Do you know what motivates people to buy? Do you know what motivates people to buy from you? If not, you have a lot of research to do. Not only do you have to understand who your target market is but you also have to understand their buying behaviors. To start you have to understand consumer behavior and remember you are a consumer so let’s begin with you. Let me give you a case study and keep in mind that you can’t change the dynamics of the case…
So you have to go to two stores, the grocery store is on the right and the discount store is on left. Remember you have to go to both. Let’s say you need to buy deodorant, which store will you buy your deodorant from? Again, you have to go to both.
I’ve done this scenario many times – here’s what happens…
Some people say I’m going to the discount store because the price is better – so I say “the price is the same.” Some people say I’m going to the grocery store because it’s more convenient for me – so I say “but you have to go to both.” Some people say they will go to the grocery because the packaging is better – so I say “the packaging is the same.”
Of course I drive them crazy, The point is – understand the motivation of your target market to buy your solution over your competitor. And the motivations are not always price, convenience, and packaging – it could be many other things.
Principle Nine--Your business should be a Profit-Producing Investment.
Think of your business as an investment. Just like investing $300 a month in a savings account to yield a certain % per year. How much are you investing in you business a year and what returns are you getting on that investment? Do you know how Mobilize Your Money?
Let’s say I’m holding up a $1 bill – most people would say that its value is $1 which is true but if you focus on profits you might say that the value is $1000 because you know hot take $1 and turn it into $1000. It’s really easy to start a business and make money but it’s much harder and more satisfying to build a business that’s profitable over time. Learn how to mobilize your money now! Ask a million questions, learn what to do with your money, learn how to make your money grow.
Also, pricing your solution the right way is critical – are you selling your company short? If you cut your prices make sure you’re not cutting into your profits. Set the right price with good profit margins vs. focusing on making the deal. Some deals are not meant to happen.
There are about 15 more principles I could share but I'm hoping this is enough to get you thinking differently about your business. It's OK to know basic business principles, but when you understand and implement them you will be able to take action and create a results oriented marketing program.
Understand Your Business to Understand Marketing.
- © 2005 Effició, Inc.
- Sherese Duncan is the Author of the Award Winning Ezine, The Street Perspective, a bi-weekly eZine for small biz owners who want straight-to-the-point simple strategies to increase profits and increase cash flows. Sign up for your free profit strategies at www.thestreetperspective.com
