One of the most widely quoted statistics in the business world is the failure rate of new companies. While some quote statistics as high as 80 or 90 percent, others believe that 60 or 70 percent is more reasonable. But while it’s clear that nobody knows the exact figure, what’s more important is the reason why so many businesses fail. For the overwhelming majority of new businesses, it’s due to the decided lack of a cohesive marketing strategy.
Though all sectors suffer from this problem to some extent, it seems to be most prominent amongst high technology companies. Despite the efforts of brilliant engineers, who develop amazing technological innovations, most of these companies fail to make any sustainable impact, and fade into obscurity before they’re even known to have existed. That’s because no matter how phenomenal the technology, even the finest ideas don’t sell themselves. Success takes more than just a great idea and the technical wherewithal to build it – it requires a partnership between engineering and marketing.
Most engineering-driven companies develop their product, then look for a market in which to sell it – the diametric opposite of what should happen. Instead, the best chance for success comes from looking at the market first, then building the product that best serves those needs. This is what marketers refer to as being “customer-focused”. In fact, being truly customer-focused goes beyond merely developing a product that serves the customer’s needs. An entire marketing strategy must be developed, with the target customer at its core.
A comprehensive marketing strategy is comprised of four overarching components: product, price, promotion, and place. Each of these four components must be developed with the target customer in mind, and each must work together, to produce one cohesive strategy. Of course, just as with the engineering of the product, developing a winning marketing strategy is much easier said than done. That’s where a professional, experienced marketing team comes in. Just as code, boards, and chips should never be developed by marketers, marketing should never be conducted by engineers.
The 4Ps of Marketing
Despite the fact that marketing seems “easy” relative to engineering projects, it’s entirely too simple to burn through the budget with ineffective marketing campaigns that are unlikely to yield any tangible results. A winning marketing strategy requires a multi-dimensional view of the customer’s needs, wants, and buying behaviors, as well as the ability to translate that information into a sound strategy.
Though developing and implementing a marketing strategy may seem trivial, or a waste of time and money, it can make the difference between success and failure!
