The real purpose of marketing

There is a story of five blind men who, for the first time, were able to touch an elephant. The first man felt the long trunk and declared that an elephant is like a large snake, while the next individual touched the tusks and determined the elephant to be a beast with enormous horns. The third man felt the huge ears and said an elephant is similar to a large fan, but the fourth person grabbed the thick round legs and said an elephant is like a tree trunk. All were corrected by the fifth man who touched the side of the elephant and said it was but an enormous wall.

Marketing to many business owners is like the elephant. In our seminars, we will ask people to tell us what they think marketing is about, and some will say it is: selling products, or advertising, or distribution, and so forth. Like the blind men, they describe some aspects of it that are correct, but they don’t quite describe the big picture of marketing.

Even textbooks miss the mark when it comes to teaching future business people about the real purpose of marketing. A typical academic definition of marketing states it is “the process of planning and executing the conception, pricing, promotion, and distribution of goods and services to create exchanges that satisfy individual and organizational objectives.”

Pretty exciting stuff, huh? There are many facets to the marketing process, but the focal point of all the coordinated efforts of your strategic promotion, pricing, product selection, and distribution should be part of a long-term aim.

Your real purpose is to identify your suspects, progress them to become prospects who will turn into buying customers, then loyal clients whom you have a relationship with, then finally to develop those clients into advocates who will tell others about your business. In other words, almost all of the traditional marketing focus is aimed at improving transactions “that satisfy individual and organizational objectives.” However, for greater success your business should focus on developing the interactions you have with each customer.

There are many businesses on Saipan that struggle to make a profit, while a select few continue to grow and prosper. There are numerous factors that contribute to the overall success of those organizations, yet their common denominator is they have developed a close business relationship with key customers. The quality of their interactions has affected the quantity of their transactions.

While most business owners try to attract new customers by cutting costs to the bone and lowering prices, savvy business owners develop loyal clients and offer a unique strategic advantage that allows their businesses to not be affected by the low-price tactics of competitors.

Just think what would happen to your business if you could reduce your attrition rate by developing loyal clients who continue to buy from you even though competition tries to lure them away with lower prices. Also, imagine your relationship with the client being so good that they are compelled to tell their friends and family about your business—in other words, they become advocates.

Not only would your business maintain market share, you would eventually increase your sales. This will not happen by accident, and it will take more than holding a few “smile” training sessions. It should be part of your overall strategy. Product development and selection, distribution, pricing, and promotion are still important elements in the marketing mix; however, realize that your initial sales should be more than a mutually satisfying exchange.

The first purchase by a customer only initiates the interaction process. If the customer does not move beyond the “customer” stage, then you will have a person who is easily swayed by the promotional efforts of competitors. However, if your relationship becomes stronger with each interaction, then your competitor’s tactics will have little influence. Your customers are your business. Without them you will only have a building with inventory collecting dust.

Like the elephant story, your goal should be to get the whole picture, not just focus on one small aspect of it. That big picture is to move your prospect to a buying customer, a loyal client, and eventually a word-of-mouth advocate for your business. If you were to try and eat an entire elephant, you could not swallow it all at once. It would take time and persistence. So how should you eat an elephant? One bite at a time.

How should you build a successful business? One delighted customer at a time.

(Rik is a business instructor at NMC and Janel is the owner of Positively Outrageous Results. They have consulted with over 400 businesses in 40 different industries. For better business results go to BizResults.biz to read previous articles.)