What is the problem?
It is virtually impossible to fix a problem you haven’t identified in the first place. But, it seems many business people have a hard time with problem identification. In fact, many business people confuse symptoms and solutions with problems. And that means they never get the proper fix in place.
“The problem is our sales are too low.” Nope, sorry, that’s not the problem. That’s the result of a problem; a symptom of a problem. You aren’t selling enough because you have a problem with one element of your marketing mix (pricing, or promotion, or place (channel), or product). Perhaps you’ve priced your product or service too high, scaring off budget-minded buyers. Perhaps you’ve priced your product or service too low, failing to appeal to status-minded buyers. Perhaps the word is out that your product is shoddy. Perhaps you’ve targeted the wrong segment; perhaps your advertising medium of choice isn’t reaching your market segment; perhaps your retailers get better margins selling your competitors’ product…there are a lot of problems to consider! But, “low sales” isn’t one of them.
“The problem is we need to develop a communications plan that establishes our brand in the marketplace.” Nope, sorry, that’s not the problem, either. That’s a solution to a problem. In fact, every business needs to develop a communications plan that establishes its brand in the marketplace. You might have promotion problems that a tweaked communications plan might solve. Or you might have problems completely unrelated to promotion–maybe you have price, product, or place (channel) problems. Again, there are a lot of problems to consider. But, “we need a communications plan” isn’t one of them.
Think of it this way. You go to the doctor with a symptom: “I am endlessly thirsty.” So, your doctor looks at your lifestyle, reviews your family history, checks your existing prescriptions, runs some tests, and then identifies the problem: you don’t keep yourself hydrated. You and the doctor then formulate a solution: proper diet, less coffee and alcohol, and more water. You wouldn’t want your doctor to confuse your symptom (endless thirst) with the wrong problem (diabetes) and immediately shove a prescription for insulin at you! Neither would you want to skip the doctor altogether and jump to a solution (the wrong solution: buying insulin off the Internet). Having your doctor home in on the problem is the only way to develop the proper fix.
So, before you start working on fixes for your business problems, make certain you have clearly identified those problems. Good luck!
