Thursday, March 27, 2008

EPISODE28 - Catering to Customer Concerns

EPISODE28 - Catering to Customer Concerns

Marketing concept requires that you determine customer’s needs and then fulfill them better than any of your competition. Your decisions in all facets of your business should be related to better satisfying your customer needs and concerns.

This is an old idea. In a book called the Wealth of Nations published in 1776, Adam Smith wrote that the needs of producers should be considered only with regard to the needs of consumers. It took us 200 years to implement this strategy wholeheartedly in business.

With the industrial revolution, we used the production concept, Can we produce the product? Can we produce enough of it?

Followed by sales concept, Will this product sell and will it sell enough to make us money?

Marketing Concept: What do the customers want?
Can we produce it while there is still need or interest in it?
Most importantly, how can we keep our customers satisfied?

New marketing concept is:
Develop a product catering to prospective customers needs
Make the sole purpose of the customer continued focus on customer needs
Make a profit by focusing on customer need over the long haul

To do this define your marketing mix
Place (distribution)

Ask these questions about the product:

Is this something my customers need? Have you considered your customer in regard to brand name, functionality, styling, quality, safety, packaging, repairs and support, warranty, and accessories or additional services?

Price—will they buy it at this price?
Pricing strategy, have you considered suggested retail, volume discounts, cash and early payment discounts, seasonal pricing, bundling with other services, . flexibility in pricing, price discrimination

Place—have I made distribution easy
Distribution channels, market coverage, inventory management, warehousing, distribution centers, order processing, transportation, return policies

Promotion: Is my message geared to my customers, wants, needs and desires
Promotional decisions, have you considered the push and pull for your product
Advertising and how it affects your clients, personal selling and sales force—how perceived by your clients; public relations and publicity—what do your customers want to hear about you?

This is just an outline; listen to this episode archived at for full impact.

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