Last week I published a post that outlined the four essential questions for successful marketing. A number of people contacted me and said, ‘more detail please’.
So, here goes:
What problem can I solve?
Unless you can solve a problem for someone, why would they buy from you?
Albert Einstein, my senior marketing guru, said, amongst other things, “If I had an hour to solve a life defining problem, I would spend the first 50 minutes defining the problem, the rest is just maths’
So, do your research before you jump in.
The definition of how you solve the problem becomes your value proposition. In other words, how does what you do add value to the lives of those ideal customers?
If you cannot articulate that, you have nothing except price, and nobody wins a price war.
The solutions to problems come from being able to ask the right questions.
Seeing things others do not see, solving problems better than others, and sometimes seeing a potential problem before it is an acknowledged problem, highlighting it, and then solving it.
The classic case is the iPod. It was not the first MP3 player, and arguably it was not the best technically, but it did something no other mP3 player did. It put ‘1000 songs in your pocket’. It articulated the problem that the product solved.
While others all talked about their technical superiority, the stuff the geeks thought was important, Apple just told us what consumer problem they solved.
Who is my ideal customer?
Who is your ideal customer, the one who will not haggle the price, who loves the product you sell, and proselytises for you? Knowing that person in detail would be marketing and commercial gold.
Like all gold, it is hard to find, subject to all sorts of distractions and false starts, but immensely valuable when discovered, and discovery is usually incremental, rather than a ‘eureka’ moment. This means it is also a demanding challenge.
What is often also forgotten in the effort to define that ideal customer, is that every customer also has an ideal supplier, one who meets all their needs, delivering value in excess of the cost to them. It is a two-way street, and a relationship only prospers where there is value being delivered to both parties.
Defining your ideal customer is an iterative process, deceptively demanding, as it requires choices about who is not an ideal customer, and therefore excluded from primary consideration. Choices like this are challenging, but necessary, particularly for small and medium businesses which do not have the luxury of a big pot of marketing money. You must get it right or risk wasting limited resources.
Following is a list of 6 parameters you can use. Not all will be equally applicable in every situation, but it will pay to give each deep consideration.
Who: Is the demographics they may exhibit. Where they live, age, gender, education, job, and all the other quantitative characteristics that are available. These parameters are pretty much all that was easily available in any detail until digital tools came along.
What: are their behaviours. Do they go to the opera or rock concerts, perhaps both, do they travel overseas for holidays, what sort of causes, if any, do they support, are they likely to demonstrate their beliefs publicly, or are they just internal. All the sorts of things that offer a picture of how they think, feel, and behave in all sorts of situations.
Where: will you find them digitally, as well as in the analogue (perhaps real) world, and what means can you use to make a connection. Are they likely to be avid users of Facebook, LinkedIn, or other social platforms, are they comfortable buying online, do they ‘showroom’ digitally then visit the physical retailer, do they get their news from Facebook and Reddit, or more focused news sites, or even, surprise, surprise, newspapers, radio and magazines.
When: will they be ready to buy? Customers are rarely ready to buy when you are ready to sell. Understanding the customer buying cycles, particularly in B2B and a larger consumer purchase is critical.
Why: should they respond to your entreaties, to do whatever it is you are asking of them. What is your value proposition to them? What promise of a new and better tomorrow can you deliver? What can you deliver that is different and more valuable to them than any alternative? If you cannot answer these questions, it will come down to price, and winning a price war is a great way to go broke.
How: will you service the transaction, and the subsequent relationship that may emerge? This is usually down to questions about your business model and the ‘fit’ that has with the customer.
How and where do I apply Maximum Marketing Leverage?
Identifying the point at which you can apply Maximum Marketing Leverage (MML), or in other words, get the most productivity from your marketing investment is the point at which the previous three questions intersect.
Answering these three questions leads to conclusions on the fourth; how do I make a profit? Answering that requires a combination of introspection on your business, in combination with ‘exospection’, the examination of your business from an external perspective. The point where these two perspectives intersect is the best spot to apply marketing leverage.
Most will be familiar with the SWOT model of business analysis; this is one of many, and simplest of the many ‘Mental Models’ you can use to do the examination. Porters 5 forces, Balanced Scorecard, BC matrix, Business Model Canvas, and many others are alternatives. All have their pros and cons, but the key point is that you give due consideration to them, as they will identify and clarify your point of MML.
How do I make a profit?
Just as a successful young single male professional might opt for a red sports car, when 10 years later, with a family, kids, soccer practise, he might opt for a brick on wheels, you can have different business models to suit different circumstances and conditions.
Most small and medium businesses with which I have been associated give little if any thought to the business model, but it is of critical importance.
Are you retail, wholesale, franchised, subscription, digital, or some combination? All are different, working in differing ways, to allocate and absorb the costs and benefits that accrue. Being very clear about your business model and being able to anticipate if a potential customer will fit is in some circumstances, a vital component of making a profit.
The ‘maths’ leading to profit
All that has gone before, in Albert’s language, is the definition of the problem. Now we get to the maths, the way in which you apply the leverage.
Most small businesses rush straight to the tools of leverage without due consideration of the nature of the problem they want the tools to solve. However, once defined, pick a tool, or most often a combination of tools that best fits your point of leverage and apply them, recognising that there is no formula to give you the exact right answer. Therefore you need to be prepared to experiment to find the best outcomes. The process of experimenting will also give greater clarity to the 4 questions, which will in turn clarify the point of MML.
The choices you face are multitudinous. Digital, analogue, which social platform, how much should be spent on AdWords, does Facebook work, how to use the automation tools available, what about email, letterbox drops, and so on, and on, and on. 20 years ago, life was much simpler, there were few choices, but there was also very few of the tools available that enabled the identification of the point of MML, so experimenting was far more costly and risky than it is now, to the point where small businesses had very few options. Now you have plenty, the challenge is to use them in the best possible manner.
Good luck, and when you need to draw on deep experience, give me a call.
Header credit: The header cartoon is a repeat of the Tom Gauld cartoon used on the original post
