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Scott van Hartesvelt

Real Marketing – No Pretenders Allowed
October 14, 2008

Every person that interviews with gCommerce has to answer the following question: “What is your definition of marketing?” I’ve heard every answer you can imagine. Some are insightful, some canned. Generally I hear people list the “Four P’s of Marketing”-- Product, Price, Place and Promotions.

I define marketing in simpler terms. Marketing is about identifying that which makes your product or service unique, and then connecting that product or service with customers who care about the unique advantage you offer. Marketing requires an insatiable appetite for consistent customer data, a focus on customer behavior and a core understanding of the unique qualities of your product. It requires a keen ear for consumer opinion, and the ability to translate their opinions into tangible action items.

Right now, in these tumultuous times, real marketing is essential! Consumer behavior is shifting daily, and if you don’t change your strategies and tactics with them, you will lose market share. Instead of guessing what action to take, do some homework and learn from your customers’ behavior. Here are a couple questions you might work on with the help of your marketing partners:

1. Over the past month, have my core feeder markets changed in any meaningful way? If yes, which market segments are most impacted by this change(s)?

2. Has my price become inelastic, or am I still capable of capturing incremental demand when I lower my price? Are there any meaningful data points related to price versus booking pace that would help instruct my rate strategy?

3. Have my competitors changed their communication, pricing or advertising strategy in any meaningful way over the past month? If yes, has my market share been affected positively or negatively?

4. Are my customers changing their spending patterns during their stay? Has my revenue-per-occupied-room shown any meaningful variance over the past month? Has the response to different packages changed? More price value seekers? More traction with gas or parking cards? Less spending in my restaurant or spa?
 
5. Has there been any meaningful shift in my Web site performance?  Are consumers browsing my site in a different way, and is there a measureable variance in overall traffic volume? How are people searching for and finding my Web site?

All of the resulting information should be broken into standard categories (market segment, weekday/weekend, lead time). Once you have this information and more, the real work begins.

Properly analyzing the data to indentify meaningful trends is critical. Turning that knowledge into actionable shifts in your current communications, merchandising and advertising strategies will allow you to capture market share while your competitors spin their wheels. Beware though, not all marketing agencies perform the same services equally. In truth, some “marketing firm’s” core competencies may lie in technology or advertising or search optimization. While design, optimization, advertising and programming are valuable tools, the current economic situation calls for some good, old fashioned marketing know-how.

Challenge your marketing team to give you proactive strategies grounded in meaningful data. As my mentor frequently says, when one source of business dries up, the great companies move the cash register. Move your cash register to the market segments and feeder markets that bear fruit. Measure everything as frequently as possible, looking for new shifts in your customer’s behavior and the success of the new strategies and tactics you employ. Commit to a disciplined marketing mindset and you can compete in even the toughest of times.

Posted by Scott van Hartesvelt on October 14, 2008 | Comments (1)