About delivering value

The task of marketing is not only to create value but also to convey it to the client. After all, the value created but not delivered may not be valuable for the client. The following important rule follows from this: marketing is not a struggle of products, but a battle of their perception. We can think that we have an excellent product, but if it is perceived differently, then it is not cool. A product is ideal only when the customer says it is valuable to him. Therefore, marketing should shape the desired perception of our products, brands, and business - and think about different strategies to achieve this.

It is also important to remember that value migrates. Yesterday the clients perceived it as 10 points; today will be nine because they are getting used to it, which is normal. This happens even if you are the best in the market. The reason is that in many businesses, customers compare you not to your competitors but to you of yesterday. And they expect you to develop.

About Loyalty

You must be careful with loyalty because it can be natural or fake. In theory, loyalty is repeat purchases. But you can be bought not only because you have the best value but, for example, because you are "the only frog in this swamp." A customer may buy again and again not because he likes the product itself but because it is the most convenient solution for him, the best price, etc.

So you must be honest: do I have an excellent or good product in the current context? False loyalty is dangerous because these customers will leave you immediately.

The difference between "loyal" and engaged customers is action. Those involved can bring other customers and provide quality feedback because they genuinely want you to improve. Therefore, attention should be paid to involvement.

Golden Rules of Marketing

There are several important rules. First, it's good to know your target segment. Second, remember that you are not your target audience! Don't make decisions based on your judgment because even if you look like your target audience, we have a completely different knowledge of your business. And the third rule: don't fall in love with your idea, but solve the client's real problem.

What does it mean to know your customer well? At the very least, go through the entire client interface of interaction with your company. This way, you will see where problems may arise.

Competencies and context

A business must understand its core competencies, i.e., what will help it typically live even when the context changes. Fujifilm and Kodak are clear examples. Kodak once had 78% of the film market and huge margins (top executives admitted that the margins were as if they were selling drugs or weapons). Fujifilm had a small market share because they were just trying to capture more - Kodak was launching a low-priced sub-brand and killing the competition.

But at the end of the day, in 2023, Kodak has a residual business, and Fujifilm has $25 billion in revenue. The reason is that under a radical change in the external context, Fujifilm took advantage of its core competence and survived. In contrast, Kodak did not take advantage of the same competence. We are discussing chemical laboratories and an antioxidant (so the film does not age). Fujifilm went into cosmetology and created a completely different product based on the same competence.

Thus, it is helpful to self-examine: what strengths of your business will help you survive when the context changes?

Behind the scenes of strategic marketing with EMBA-39