How to optimize the key strategic function in your business
In your business there is one function more than any other that requires innovative strategic thinking and planning. That function? Marketing.
Indeed the late Peter Drucker – one of the world's greatest business thinkers – stated that "Because its purpose is to create a customer, any business enterprise has two – and only these two – basic functions: marketing and innovation. They are the entrepreneurial functions." (from The Practice of Management)
Yes, your business may have access to a huge pool of working capital. You can have the brightest, most talented people working for you. And, you can have your administrative and financial systems ticking along like a finely tuned Swiss watch. But, they won’t do you an ounce of good if you don’t have a strategically-focused marketing system that:
- Identifies attractive and buoyant target markets
- Creates unique business/organizational and products/services brands
- Generates quality brand awareness
- Produces a steady stream of prospects and customers to talk to and sell to and monetize
The simple fact is that marketing is the core function of your business. Marketing creates and builds your brands, generates customers, which in turn produces revenue and profits. And if your marketing sucks you'll quickly lose revenue, and eventually you'll end up with no business. Sad, but true.
Let me show you a visual that highlights the importance of the marketing function. Called the Revenue and Profit Drivers statement, it's a modified version of the traditional profit and loss statement, and it highlights the key metrics and activities that generate revenue and profit:
As shown, the statement highlights the fact that on an operational/execution level, success in business starts with getting quality brand awareness. Put another way, it is scientifically impossible for you to make a profit if you have no brand awareness – or the brand awareness you do get is poor. It also reveals key marketing metrics you need to know and understand if you want to improve your business.
So how can you improve your firm's marketing? Several things.
Firstly, you must understand that the success of your marketing is underpinned by the strength of your business and competitive strategy. So you must firstly develop a strong business strategy.
Next, you must understand that the core component of your business strategy is your brand. Or more specifically your business/organizational brand and your products/services brands.
Third, to create and build high value brands you must take a strategic approach to marketing. What do I mean by that? Let me explain.
Most people – including many CEOs and business owners – have a very narrow view of the marketing function and view marketing as advertising, building a website, promotions, design etc. All the fancy stuff in other words. This is the wrong way to approach marketing.
Smart business owners on the other hand take a strategic approach to the marketing function and recognize that marketing encompasses a number of areas such as:
- High-level analysis
- Strategic positioning
- Auditing and framing organizational culture/brand.
- Strategic brand creation
- Product development
- Revenue stream modeling
- Sales process design
- Packaging
- Online and offline advertising
- Lead generation
Third. You must have an actual marketing system in place for your business. Not a haphazard and disjointed series of marketing campaigns.
How to strategically improve your firm's marketing
If you want to develop and build a highly tuned and effective marketing system, here are several service options available to you:
Strategy Sessions – Marketing focus
Strategy Sessions are the core service I provide to clients. So what are they? Essentially Strategy Sessions are short, one-on-one or small group thinking, planning and consulting sessions to help you address an immediate need, challenge or problem that exists in your business.
Designed to be a time-efficient and affordable means of accessing high-level strategic expertise, you can use Strategy Sessions in a number of ways such as:
- Figuring out why sales are not growing as they should
- Identifying growth markets and outlining the best ways to reach them
- Reviewing your existing strategy and/or plan
- Auditing sales and marketing systems
- Brainstorming new product ideas
- Formulating new business or product/service brands
Strategy Projects – Marketing Focus
For more complex needs your best service option is typically Strategy Projects, which are designed for projects ranging in duration from several days to several months. The types of projects available to you? In terms of specifics, these are the types of projects you can have completed:
- Market research and analysis
- Revenue stream modeling
- Targeting and positioning
- Pricing
- Product development
- Strategic Brand development - Including naming, design and production.
- Sales process and customer conversion development
- Sales force development
- Marketing structure and human resource development – Developing an effective marketing structure and human resource performance management systems.
Using my proprietary SmartSWOT strategic planning tools, these services will help you to plan and develop a kickass marketing system. That is, a coordinated and highly tuned marketing system that helps you to more effectively:
- Generate quality brand awareness
- Turn that brand awareness into more sales leads
- Convert more sales leads into customers
- Sell more, more often to customers
When it comes to creative development and implementation – such as building a website or creating a marketing campaign – you can use your existing creative team or agency. Or, you can access the creative partners that I recommend and work with. Either option is fine.
How these services compare to others
As you've seen so far, these services provide you with a comprehensive approach to building and improving your marketing system. But how does they compare to what else is out there? Let's take a look at the other options available to you.
Marketing and Advertising Agencies
Most corporates have ad agencies do their marketing for them, and the best agencies do fantastic work. Problem is, most agencies focus primarily on execution and don't get involved in the development of a fully-fledged marketing system.
The exception to this are fully integrated marketing agencies – which typically only deal with corporates and Govt departments. So if you're a smaller business with a big-name agency handling your account, then it's highly likely you will be "looked after" by an agency junior. Not exactly the expertise you're looking for is it?
Web design, graphic design and copywriting consultancies
Provided you know what you're looking for, this option gives you access to some great skills and expertise.
The problem with this option is that generally, these guys are are limited to a narrow skill set like design, copywriting or web building. Usually, they don't know how to develop strategy, write strategic plans, and develop a proper marketing system, which is really what you need.
Business Coaches
Business coaching is an industry that emerged back in the mid 90s and has developed globally. In reality it's a bit of an odd industry mainly because there can be bit of confusion as to the role of a business coach and what a coach actually does. Some business coaches view their role as primarily listeners or facilitators, while others are primarily trainers.
Nevertheless, when it comes to marketing, most business coaches do not know how to develop marketing systems. It is a skill set they simply do not possess.
Business consultants and accountants
Not too long ago finance was considered to be the core business function. But, as markets have developed and become more competitive, and as consumer tastes have evolved, strategy and marketing are now viewed as being the cornerstone of business success.
In fact, marketing is viewed as being so vital to a business that some business consultants and accountants have added "marketing advice" to the list of services they provide to clients. How odd is that? It's a bit like me hanging out my shingle as an accountant. While I have a reasonable understanding of accounting, I don't have the training, aptitude or brain style to be an accountant. I'll be like a fish out of water.
In the main, accountants and business consultants can probably offer general marketing advice, but not specific marketing strategies, tactics or execution.
Hire in-house staff
Depending on how much you want to pay and what skills you need, you could take on in-house marketing staff. For instance at a junior or intermediate level you could hire a marketing assistant or coordinator. Unfortunately most do not know how to craft strategies, position products or develop marketing systems. Their role is primarily administrative in nature.
Going up a level or two, you could hire a marketing or product manager. But, at this level expect to pay a large salary and benefits for a good one. And even then, this person is unlikely to have all the skills you need.
Do it Yourself
Yes, you could take a do it yourself approach to marketing – if you can truthfully claim to have the expertise needed.
If you don't have the expertise and still try the DIY approach you are going to waste thousands of dollars and look like a fool in the process.
The complete marketing and business growth solution
Inasmuch as the options I've shared with you can potentially add some value to your business, the reality is this – my service gives you a strategically focused approach to marketing.
So, for more information call me on 09 534 9314. When you call, make sure you request your copy of The Marketing IQ and BS Detector Test.
