Investing in Sales and Marketing

Sales and Marketing - cost or investment? Which mindset do you have? Regardless how you perceive it, history has shown that companies who continue to invest in Sales and Marketing during an economic downturn stand a better chance of surviving it. Those who cut their spend, reduce their sales potential and lose out.

Inflation has just hit 3.8%, up 0.5% since May. This is an 11 year high and much greater than our Governments 2% target. As a result the Bank of England is unlikely to cut interest rates, currently 5%. The BBC and Financial Times both report daily on the impact of oil prices and the credit crunch on our economy. It is not going to improve overnight.

It is not enough to offer a fantastic set of products and services, unless of course you can survive on repeat business!. Your message needs to get to your potential customers. Your message will come in a variety of forms from advertising and web presence to verbal and sales materials. It is even in the emails and invoices you send. If your message is not up to scratch change it. If your message is not reaching your target audience or the wrong audience, change that. Continual improvement and investment will help you survive this economic downturn.

Segmenting your markets

Market segmentation is simply taking the markets you operate in, or would like to operate in, and dividing them into smaller units. Focussing on segments allows you provide targetted messages and offers, resulting in higher conversion rates; a more effective use of your marketing dollars.

There are many ways to segment your markets. Common approaches include:

• Geography: Physical location eg country, county, city etc.
• Geodemographics: Lifestyle information eg age, car ownership
• Social Class
• Type of Business
• Size of Organisation

Once you have created suitable segments you will need to validate them before you create segment specific offers and marketing communication. There are no standard tests but if you satisfy yourself that you can answer the following common questions you should be well underway:

• Is the segment big enough? - can you make enough profit?
• Is the segment sustainable? - will it be there long enough to make it profitable?
• Can you reach the segment? - can you identify and contact potential customers?
• Does the segment respond differently? - two or more segments respond the same combine them

What is Marketing?

So what really is marketing?
According to the Chartered Institute of Marketing it is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably. What does that mean for most businesses? Simply put it’s how you decide what you are selling, to who and at what price.

Typical marketing tasks

• Identify existing or future customers
• Identify their needs and/or wants
• Identfy likely changes in these needs/wants
• Create products and/or services to match
• Ensure existing and future customers are aware of your offer
• Enable customers to get hold of your offer
• Ensure you are making a profit

It is clear to see that every business does these activities, whether inside the owners head or within a marketing department. A more structured approach to marketing is likely to give you better results.