Marketing Myths Exposed
January 6, 2009INCREASE YOUR SALES BY FORGETTING WHAT YOU THINK YOU KNOW.
New Ideas are always taking hold. As such, marketing tactics we thought were tried-and-true are no longer the way to go. It turns out that advances in our understanding of consumer behavior have produced a new crop of marketing dos and don'ts. The following are seven pieces of conventional marekting wisdom and how to ignore them.
Myth No. 1. Find and target market segments for your brand.
Instead of identifying the people who want to buy your brand, try aiming at those who are likely to want the type of products you and your competitors sell.
Myth No. 2. Loyal customers are the most valuable.
Not necessarily. Studies show that loyal purchasers of a brand make up only 10 percent of buyers and buy less frequently, so don't focus entirely on gaining and retaining this segment.
Myth No. 3. There are many ways to garner long-term brand growth, including increased customer bases, increased customer loyalty and increased purchase frequency.
There is really only one way to grow sales - increase your customer base by reaching new customers in either existing markets or new ones. Focus on gaining market share rather than fretting about loyalty or how often customers buy.
Myth No. 4. Differentiate your products from those of your competitors.
Sometimes this is needed, but resist being different just to be different. This can inhibit your potential and distract from goals. Think of a Toyota Corolla - one of the most basic yet best-selling care out there. Customers know it will provide what they expect in a reliable car.
Myth No. 5. Promotions bring worthwhile business.
There is some truth to this. Promotions are good for reducing stock, but they don't bring in new customers and turn them into loyal subjects. Typically, promotions only attract existing customers, giving them discounts on products they were going to purchase anyway.
Myth No. 6. Companies adept at the four Ps - product, price, place and promotion - will win.
This is true, but there is a component missing: brand strength. Strong brands create trust and are known for their quality and reliability. For young companies, this means nurturing your brand's reputation. For the more established, exercise caution when introducing new products to avoid hurting the brand.
Myth No. 7. Marketing is about hunting and capturing clients.
Thanks to the internet, sometimes the company is the prey. This makes putting the company's products and services in an easy-to-find place online and responding appropriately to business requests the marketer's role.
Source: The Wall Street Journal