shoe salesmen find themselves in a rustic
backward part of Africa. The first salesman
wires back to his head office: There
is no prospect of sales. Natives do not
wear shoes! The other salesman wires:
No one wears shoes here. We can dominate
the market. Send all possible stock.
- Akio Morita, Sony
stated, marketing is everything you do
to place your product or service in the
hands of potential customers. The purpose
of marketing is to get the word out about
your productand in turn to make
sales of your product or service. Sales
is only a part of marketing, however.
While sales is simply the act of converting
a prospect from prospect to customer,
marketing is the process that makes sales
possible including brand development,
partnership creation, publicity, and advertising.
Marketing is the background work that
gets prospects in the door. Sales is the
process of converting those prospects
to lifetime customers.
cause of the failure of many businesses
is a breakdown in or lack of marketing.
You can develop a wonderful product or
provide a high value-add service, but
if the marketing is not there, your business
will not succeed.
are two different types of marketing.
The type youll learn in most business
schools can be generally defined as corporate
marketing. In a business school class
on corporate marketing, youll learn
about things like branding strategy, demographics,
and positioning statements. While these
subjects are important to know, they will
not be of great benefit to the bootstrapping
entrepreneur who does not have a million
dollar budget, ten ad designers, and a
sales force of one hundred.
other type of marketing is entrepreneurial
marketing. In entrepreneurial marketing,
instead of concentrating on brand recognition
you concentrate on sales. Without much
money to spend, the return on investment
(ROI) of every ad, of every campaign,
is that much more important. In this chapter,
I will present both the basics of marketing,
the core of much of what corporate marketing
is based on, as well as a complete step-by-step
marketing strategy to launching your business
and building it to one million dollars
in sales, without spending a dime in upfront
of the most basic and most important concepts
in marketing is known as the Four Ps.
The four Ps are product, price, place,
and promotion. If you can develop a good
product at the right price, position it
in a place where buyers are, and promote
it well to create desire in the customers
mind, youll quickly succeed in making
a lot of sales.
we talked about before, your product is
crucial to your success. If you have a
good product, getting the other three
Ps right will be that much easier. The
product includes both the
actual physical product as well as product
decisions such as function, appearance,
packaging, labeling, and warranty. The
word product also encompasses
any services you may provide. The service
you provide is your product.
your price is too high, not enough people
will be able to afford it. If your price
is too low, you will not make any profit.
On the other hand, if your price is too
low, many will not buy it because they
may see it as an inferior good. To best
manage these forces and optimize your
net profits, you will have to test many
different prices of your product(s).
is essential to building sales. Place
essentially rests on positioningthe
positioning of your marketing message
and the positioning of your product.
both retail stores and online, how to
properly position your product is a very
important skill. Without proper positioning,
no one will know you exist. If you are
hidden in the back corner of a store on
the bottom shelf and your web site is
number 3425 in the search engines for
your targeted keywords, you likely will
not make many sales, no matter how good
your product is. Well talk more
about how to position your product both
online and off later in this chapter.
positioning of your product is also known
as your distribution strategy. A distribution
strategy is developed by determining where
on the value chain you want your business
to be positioned, and who the buyer will
be. You may sell your product to a retail
store who then resells it to the buyer,
a manufacturer who sells exclusively to
jobbers and regional representatives,
or directly to your end consumers. Well
talk more about distribution models and
strategies later in this section.
is an essential part of the marketing
process. Promotion decisions include those
related to communicating your message,
advertising, and public relations.
Definitions for Marketers
Business to Business.
Business to Consumer
The aggregate representation and
reputation of your business across all
those who interact with it. Includes much
more than simply the logo and corporate
Customer Relationship Management
Data on customers and prospects
such as gender, location, birth date,
past purchases, income level, marriage
status, and birth date. A marketer can
better target their promotions with good
Selling a product directly to the
buyer without any middlemen.
Model The levels of companies
through which a product is sourced, manufactured,
and then sold.
Strategy Where and how a company
positions itself in the value chain, including
what type of distribution model it follows.
The Lifetime Value (of a customer).
Research research about a market
including the competitors and competing
products, its size, and growth rate.
Selling a product to an end buyer
Return on Investment
Market Who your business will
be targeting with the promotions for your
product. Those that are most likely to
Unique Selling Point, also known
as the value proposition; what you do
that differentiates you from your competitors.
Chain A representation of the
distribution model based on the value
added by each type of business at each
Selling of a product to another
business who will later resell it.