Understanding Marketing vs. Advertising

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Many business owners get confused over two of the most common terms used, whether online or offline, and those are advertising and marketing. Essentially, the terms can be simplified with advertising referring to a particular product or service for a specified period of time and marketing is establishing the company's name and reputation. Although completely different in their theories, no businesses can survive without having a viable plan for both.

Advertising essentially is charged with having a product or service and creating a need or a perceived desire of the consumer to buy it. The advertising message is designed to create awareness that the product exists, how it will be of value to the consumer or make their lives easier because they have it and explain why they should buy it immediately. Many of today's advertisers, even internet advertisers use the four Ps of advertising of stating how the product benefits consumers, giving the price that reflects a great value for their money, informs the consumer of all the places they can find the product and promote the product for repeat or additional sales.

One of the downfalls of internet marketing has been the approach of marketing based on the company's objectives while ignoring the needs of the consumer and not taking profit into account. Many of the online marketers place their focus on recruitment of new distributors of a product or service and have no idea whether or not there is a need for the product. They also tend to take a shotgun approach to their marketing efforts, hoping at least one of several hundred shots will hit the target.

A pure marketing plan will anticipate the needs of the consumer and make information about the product available to the consumer before they realize they need it and want it. Planting this seed of desire can also help establish a higher price of the item and consumers are always willing to pay a premium price for something they believe they cannot do without.

While the principal of supply and demand has long been used to calculate prices on many products or services, it does not perform as well on internet service-based businesses. While supply and demand usually work together in creating market value, supply can influence demand causing an upward spiral in prices which can eventually lead to a lower level of demand.

In recent years, many electronic game companies have rigidly enforced the quantity of their products being produced or distributed, all the time using advertising to promote a perceived need for the product. While controlling the supply and advertising to increase demand, the price will drift higher in an open market.

To better define the difference, think about a favorite fast-food restaurant and if the first thing that comes to mind is one particular food item they sell, then advertising has done its job. If the first thing that comes to mind is the company's logo or a physical trait of their buildings, then marketing has won the battle.

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The Five W's To Making Your Home Business Choice

If you remember back in elementary English class, your teacher told you about the five W's: who, what, why, where and when. These same words can be useful in assisting you in finding which area of business you want to pursue and what is needed to get begin your business. Following these simple tips provided here can make the home business journey much smoother and less complicated.

Why

You first have to know why you want to pursue a home business. Is it simply about money? Do you want to make more money, direct your income towards yourself with no outside payments (employer)? Perhaps you are looking for more personal freedom for more time with family or friends. Are you unable to commute to work due to illness or other disabling effects? These questions can aid you towards a greater knowledge of what is your driving force in this career choice. You do not simply jump across a gorge to simply jump. You often have to get to the other side. Understanding why you are looking to work from home creates focus.

Where

This area of questioning may sound silly as you are looking to work from home, but do you plan to travel to customers for any area of your business. Do you plan to set up a specific radius to meet or serve customers in? Do you want to reach a worldwide audience? This is all-important in setting up your business.

Who

Who are your products or services for? Children, men, women, families, businesses are all possible target audiences. You have to ask who, so that you can do research on your audience in your location. Is there a large base of your target audience in a remote, general or worldwide location? This is key in marketing and sales.

Which

Which area of business interests you the most? Do you enjoy creating a product by hand or is it the actual sales of the product? There are areas of business that are enjoyable and that are where you will flourish. There are also areas that can create struggle and understanding your strengths and weaknesses can help you to prepare for the good and bad of home business.

What

What type of business do you want to be a part of? Do you want to sell homemade toys or do you want to offer a product that is manufactured elsewhere? Do you want to offer services such as tutoring or sewing and alterations services? Perhaps you want to create an information product that can be downloaded. Narrow down your choices and find what you truly want to do within your home business.

These five areas are simple, but make a big impact on your business set up. The answers guide you to make the most suitable business choices that will end in satisfaction as well as success. If you simply say that you want to sell pet supplies online and you don't even like or own pets, how satisfied will you be doing this each and every day? When you make a change to a home business you have to ensure that there is a drive, a goal and an enjoyment that will make this choice worthwhile and long lasting.

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Online Business Opportunities

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There are many online business opportunities for you to try if you want to work from home. Over the years, the Internet has become a valuable tool for consumers and those looking for information. Depending on your interests, skills, and knowledge of online sales, you can start a business selling one product or service, or many products and services. Most online businesses are also very cost effective. All you need is a computer with Internet connection, website, and shipping supplies if sending products to consumer's homes or offices.

When you first start your business, you will need to learn about the many ways to market your product or service. While building a website is a great place to start, because there are millions of sites online, you need to find ways to stand out and draw visitors to your site. Advertising online is the best way to do so. Building a customer list is another way to reach people. By sending periodic email reminding people that your products and services are available, you will increase sales and build a solid customer base. This will help you build a good reputation online as well.

If you are new to online sales, there are many books, guides, and other items you can read in order to learn more. Keep in mind that many successful online business owners do not have much to advertise their websites. They rely on customer email lists, creating blogs, submitting articles to databases, writing press releases, and answering questions on open forum sites. Print advertising is also important - so be sure to take an ad out in local newspapers, magazines, and other periodicals. Include your web address and contact info and watch your sales increase.

Another way to bring in business is to attend conferences, social gatherings, trade shows, and networking functions. Not only will you be able to meet potential customers, you will also meet other online business owners. This can help you increase your exposure because you may be able to swap links and advertise on each other's sites. While you can always pay to advertise on search engine result pages, as you can see, there are many ways to save money and still get your business out there.

As you learn more about online business, you may decide that one business is not enough. Some online business owner's run two or three online businesses if they have the time. Depending on your financial goals, you may need to start one or more businesses. Many times, these businesses are similar in nature and rely on the same marketing strategies. When running more than one business, it is important to keep things as simple as possible. Make sure you create simple websites, sell products digitally if possible to avoid having to physically ships products each day, and maintain separate files so you can offer quality customer service, maintain accurate earnings records, and manage your businesses easily. Once you become an online business owner, you will wonder why you didn't start much sooner.

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