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WHAT IS MARKETING AND WHAT DOES MARKETING MEAN TO YOUR SMALL BUSINESS? LET’S KEEP IT SIMPLE.

Updated: Oct 16, 2022

Firstly, we need to understand that marketing is NOT “selling,” “promotion,” “advertising,” or “public relations” — — the list goes on. Marketing as an academic field and as a business function is much more holistic and in-depth. However, whenever someone typically talks about marketing or when they are describing their “marketing department,” they are generally referring to one of the previous categories mentioned. Yes, promotion and advertising are facets of marketing, but it is not marketing.


So, let us keep it very simple — Marketing involves creating value for your customers, meeting your customer's needs, exceeding their expectations, and communicating and delivering the value which you have created to your customers. In this definition, you have noticed one recurring word: "customer.” In other words, your customers should be your business focus in all your marketing activities.


Now let us understand the difference between marketing and selling because many people get this confused. Selling (which was traditionally viewed as marketing) is only the exchange of a product or service with a focus on profit or sale. Whereas marketing focuses on the customer, building customer relationships, and satisfying the target market. Let us keep it even simpler while the traditional view of marketing was primarily focused on selling what you have. The modern view is focused predominantly on producing or selling what the market needs or what can be purchased. Several successful entrepreneurs and international businesses of many well-known brands currently adopt this contemporary approach to marketing.

 

In all things considered, what does this mean to you as a small business owner? It means that you need to do some market research (including product or service and consumer research) to carefully identify your target market. Carefully think and study your business or service in terms of operation; WHO are your customers (end-users and or intermediaries within the value chain)? What are your customers’ needs? What is your service or product? Also, from this process, your product or service differentiation should be considered and looked into? What product or service attributes set you apart from the competitors? In doing so, you can build your product image.


Another thing to be very mindful of is the level of competition in your area of business, as well as peak seasonal supplies and demands. This is very essential, especially when we are competing in a global economy. Global competition, supply, demand, free trade, and falling prices are some of the many factors faced by all businesses. That is why it is important to be responsive to your consumer needs and differentiate your product in the marketplace.


After you have done your market research, start developing your marketing strategy and plan. In developing your plan, that’s where your marketing tactics and strategies like advertising and promotion come in. However, this part is imperative to your business because in executing your strategy and plan, you are to also define your target market, define the product and the product’s position in the marketing place, pricing, distribution, promotion, and communication to your customers. These are all essential components of any marketing plan. Be aware that every market is different. Hence, it is important to know whether you are serving a broad market or a targeted niche market, as each has distinctly different needs.

 

Nonetheless, if you are still uncertain about how to formulate an effective marketing strategy for your product, many marketing professional consultancy firms can guide you in this process. This would be the best option. However, if you are unable to make this investment, as a business owner, you can employ the principles and tactics to successfully market your product or service using these five basic steps within your marketing plan:

  1. Clearly define your market.

  2. Research/study your target market

  3. Understand your product benefits and how it serves your target market’s needs.

  4. Communicate your product attributes and benefits to your target market.

  5. Capture and exceed your customers’ expectations.


Many business owners sometimes overlook and undervalue the importance of step five, but step five is just as critical or even more critical to your business's success and is essential to retaining customers. Communicating that you care about your customers in your marketing, providing excellent customer service, thanking your customers for their support, be reliable and friendly are some of the many ways you can capture and exceed your customers’ expectations. Remember, as much as you are selling a physical product or service; you are also selling experience; that is why in retaining the customer, it is important that the purchase or business event or experience is memorable and leaves a positive impression on the customer.


In the end, MARKETING is an important business function and, when employed properly, yields profitable results. Consumer knowledge is useful for small business owners to anticipate market trends and formulate effective marketing strategies and plans. It is essential for business owners to understand consumers to survive and succeed in these competitive marketing environments. To conclude, remember the sellers’ market disappeared a long time ago, and the buyers’ market has arisen — For one, you cannot sell if no one buys. If your customers are happy, you are happy, and if your customers have a problem, you have a problem. Your customers are always king.


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