Local Business Marketing Guide

Marketing is a means of generating and creating customer value. The value referred to here is the relationship between what is paid for and what is received and how it is perceived by the customer. Value can be quite difficult to determine as it depends on how much the particular product or service is needed by the customer.

For instance customer A may havea greater need than customer B which means that customer A will place a greater value on the product or services offered and is more likely to make a purchase.

As a business owner, it might serve you well to consider the needs and wants of your customers. In other words, you should operate your business from a customer oriented approach. A customer oriented business isone that places the customer at the core of the strategies by which that business is conducted.

Here are 3 features of a customer oriented approach:-

1. Information driven
2. Customer focused
3. Seek to be different.

There is no single template forcreating customer value as no two businesses are the same. As you would agree, there can be varied levels of products and services and varied groups of target audiences

However, it's up to the businessowner to assess the target Market and then create a value proposal for potential and existing clients.

 Read this summary of Tesco Case Studies to find out how a customer centric strategy brought them from a Market stall to Giant retailer in less than a century.

1919- Jack Cohen started abusiness selling from a Market stall in East End London

1929- Opened first grocery shopin Burnt Oak, Edgware. Vision was to "Pile it High, sell it Cheap" This was a valued proposal during the period of depression in the 1930s.

1956: Opened first supermarket andwas able to buy in bulk, however he couldn't sell at a cheaper price eventhough he could afford to. This was because manufacturers could legally fix theretail price of their goods.

Trading stamps were introduced byTesco to tackle the problem and loyal customers could collect and redeem against gifts and household goods. Jack Cohen successfully lobbied against the law and started cutting his prices making him able to compete on price.

1960: Rise in prosperity: more people owned cars, freezers (able to buy bulk), and credit card: Tescointroduced edge of Town superstore with ample parking plus facilities for large trolleys. 

1974: Started selling petrol to encourage motorist to come to their store

1990: Tesco returned to Citycentre by opening Tesco metro stores: this met the need of local people. Tescomoved on to create 6 different store formats to appeal to different group oftheir market

1995: Introduced loyalty card program where Customers redeem points on goods purchased.  As they were leaders in loyalty card scheme-they held the greatest Market share in the industry.

Tesco then realised that being cheap was not enough as most competitors were competing on pricing- they then went further by introducing the "one in front" system. This means that if the till is such that 1 person was in front of the customer, the store would open more tills until the queue was reduced. Store managers were held accountablefor this and would have to give an explanation if target were not met.

Tesco also had 3- different brand ranges that appealed to the varied budget of consumers.

 Tesco success is due to the value that is placed on their customers. They are constantly changing and innovating to deliver high quality service, value for money and to increase consumer value.

While Tesco is now a giant retailer any business can identify the patterns and apply the principles to their own business.  It’s apparent that they have moved their strategy to suit the need of their consumer instead oftrying to fit their customers into their own strategies.

Creating customer value will reposition your business to succeed. Creating customer value proposal strategy is more effective than simply competing on price alone.

 Systems that deliver customer value are excellent investments for the long term and are more appreciated by theconsumer hence greater long term returns on investment for business owners.

 Creating customer value will undoubtedly set your business aside from your competitors enabling you greater visibility and competitiveness within your niche.

 It might be worthwhile then to consider how you can reposition your business to become customer oriented andhere are a few questions to consider.

1. What are the needs of your customers?
2. How are your competitors meeting those needs?
3. Why would a client choose your business over that of your competitor?
4. How do you find out what’simportant to your clients?
5. What means do you use to educate yourself?
6. How do you educate your customers?
7. What changes can you made thatwill make you a market leader?

 For help to get started Request a FREE NO-OBLIGATION Marketing Analysis from Starple- Local Marketing Services - London UK

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