What factors help a customer to buy?
There are a wide variety of things that influence a purchase decision – budget, timing and personal psychology to name a few; but there is one fundamental factor that brings all these influences together – value.
Value is a subjective perception created through a blend of need, price and the belief that one product is better than another. Good value is seen as a high quality solution which meets all of a customer’s needs at a reasonable price.
Here’s how need, price and belief play into a perception of value:
I see a pair of hiking boots on offer and I recognise the brand; but the fact that I don’t go hiking means that I won’t value them highly.
Some marketing works to convince the consumer that they have a need. For example, if I’d read an article explaining how hiking boots improved posture, helped stimulate blood flow and were good for your feet, then by the time I saw the boots I may have developed a “need” for them.
Grooming potential customers this way is an excellent way of enhancing the perceived value for your product or service and can help you break into new markets.
Set your price point as high as you can; this helps to enhance the perceived value of your product.
A big mistake is to slash prices. This can work, particularly when it comes to more exclusive discounts, but offering a huge discount lowers the perceived value of the product. Who is going to pay “full price” for a sofa at DFS when most of the year they are offering 50% off?
The price point will often lead customers to believe one product is better than another. However, people will not be willing to pay a higher price if they do not believe in the product; the two factors work in tandem.
Belief is about your brand, your marketing and their knowledge of the product range. It is what 80% of your marketing budget helps to create. And it is the one area over which you have the most control.
So how do you go about creating this belief in your product or service?
There is no single method, but there is a core concept: “Tell me and I’ll forget, show me and I’ll remember, involve me and I will understand.”
People may forget the specifics but they will be primed to receive your brand, and priming can be important in establishing credibility.
For example, you conduct a PR campaign where you write thought-provoking articles relating to your product or service. In the article you describe the problem (establish a need), drop some hints as to a solution (brand priming) and get it featured in an established trade magazine (credibility).
Visual memory is more powerful for most people than verbal memory, particularly when “show me” still involves some verbal explanation – “show and tell”. Exhibitions and trade shows are great for this.
“Involving” your prospect creates an experience that uses all three types of memory/learning: verbal, visual and kinesthetic (touching and using) to create an almost unbreakable belief in your product. If you are there to tell the prospect the benefits, you can create a need. At the same time you show how the product or service meets those needs visually. Then, the final step, you let the prospect try with the product, get them involved in using it and create an experience.
Creating a complete and immersive experience of your product or service increases recall, generates belief in the product and, in the end, turns prospective customers into brand ambassadors. You aren’t as likely to share the fact that you saw some new product, but you will want to tell people what you just tried out - experiences are made to be shared.
Copyright © 2014 Richard Edwards, director of event and customer experience specialist Quatreus.
I love the fresh-scrubbed feel of a new year. It’s a great time to set goals and it inspires me to charge ahead.
I do more looking forward this time of year than looking back, but it is important to pause and take stock of where I’ve been. It helps me avoid making the same mistakes twice, and reminds me of things we did that worked well, so that we can try to repeat them.
To that end, here are my top four marketing must-dos in 2014:
With clearly defined goals, you have something to aim for and a way to measure your progress (or lack thereof). Throughout the year, I can easily analyse the numbers and see whether I’m on track; if I’m not, I know I need to address any problems.
Goals include how many followers or connections you’ll gain on your social media networks, and how many new subscribers you’ll sign up for newsletters. Sales may be a number you take into account, but remember — sales are the result of a comprehensive strategy of which marketing is just one component.
Building a database with email addresses and relevant information about former, current and prospective clients is absolutely essential. It allows you to communicate with them, reminding past customers of all you have to offer; strengthening the confidence of current customers; and encouraging prospective customers to move toward a sale.
If you’re just getting started, create a database of all the people you know who might be interested in hearing from you including friends, family and all your business contacts. Your communications should not be sales pitches; they should offer valuable, helpful and relevant information.
Grow your database by including a “call to action” on your website — an invitation for visitors to share their contact information in exchange for something that benefits them. That could include free reports, how-to videos or subscriptions to your blog posts.
The first thing some people do when income declines is minimise expenses by whacking their marketing budget. Huge mistake! In fact, you need to pay more attention to marketing when sales drop off.
The new prospects you develop today, and the prospects you’ve been establishing relationships with, will be your paying customers tomorrow. If you allow that stream to dry up, you’ll be in even more dire straits a few months from now.
Today we have more tools than ever for communicating the value of our service or product. Many of them cost you nothing. Today I can jump on Twitter, Google+, LinkedIn and the other social media networks and reach a potentially far larger audience for free.
Speaking engagements may be old school, but they’re still effective; personal, face-to-face experiences create lasting impressions. Traditional media — radio, newspapers and magazines, and TV — are also still powerful and carry the additional benefit of giving you credibility. That implied endorsement from journalists can set you apart.
Creating a great website accessible to millions of potential shoppers doesn’t have to break the bank, and you can ramp up its value by using it to showcase your publicity.
Use everything at your disposal to share your message.
Global Entrepreneurship Week is an inspirational event for would-be entrepreneurs that need advice and guidance to get started and build their own businesses. And advertising and marketing are an important part of any start-up strategy. Here’s a nine-step plan to help you make the best use of your marketing budget — however modest.
Your other marketing and advertising options include:
Advice supplied by GEW partner, Barclays. Global Enterprise Week takes place until 24th November. You can find out more in our GEW Guide.
In many ways, it’s easier than ever to start up your own business but it’s becoming increasingly difficult to stand apart from the crowd. But it’s not impossible. Here are four ways to help your business to gain valuable visibility.
Businesses that lose themselves within the crowd are often the ones that don’t have anything to stand for. I’m not saying you need to be prepared to fight crime Batman-style, but do agree on a clear message that you want to communicate and share this with your audience.
People will remember you for your message — just look at Volvo, with its “safety first” message. This is how we remember Volvo; this is what makes the brand stand apart from its competition. If you want a safe car, you know where to turn.
We can’t score the winning goal on our own — we need a team around us to help set it up, block the defence and pass the ball. The same applies to making your business stand out from the crowd; you have to create a trusted dream team — and that includes partners and customers as well as your own staff (if you have them).
Whether you have a marketing team or do that job yourself, you need a fearless brand leader, loyal staff and brand advocates (the customers). These are the people who will set your business apart. This dream team can be difficult to construct but get it right and you will be able to take on the world.
If your company isn’t online yet — it should be! A lot of businesses make the mistake of thinking what they do or sell won’t translate online. They couldn’t be more wrong. It’s time to make what you do or sell visible online because this is where your audience is.
There are many ways to communicate with your target audience online — Facebook, Twitter, LinkedIn, Google+, Tumblr and YouTube. This is where your message needs to be clear — it’s easy to confuse what you’re trying to communicate with the audience and your message can get lost in translation. Don’t spam your audience, choose the most appropriate media, have a clear message and communicate at the right time.
Going digital is perfect for small businesses as it cuts out the advertising middle man, saves thousands of pounds and provides you with greater control of your marketing message.
If you don’t know what the competition is doing, how can you set yourself apart? Take time out to research what those around you are doing; what worked and what didn’t.
If your competitors are doing something you like, think about how you can adapt the idea for your own ends and do it better. Or better yet, take on board everything those around you are doing and do something completely different.
Leah Jarratt is writing on behalf of Salt Recruitment.
Mary Portas has made her name championing small businesses and helping to turn around many small retailers facing declining footfalls and tough conditions on the high street.
Here she gives some of her top marketing tips, with her usual direct, back-to-basics approach.
The sun is shining and I’m thinking about Christmas. My diary already contains activity for 2014. No doubt I’m lagging behind some in their marketing campaign planning.
The Chartered Institute of Marketing (CIM) definition of marketing includes the word “anticipating” and that’s so true — we’re always trying to be one step ahead of the marketplace, the target audience, and the competition.
Even if a marketer is within the target audience for a product or service, it’s difficult to distance yourself — we’re hard-wired to watch out for advertising messages.
It’s also true that many marketers are not in the real world for the majority of the products or services they’re entrusted with promoting.
According to TGI data (2012 Q2) marketers are:
For the past eight years, online market research agency fast.MAP have tracked the gap between what consumers are doing and what marketers think they’re doing. And we continue to see a gap — sometimes over-estimating, sometimes under-estimating likely responses and preferences.
In addition, the report shows some marketers persistently cling to theory, rather than listening to consumers.
Listening via social media builds on traditional research methods such as surveys and focus groups. But be warned — unlike the carefully designed structure of traditional research, social media conversations are unbounded.
Real-time listening can also deliver benefits in areas such as customer service and crisis early warning. American Express recently reported that 25% of consumers who complain about products on Facebook or Twitter expect a response within one hour!
Beginning with “mentions”, there are numerous free (and paid for) online tools that can be used to listen to conversations about your product, service or brand.
Google Alerts and Twilerts provide timely email updates for company name, brand name or keyword mentions, while management dashboards such as TweetDeck enable you to set up multiple columns for everything you wish to monitor — mentions, direct messages, specific accounts and keywords (highlighted with a hashtag, or #).
Every good conversation starts with good listening and those marketers that listen to their audiences are better placed to manage conversations and create communications that consumers will respond to.