MARKETING STRATEGY

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Marketing-Why your business cannot survive without it

Marketing- It’s a word that elicits excitement, opportunity, growth and prospects. For some who have no background in marketing and many other areas in their business to worry about, the challenge of marketing may appear daunting and costly. In this series I will simplify and convince you why your business cannot survive without it.
What is marketing?
So you are a dynamic entrepreneur or small business owner who has decided to take the plunge. You may have completed a first year business management course and recall something about the factors of production: natural resources, human resources, capital and entrepreneurship. You have started to think about your product, the need it satisfies to your potential buyers and how to make a profit. This is marketing. Marketing links production of your product with a specific market of potential buyers.

What does the term marketing mean? Many people think ‘marketing’ means ‘selling’, but there is a distinct difference between the two. Marketing is attracting the customers to give you the opportunity to sell and close the deal. The two go hand in hand.

Why is it important?

Now that you understand the meaning of the term marketing, why is it important to adopt a marketing orientation in your business and how can you implement this philosophy successfully? Marketing plays an important role in society, it is essential to businesses and it affects your life every day. The fundamental objectives of most companies are survival, profits and growth. Marketing contributes directly to achieving those objectives and is in fact seen as a key to profitability. European pharmaceutical companies could add up to 10% to their pre-tax profits by investing in marketing, according to studies conducted by Accenture. As Richard Branson puts it: “10% of my business is technology everything else is marketing.” If the purpose of your business is to create and keep your customers then you will agree with Coca Cola who says Marketing is what they do.

How can you implement marketing in your business successfully?

When you are not functioning at your best you call your doctor to advise you on a plan for the best course of treatment. A professional opinion and a lollipop usually does the trick. When sales in your business are not where you want them to be, you should be consulting with a professional who can advise on strategy put you in touch with best service providers and ensure you have a winning marketing formula for your business.


Next month: Marketing strategy- how to create a plan that is affective and affordable and will achieve company goals.

How local brands build brand loyalty

My article on ‘Brand Loyalty′ was published yesterday in Bidvest magazine .

I talk about the strategies that successful brands like the Bidvest Brand use to keep their customers loyal to the brand.

Most companies lose 20 to 25 percent of their customers each year. But 90 per cent of profits come from loyal customers.

Customers are becoming increasingly loyal to South African brands. Patriotism and brand loyaly go hand in hand and top brands strategically invest in loyalty marketing programmes to capture greater profits from customers already loyal to the product or service.

Brand Strategies for 2010

Being South African has suddenly become hip and it’s not only due to those lekker accents in District 9. With the 2010 FIFA Soccer World Cup just a few months away, the global spotlight is focussed on the country, its sport, its culture and its people and there is a heightened awareness of what it means to be South African.

Not only are our athletes in top form, smashing world records and grabbing international headlines, the Springbok rugby team is officially the best in the world whilst the Proteas cricket team are jostling to regain the top position amidst much local and international attention. Supporters today pay a premium for a variety of official merchandise, and stadiums and taverns are packed with people showing their support and patriotism for their teams.

In only 15 years of democracy South Africa has achieved macroeconomic stability in sharp contrast to the tumultuous apartheid years, which has created opportunities for investors, laying the foundation for increased economic growth. Until the global economic crisis hit South Africa in late 2008, economic growth had been steady and according to Statistics South Africa, GDP rose by 2.7% in 2001, 3.7% in 2002, 3.1% in 2003, 4.9% in 2004, 5% in 2005, 5.4% in 2006, 5.1% in 2007 and 3.1% in 2008, clear signs that South Africa and its people are forging ahead.

So why do local brands gain such vehement loyalty? For most South Africans, it’s a feeling they have in their soul, the “local is lekker” flavour of being part of a culture that makes up our DNA. This is according to Nadia Lang Strategic Marketing Consultant. “Patriotism and brand loyalty go hand in hand. South African products and services have an emotional dimension with which people can identify,” She says, adding that traditionally, international brands were perceived as superior to those produced in South Africa, but this has changed drastically as South Africa’s fortunes have improved.

“Locally, there is definitely a shift in mentality amongst South Africans from only wanting international brands to now buying South African brands as well, especially in light of the 2010 World Cup. These brands provide a sense of self-worth, particularly amongst the youth as it defines their social status and how those around them are perceived. They are starting to realise that we are just as good as international counterparts and such a notion is rubbing off on our beliefs in all things South African, be it brands or products,” She says.

It was with this in mind that Proudly South African, a “buy local” campaign was launched in 2001 by government, organised business, organised labour and community organisations to boost job creation and pride in all things “local” by promoting South African companies and their ‘home grown’ products and services. They know that by buying Proudly South African, both consumers and businesses are making a personal contribution to nation-building. The initiative is similar in concept to the highly successful 'Buy British' and 'Buy USA' campaigns, which urge their citizens to support the local economy to foster job creation.

Earlier this year, luxury market analyst firm, Ledbury Research reported that 50% of Britons buy local, while 92% of the French, 64% of Americans and 61% Germans preferred to buy only goods that originate from their countries. Certainly, anyone who has been to France would not be surprised by the high percentage of “Proudly French” consumers in a country renowned for a remarkable sense of self-worth.

Commenting on how local brands are standing up against international rivals, Sylvia Becatti, Editor of Marketing Mix, says locally, South African brands are doing very well in recent times, particularly in the fashion and retail arena. South African companies need think on their feet and promote their products as challenger brands. In many cases, South African products are superior in quality compared to their international equivalents, so it is therefore important that companies promote that fact heavily in their campaigns.

This is the ideal time to have a game plan to build your brand. Invest in Smart Marketing. It is not a necessity but a strategic imperative.

Recessions come and go Brands are for Life!

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There have been nine major recessions in the U.S since 1907, each one lasted on average 14 months and each was followed by a lengthy recovery. It has been seven years since the last recovery.

This is the perfect time to build market share because some of your competitors have gone into hiding. When your competitors cut back they surrender their share of the market. This creates an ideal opportunity for you to grow and conquer your market share.
If we look back in history we will see some really successful global Brands used proactive marketing and Brand Strategies during recessionary periods to achieve a lion’s share of a shrinking market. Winning Brands such as Sears stole the market from Wards during World War Two, Revlon gained market share in the 1970’s recession whilst Avon lost share. Taco Bell and Pizza Hut strategically stole share from Mc Donald’s during the 1990- 1991 recession.

Winning Brands all have something in common; they uniquely position themselves strategically to entice the consumer in Brand experience .Michael Jackson has shown remarkable consistency in his Brand over the years. His Brand has spanned several decades beginning in the 70’s and lasting into the new millennium. He recognized Americas need for really good entertainment and was remarkably successful at positioning and re-enforcing his key values as the King of Pop. Jackson understood Brand image and how to build it with his fans; the moonwalk, the glove, the uniform, neverland. The Brand icon succeeded because consumers could relate to the brand and liked what the Brand portrayed.
This is an opportune time to have a game plan to build your Brand. Remember Stay visible, Fight bravely and history will remember your Brands Legacy.

Winning Brand Stategies in Tough Economic Times

In challenging times like economic recessions many brands run for cover. They scale cut budgets batten down the hatchets and wait for the storm to pass.

Winning Brands do the opposite. They leverage the dynamic and emerge fitter, stronger and far ahead of the competition. They connect with their target markets, engage around issues of concern, focus on the end goals and pursue excellence in the area of campaign delivery. Winning Brands are visible and offer solid value.

At the beginning of April 2006, President Zuma admitted to showering in order to reduce the risk of getting HIV/AIDS. To many people, this statement was the low point of his political career. This weekend, he was inaugurated as our President and reached a high point in his political career. He did it by campaigning for at least three years. No matter what side of the political divide you're on, you have to admire the man's turnaround strategic approach, courage, perseverance and hands-on leadership.

This is the ideal time to have a game plan to build your Brand. If your brand goes into hiding when times are tough, it will drop off the radar of prospective clients. Fight bravely and history will remember your brands legacy. Invest in Smart Marketing.