• Market - A market consists of individuals or businesses that share common characteristics and common needs for goods and services. The process of market segmentation is used to define and profile the composition of one or more markets.  
• Marketing - (The Dictionary Definition) - The act of buying or selling in a market. The total of activities involved in the transfer of goods and services from the producer or seller to the consumer or buyer.
• Marketing - (The Business Definition) - Marketing is the process of planning and executing the development, pricing, promotion and distribution of products and services to targeted customers. Using this standard everyone in your organization is ultimately involved in marketing in some way, not just some narrowly defined marketing department.
• Sales - The exchange of goods or services for an amount of money or it's equivalent; the act of selling.
• Advertising - The act or practice of calling attention to one's product, service, need, etc., especially by paid announcements in newspapers and magazines, over radio or television, or billboards, etc.: to get more customers by advertising.

With the definitions above clearly in mind allow me to begin walking you through a process that applies the tenants of marketing to the beginning, middle and end of the business process. The process will go beyond this blog segment so consider subscribing to BlueBlog.



Defining Your Target Market

Identification of a Market - Based on the definition of a market the first step is to identify one or more markets based on the use of market segmentation components (geographic, demographic, psychographic and behaviorisms). The segmentation points allow us to identify individuals and businesses that share common characteristics and common needs for products and services. I will discuss more on market segmentation in a subsequent blog segment.

Building a better mouse trap





Market Voids - In order to succeed in penetrating a market you must identify the voids that exist within the market. Voids are based on measurable factors that lead to the need for a new product or service or an improved product or service. A better mouse trap is a classic example of where the need for an improved product exists. Ultimately "market voids" are all about understanding the consumers' needs, wants and desires that are relevant to a particular market.

Filling the Void - In order to fill the void often requires that market research take place in order to better understand the motivating factors that will ultimately lead to the purchase of the product or service. Market research can take a number of different forms, i.e. online, survey, focus groups, et cetera. In general terms, market research should be conducted under circumstances where the value of the research is less expensive than the cost of the research. Stating this another way, in order for business owners and managers to make the best possible decision requires information. If a decision has nominal consequences then the cost of research may outweigh the benefit. But, as is often the case, if the potential impact of a business decision is significant, then in many instances the money spent on research is money well spent. Ultimately filling the void results in the creation, manufacturing and distribution of a new or improved product or service.

Macro Push versus Macro Pull...

A macro push is where a business has a particular line of products or services that they have secured based on their perception that a market exists for that particular line of business. You push the product or service into the marketplace in hopes of finding someone who has an interest in buying. 

A macro pull is where a business segments and profiles the market, and based on their research developments, manufactures (creates) and distributes products or services that match the needs, wants, desires and motivations of the market, pulling clients toward them. 

Often times in the world of small business the composition of a new product or service is based on the perception of the company's owners and managers.

It is often an intuitive process (going with gut) versus being based on hard facts. Gut is good, but facts are better! In essence a macro push strategy prevails. A macro push is a viable strategy for a company that is established and where a well developed brand and loyal customer base exists. For a start-up or young company, the deployment of a macro pull strategy is (in my opinion) a preferable and less risky approach.

What Really Matters - At the end of the day it really doesn't matter what a business owner, manager, employee, friend, or family member likes or dislikes about a company's products, services, brand et cetera. What really matters is what the consumer likes or dislikes about your product or service, your brand or other numerous factors. For this very reason, most medium and enterprise level companies spend a significant amount of time and money focused on the consumer; they use market research and focus groups to define the composition of the product, i.e. shape, color, configuration and other marketing concepts tied to price, distribution and promotion. As you read this you may be saying, but I am not a medium or enterprise size company. No, many of you who read this are not, but regardless of your size the fundamental concepts that I am discussing represent the foundation of all businesses, regardless of size, industry or geographic location.

Allow me to close this blog segment by posing the following questions for your consideration:

1. Is the marketing discipline truly being used in your company?
2. Can you define or profile the various markets you are currently serving?
3. How many different markets (market segments) are you attempting to penetrate with your products and services?
4. What void does your core product or service fill?
5. How are you different from your competitors in a measurable and definable way?
6. Are you deploying a macro push or macro pull strategy?
7. Do you gather hard facts when considering significant business decisions?
8. To what degree are you influenced by friends, family, and colleagues as you contemplate and address crucial business decisions?
9. What role does pride and ego play in your decision making process?

If you find that the answers to the above questions disturb you or create more questions, then I would encourage to subscribe to "BlueBlog" so that you don't miss future blogs as we further address many of these issues. If you find that there are many questions that need addressing and you feel you need some objective feedback then please feel free to call me at toll free at (866) 913-4100 or via e-mail at tim.barrett@blueprintsforbiz.com.

Look for The Truth About Marketing - Part III coming soon.