Common mistake made by entrepreneurs in marketing

Several years ago, a group of local farmers attended an agricultural exhibition in the USA and saw a large variety of tomato which weighed almost one pound (0.4 kg). When they returned to this country they spent thousands of dollars cultivating this large tomato. Upon harvesting these attractive tomatoes the farmers distributed the tomatoes to retail outlets that target household customers such as roadside vendors, market vendors and supermarkets.

The household buyers admired the large tomatoes but continued buying the smaller variety although both varieties were being sold at the same price on a per kilogram basis. The large tomato was not suitable because the unused portion would have had to be stored in the fridge for future use and may have become soggy or spoilt. As a result, the farmers suffered huge losses.

At that point, they did some market research and found that the farmers in the USA who planted the large variety of tomato targeted the restaurant and fast food chains such as McDonald’s and Wendy’s which preferred this large tomato as it was easier to process. The local farmers then realized that they were trying to connect with the wrong customer segment.

When you identify your target market or the people who are most likely to buy your product the next step is to determine what are they looking for in your product or service (features, quality, packaging, service, warranty), what price they can afford or willing to pay, the distribution channel(s) through which they prefer to obtain your product such as a retail store, home delivery, online sales and the appropriate ways to reach them by advertising and promotion (social media, newspaper, flyer, e-mails, radio, word of mouth).

The most reliable answers to these questions are derived from conducting market research.

The information gathered from market research helps budding entrepreneurs to better define their target market and develop tactics to win customers. The key to any successful business is to understand what your customers want and satisfying these needs in a way that is profitable for you.

You must also research your competitors to understand their strengths and weaknesses including their business model and how to differentiate your business in a way that buyers prefer your business model and product/service. This activity usually requires much thought, brainstorming and sometimes trial and error to determine what works (Debra Murphy, 2016).

Do you know your target market or are you just focused on selling? Many entrepreneurs confuse selling with marketing but selling is the end product of marketing.

The amount you sell will depend on how well you understand your target market and the marketing tactics you develop to win and retain these customers.

Get more great advice like this in CARIRI’s Business Hatchery 3-month Programme at the Centre for Enterprise Development, Freeport. The Hatchery provides training and guidance to small entrepreneurs for growing their business including conducting market research and developing strategies to compete successfully in the market.

Contact us at 299-0210 ext 5049 for more information.