introduction
A street corner café opened that had everything going for it as far as rich coffee, friendly staff and warmth were concerned. After some weeks of being open, this café had no more than a handful of customers walk through the door while a café located only three blocks away had phenomenal lines every morning. The difference was not having the best coffee; it was marketing.
Marketing has gone from being an auxiliary function to being the primary driver behind growth of a business. In today’s marketplace, the products that are offered may be the best available, but not having sufficient visibility, trust and effective communication will generally cause success to not occur. Businesses today are competing not only on quality of their products or services, but also have to compete for attention within the minds of customers; the perceptions customers have of them and their product or services and the relationship the businesses have with their customers.
In this article, I will explain the reason marketing is important for growth of a business by looking at the 3 main functions marketing performs: building brand awareness, generating sustainable revenue and building relationships with customers that will endure over time. Collectively, these are the building blocks for long-term success for any business or in any industry.
Marketing Creates Brand Awareness and Market Presence
If a customer is not aware that a product exists then they cannot purchase it, no matter how innovative it may be. Marketing is how a business becomes visible and known within a competitive environment.
How Marketing Drives Awareness
Effective marketing establishes a brand’s identity in consumers’ minds prior to having a need for that product. When someone has a need for a product, frequently it is the familiarity of a brand that drives their purchasing decision.
Examples and Evidence:
There are numerous studies demonstrating that consumers are more likely to buy products from a recognized brand than an unknown brand. Decreased brand recognition means lowered perceived risk of the consumer purchasing that product.
Many global companies, such as Apple, spend millions of dollars annually on marketing not just to sell products but also to stay relevant within today’s culture.
Even local companies can utilize targeted digital advertising strategies to quickly connect with local consumers.
Real-World Example:
A start-up company that manufactures skincare products used storytelling through social media instead of traditional advertisement methods to develop a following of thousands of people in a few months. This developed into significant sales increases for the company.
Differentiate Yourself from Competitors
Many entrepreneurs believe that just because their product is of superior quality that potential customers will find them through word-of-mouth advertising. While word of mouth can be beneficial, it is not a reliable, fast form of advertising.
Marketing is different from word of mouth because:
It is Strategic versus Random
It is Scalable vs. Restrictive.
It is Measurable versus Unknown.
Without an advertising presence businesses will continue to be hidden.
Marketing Creates Reliable Revenue and Business Growth
To grow a business, you not only need to make odd sales, but also need a way of making a reliable stream of income. They are created through structured marketing strategies that develop a process for bringing leads through the customer journey from being aware of your business through purchasing (or becoming a repeat customer).
How Marketing Makes Revenue Work for You
Today’s marketing is focused on making data driven decisions for maximizing each step of the customer journey.
Revenue Generation Builders
Lead Generation: Digital marketing initiatives are designed to capture interested leads before your competition does.
Conversion Optimization: Continuously refine messaging, design and offer elements to increase the likelihood of leads becoming customers.
Market Expansion: Expand into new demographics and geographies easily and effectively.
Supporting Insight:
Companies that implement structured marketing strategies typically grow faster than companies that only have organic lead generation. Consistency in messaging leads to consistent sales.
Example of Predictable Growth:
An online clothing retailer that used email marketing to create predictable growth:
Increased repeat purchases through personalized email recommendations.
Decreased abandoned carts through automated email reminders.
Created seasonal email campaigns, which increased quarterly revenue.
The overall result was higher sales, but also predictable growth.
How Traditional Sales Approaches Differ from Marketing
Sales teams focus on closing deals they can see and feel. The role of marketing has a much broader reach and can expand that reach to develop more leads over time by creating a better understanding of consumers’ views about your product.
Differences in Focus:
Sales has a short-term, transactional focus, while marketing has a strategic, long-term focus.
Sales targets current customers to make a sale; marketing works to build future relationships with customers.
Sales are a means to collect cash, while marketing builds stronger cash flows over a longer period of time.
Companies relying solely on marketing strategies are able to differentiate their brand by using digital channels of advertising to acquire new customers, while companies relying only on sales rely primarily on traditional forms of advertising such as television and radio.
The Importance of Marketing in Building Customer Loyalty and Creating Long-term Customer Value
Customer acquisition is costly; however, retaining a customer is more profitable. Marketing is an important factor in converting new customers to returning customers who are vocal advocates of a business.
The Importance of Relationship Marketing
The modern consumer expects companies to provide more than just product benefits; they also expect their brand to connect with them, provide them with authentic products/services, and offer them value.
How Marketing Creates Loyal Customers:
Keeping in constant communication helps customers maintain top-of-mind awareness of the brand’s products/business.
Providing customers with valuable information adds value and informs customers; this empowers customers.
Creating personalized experiences for customers creates a feeling of being heard and understood by the company/brand.
Research illustrates that retaining a current customer is far less expensive than acquiring a new customer, and loyal customers will spend more money over time than new customers.
Example of Regularly Communicating with a Fitness Program
A fitness program that utilizes a subscribers model will keep their customers engaged by regularly sending out motivational themed content, their customers’ progress tracking data over time, and exclusive member offers. In doing so, this fitness program company creates a loyal customer base who feels supported by the company rather than just becoming a sales transaction; therefore, creating higher customer retention rates.
How to Differentiate Your Business from Price Driven and Discounting Competitors
Some companies will try to compete for customers through discounting their products/services continuously; while this strategy may create initial interest to buy, it does not create loyalty.
The marketing function provides businesses with marketing messages that can:
Create an emotional connection between the company/brand and customers by telling a brand story.
Build a sense of community where customers feel they belong.
Provide value-based messaging; moving away from price-focused communication.
Customers who have a good relationship with, and/or loyalty to, a company/brand will be less price-sensitive to the competition for the products they buy, and therefore, they will be less affected by changes in the competitive market.
Final Thoughts
Digital marketing has become essential for company success. There are many ways to use marketing techniques to create brand awareness, drive consistent income, and establish customer loyalty. All these elements work together to create a strong company that can adjust to an evolving market, but the accessibility of digital marketing will continue to expand and consumers’ expectations will change, making it even more important than you realise.
Companies that are proactive in developing strong, intentional marketing strategies in the early stages of their business will be able to achieve long-term success; on the other hand, those that do not pay attention to their marketing efforts risk being overlooked.
Recommendations for Companies:
Treat marketing as a long-term investment and not as a temporary expense
Use data analysis to support your marketing strategies and gain insight into consumer behaviour.
Be authentic in your brand images in order to develop trust and establish credibility.
Growing your business is a deliberate process. Growth occurs by being intentional with your marketing efforts at every step of the way — the process is not an accident.
Call to Action:
If you are serious about growing your business and evaluating your marketing strategy, answer the following questions: Are potential customers finding your company or your competition? Your future may depend on the answer.