Unexpected rules that ring the cash register
Author: Jeffrey J. Fox
Because it is its purpose to create a customer, any business enterprise has two-and only two-basic
functions: marketing and innovation. Marketing is the distinguishing, the unique function of a business. –
Peter Drucker
The Definition of Marketing
A marketer’s job is to generate revenue through its marketing campaign. The definition of
marketing itself is the profitable getting and keeping of good customer; the only sustaining life force in
any organization.
Marketing is the epicenter of organization. It is more than sales force, more than advertising,
pricing, packaging, promotion, and trade shows. Marketing is responsible for creating new products that
fills customer needs, for quality control, and for account receivable, inventories and collection. Thus all
departments and functions must be headed by a strong customer-first marketing attitude because every job
exists to directly or indirectly get and keep good customers. It is important therefore that employees are
directed and trained as to why their jobs are important, and how to do them well.
The Superstar Marketing Company
The superstar marketing company spends their time wisely:
a) The CEO and all top people spend time listening to customer and selling.
b) A person’s attitude toward customers is carefully considered during hiring process.
c) All employees are expected and trained to appreciate the customer.
d) Getting the customer’s name spelled correctly.
e) Stays open past closing time to serve late-arriving customer.
f) Greets the customer with warm welcome “Welcome to Borneo Eco Tours. We’re glad you are here”.
g) Invest in constant training which reaches into every aspect of their enterprise. The result is having
people willing to do things that employees in other companies don’t, cant, or aren’t allowed to do.
h) Everyone has the authority and the duty to use their best judgment to do what is necessary to take care
of the customer.
i) Put a time value on the customer relationship. For example, if a woman spends $45 every three weeks
at a salon, and if well treated and well satisfied can be expected to remain a customer for three years
(valued at 52 visits X $45 = $2,340).
j) Investment decision : anything that will help improve quality, lowers cost without hurting quality,
improves selling skills, increases brand awareness, create new products, or in a way betters the
offering to the customer.
k) Pursue market share gains relentlessly and continuously.
Superstar Marketing Strategies
Marketing superstars and the marketing superstar companies never forget that their existence depends on
customer. Customer rewards the good work of a company by buying more product or services, or telling
other good things about the employee’s company. When the customer buy the products, the money is
used to fund the employee’ paychecks. If customers decide that they are not getting appropriate value
for their money, and take their money elsewhere, the company loses its business with the customer and a
paycheck.
Segment Your Customers: Okay, Not Okay
Knowledge of your market shapes your product positioning, branding, communication claims, sales
approaches, channels, pricing, and packaging. All market segment into four types of customers:
1. Sophisticated / Okay – usually bigger companies, sales margin lower but size of sales are often large.
2. Unsophisticated / Okay – generates lower revenue but higher margins, rely on advice, service and
supports.
3. Sophisticated / Not Okay – risky, low margin, arduous decision making process, delays in getting
paid and employees burnout.
4. Unsophisticated / Okay – to be avoided, does not appreciate your products and legal fees is not
unusual.
The Customer Is Not Always Right
The old marketing cliché “The customer is always right” is wrong. The right customer, the “Okay”
customer is always right. The wrong customer, the “Not Okay” customer is not okay for the selling
company.
Use the Seven Growth Levers
Marketing superstar has a “Growth Notebook” to fill with potential ideas to grow your brand or company,
test them and then execute the ideas. Here are seven growth levers for revenue:
1. Introduce new products and innovate
2. Add new end-user customers in current markets, in new markets, and in new geographies.
3. Sell new applications of existing products or current customers.
4. Reduce customer attrition.
5. Raise praises.
6. Light candles and pray that market demand rises.
7. Acquire companies.
You Must Love Your Brand
The marketing superstar is the custodian of the brand. Whatever your brand represents, you must love
and live your brands. You must understand the value delivered by your brand so well that you are never
shy about its price. You must be able to articulate, dollarized value of every benefit and every point of
difference of your brand.
Early to Bed , Early to Rise, Sell Hard, and Dollarize
Marketing superstar have the energy and stamina to sell all day because they are early to bed and early to
rise. They start with dollarization and sell politely, persistently, legally, honestly, consistently, creatively
and relentlessly.
Always Price To Value
Customer buy benefit the get from the product. Do not price your product based on its production and
cost plus a markup, or based on demand and supply. Do not price your product to mirror competitive
pricing and never price your product below cost.
Price your products or services according to the value the customer receives from the products
and constantly educates the sales force, the channels, and the marketplace to real value of the products.
When customers understand the dollarized value, price is just a detail.
The Folly of Price Cutting
Price cuts instantly cuts profit because the cost stays the same and does not stimulate derived demand.
Instead it is followed by competitors and starts the price wars. Increased sales volume from a price cut
only happens when your product is priced above its real value and customer respond accordingly. Good
competitors compete on product quality, product innovation, service differentiation, advertising creativity,
salesmanship, technical service, store location, merchandising skills and employee attitudes.
Always Sell Consequences
The marketing superstar dollarizes and sells on consequences of not buying. It is always more effective
to influence the customer by showing the cost of going without, along with other consequences of not
buying your product.
Derived Demand is Not Direct Demand
Derived demand is the purchase need of customers who use the product as a component, or as part of
the manufacturing product for resale. Direct demand is a consumer products company (end user). The
marketer selling into derived demand markets cannot influence demand. Superstar plan and execute to
increase market share by outselling and outpromoting, not by underpricing the competitors.
Fifteen Super Marketers Must-Knows
1. The single most important ingredient for success is having customers. Marketing superstars get and
keep customers.
2. Customers buy to feel good or to solve a problem. They value the solution in two ways: as the
avoidance of loss or the gain which can always be expressed as a dollar value.
3. People buy what they get from the product. Sell the dollarize value.
4. It is the marketing’s responsibility to dollarize the value of every product benefit and every product
point of difference.
5. Marketing strategy must encompass all three elements: who (customers), what (product bought) and
why (products benefits and uses).
6. Organize and segment customer to “aware”, “aware non-users” and “unaware” for marketing
direction.
7. Product quality is a marketing responsibility.
8. Direction to research and development is a marketing responsibility.
9. Sales a marketing responsibility.
10. Trained sales force will increase revenue. Say “Thank You” to the customer.
11. Salespeople will increase sale if they: a) show the dollarized value b) ask for a commitment and sales
order.
12. The three most important words in marketing strategy are execution, execution and execution.
13. Brand names are intellectual assets, often more valuable than the tangible assets. Always put the
brand name in the headlines and slogans.
14. Every product is branded; always use good, customer-tested, on strategy brand names.
15. Technology does not sell, marketing sells.
Marketing superstar focus on what benefits the customer, dollarize it and sell the value everytime. They
focus on execution of strategies, are always looking for ways to making things better and live to pursue
and keep good customer relentlessly.
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