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The Fundamentals of Marketing
The Fundamentals of Marketing
The Write Room Blog is a group of 30 disparate authors who write about a vast range of topics. I will also assume that a significant portion of our million plus visitors are also writers. This marketing blog post is for all of you.
Why writers? Because the majority of writers I’ve met over the last 23 years (that’s how long I’ve been writing for profit) have difficulty taking the concept of marketing and applying it to their book selling business. Consider the following, if you will (and, yes, the examples place me firmly in the cohort known as Baby Boomers) …
Where does one go for overnight delivery in the U.S.? FedEx. What’s the real thing?Coke. Why is it a small world? IBM. Who comes to mind when I mention mufflers?Midas. And do you remember when jeans were called Levi’s?
You were able to answer the preceding questions because the companies mentioned knew how to do something many businesspeople never learn. They knew how to position themselves in your mind, to establish ownership of specific words or phrases, to be the first companies you thought of when you needed a product or service they provided.
Am I really talking about marketing here? Yes, but not in the way you might expect. You see, the common assumption is that marketing is the process of offering your products and ideas for trade. It’s not. Marketing is actually about the manipulation of perception. Specifically, it’s about manipulating the perception of your prospective customers, doing everything you can to capture and maintain a position in their minds that’s valuable or useful to you.The fundamental purpose of marketing is to get into the mind of the customer and stay there.
Marketing ensures that the answer to the question “Who you gonna call?” isn’t “Ghostbusters” but is, in fact, your company. Don’t misunderstand me: good products are important. You won’t maintain the position you want without them. But they aren’t the focus of marketing.
A case in point … When you want fast food, great value and fun for the kids, what restaurant invariably pops into your mind? McDonald’s, right? The company has bought that position in your mind with a constant barrage of advertising. They started out owning the word fast, then they went after the word value and the phrasefun for the kids. More recently, they ran ads which reminded people that McDonald’s is also fun for adults, purposely going after the words or phrases or positions in your mind which relate most closely to what McDonald’s does well. Why? These are the things they want you to call them for. Food isn’t the focus. McDonald’s doesn’t sell food that tastes like you’ve spent all afternoon labouring over it, so they invest huge amounts of money to program you to think about them only when you want a fast, inexpensive meal you and the kids will enjoy. Again, it’s the process called positioning.
When I needed most home repairs, I used to go to a store called McDiarmid’s. Why? I had more success getting the things I wanted at the price I wanted at McDiarmid’s than I did anywhere else. They owned the home repair spot in my mind. Well, McDiarmid’s is gone now, replaced by a new franchise. A franchise that figured people like myself would keep coming there out of habit. But that didn’t work for me. McDiarmid’s still owned the spot they were after. Who got my business? The company I go to when I need deck maintenance supplies: Home Hardware. They’ve successfully captured that position in my mind. It was enough to draw me in when McDiarmid’s sold their business. And the people who were here before any of the preceding companies: Fife’s Hardware? I miss them. The owners retired a few years ago, and the store closed. Everyone in Kenora (where I live) knew that when no one else had what you needed, Fife’s did. You’d pay a little more, but they’d have it.
Got the idea? Marketing is concerned with two related things: Getting into your mind and staying there. This post is designed to give you an introductory look at how this is done.
Be first in the mind of your customer.
There were cars offered in the marketplace which were better than those built by Henry Ford. He didn’t even build the first car. Ford was, however, the first to build automobiles on the assembly line and, as a direct result, was also the first to offer an affordable car to the public. For the rest of Henry Ford’s life everyone else had to chase him.
Understand the lesson provided by Ford’s example. I believe it’s the key to a successful marketing campaign. If you can’t be first, set up a new category you can be first in.
Rolls-Royce did this admirably. Henry Royce provided detailed engineering and unsurpassed quality, while Charles Rolls saw to it that the cars they made were big, fast and stylish. Their 1907 Silver Ghost was the culmination. It was a car so unlike any ever built—having such power, comfort and quality of manufacturing—that it firmly captured a spot in the minds of the public. Result? Not only did Rolls-Royce create a new category of car, they quickly became the standard for excellence in automobile manufacturing.
Interestingly enough, Rolls was never first in the overall marketplace. But, remember, marketing isn’t about being first in the marketplace (having the best sales or the biggest share). This goal may be part of your overall strategy, but it isn’t the primary function of marketing. Marketing is about being first in the mind of your customer. Rolls did that.
When I was growing up, people wanting to make a firm and decisive statement about their wealth and status bought a certain kind of car. They didn’t buy a Jaguar or a Lambourghini or a Porsche. Nor did they buy the most popular car from the most successful manufacturer in the marketplace. They bought a Rolls. Why? BecauseRolls-Royce was the best that money could buy. In my mind it still is.
Do whatever it takes to maintain your captured position.
Which tastes better, Coke or Pepsi? More to the point: who cares? The colossal media wars that have occurred between Pepsi and Coke have had nothing at all to do with which product tasted better, or was better. Their many battles have simply been for a position in your mind. Pepsi wants to be first; Coke is.
I believe that if you comprehend this last point, then you understand marketing.Marketing is not a battle of products, it’s a battle of perceptions.
Own a word in the prospect’s mind.
So, how do the big guys and gals do it? How do they capture a position in your mind and then maintain it? One way, perhaps the most powerful of all marketing approaches, is to own a specific word in the prospect’s mind. Gillette owned the wordrazor. Pillsbury was dough. Betty Crocker was cakes. These companies were the brand names the people of my generation (baby boomers) grew up with, and it didn’t happen by accident.
The whole concept of brand names stems from what marketing is about. It’s about making certain that the customer thinks of you when they need the products or services you provide. Marketing is about positioning.
As I’ve illustrated, positioning is a powerful concept. But let’s delve a little deeper. Let’s take a look at the rise and fall of Bayer. I think it’s a fascinating example of just how powerful the concept of positioning is.
Bayer bottled acetylsalicylic acid (A.S.A) under the brand name of Aspirin. And because they were first in our minds with such a powerful and useful drug, they were wildly successful. In fact, they were so successful in their positioning efforts that Aspirin actually replaced the phrase acetylsalicylic acid and the abbreviation A.S.A. in our culture. Their company also created a phrase based on the bottle design, “The Bayer Cross.”
Ownership of the word Aspirin gave Bayer such domination in the market that no company was able to compete with them until the problem of Reyes Syndrome was discovered. What happened then illustrates the power of positioning even more clearly than Bayer’s incredible marketing success. The very thing that made Bayer successful—ownership of the word Aspirin in our minds—also led to their demise, in terms of market share. You see, at the same time people were linking the name Aspirin to the wonder drug, acetylsalicylic acid, they were also linking The Bayer Cross to the word Aspirin. Do you remember what happened? When Aspirin fell out of favour, so did Bayer.
An interesting follow-up note to all of this is that other drug companies seem to have learned from Bayer’s mistake. For example, we all know that Tylenol rose up to replace Aspirin in the marketplace. But do we know who makes Tylenol? No, we don’t! In fact, I actually had to go look on the label of my own bottle of the stuff to find out that Tylenol is bottled by McNeil.
I want to make sure you understand what I’ve been saying. The company who successfully imbedded the word Tylenol in our minds, thereby making sure that when we wanted acetaminophen we thought of Tylenol, also made equally sure that when we wanted Tylenol we didn’t think of their company.
I believe this marketing strategy was probably a wise choice. Do you remember the Tylenol poisonings? The brand isn’t quite as popular as it used to be, is it? But the problem didn’t directly affect the maker itself.
There can only be one.
Las Vegas is gambling. It owns that word. Want proof? How many of you think about going to Reno when you think about gambling?
Ask someone in their 50’s or 60’s to tell you who The King was. They won’t tell you it was Edward. The King was, and always will be, Elvis.
Who owns the word Camelot? As popular as the Kennedy administration was, I’d wager King Arthur still owns the deed to that particular plot of land.
Who’s The Duke? John Wayne. There’ll never be another.
Who owns the word Communism? It’s Russia, isn’t it? It doesn’t matter that communism has failed there: Russia still owns the word.
There can only be one company or product in first place in any particular market.
Your largest competitor will determine your strategy.
There are many reasons to believe that two companies (or people) can’t own the same word in your mind. Think about the implications of this!
Pepsi’s marketing strategy is determined by Coke. Burger King’s strategy is determined by McDonald’s. It’s a fact of business. Even smaller outfits like Pic-A-Pop or Wendy’s are bound by the fact that there can only be one company at the top. Why? A simple reason is that it’s difficult, and often financially impossible, to go head-to-head with whoever is before you in your particular market. The leverage just isn’t there. Instead, the underdog needs to go for an entirely different position in our minds. To do otherwise is a risky proposition. Watch the ads and the business stats. I think you’ll find this holds true.
Consider the implication this way: People don’t carry many options around in their minds. We’re programmed to make constant choices between two things: We move away from or toward; we do this or that; we choose right or wrong. None of us want to settle for second best. We’ll take our first choice whenever we can. So, in the long run, marketing tends to come down to what I’ve mentioned: finding a way to be first in the mind of your customer, then doing everything in your power to stay there.
Find a way to be first.
Let’s go back to the Coke-Pepsi example. Coke was invented only a few years before Pepsi, but customers have the perception that Coke is the old-timer, the big boy on the block. Coke also did a terrific job portraying the drinking of its product as an American pastime. Did Pepsi let this fact hamper their ambitions? No way. Pepsi eventually turned Coke’s apparent strength (it’s lifelong appeal to the older generation) into a weakness and became the choice of a new generation. It createdThe Pepsi Generation.
I’ll repeat that. Pepsi set itself up as an alternative to Coke by turning Coke’s major strength into a major weakness. In other words, they chose a marketing approach that exactly opposed Coke’s position in our minds, making the drinking of Coke a choice between the new and the old, forcing us to unconsciously place Pepsi in an equal or equivalent position in our minds. They split the market, created two categories, and forced the consumer to choose between the best of the old world and the best of the new world. They earned a spot in our minds where they were, indeed, first. How’s that for Contrarian thinking?
The Pepsi story proves there are many ways to be number one. The key to discovering one of these spots is to remember there are always different ways to look at things, different perspectives, different points on which to focus.
I’m reminded of a pattern I noticed in old gunfighter movies. The best gunfighters didn’t battle with their closest competitors. No, the good ones tolerated each other. They shared the marketplace, so to speak. They each fell into a niche where they were first, where they were the best. One was the fastest, another was the most accurate. There were one-gun men and two-gun men. There were those who preferred long rifles and those who used a six-shooter. Then there was Bowie. He used a knife, rather than a gun.
All of these men either stumbled into a field (or pursued one) where they were best, and in doing so set themselves up to be pursued by foolish upstarts looking to knock these so-called market leaders off their perch. As I mentioned, they each created their own category. They discovered ways to the top by carving out niches within the biggest marketplace, by finding an area where no one could compete with them, where they were the best, and where they were first in people’s minds. As is often the case, art imitates life.
Marketing is a process, not a solution.
When you’re actively trying to change a customer’s perception of you, your product, or the marketplace, you’re attempting to change his or her beliefs. This takes time. So often a business will opt for the quick fix to their growth problems—a series of sales, down-sizing, a new product line—only to find they’ve cut their own throat in the process, that instead of owning a spot in the customer’s mind, they’ve become indistinguishable from others in the marketplace.
Think of marketing as educating the customer. You’ve got to teach people what’s unique and special about you and your product. You’ve got to show them why they should choose you in the first place, why they should return frequently, and maybe even why they should increase the size of their purchases. You’ve got to create a permanent position for yourself in the minds of the people who are your target market. It’s the only sure-fire approach to sustainable long-term growth, and it takes time.
Don’t add unnecessary new product lines.
Adding a new product line without a lot of careful thought is a risky proposition. You may end up diluting your brand.
I used to go to Midas when I had muffler problems. I wonder why they thought I’d go to them for brakes? Someone else already owned that spot in my mind.
Another example of this foolishness is Pizza Hut. I thought they did a wonderful thing with their slogan Pizza Hut… And Nothing But. The phrase stuck in my mind, and it actually brought me back to them after many years of absence. Then they did something I couldn’t believe. They started running a series of ads introducing their newest product, wings. Ads, by the way, which also included the above slogan. What a waste of money! Not only did they not get the chicken wing spot in my mind, their credibility suffered.
Extending your line of products or services on the assumption that people will buy because it has your name on it is an idea which has proven to be expensive for many companies.
Be prepared to leave some things alone. No one’s going to believe you can be the best at everything. This is still the era of specialization, the age of delivering a specific product or service to the largest number of people. Giving up things is integral to that process. Note: It took me over 20 years to learn this lesson. And when I did, when I chose to specialize, the floodgates opened and customers beat their way to my door. My specialization? Ghostwriting. If you or someone you know requires a ghostwriter. I’m your guy. Writing the way it should it should be.
Take, for example, the appearance of the superstores (Big Box Stores). They were, and are, first when it comes to offering a good selection of quality products at the best price. They managed to achieve this position because they willingly gave up all the frills other businesses traditionally offered so they could dramatically reduce the price of their offerings to the customer. A lot of businesses have gone under learning there’s no way to directly compete with these stores. Why? Because a traditional business can’t give up what the superstores have given up. A business that has lost or is losing its market share to a superstore needs to understand that there’s no going back, that they’re going to have to establish a different category they can be first in.
Contrarian thinking can help.
No one sells more cottages claims a local realtor. If I wanted to go into competition with him, I’d seriously consider a statement like No one sells fewer cottages … but we sell every single one that’s listed with us. Do you see the reasoning? If the market you’re interested in is held by someone who specializes in selling fast cars, why not establish yourself as a dealer who sells slow cars? That’s right, slow cars—for the person who wants complete leisure and comfort, rather than speed. To effectively compete in a marketplace held by a big restaurant like McDonald’s, I should give serious consideration to slow-cooked, wholesome food (if not gourmet) served in an intimate and adult environment. It’s an offer that’s exactly the opposite of what McDonald’s does. I won’t get the customers to whom fast food is most important, but I’ll get the ones who don’t mind slow food, and to whom taste and atmosphere does matter. It’s a smaller share but it can be very profitable.
These examples illustrate a viable marketing approach that works by offering something the competition can’t do. It’s what the superstores I mentioned earlier did to small business. Think about it: The fast food place can’t offer the slow, painstaking preparation that is a must in gourmet cooking; the fast car dealer can’t switch to, or add, a line of slow cars without damaging his position; the realtor who sells a lot of cottages, definitely isn’t going to give each of his customers his individual attention—because the big guy can’t be small and personal.
Admit a negative, get a positive.
When overnight isn’t necessary … was a slogan tossed around by a national postal service in the U.S. that couldn’t compete in the arena of overnight document delivery. The company owned up to this negative but showed that it could compete effectively for two, three and four day deliveries. Very slick. I found myself giving them the positive, even though I knew exactly what was going on. You see, by admitting they’d justifiably lost a portion of their business to companies like FedEx, I was more inclined to believe their claim that they were still the place to go when overnight delivery wasn’t necessary. Cool.
Look for weakness.
It’s unfortunate, but when you’re the little guy, or you’re a business losing market share to someone’s brilliant idea, the right marketing choice has to be chipping away at the opposition until you find a weakness. Those who stop chipping just don’t survive. The refusal to do the difficult and make the Contrarian choice, means that they have no hope of uncovering the rare weakness all companies exhibit from time to time. As a result, they aren’t positioned for that one master stroke, that chance to do the unexpected, to be bold, to be daring, to be a winner.
Hang in there.
In every situation there’s going to be a choice open to you which will produce more substantial results than anything else. Develop the patience and the pertinacity to look for that option, the objectivity to recognize it and, finally, the courage to boldly capitalize on the thing. Marketing is no exception.
Choose a position you want to occupy in your customer’s mind, and when you somehow manage to earn that place, do whatever it takes to keep it. Expect to have your position constantly challenged. Be prepared for it. You should also expect that you and your employees will make mistakes. Be willing to allow this to happen, to let isolated failures go unpunished. Sustained creativity and growth can’t happen when people are afraid to make mistakes. Unless you’re willing to accept your mistakes, fix them and continue on, you’re in trouble. Persevere.
Think of marketing as artistic communication.
Marketing isn’t exact. How can it be? You’re trying to access and affect the beliefs of a wide variety of individuals. In the world of marketing the most insane ideas will often work, while supposedly fool-proof campaigns crash and burn. How else can you possibly explain the creation of the Pet Rock fad? Get creative. And have some fun communicating with your prospective customers.
Most businesses tend to advertise when they have the money, rather than when they should. It’s a truism; Advertising is needed most when things aren’t going well. If you’re looking to launch a marketing program of any kind, please remember that successful marketing requires consistent advertising over long periods of time. It’s the only way to get into a prospect’s mind and stay there.
I don’t mean to imply you must advertise every day, or every week. Timing, after all, is important. For example, a successful trend usually occurs when the supply never quite exceeds the demand. Consider your favourite author. Would you purchase books written by he or she if new ones appeared (and were advertised) each week? Probably not. It’s the fact a new book by this author comes out only rarely that keeps you interested, that keeps you buying. Successful impresarios and businesspeople have made use of this knowledge for years. Just think of the phrases for a limited time only or Christmas comes but once a year. They’re classic examples of trend building.
Have a monthly marketing budget.
You wouldn’t go wrong by regularly giving the public answers to the questions: “What do you do? When do you do it?” and “How do you do it?” But the simplest marketing rule to remember is that you need money to get into a mind, and you need money to stay in the mind once you get there. Successful marketing means spending lots of money. Plan for it.
Do whatever it takes to learn about, understand and put into practice the concept of positioning. I’ll even give you a reason for doing it: What word, words, or positions do you occupy in the minds of the people you work with? Can you answer the question? If not, you now have your reason for learning to use positioning. Furthermore, when you do identify the position or positions you now occupy in the minds of these people, are these perceptions helping your company to be more profitable? Are they indicative of relationships you can count on in the future? Can they be sustained? If not, what are you going to do about it?
Marketing is the answer, isn’t it? Even if you have to capture the mind-positions you want one person at a time. Think of how great it would be to secure ownership of words like good friend, honest, trustworthy, loyal, reliable, valuable, kind, cheerful, positive or successful.
What’s the one thing you’d like to have people recognize you for, and what are you going to do to make sure that when they think of that specific word or phrase your name pops into their heads? Marketing is the answer.
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