an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers. However, the simplest definition is that marketing is about understanding and satisfying customer wants or needs.

In fact, there are times when customers do not know what they want or desire. Marketing then becomes that linchpin in the process of finding a solution for the consumer.  Traditionally, marketing has been defined in terms of four variables described as the marketing mix, or the 4 Ps: product/service, price, placement, and promotion.

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In fact, the marketing mix is the controllable set of activities that entrepreneurs use to attract or respond to the needs of their target market.  In essence, entrepreneurs attempt to create value for their customers.  Value relates to the customer viewpoint, not that of the business.  Value relates to the benefits the customer perceives they are getting in exchange for their purchase of the product or service.

Business experts Donald Lehmann and Russell Winer point out that inaccurate information or incorrect analysis often leads to poor decisions about marketing a business product.  This flaw can hurt a business attempting to make a profit.  In fact, understanding competition is a point most executives miss.  Some of the questions executives should ponder include: 

  •       Who are my competitors?
  •       What are the competing product features?
  •       What is their positioning strategy?
  •       What markets do they currently own and their future?
  •       How do you distinguish your products from those of your competition?
  •      How do consumers make this distinction in products?

In today’s global markets, organizations cannot operate with a ‘trial and error’ mentality.  In fact, what worked yesterday is no guarantee that it will be successful in the future.  Business professionals who are less knowledgeable about marketing and marketing forces are a liability to organizations that aim for sustainable success.

Successful entrepreneurs understand how to tap into their target market instead of random selling.  Why should the expectations be any lower for today’s professionals?  Therefore, savvy professionals seek to understand and implement effective marketing strategies. 

Please discuss the value of understanding marketing concepts for professionals based on your own work experience.

© 2013 by Daryl D. Green

Customer Value Perception

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group problem-solvers

Organizations should think strategically when creating value perceptions of their products or services.  In fact, they should seek to establish a formal tiered system where possible. Strategic leaders have a long view on value creation. 

Strategic thinking is defined as ‘the generation and application of business insights on a continual basis to achieve competitive advantage.’ In fact, strategic thinking focuses on value creation by enabling a provocative and creative dialogue among people who can affect a company’s direction. 

Marketing expert Ken Favaro maintains that putting value creation first gives businesses two advantages over their competition in driving for profitable and sustainable growth: the first is capital and the second is talent. In fact, he argued that successful value creators never suffer from capital shortage. 

Yet, this process shouldn’t be done in a vacuum. Customers and all members of the supply chain should provide input so that the expectations are clear. Businesses that pay more would get more benefits (i.e. certain perks, discounts, etc.). Therefore, the value proposition would be enhanced. 

However, being strategically conscious about these business relationships isn’t simple.  Value must be understood and sought out.  Value is viewed as the perceived experience and worth gained from a product or service.  

Organizations should make their product clear to customers; some businesses need to introduce a tiered system, based on value-added services.  For example, if I want cheap fast food, I go to McDonalds.

Therefore, my expectations are lower than going to a five star restaurant.  Customers are very understanding when the seller’s value proposition is clear.

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Favaro further suggests that putting value creation consistently first requires leadership skills, discipline, and perseverance. He further challenged organizations to demand higher standards from managers who would jeopardize these business relationships.

Mark Johnston and Greg Marshall, authors of Relationship Selling, discuss that perceived value is in the eyes of the customer and varies.  They further argued that customers expect and deserve consistency in the way an organization’s value-added message is put forth.  Therefore, sales professionals’ biggest challenge is selling value. 

Discuss the concept of custom value perception from your own professional experience.

 

© 2013 by Daryl D. Green

 

Closing the Sale

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group problem-solvers

Closing the sale is a vital attribute for a good salesperson. However, most people have had to convince someone about something, which is similar to closing a sale. When you persuade someone to accept your position, you are applying a good pitch and sale. You have built trust.

Mark Johnston and Greg Marshall, authors of Relationship Selling, maintain that rapport, trust, and mutual respect inherent in a long-term relationship take off some of the pressures with closing a sale. Therefore, we all have a little bit of salesperson in us!

We do not know the customer’s price threshold where he is willing to purchase. Johnston and Marshall further argue that the customer will seldom buy a product based only on a presentation, despite how well it is done. Knowing this missing information, I would ask the customer if he or she has a price range in mind. This would better assist the salesperson in tailoring a solution to the specific need.

The authors also explain that customers will develop objections to various aspects of your proposed solutions, even if there is a long-term relationship. In fact, an objection is simply a customer’s concern with some aspect of your solution to his or her need.  This can include price, delivery time, terms of agreement, or a myriad of other components.

According to Johnston and Marshall, there are nine basic strategies for dealing with customer concerns: (1) question, (2) direct denial, (3) indirect denial, (4) compensating for deficiencies, (5) third-party endorsements, (6) bounce-back, (7) defer, (8) feel-felt-found, and (8) trial offer. The most confrontational strategy is direct denial.

Although there is no magical pill for closing a sale, there are some fundamental components to a successful sale close. A great sales pitch should explain the value proposition; showcase the advantages and benefits of the product/service; enhance the customer’s knowledge about the company, products and/or services; and create an unforgettable experience.

Johnston and Marshall further maintain that a salesperson must clearly articulate the value proposition to the customer. Why do I need the product or service?  In fact, a salesperson must have the skill to alter the sales pitch based on the customer feedback during the call to action.  Therefore, the process starts and stops with the customer as the focus of this process.

Please discuss closing the sale with customers from your own professional experience.

© 2013 by Daryl D. Green

The World of Elance.com

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Elance.com is a freelance website that allows customers to solicit work from a variety of outsourcing services, which include programmers, designers, office support, translators, marketers, researchers, and many other disciplines. In marketing, the marketing mix consists of product/services, placement, price, and promotions.

Elance.com allows a business to post a job opening and invites freelance workers who believe they have the requisite skills for the job to make a bid. The company charges a $10 fee to each business to post a job, and also takes a small portion of what gets paid to contractors. Below is an analysis of Elance.com’s marketing mix:

Service – Elance.com allows businesses to post a job opening to freelancers at potential savings.

Placement – All transactions occur on the website.

Price – The company charges a $10 fee to each business to post a job and also take a small portion of what gets paid to contractors. It is considered low-to-medium cost.

Promotions – Much of the effort appears to be publicity and ‘Word of Mouth’ promotions.

The following questions would be asked as a marketing professional (suggested answers are also provided) when analyzing Elance.com:

Elance.com aims at two clients, employer and freelancer.  Clearly, you must know your customers. Paul Peter and James Donnelly, authors of Marketing Management, argue that successful businesses understand customer needs.

With that said, potential employers see a website that attracts over 500,000 talented freelancers.  For the freelancer, there is an opportunity to bid on 48,000 jobs, worth $480K.  It is recommended that the website be more tailored for employers and freelancers, since they have different needs. This could be done with distinct website buttons.

For potential employers, Elance.com provides ratings and tested freelancers whose profiles and ratings can be evaluated.  For freelancers, it is real-time feedback.  When Elance.com gets repeat business or new business, this is also a good indication of superior services.

 

Through the rating process and feedback, Elance.com can obtain feedback.  Likewise, freelancers get paid and get feedback.  Michael Solomon, author of Consumer Behavior, suggests that consumer response is the ultimate test of whether a marketing strategy will succeed. Therefore, Elance.com is the top freelance website that has to support a variety of consumers.

Please discuss Elance’s marketing strategy from your own professional experience.

© 2013 by Daryl D. Green

Customer Motivation

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Customers are motivated to purchase, but not for the same reasons.  To date, most explanations of customer motivation are based on cognitive factors rather than biological factors.  At the very basic level, it is easier to apply Maslow’s theory.

Some experts believe that application of Maslow’s theory has been somewhat simplistically explained in a commercial application, especially as the same product or activity can gratify different needs. Yet, individual purchasing considerations and motivation aren’t easy to understand.  Motivation can be a combination of learning experiences, buying history, and cultural environment.

In crafting products and services for the marketplace, managers should conduct research where targeted consumers are involved in order to formulate a well-balanced marketing-mix relative to the competition. Each customer has a need.

As you know, consumers are very complex. In fact, no two people are alike. Paul Peter and James Donnelly, authors of Marketing Management, maintain that marketing research can limit the risks associated with management marketing strategies.

Let’s explore this matter. Doing focus groups on the targeted market to gather market information would be critical. For example, a new retirement development would want to follow this strategy.  Who would want to live there?

If the primary demographic was women and widows, then amenities would need to be in line with these demographics.  Michael Solomon, author of Consumer Behavior, further suggests that the specific way we choose to satisfy a need depends on our unique history, learning experiences, and cultural environment. Therefore, gathering information about prospective consumers is critical to the marketing mix. 

Please discuss customer motivation from your own professional experience.

© 2013 by Daryl D. Green

Ethical Systems in Marketing Management

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Businesses that are serious about good customer relationships must have good ethical systems.  Marketing and strategy are underlying principles that must be addressed for organizations selling abroad.

Mark Johnston and Greg Marshall, authors of Relationship Selling, maintain that customers operating in other countries pose unique ethical concerns for salespeople and management, especially in (1) cultural differences and (2) differences in corporate selling policies.

Marketing strategist Regis McKenna explains that effective marketing is the integration of the customer into the design of the product and designing a systematic process for interaction that will create substance in the relationship. Creating good ethical systems is critical for success.

First, any meaningful ethics program must start with senior management’s behavior. In fact, ethical behavior must start at the top. Salespeople are not the only members of the sales force who face ethical concerns. Management must address significant ethical issues with (a) salespeople, (b) company policies, and (c) international customers and policies. Yet, I do think organizational culture is the cornerstone for understanding the ethical environment.

Trust is the foundation of any meaningful corporate structure.  Gareth Jones and Jennifer George, authors of Contemporary Management, maintain that when leaders are ineffective, chances are good that workers will not perform to their capabilities. Furthermore, senior managers should lead the way by example.

Second, the organization must evaluate the current corporate culture. There are both written and unwritten rules and behaviors that come into play. For example, Enron senior management demonstrated a lack of moral and ethical judgment, which played a critical role in its decision-making (i.e. breaking laws).  Therefore, one must review the organizational culture of the organization before attempting to implement an ethics program.

Last, the organization must be committed to a win-win approach. Managers should get all employees involved. Salespeople face ethical issues all the time. Their input would be invaluable. This fact has a great bearing on ethical behavior among employees. 

Companies need to have a plan for implementing ethics. However, they need to involve the workers. Typically, executives come up with a mandate on corporate policies. HR is forced to implement them.  There is little worker involvement. Yet, ethical conduct impacts everyone. Therefore, managers will get greater buy-in on new programs, such as ethical, if they are involved upfront in the process. 

Please discuss ethical behavior in organizations as it relates to the marketing process from your own professional experience.

© 2013 by Daryl D. Green

Memorable Marketing Messages

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Effective brands provide a lasting impression.  However, loyal is fleeting for most buyers in the absence of a strong brand.  Yet, I have purchased the company’s competitors in some cases, even with these good memories. Solomon points out that individuals’ knowledge about the world constantly updates as they are exposed to new stimuli.

Individuals can continue to receive ongoing feedback that allows them to modify their behavior when they find themselves in similar situations later. Therefore, we use our past experience as a baseline for making new purchasing decisions. Consequently, businesses need to understand how the principle of working memory and long-term memory influence learning consumer behavior.  

The principle of working memory and long-term memory apply greatly to learning consumer behavior. Marketing successfully for most businesses depends on the consumer’s recognition of their products and services.  Michael Solomon, author of Consumer Behavior, maintains that many marketers realize that extensive learned connections between products and memories are a potential way to build and keep brand loyalty.

For example, Arm & Hammer baking soda is one of those long-lasting memories from my childhood in Louisiana. From stopping a bleeding wound to keeping a refrigerator fresh, Arm & Hammer’s products have been associated with multi-purposes.

McDonald’s is another brand to consider for this discussion. An image of the golden arches has a world-wide reputation. For most adults, the memories start in childhood.  McDonald’s has done an excellent job of branding, or brainwashing, us as children.

Yet, I think it’s all about classical conditioning. When we see the golden arches, we think about—FUN. Classical conditioning focuses on visual and olfactory cues that induce hunger, thirst, sexual arousal, and other drives. Therefore, it is easy to see why McDonald’s is doing well and serving millions of people from a variety of countries.

Consequently, buying decisions are influenced by these memories.  Trust is the anchor. Stephen Covey and Rebecca Merrill, authors of The Speed of Trust, note that low trust slows everything—every decision, every communication, and every relationship.[1]

In fact, we are heavily influenced by our parents and teachers.  In addition, our backgrounds influence our purchasing decisions.  However, we are not puppets.  Businesses that create a lasting image of their brands are in the best competitive advantage. 

Please discuss the power of memorable brands from your own professional experience.

© 2013 by Daryl D. Green

 

[1] The Speed of Trust by Stephen Covey and Rebecca Merrill

 

Marketing Sustainability

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Many businesses attempt to navigate today’s economic landscape using the same old marketing gimmicks.  It just won’t work. Today’s organizations need to understand marketing sustainability and how to utilize it.

Frank-Martin Belz and Ken Peattie, authors of Sustainability Marketing, note, “Conventional marketing thought and practice have struggled to adapt to a world that we now realize could be destroyed (or at least impaired to the impoverishment of us all) by unconstrained consumption as we strive to satisfy an ever-longer list of wants for an ever-growing global consumer class.”  Given these perimeters, the average individual would argue that marketing sustainability must be an oxymoron. Marketing is about meeting customers’ needs and wants.

Phillip Kotler and Kevin Keller, authors of Marketing Management, suggest the importance of marketing to buyers:  “Many people want a Mercedes; only a few are able to buy one. Companies must measure not only how many people want their product, but also how many are willing and able to buy it….Therefore, businesses must connect with customers in other to convince them to purchase.”  However, some people would suggest marketing involves the mass consumptions of goods and services at any cost.

 

With the depletion of natural resources and the ever growing population demands from such countries as China and India, many experts worry that the world is headed for a train wreck unless something changes.  Governments race to find new energy sources while businesses search the world for cheaper labor and lesser costs for producing their products.

Consequently, more and more organizations recognize that sustainability is more than keeping the environment clean.  Yet, the concept of sustainability is often difficult to define. According to the U.S. Environmental Protection Agency, sustainability is defined as “everything that we need for our survival and well-being depends, either directly or indirectly, on our natural environment.”

Consequently, one person may view sustainability simply as the ability to use resources continuously without any long-term depletion.  Andres Edwards, author of The Sustainability Revolution, breaks down sustainability into several key components, which are: ecology/environment, economy/employment, equity/equality, and education.

Marketing sustainability focuses on the triple factors of ecological, social, and economical in harmony. The managerial approach of sustainability marketing encompasses several key elements, which include (a) socio-ecological problems, (b) consumer behavior, (c) sustainability marketing values and objectives, (d) sustainability marketing strategies, (e) sustainability marketing mix, and (f) sustainability marketing transformations.

Belz and Peattie further maintain, “The point of departure in sustainability marketing is an understanding of social and environmental problems in general (macro level) and an analysis of the social and ecological impact of corporate products in particular (micro level)….To implement sustainability marketing strategies, a comprehensive marketing mix has to be developed.”  In fact, marketing sustainability then relates to an organization’s ability to balance environmental, social, and economic factors in order to be successful over the long-run.

However, some business executives quietly argue that profitability supersedes many other priorities, such as the environment.  Edwards disagrees: “Creating a healthy environment, free of pollution and toxic waste, and simultaneously providing the basic for a dynamic economy that will endure for an extended period are viewed as complementary rather than conflicting endeavors.”

With the growing demands from a global market, companies must readjust their business strategies. Marketing and sustainability are key components of this economic equation.  Therefore, organization must learn how to manage marketing sustainability to be successful in the future.

Please discuss marketing sustainability from your own professional experience.

© 2013 by Daryl D. Green

Communicating to Customers

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Businesses attempt to persuade customers with their commercial messages. Consequently, they need to develop effective marketing communications. In a ‘marketing heaven,’ an organization would have the top brand in its category. In the real world, it is about a company showcasing itself in a good light with buyers.

Positioning involves a company putting its product or service in a favorable space in the minds of consumers. Therefore, positioning involves winning the customer’s perception over one’s competition.  For example, McDonald’s uses its brand to position itself over the competition. When parents travel with their children, most children automatically want to eat at McDonalds.

If a company has an existing product and the overall consumer attitudes do not rank the product as highly as its competitors, the company has a chance to improve its positioning. The company needs to do a lot of research to see why it is viewed in this light before setting new strategies.

Michael Solomon, author of Consumer Behavior, maintains that the way a consumer evaluates and chooses a product varies widely, depending on such dimensions as the degree of novelty or risk in the decision. Additionally, the attitude of the organization has an impact on buyer behavior.

For example, a bad experience with McDonald’s can sway a parent from going to McDonald’s; they may seek an alternative. In fact, Mark Johnston and Greg Marshall, authors of Relationship Selling, further argue that customers pick up on a salesperson’s attitude. Does good chemistry exist between the salesperson and the customer?  That’s an important performance measure.

When developing performance measurement with relationship selling in mind, good chemistry between the salesperson and customer should be a factor. Likewise, improved company attitudes can have a positive impact on customer behavior.  

Please discuss the value of effective marketing communications to customers.

© 2013 by Daryl D. Green

Buyers’ Trust

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Too many businesses lose their focus. They are often consumed with their own quest for profitability at any cost.  Consequently, buyers become less trusting of these companies. 

In fact, countless businesses are making careless mistakes. Former Johnson & Johnson Chairman and CEO Jim Burke explains, “You can’t have success without trust…You tell me any human relationship that works without trust, whether it’s a marriage or a friendship or a social interaction, in the long run, the same thing is the trust about business, especially businesses that deal with the public.” 

Most businesses underestimate the critical attribute of trust in profitability. Any value proposition will fail without TRUST.  Some organizations seek to clearly deceive customers in the short run to gain profitability. It’s a fatal mistake. 

Mark Johnston and Greg Marshall, authors of Relationship Selling, maintain that building trust is essential in fostering good relationships with customers.  In fact, one of the primary tasks of organizational leaders is to foster trust within and outside of the organization.  

Many businesses suffer because they don’t understand their customers and how to meet their needs. Therefore, the message is mixed!  In fact, the manner in which customers are treated have a bearing on their customer satisfaction.

Paul Peter and James Donnelly, authors of Marketing Management, note that building a good relationship with channel members is a critical part of marketing communications. Understanding customers is critical. Therefore, businesses need to provide them the right message is vital.

Furthermore, numerous managers believe they can offer this concept without regard to their employees. Some treat employees poorly and expect them to showcase service with a smile. In this situation, trust is lost. Managers need to model the way in value creation. 

John Hamm, author of Unusually Excellent: The Necessary Nine Skills Required for the Practice of Great Leadership argues that some managers have misunderstood leadership. They feel they can work fewer hours, give their work to others, and not respect employees due to their position or title. 

Yet, managers’ bad behaviors are not without consequences. Employees soon lose their trust in these managers to do the right things. Hamm explains, “When leaders compromise their own integrity, it takes that extra urge out of our bodies that says we’re willing to go the mile.  Therefore, trust as a competitive advantage cannot be underestimated by today’s businesses. 

Please discuss your professional experience with customers and their trust in buying.

 © 2013 by Daryl D. Green