This article mentions the true purpose behind marketing. Through this article, we will be able to find answers to the questions like, why marketing should be done? How it should be done and its main purpose in the business environment.
The One Crore Concept
To completely understand the purpose of marketing it is important to understand a number that you will have to keep in mind as you go through this article, and that number is One crore.
When we think of one crore, it seems like a huge number. A number is so big that it is close to impossible to achieve. Who doesn’t want to earn one crore rupees? Yet we humans tend to be very fearful and settle for less because we believe that achieving that number would be a long struggle that may go to waste. If we break down the number, we realize that it is not as difficult to achieve it than we perceive it to be. Let us take the example of a niche – Skincare and cosmetics. In this niche let us take lip balm as a product.
We must sell this lip balm worth one hundred rupees to one lakh customers. Which would give us one crore in revenue.
Next, when we have acquired these one lakh customers, we introduce a lipstick worth one thousand rupees and even if we sell it only to 10% of our customers acquired, we again make one crore in revenue.
Then we introduce a Makeup kit worth ten thousand rupees and sell it to only one thousand customers. This again gives us one crore in revenue.
Finally, we introduce a complete makeover package which involves various services along with products provided, such as bridal package or wedding function package, with professional makeup and others which is worth one lakh rupees. If we sell this to only one thousand customers, we again make one crore in revenue.
One aspect that is common in all of these products and services is that we acquire customers and even if we sell our products to customers at different levels assuming that only 10% of our customers from each group convert and purchase higher-priced products, we still make one crore in revenue.
The Science of Marketing
It is believed that marketing is an art as it involves creativity and expression. In truth, marketing is actually a science. It is a method of establishing a connection with the consumer and building trust with them. It involves creating a product that is original and fits the needs of the customer perfectly. Marketing begins even before the product is actually made. It starts when we understand the needs of the customers so well that it leads us to create a product that fits their requirements perfectly. Such a product sells itself as the customers will be repurchasing the product and will also recommend the product to others, which intern brings in more customers. Marketing such a product is only required for the initial stage.
Marketing involves targeting the right group of individuals. Its primary objective is delivering the message to the right person at the right time. The need for products already exists, marketing bridges the gap between the customer with a particular need and the product that satisfies their needs.
Along with selling the products marketing involves keeping the current customers happy. Good customer service is the essence of marketing as it keeps the customers happy and loyal. It is present whilst advertising, selling, and even after the product has been purchased as customer service to help increase sales through positive reviews.
“The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. The aim of marketing is to make selling superfluous.”
– Peter Drucker
Drawbacks to Marketing
Marketing is said to be a highly beneficial yet dangerous skill to learn. It is a highly powerful skill and such a skill could either make or break your company. Often people use marketing as a means to sell the product without caring for the product’s quality. Misusing such a valuable skill completely breaks the trust of the customer, which intern leads to the death of the company.
Often people give more importance to marketing than the actual product. They believe that effective and aggressive marketing is the only way to reach customers and fail to focus on the product when in reality the opposite should be done. Even if the information about the product reaches the potential customers, the customers may buy the product and give negative reviews, which will lower the sales and lead to losses.
When you want to build a strong brand, you do not need to be the number one, you can be the only one. Instead of aiming to be at the top, it is better to aim for something unique. Branding involves choosing a particular category and becoming the leader in that category. It becomes effective when you decide where to compete. If a category does not suit you be the best in a subcategory. For example- you need not be the leading brand in all foods, you can be the leading brand in a subcategory or even a sub- subcategory of food such as fast food, healthy food, ready-to-eat food, or snack food.
Have a Unique angle in a Market with High Competition
When you enter a market, it is better to choose one where competition is high as the demand for the products is already present. However, it is important that you must have a unique angle. Your product must be different from the other products in its own unique and creative way. This would make customers feel attracted to your products and perceive them as a better option.
Why should you Learn Marketing?
Now we come across the main question. Why exactly should we learn marketing? Why can’t we just hire someone else to do the marketing work for us? How does learning marketing benefit us?
To begin with, ask yourself this question. Can a computer convince a person to buy a certain product? No, it cannot. Can the automated system generate new and creative ideas on its own, assemble them, and put them up as an advertisement strong enough to attract customers? No, that is not possible.
Although the computer is the most used instrument in terms of marketing, it cannot do all the things that humans can do. Humans only trust humans and can be convinced to buy a product only by humans. Marketing might take various different forms, but marketing and sales are evergreen and have a long shelf life. They cannot go extinct as it is rooted in human psychology in understanding the market and business environment.
Marketing is the most valuable business investment as it gives you direct returns unlike other jobs such as production, manufacturing, retailing, etc. Since it involves analyzing the needs of the customer and creating a product that satisfies the market needs, it is necessary for the entrepreneur to be a marketer, and it cannot be outsourced completely to another agency.
Marketing helps the business informing strategies and creates a road map, in other words, it is the backbone of a company. Even if the company fails and you are in need of money marketing is a skill that never leaves you jobless, and is also a safe career.
Importance of Good Communication Skills
When we say good communication skills, we do not mean sophisticated English. Communication skills must be clear and without gaps. People often confuse good communication skills with language skills. A person with good communication skills has the ability to transfer the thoughts in his/her mind to another person’s mind effectively.
To improve your communications skills, you must write as you are engaging in a conversation with someone. Imagine that the person whom you want to communicate your message to is sitting right next to you as you speak. Starting a conversation isn’t as effective as joining a conversation. The catch here is that the question is already present in the mind of an individual. A person might be thinking to himself ‘What is digital marketing?’. So, all you have to do is join that conversation. This helps in understanding your target audience better. Involve English in your daily life. When you think, speak, read, write or watch a movie. This helps improve your fluency.
Global Economics and its Basics that every Entrepreneur should know
Economics is the study of how money flows in the economy. It deals with the various factors that affect the growth of the economy of a country. Global economics is the study of economics on a large scale in comparison to other countries.
Economics plays a major role in the field of business and marketing as it helps us understand the fluctuating demand for products in the market. Therefore, it is necessary for every entrepreneur to possess a basic knowledge about economics, which helps them to make calculative decisions.
Debt is good for the economy because it helps the economy grow. It generates money, for example- You want to buy a house that costs 50 lakh rupees. Although you are earning you do not have the money to buy the house. So, the bank lends you a loan to buy the house and charges interest. When you pay back the loan in installments bank makes profits. Those profits are used to lend money to other individuals and when they pay the amount back more money is generated. This helps circulate and generate money in the economy. When people begin to reduce their household expenditure and repay their debts the banks reduce the interest rate to encourage debt and spending.
When the economy’s GDP goes down and the money generated is less which causes economic decline it is called recession. This is when the total money circulation and the supply of money go down. This creates strong companies and drives out the weak companies.
To Understand Indian Economics
India is a developing country and developing countries are the best locations to establish a successful business as the business grows along with the economy. India is a developing country and business entrepreneurs looking to establish their business in India must understand the economy to achieve success in the business.
India can be said to comprise of three different categories, we can name these as India 1, India 2, and India 3. Based on these categories the product must be created.
- India 1 is comprised of a population of 31 million people which is 6% of the total workforce, that has a per capita income of $8,800. It is a cluster of tier 1 cities and the members of the household are educated and can speak English well. In most cases India 1 is the target market for start-ups.
- India 2 has a population of 29 million which is 5.5% of the total workforce that has a per capita income of $3000. This particular section belongs to the serving category and comprises of individuals that work in shops, delivery etc. This segment lives in tier 1 cities and provides services to the population of India 1.
- Finally, India 3 comprises of 88% of the total workforce which comprises a population of 1.1 billion. This segment has a per capita income of $1200. This is the poorer section of society where people are not educated at all.
Traditional Marketing V.S Digital Marketing
We are often under the impression that digital marketing is highly powerful and it is the future of marketing. This is in fact true yet it is not the only source of powerful marketing. Traditional marketing which is done through television advertisements, newspapers, magazines, radio, etc is also highly powerful. Digital marketing has emerged as a new trend but the old trends of marketing do not die. Staying solely dependent on digital marketing does not help the product in sales. If the product is generic and has a very wide target market, then TV ads are best suited for it. One such example is dishwashing soap bars. Since this is an item that every household needs you will not find social media as an effective source for marketing it.
Television has a reach of 800 million to 1 billion people. In India, a television is present in 197 million households out of 298 million households, with an average of 4-5 members per house. Radio has a reach of 65% of the Indian population and newspaper has a reach of 465 million people. On the other hand, digital marketing has a reach of 100 million users. Comparatively the reach of digital marketing is low. Digital marketing is effective in reaching the population in India 1. It is best suited for those who have a target market of the literate, English-speaking population with higher spending power.
Despite the wider reach than traditional marketing has it also has a few drawbacks. It cannot be customized or personalized. You cannot deepen the marketing and communication of the message and you cannot do natural sales.
Direct Response Marketing
How do you know if the advertisements you are running are effective or not?
Television advertisements make it difficult to track the number of sales, which makes it difficult to assess the effectiveness of the advertisements. It is possible that you spend a lot of money on television advertisements and do not get the same number of returns in sales. An increase in brand awareness does not give us an accurate number of the results of advertising. When we are starting out as a start-up it is important to use digital channels and do Direct Response Marketing.
“Direct Response Marketing is a type of marketing designed to elicit an instant response by encouraging prospects to take a specific action.” – Marketingevolution.com
An advertisement that requires you to click on it or fill a form. This helps in capturing the IDs of the customers which helps track the progress. Such advertisements require the customer to respond to the advertisements. These advertisements do not need to be digital. It could be a newspaper article that requires you to call the number mentioned on it or a sales page with a link to purchase the product.
The Marketing Funnel and Framework
If you want marketing to bring you the wealth you will have to follow a certain formula and the effectiveness of this formula determines how much wealth you create.
Wealth = n^ CATT
- ‘n’ stands for your selected Niche. It is important to have a good niche as it is the main root of you company. Once you have your niche decided you will start making content.
- ‘C’ stands for the content that you make for the product of your selected niche. To attract people towards your product, writing various contents such as blog posts, articles, videos etc should be made.
- ‘A’ stands for attention. Once the content is created, we must gain viewer for the content. This can be done by SEO, paid advertisements, social media etc.
- ‘T’ stands for trust. Trust is the one of the most essential components in marketing. Audience buys your products only when they trust your content. Marketing automation and retargeting are good methods of building trust with your customers. This will turn them into buyers.
- ‘T’ stands for transaction. Often at times the customers read and follow and trust your content. However due to certain reasons they do not purchase it. Customers might add the items in your cart but do not finally purchase the products. We can convert out leads into purchasing customers through natural sales.
What are natural sales?
The market has customers that are already looking for certain products and already trust the products marketed. They are not just potential customers or audiences who only follow your content but have no intention of buying. So, when targeting is done and you have attracted the target customers to your niche, sales happen automatically. This is known as natural sales. But it doesn’t end here, you need to continue the product promotions through workshops, telephone marketing, emails, etc.
How do you choose the right Niche?
Selecting the niche is the most crucial step in generating wealth through the CATT method. But how do you know which niche is best suited for you? To find this you must follow a certain combination. Your choice of niche should have a demand in the market. Along with this, it must also be something you are talented in and are passionate about because if it is not your area of interest you will soon grow frustrated and focus less on its progress.
The Best Process to Market your Products
In terms of marketing your product, using each and every single method of marketing does not benefit sales. You must select the marketing method that is best suited for your niche and target customers. Customers will only buy your products if they hear about it from a third source. This is where integrated digital marketing comes into the picture. The CATT framework exceeds through Integrated Digital Marketing.
Initially, running paid advertisements helps gain public attention. Interested customers will visit your content and either get to know it or subscribe to it. This helps you attain the email list of your audience, which can be used for email marketing. Once your product gains attention through content and email marketing it will be listed on the Search Engine which receives a signal that ranks you and shows your product or niche on recommended searches. Your product continues to gain more attention through social media as well when people like and share your content. This process converts customers into buyers and these buyers intern bring in more buyers.
The Power of Personal Branding
Personal branding is when an individual markets his brand through himself. One such example would be Elon Musk. People know him more than the brand he owns. When one hears his name, they would go to google and look him up. Then they would get to know that he is the CEO of Tesla and would then visit the company that he owns. The same goes for bill gates and others. Personal branding is not be confused with celebrity influence. It is when one markets their niche through their own personal platform.
What makes this method effective is that people prefer hearing from other people, not companies. Personal branding is all about deepening the message and branding yourself along with your company. People tend to remember the brand more if it is deep and personal.
The downside of personal branding is that it cannot be invested in and cannot be bought or sold. The upside, however, is that it can give rise to many brands from personal influence. It becomes an influencer and a brand ambassador for the companies that they run.
Evolution of Personal Branding
Personal branding although is powerful needs to be performed the right way. No one would pay attention to someone who has nothing special to show. Merely stating that you are the CEO of a certain company does not create any type of the influence. For personal branding to succeed there are various steps to be followed.
Learn: Learning new facts, skills, and procedures and understanding them helps us to remember them effusively. If you want to start marketing your niche you will have to learn marketing first.
Work: By working with the skills, you have learned you will be able to remember them effectively. Implementing these skills in the real world will help you discover more interesting aspects and help you gain wealth.
Blog: write about your experience. By writing and publishing your experience you will be able to attract attention and gain feedback along with information about others’ experiences. Writing helps you understand better, improve your fluency and it also helps others learn from you.
Consult: Once you have gained the skills, experience and have branded yourself personally through your blog. Begin consulting other companies with a consultation fee. Companies would gladly take your advice due to your skills and experiences.
Mentor: When you gain a certain number of followers you will find certain people who want to follow in your footsteps. These people will be looking for mentors and instead, of searching for mentors elsewhere they will want to be mentored by you. Mentoring helps you understand the various subjects of your content better. It also passes on what you have learned to someone else. Start-up: Start your own product or service business with the knowledge you have absorbed. When you finally have a company people would not hesitate to purchase your products or services as the trust has been established successfully.
Thank you for the valuable attention you have given to this article from the beginning to the end. I hope you have enjoyed reading it just as much as I have enjoyed writing it.