The Customer is King, But …
Marketing is all about the target consumer that indispensably special one for whom the specific offering, be it product or service is designed … or so we’ve always thought. As a matter of fact, more often than not, as a de-rigueur, all our efforts as brand custodians are invariably geared towards delivering utility and satisfaction to the end-user. Herb Kelleher, the highly revered co-founder, then helmsman at trail-blazing American airline, Southwest could not have put it more succinctly when he posited, while underscoring his airline’s business philosophy: “we are a customer service company in the airline business”. From the foregoing, it is clearly discernible why entrepreneurs and businesses do not spare the slightest effort in ensuring that they strive to offer consumers what they yearn for, but even go the extra mile to surpass competition’s offering by way of promotions, for discounts and lower prices, with various incentives etc., all of these in a bid to secure that critically needed edge as far as consumer preference is concerned.
Differentiation has been ceaselessly touted as holding the key with regards to achieving the much needed advantage over your competition, from the consumers’ perspective.
The reality of these contemporary business climate in which we find ourselves is that the role of the brand has dramatically evolved during the past few decades. This has necessitated an expansion in the scope and definition of this concept of what a brand, and marketing really represent.
Legendary marketing expert, Philip Kotler is credited with the submission that “Authentic Marketing is not the art of selling what you make, but knowing what to make it really is the identification and understanding of customer needs and the creation of solutions that deliver satisfaction to customers, profit to producers and benefits to all the stakeholders “
Again, as marketers/marketing communicators, we encounter the seemingly inevitable conflict of whether to focus on driving product sales in the short term (of course, the realization that bills have got to be paid is paramount on the entrepreneur’s objectives, which necessitates that the marketer’s carefully conceived marketing campaign must instantly set the cash register ringing with dispatch), or to devote precious resources towards a painstaking, apparently not-immediately-rewarding brand positioning and development process in the longer term.
A fundamental truth we must realize, however, is that a company’s (or product’s or service’s brand) is derived from the value that it offers to, not only consumers but the entirety of its target publics the consumer, of course remains king, but then a host of other stakeholders also do exist!
This takes into cognizance the integral roles of a number of other key factors in the life-cycle of a brand. Considering the foregoing, it therefore seems that it is not impossible to actually lose sight of these other elements of the mix, while (justifiably) focusing on the target consumer in a bid to deliver his peculiar needs and fulfill his yearnings and aspirations.
In actual fact, the brand rests on the tripodal pillars of
1. The Consumer
2. The Trade
3. The Larger Society/Environment in which a brand plays.
All of the above are equally imperative and integral stakeholders who have important roles to play in brand development. Ignoring any one of these could prove to be a marketing hara-kiri, ultimately detrimental to the overall equity of a brand.
By way of a quick recap, a brand has been defined as the consumer’s anticipation for a unique and defined experience; or for a certain unique benefit that is obtainable solely through consuming or owning a specific product/service manufactured by a specific company/service provider.
The scope of the above definition also begs for expansion, in the light of the realization that other integral variables exist and must be factored into the equation. This leads us again, at this juncture to underscore the holistic definition of what a brand is. It encapsulates the roles that particular offering plays in its stakeholders lives, the values it represents.
In time past, the idea of branding already existing products or companies (with the benefit of hindsight) now appears to have been somewhat cosmetic in orientation, and it served to solely employ psychological devices to simply make the offering/company more attractive in outlook to consumers.
Contrastingly, in more recent times, the development of a brand takes a whole lot more into consideration. This painstaking process entails devising and implementing ways by which to deliver tangible benefits, not only to consumers/users of the product or service in question, but in such a manner that rewards and positively impinges on the Trade and the Environment as well.
This holistic concept of branding directs the development of product and service offerings which are designed to supply anticipated benefits to all three (3) categories, without any attendant (or with the most negligible) negative implications on the environment and with capacity to shape the expanded society for the better. The hallmark of strategic brand development lies herein.
This accounts for why the concept of Corporate Social Responsibility (CSR) has become more topical and imperative in contemporary business context than ever before, with increasing premium and emphasis being placed on it. For the most discerning businesses, it goes beyond the need to drive sales and literally boost the bottom-line (which of course is a priority by all means!). It is equally about adding value along the chain, with tangible benefits for all stakeholders. CSR has actually been interpreted to represent what I’ve chosen to term the brand’s Consistent Societal Relevance, as far as the larger environment in which it plays is concerned.
The strategic focus/objective consequently shifts towards delivering intrinsic benefits, now not only to the customer (who remains the primary reason for the existence of the business), but also the trade and the environment.
By the use of the term Trade, I refer to the entire Trade Marketing and distribution framework, from Production to Wholesaler through to your retailing outlets. Interestingly, one will note that these invariably also represent critically key consumer touch-points, at which consumer action can be triggered or influenced, howbeit in the desired regard or otherwise.
Trade marketing, essentially is a discipline of marketing that relates to increasing the demand at wholesaler, retailer, or distributor level rather than at the consumer level. Now, the reality is that to ensure that a retailer promotes your product against the competitors’, you must market your product to the retailers also.
Trade marketing might also include offering various tangible/intangible benefits to retailers. It represents the alignment of sales and marketing discipline to profitability, with a view to ultimately satisfying the needs and wants of the consumers.
Recent studies indicate that with shifts in moment regarding consumer shopping behavior, 70 percent of shopping decisions are now made at the trade or what marketing practitioners refer to as “point-of-purchase”. This new trend leads to the greater importance of merchandising and shopper promotions to complement consumer directed programs. Below the line promotions have become the focus of most consumer goods companies in order to drive higher sales. As retailer giants continually expand throughout every opportune territory, the role of merchandising in generating growth becomes more prioritized.
It is basically all about ensuring that there are incentives for all stakeholders here. It is worth remembering that while the consumer remains the focus of the marketing effort, he is by no means an island. The same consumer inhabits a society, and your offering is made available to them via a trade marketing channel.
What benefits does the trade channel enjoy by the virtue of the fact that they help market your brand? Beyond the immediate quest to garner fiscal returns-on-investment, is that offering of yours also socially responsive and responsible?
Tomi Ogunlesi is a professional member of the Chartered Institute of Marketing (UK) and is presently an account planner in Strategy and Business Development at BatesCosse, Lagos.
