Participant Guide—Module 5 Business Processes

Effective marketing involves understanding the needs and wants of customers and tailoring marketing efforts to meet those needs. Customers buy a service or product to meet a need or want, and businesses must identify what need or want their product or service satisfies. This understanding is essential in creating effective marketing strategies. For instance, a hairdresser does not sell haircuts merely because they can supply them, but because customers want to look good. Similarly, a computer company sells personal computers to solve business problems. Advertising is a key component of marketing, and it should create awareness and a preference for a product or service, as well as motivate customers to buy. Before spending time and money on advertising, businesses must understand three things: customers must know about their business and services, customers must prefer their service to competitors', and customers must be motivated to buy from them. To create awareness, businesses must make their company visible, which can be achieved through signage, sponsorship, and location. Signage should be interesting, simple, and clear, while sponsorship can get a business's name in front of prospective customers. Location is also crucial, as a high-traffic location can attract customers. To create preference, businesses must become their customers' first choice in meeting their needs. This can be achieved through stories, advantages, and recommendations. Stories can instill confidence in customers, while advantages can show a business's reliability. Recommendations from satisfied customers can also create a preference for a business. To stimulate action, businesses must provide an incentive for prospective clients. This can be achieved through point-of-sale promotions, coupons, and contests. One-shot advertising rarely works, and businesses must use repetition to move a prospective customer from awareness to preference and finally to action. Low-cost or no-cost ways to create awareness include encouraging existing customers to bring in new ones, posting signs on bulletin boards, demonstrating products or services in person, speaking to community groups, sponsoring contests, and preparing news articles. These methods can be effective in creating awareness and establishing a business's presence in the market. In conclusion, effective marketing involves understanding the needs and wants of customers, creating awareness, establishing preference, and stimulating action. Businesses must identify what need or want their product or service satisfies and tailor their marketing efforts to meet those needs. By using low-cost or no-cost methods to create awareness, businesses can establish a strong presence in the market and attract customers.