The only enemy of a business is money. We are living in a terrible status of continuous effect, the media and marketing world revolves just around money, humanity has become dependent on money. However money is manipulated!
Through the work of banks and stock market also money has become a commodity and has become separated from the original value of the product or service, so this way money can be manipulated to gain profit. Money in itself has no value at all! Its value used to be determined by the product or service we get in return as an exchange for money.
Today the concept of money and the economy is fused. Unfortunately, the economic crisis is nothing more than the crisis of money, which is capable to pull with itself also the economy. We need to do two basic things in order to rise above the crisis: to create value and focus on the social capital, which means we need to take off our focus from the money!
The age of dinosaurs has expired and the world of marketing and sales approach is changing almost every year. The old methods are not effective and the focus is no longer on the product and the service itself, but on creating value and achieving trust. We need to dust off our old knowledge and develop new guidelines within our companies, businesses.
Our aim is to keep alive the continuously changing mind-set in the business ventures of our partners, as the company name initials indicates, our objective is no other than: Increasing Revenue and Business Optimization.
More than 10 years of market research has showed that there are basically five things that every business is strongly influenced by in its life, and which is not money!
1. Defining the target group
2. Creating value
4. Appropriate marketing campaign
5. Utilizing social capital, networking
By applying adequately these points revenue growth is easily achieved so the revenue, cash flow increases as well. However, it is important to understand that when developing the above points the primary consideration is not money, but the corresponding value creation and correct communication towards our ideal target group.
Defining the target group
In addition to the entertainment electronics, marketing is the world’s second fastest-growing business. It is especially interesting that 70% of people working in the marketing segment do not know what marketing is. It is almost a trend of today that everyone is competent in everything, so that specialization has disappeared. Marketing is not equal to the PR or sales tasks, functions.
Real marketing is not a simple advertisement. Real marketing is to catch the attention of your well-defined target group. If you just put advertisements into some magazines it is the same as hunting blindly. If you stay at the border of the forest where you want to hunt, and you shoot with eyes closed into the trees maybe you will hit an animal. But the chance you hit is very small…
The PR is not about press releases! It is the same case in marketing as it is in PR. If your promotion, campaign does not create, generate reactions then you throw your money out of the window.
RULE: The main task of the PR is to generate reaction!
Today the companies measure the PR values by Kilograms… The PR companies fill up 5-10 folders with press releases and advertisements… Who cares about the results? Who cares about the revenues? Only YOU!!!! When you have started a co-operation with a PR company you wanted more incoming money, not more costs for yourself… If we see the results from this point, from your owner point of view, then you can ask whether the 10 folders you received have given any results for you? No.
The number one task of marketing is defining the target group and the building of confidence. The target group is the minority who is interested in your offer and who interest you as well. Naturally you can have more target groups as well.
Trust is particularly important in the case of marketing, we call this credibility. This can help to measure, that if we say something how our target group will agree on it and receive it. Trust must be earned!
If you already have a target group who trusts you, you can gain a significant advantage during every marketing campaign.
But it is not enough to just define your target group, because without marketing you will loose your target group. This is the tricky part… Marketing generates people who are interested in your product or solution. (And the sales people will close the deal.)
Creating value in simple terms means creating products or services that people WANT!
Some years ago a huge new market has opened to us through the Internet. We overcame the invincible and were able to communicate our products to places which were unimaginable before. Distances disappeared and suddenly huge choices of products appeared. It became increasingly easier to make business, particularly in the area of trade and by now anyone can start their own web shop in almost an hour. New opportunities have opened up for cheaters, and the previous confidence has turned over to mistrust. The new technologies unfortunately bring with themselves new abuses. Because of the daily scam letters or the time wasters, who want nothing more than to collect ideas, to benchmark, serious suspicions arose that has set back the intentions of the customers as well. Therefore, it is not enough if the product is just good. The value has always been a relative concept, which is based on the personal judgement of the customer. The real product has never an absolute value, a product is worth as much as the buyer is willing to pay for it in exchange. All you need to achieve for this is for the customer to want the product.
The customer is capable to do only one thing, to bargain excellently. This is what the business life has taught the customer. If the same product is sold in more places, the customer will buy it where it is the cheapest. If you want to avoid that customers compare your prices, then show them that there are other considerations, criteria as well. This is what we call customer teaching. The aim is to show our customers that what they are buying is not a price tag, it is much more than that.
It is very important to remember that everyone can see the price of the product but not its value! We need to show and teach the value of the product in all cases.
The best is if we are able to add a plus to the product, which makes it unique, makes it more than its competitors and we offer them to those who have needs for exactly these pluses, who want exactly these products with their added values.
Anything can be sold to someone if he wants it even though he does not need it, but nothing can be sold that he does not want even if he needs it. The key is to find out what your client wants and to serve this need, since the value is no other than the fact of how much they want your product. It is worth asking your customers what they want, what is most needed, what problems they face, then look at how your services, products help them and put the emphasis onto the problems, so that your customers see that they need this product, that they WANT it. If you do this well, then you have also almost positioned your product.
This chapter continuous in my book Creating Business Value.