Clever Marketing
The best product doesn't always win but the best marketing will!
Remember VHS vs Betamax? There was no question that Betamax provided a better quality sound and visual experience but VHS stole its thunder. It was more prominent in the market place, more visible in the eyes of the consumer, more able to source compatible media and therefore found it easier to gain market share than its superior rival. Betamax was subsequently crushed under the weight of opposition and disappeared.
You need to understand your customers
So it’s not only the product that’s important, it’s how the idea is marketed that’s the key determining factor to its success, and that means trying to understand your customers and what influences their buying decisions. Without this knowledge it’s very difficult to market your business effectively. Sure you need to be able to clearly explain what your business does and what benefits it conveys to its consumer, but you must also make every effort to understand what motivates those customers to buy it.
As a young business it may be difficult to have this depth of knowledge from the outset. But the more you listen to your customers, the more you monitor their buying habits, and the more you take notice of when and what they buy, and how they respond to any special offers you run, the closer you will be to fully understanding them.
You need to understand external influences on your business:PEST analysis
But as much as you look inwards at your business you must also be aware of what’s going on around you. In marketing speak this analysis of the external influences of your business is known as a PEST analysis. A PEST analysis look at the Political, Economic, Social and Technological issues you need to be aware of. Here’s a plain English explanation:
Political influences and how they affect your business. This could be changes in law such as income tax or employment laws, and also any wider political relationships that are important to be aware of.
Economic changes that could affect your market such as changes in interest rates, or the rate of inflation, or on a wider scale the main consideration could be who can best bear the brunt of, or who deserves to benefit from, the decision.
Social changes such as average age of the population, average income levels, or the diversity in the religious beliefs of a society.
Technological capability or opportunity. What new technologies are available to you and how can you adapt them as appropriate for your business.
So whether it’s micro issues that affect you and your business close to home, or major decisions that affect the distribution of a product or service around the world, a wide understanding of the market in which you operate is essential.
Clever Marketing
The best product doesn't always win but the best marketing will!
Remember VHS vs Betamax? There was no question that Betamax provided a better quality sound and visual experience but VHS stole its thunder. It was more prominent in the market place, more visible in the eyes of the consumer, more able to source compatible media and therefore found it easier to gain market share than its superior rival. Betamax was subsequently crushed under the weight of opposition and disappeared.
You need to understand your customers
So it’s not only the product that’s important, it’s how the idea is marketed that’s the key determining factor to its success, and that means trying to understand your customers and what influences their buying decisions. Without this knowledge it’s very difficult to market your business effectively. Sure you need to be able to clearly explain what your business does and what benefits it conveys to its consumer, but you must also make every effort to understand what motivates those customers to buy it.
As a young business it may be difficult to have this depth of knowledge from the outset. But the more you listen to your customers, the more you monitor their buying habits, and the more you take notice of when and what they buy, and how they respond to any special offers you run, the closer you will be to fully understanding them.
You need to understand external influences on your business:PEST analysis
But as much as you look inwards at your business you must also be aware of what’s going on around you. In marketing speak this analysis of the external influences of your business is known as a PEST analysis. A PEST analysis look at the Political, Economic, Social and Technological issues you need to be aware of. Here’s a plain English explanation:
Political influences and how they affect your business. This could be changes in law such as income tax or employment laws, and also any wider political relationships that are important to be aware of.
Economic changes that could affect your market such as changes in interest rates, or the rate of inflation, or on a wider scale the main consideration could be who can best bear the brunt of, or who deserves to benefit from, the decision.
Social changes such as average age of the population, average income levels, or the diversity in the religious beliefs of a society.
Technological capability or opportunity. What new technologies are available to you and how can you adapt them as appropriate for your business.
So whether it’s micro issues that affect you and your business close to home, or major decisions that affect the distribution of a product or service around the world, a wide understanding of the market in which you operate is essential.