"We run a horse business," the client insisted.

No, I gently reminded them, you actually run a PEOPLE business.

They frowned at me at this point.

I could see we had some work to do (so I brewed some coffee before continuing). I certainly agree, at first glance their business does appear to be about horses because that's what drives the hours 4 am - 8 pm seven days a week (and that's NOT during foaling season!).

The problem with thinking that you're in the horse business however is that any strategic thinking you then do doesn't take account of your ACTUAL business - the people/clients I just mentioned. So, if you're not appealing to those people in your strategic marketing (remember the "4 P's" - product, price, place and promotion) then it's fair to say that any marketing you do engage in will be so out of sync with your business targets that it will be a complete waste of time and money.

Yes, you do look after/breed/raise/sell/buy horses. But who pays for the horses to eat the grass, who chooses the stallions to serve the broodmares, who covets the yearling in the sales ring and who chooses the trainer to (hopefully) make the horses run fast? It's not the horses ringing in to check on their foals (although no doubt some farm managers probably wish that were the case!), pay the bills and effect your bottom line when their owner chooses to move them (and their 39 'mates') off your property/out of your stables.

You're in the 'people business' and the marketing you do should be geared to that end.

Thus, if you're solely focused on total number of clients and ignore actual revenue (average annual revenue per retained customer), market share, accrued growth, customer loyalty (average likelihood that customers will use you again) and have utterly no idea what drives your clients when making buying decisions, why they stop using your services, how your 'brand' is perceived in the market, or where you want your company to be in 5 years (and how you plan to meet any gaps (capital, infrastructure, expertise - amongst others) to get there ... Perhaps you need to be engaged in a management level think-tank about your strategic initiatives, business plan, and how marketing dove tails with both.

It's a question I often get a startled response to - but it needs to be asked: When was the last time you considered the views of your clients (the human ones) before making a decision to stand a stallion/buy a new property/set your service fees/set your sales reserves/pursue certain bloodlines/choose yearlings/write an ad spec for the advertising agency/run an ad in the paper/update your website/write your website content/draft the visiting policies or communication strategies for your farm? Too often in this Industry I see the situation where it is all done in reverse: have good horse, will stand him at any stud who can take him ... Now hang on a sec, why is the ad campaign not working, why are there no clients bringing mares to him or why are the mares we are getting not the ones we need?

The farms/businesses who have systematically asked themselves the hard questions are reaping the benefits.

The commercially savvy businesses don't assume the clients are the horse experts (just as I wouldn't expect an airline operator to ask me to refuel and fly the plane even though I have a pretty good idea of where I want to fly to). But equally they don't waste money on initiatives that I am not interested in/that don't add value to either of us longer term (e.g. by 'selling me' more leg room on the plane or better food when I actually just want a cheaper seat or a more direct route to my destination). They are also sensible enough to know that I can't just be expected to go along with their decisions (because in that situation I'll just change airlines once someone comes along that can better meet my needs). Instead they realize that for me, the client, to engage with them 100% and invest with them on a repeat basis, their service/product has to be tailored to my needs. Thus the airline operators spend a lot of time working with me, the consumer, to find out my needs, why I use them, how I perceive their brand, whether I am a 'typical' customer, how often I use them, what value I give the business relationship, how much I spend, what I could be potentially spending [personally and in terms of referrals] and what issues could effect my spending).

If you're in tune with your customers the strategic initiatives and growth targets will be much easier to map - and your product/service much easier to market. And the profits will follow.

I would suggest you underestimate the synergy between strategy and good marketing (and so many, many people do) at your peril.