B102.5 > Marketing and Sales |
Marketing and Sales is often thought of as the part of business where the most gregarious and most creative people go to have fun. Ironically some of the best sales people are introverted.
Below is an outline for this page:
Below is an outline for this page:
- Formal Definitions
- Formal Curriculum
- Important Questions for Understanding
- Discussion -- Marketing and Sales Cliff Notes
- Discussion -- Minimum Requirements for Sales and Marketing
- Discussion -- Minimum Requirements for a Brick and Mortar location
1) Formal Definitions
Marketing (noun)
Sales (noun)
- The action or business of promoting and selling products or services, including marketing research and advertising
Sales (noun)
- The exchange of a commodity for money; The action of selling something
- An event for the rapid disposal of goods at reduced prices for a period, especially at the end of a season
2) Formal Curriculum
Saylor.org's Principles of Marketing Class includes:
College and graduate level business courses focus on Marketing with almost no attention given to the Art and Science of Sales. That is likely due to the fact that much of Sales is an Art, much more like theater. It just isn't something many people are naturally good at, even though there is a proper, individual approach for most everyone. Teaching it properly and well isn't always easy given the breadth of variables, and thus it's just left out.
There use to be a saying that was really relevant -- "People buy from People" -- the implication was that no matter how good your product or service was, ultimately the transaction involved two or more people engaged in Commerce (Sexual Intercourse, remember?).
This day in age, with the digital realm booming, one might think this is no longer relevant, but one could argue that most digital transactions are merely an extension of one or multiple person's energy, so from that perspective, this is still far more relevant than many give it credit for.
- Marketing Definitions and Principles
- Segmenting, Targeting, and Positioning
- Customers and Marketing Research
- Life Cycles, Offers, Supply Chains and Pricing
- Distribution and Promotion
- Launching a Marketing Campaign
- Professional Development
College and graduate level business courses focus on Marketing with almost no attention given to the Art and Science of Sales. That is likely due to the fact that much of Sales is an Art, much more like theater. It just isn't something many people are naturally good at, even though there is a proper, individual approach for most everyone. Teaching it properly and well isn't always easy given the breadth of variables, and thus it's just left out.
There use to be a saying that was really relevant -- "People buy from People" -- the implication was that no matter how good your product or service was, ultimately the transaction involved two or more people engaged in Commerce (Sexual Intercourse, remember?).
This day in age, with the digital realm booming, one might think this is no longer relevant, but one could argue that most digital transactions are merely an extension of one or multiple person's energy, so from that perspective, this is still far more relevant than many give it credit for.
3) Important Questions for Understanding
Marketing
- Do you know what is included in a Marketing Plan?
- Do you know what Target Markets are and how that relates to Target Marketing?
- Do you know the different requirements of Product vs Service based businesses?
- Do you know how to derive Product/Service Pricing?
- Do you know how to do a SWOT Analysis?
- Do you know how to do a PESTLE Analysis?
- Do you realize the myriad of ways you can attempt to advertise/market your products/services?
- Do you understand the concept of Quality or Cost Leader?
- Do you understand what a Loss Leader is?
- Do you understand the pros and cons of complimentary products and services?
- Do you understand the financial and emotional Risks of Marketing Campaigns?
- Do you realize that often times the best Marketing Tool is Time?
Sales
- Does your product or service have an inherent need or do you need to establish that in the mind of your customers?
- Do you know how to establish need without sounding like a used car salesman?
- Can you do consultative selling?
- Can you sell Ice to an Eskimo and is that something you want to do?
- Does the concept of being a salesman make you feel dirty?
- If you don't have the personality you deem appropriate for sales, do you realize you might be undervaluing what you do have? Do you realize that some outside help might enable you to figure out a way to market and sell that feels okay to you?
People buy from People
Website
- Have you heard this before?
- Do you know what it means?
- Do you know how to say no to customers?
Website
- Do you have one?
- Can it grow with you easily?
- Are you more hung up on form vs function? Is that hurting you?
- Do you realize that many small businesses need a website much more for Operations reasons than true Marketing reasons?
Economics
- Although not formally associated with Marketing and Sales, economics needs to be mentioned, and this is as good as any...
- Do you have foundational understanding of Supply and Demand?
- Do you know the flaws with theoretical economics related to things like "an educated consumer' and "an efficient marketplace"?
- Do you understand the full requirements for "free marketplace" and do you realize how the United States Corporate system has evolved into the antithesis of "free markets"?
- Do you realize a flea market is the greatest example of a free market place and something like our insurance industry, car industry or airline industry is in fact a Monopoly in disguise?
4) Discussion -- Marketing and Sales in Cliff Notes
If Marketing and Sales were oversimplified, here's what would be covered...
- Need
Your customers have to "need" your product or service. If they don't intrinsically need it, then they have to have the perception that they need it. A customer without a real or perceived need will not buy anything as it is the need that forces them to pay for the good or service. Need can result simply from a desire to spend, so don't look at this with a narrow mind. - Marketing and Selling to those that are already Buying (those who already believe they have a need) should be your first Goal...
Educating people is fulfilling. Unfortunately, that is not always a great way to sell things and in fact it is often counter productive because with the time spent educating someone, one could have been out hunting for people who are already buying a good or service. Long term, sales via education is typically very fulfilling and it can produce a nice customer base as long as you can get to a point to where you can support yourself regularly before you run out of steam trying to educate, and as long as no one else comes along with a truly better widget.
- Understand your Market from multiple perspectives --- start with yours as a provider/vendor and then be sure to shift to that of your consumer's perspective next (if you can... and if you can't... you need to learn how to fast...)
The volume of people selling stuff who can not easily put themselves into the shoes of those that buy from them is astounding. The inability to vicariously view your own venture from the eyes of disassociated consumer blinds millions. There seems to be a protection mechanism that doesn't want to admit your own weaknesses for fear personal admission will cause failure, and that is some bad stuff. Sell on your strengths, sell around your weaknesses (once you admit to what they are), or make those darn things just disappear. - You will either be 1) a Cost Leader or 2) a Quality Leader or 3) a Commodity provider with Products and Services that are commensurate with fees
When selling products or services you are either going to be the LOW COST person who typically sells a lower quality product and makes their profits based on volume OR you are going to be the HIGH COST person who is selling or has created the perception of selling the premium product or service OR you are going to be somewhere in between, with pricing that is some how in balance with the products and services you are offering. Your Price to Product/Service relationship will always be one of these things. - Selling something you believe in and selling something you would buy is step one for finding a good fit in sales
When selling products and services you believe in and products and services you have bought or would buy, selling becomes easy. Many people fear sales because they envision themselves selling something they wouldn't personally purchase. - Don't out sell your ability to service or support your product
As a Sole Practitioner, it's critical to manage your sales funnel in a manner that does not blow you out. One full time sales person can often generate enough work for 3 to 300 to 3000 people. If you are the sales person AND the service provider/product creator, most likely your sales is going to be limited to 10% of your time after you get up and running, if not much less. Finding the right balance between sales and the rest of your business will be one of the most difficult things to regulate over the long haul.
5) Discussion -- Minimum Requirements for Sales and Marketing
Below are the minimum Marketing/Sales requirements for most Sole Practitioners:.
A website is often times as important or more important as an operational tool as it is a marketing tool. Just because you don't think you will get any business from the internet (and/or you may not want to get any business that way), there are other very functional reasons for having a website. NOT having a website these days simply makes you less efficient. It is something that can be created with a few hours of work and it can cost as little as $100/year for all relevant fees.
Below are other items a Sole Practitioner may desire..
- Business Cards
- Mobile Phone
- Email Address
- Website
A website is often times as important or more important as an operational tool as it is a marketing tool. Just because you don't think you will get any business from the internet (and/or you may not want to get any business that way), there are other very functional reasons for having a website. NOT having a website these days simply makes you less efficient. It is something that can be created with a few hours of work and it can cost as little as $100/year for all relevant fees.
Below are other items a Sole Practitioner may desire..
- Facebook presence
- Twitter presence
- Other Social Media Presence
- Mailing list
- Pamphlet or other paper marketing materials
- Give away items
6) Discussion -- Minimum Requirements for a Brick and Mortar location
The following are requirements for the front door of a Sole Practitioners facility:
- Name of Business
- Name of Practitioners (if not obvious)
- Hours of Operation
- A note about any deviance from normal hours
- Reference to a website
There is nothing more annoying that getting to a Sole Practitioners general place of work and having problems locating it or walking by and not being able to get an idea for the nature of their business.
99) The Real World Setup for Sales and Marketing
- Specify the products and services you are going to offer
- Specify your target market and any marketing methods you are going to use to bring in or sustain your business
- Specify a price list
- Do a SWOT Analysis or comparable (Strengths, Weaknesses, Opportunities, Threats)
- Asses your sales skills and your elevator speeches. Get coaching if necessary
- Get your business cards on order.
- Build a website and use that opportunity to briefly and concisely tell the world exactly who you are, what you are doing, why you are doing it, why they might need it (if not obvious), what your general pricing is and how they can reach you.
- Decide on an email address you are going to use for business. A generic personal address can actually work and a vanity email address can be a very good choice if you may get into a bunch of businesses. A Google Suite account will be required if you need to be HIPAA compliant or of you want phone support from Google or if you want Google to handle email for a private domain name.
- Get your phone and fax lines established. Consider mobile lines even for brick and mortar business if low to no employees, and consider virtual fax services.