Why are you in business?

By Killeen M. Gonzalez

Ask yourself what is the sole purpose of business? If your only answer is that it is to make money you are missing the broader picture. Stating that the sole purpose of a business is to make money is a lot like saying that the sole purpose of life is to eat.

Eating is a requirement of life, not the purpose for it. Without food people die. Profits are to business like food is to people. Profits should be a requirement of business, not the sole purpose. In other words, it remains as true today as it was years ago, customers abandon companies that do not place a high value on them and they take their money with them.

From an elementary marketing perspective the purpose of an organization is to satisfy consumers’ wants and needs. These wants and needs can be satisfied only to the extent that the business owner understands those that use his products and or services and that he can provide what the consumer wants and needs better than the competition.

In order to do this the business owner needs a marketing plan that contains a targeted marketing strategy. The strategy should define both the market and the tactics used to reach that market. Creating such a plan is actually a very complex and fluid process that requires some degree of marketing skill.

Nonetheless, there are eight basic steps a business owner can take to get started on creating a targeted marketing strategy. They are as follows; define the relevant market, analyze characteristics and wants of potential customers, identify bases for segmenting the market, define and describe market segments, analyze competitors’ positions, evaluate market segments, select market segments and finalize the marketing mix.

Once a targeted marketing strategy is created the ultimate test of it’s success is consumer response and whether or not that response ultimately translates into what your business needs – profits.

In conclusion business owners need to consider understanding and fulfilling the needs and wants of consumers as the purpose of their business. They also want to keep in mind that the keys to understanding consumers are proper research and planning. Those who believe that the sole purpose of their business is to “just make a buck” should remember that without people there can surely be no profits, and without profits there surely will be no business.

For more information on creating your own marketing plan contact a local marketing professional near you. If you do not have a marketing professional near you, you can search for on online at such sites as guru.com or liveperson.com.