What are you losing money on?
There are a few blunders in the promotion, which we invariably meet in almost the full set of almost every client who applied. People are so used to them that they consider these mistakes to be an absolutely correct system, the height of management genius – “after all, business giants have done that too.” As the owner of a small enterprise argues, this is a forwarding company, it is arranged in such and such a way, and it has such and such means of product promotion. So, if I do the same, I will have a chance to make more money. But perhaps what he wants to copy is not a successful action, but rather a source of problems.
The same department is engaged in the search for new customers and work with existing customers. People do not see that this is a gross mistake, even when you point them to it, you have to explain for a long time. How is it, they say, after all, and that and other sales, it means that the activities of the sales department! And the point! I ask – but isn’t it obvious to you that finding a new client and forcing him to work with the organization for the first time and selling a product or service again to an old client are completely different types of activities? That these actions require different amounts of time, money, and the staff at the same time performs different actions? The head agrees, because it is obvious, and for the first time thinks, what if there is a rational grain here … And it is the examples of large companies that prevent him from thinking. These companies themselves suffer from this deficiency and hire consultants to help them rectify the situation.
This is how it happens in some enterprises. Employees of sales, sales or whatever it is called, rush to search for a new customer or clients. Long search, find. Make deals, income grows. Then they are engaged in satisfying his needs for goods or services until he is “full”. Revenue falls, looking for new or new customers for some time. Income below, but the money is still there, from the past “jerk”. Find again, and the cycle repeats. Of course, incomes dance up and down, the chart looks like a “roller coaster”. And everyone thinks this is normal, “how else is it possible?”
This is possible. If one department only does what to look for new customers, enter into the first deals with them, and then transfer to the other department, also a trading department, which deals with regular customers (and the customer should feel that his status has increased), the income will be distributed evenly and growth will be stabilized. In the practice of my clients, the very fact of such a division, without changing the number of employees, sometimes doubled the income in the first month after the reorganization.
“Working with a new client and selling a product or service to re-old customers is a completely different type of activity”
Now, after the correction of the structure, we are confronted with errors in marketing and advertising. This is really an area of misunderstanding! A lot of marketers have spawned around. Only now they do not know in the bulk, how to earn money for the native organization. And do not consider it their task. And they consider it their task to spend the founders money. And if they are told the truth: “listen, dear, you are responsible for the entire income of the organization”, then you will see a close look from the series “have you not got sick, my friend?”. Placing orders at advertising agencies (recommending those promotion methods that are more profitable for advertisers themselves), ordering advertisements “more creative” (that is, the more beautiful and more incomprehensible the better), buying expensive but useless research is unfortunately the daily activities of marketing departments. I’m not saying that all marketers are like that. But this phenomenon is widespread, and it is associated with shortcomings in the education system.
With regards to marketing research. The vast majority of them, as I have seen recently, are focused on collecting information about competitors and market trends. This is not a mistake, such information is needed. But do not forget that money is not brought to you by competitors, but by customers. Which are often simply not investigated. Namely, the research of customer opinions should form the basis of any marketing program.
The organization must operate two units to promote goods or services to the market. One of them includes the marketing, advertising and sales department for regular customers. And this is very logical – marketing and advertising do not serve the purpose of conquering new markets, their task is to raise sales in the already occupied territory. The second division includes the primary sales department and the PR department. And this is also absolutely logical – it is PR that nourishes the soil for expanding the client base, it is PR that creates new brands in people’s minds.
Both PR and marketing are based on surveys and research results. If it is oversimplified, the essence of any marketing research is that you ask people – what are they willing to buy, what are they willing to fork out?