Art of Marketing
Chapter 2. 4 successful marketing methods
Nobody counts the number of ads you run;
they just remember the impression you make. — Bill Bernbach
There are 4 ways you can go to market
with your products and services.
1. Create a utility
The first approach is to create utility,
usefulness and satisfy customer needs to achieve a specific result.
This approach forces you to give your customers what they need
and can use to satisfy their other goals.
A shovel or a truck is the perfect example of this,
each with its own utility value,
but it may not be what the customer thinks it is.
You’ve probably heard the saying, ”
people don’t buy drill bits,
they buy 10-inch holes.”
One example of a new industry built on utility
or demand value is FedEx.
Years before Apple created entirely new industries for the iPod,
iPhone, and iPad,
FedEx created a 24-hour mail industry
that had never existed before.
Fred Smith, founder of FedEx,
observed a great demand for express mail
and 24-hour parcel delivery
due to the slowness of regular mail.
Take a look at your market today.
What do your customers and prospects want
and are willing to pay upfront for months or years?
As Peter Drucker said,
“Trends are everything.”
What are the trends in customer demand in your market?
If you can answer this question correctly,
you can stay ahead of the competition and dominate a new market,
even before it emerges.
Negotiation means getting the best of your opponent. ― Marvin Gaye
2. Appropriate pricing
The second approach to marketing is by changing prices.
By bringing your products and services to the customer’s price range,
you can open up entirely new markets that have never existed.
Henry Ford became one of the wealthiest people in the world,
after struggling financially for several decades
because of his rare insight.
He found that by mass-producing cars,
he could bring prices down to the point where most people
America can afford it.
To achieve this goal,
he reformed mass production and consumption.
Many companies have achieved market leadership
by focusing on bringing their prices
within the investable range of the majority of customers.
It can be seen that the larger your market share,
the lower your production costs,
the lower your costs will be.
The Japanese have used this strategy brilliantly over the years.
First, they price their products and services
as low as possible to gain market share.
Once they gained market share,
they began to gain economies of scale,
producing products at lower costs.
They then pass on the low-cost savings to customers
through even lower prices while increasing their market share again.
In the end,
they penetrated and dominated many markets.
Getting rich even super rich shouldn’t be taboo.
It should be your battle cry. ― Grant Cardone
3. Customer reality
The third marketing strategy is to accept the reality of the customer,
both socially and economically.
Sears, which became the world’s largest retailer of its time
by initiating an unconditional money-back guarantee in its business portfolio,
is a prime example of this strategy.
The reality of customers up to that point is that
if they buy a product or use a service
that doesn’t work or isn’t suitable,
they’ll feel unhappy about it.
Sears realized that for customers to overcome
that huge barrier to shopping,
they had to provide products
that met the real needs of customers,
a move that led to a revolution
in the merchandise business and retail.
Every product provides a “primary benefit”
that is the reason customers will buy the product.
Every product or service has a potential “key fear”
that prevents customers from buying the product
or using the service in the first place.
For example, clients are very risk-averse.
They are afraid of spending too much money,
receiving unsuitable products,
losing money with products that do not meet their purpose.
Whatever their fear,
it is the very reason that prevents them
from buying any product or service at any price.
By focusing on the main benefit of your product
and helping to dispel any fears your customers may have,
you can open up a larger market for your products.
The highest paid people in society are those
who know how to promote
and strengthen their own strengths
to add value to the work they are undertaking. — Brian Tracy
4. Provide real value
The fourth approach to marketing strategy
is that you can provide what is known
as “real value” to your customers.
True value can only be determined
by approaching your customers closely.
IBM is a perfect example of this strategy.
The company controlled 80% of the world computer market
during its heyday for a very good reason.
IBM discovered that in the field of high-tech
and sophisticated equipment worth thousands
or millions of dollars,
the function of the computer was
not only thing that attracted customers,
it had to ensure that the computer will be under warranty
and repaired as quickly as possible if something goes wrong.
Not only does IBM deliver world-class computing products,
but whenever your device breaks down,
you’re backed by the world’s best customer service team.
That is “true value”.
To build a long-term,
when you don’t close a sale,
open a relationship. — Patricia Fripp