effectively marketing your business · 2016-04-29 · example . . . a “marketing services”...

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Effectively Marketing Your Business

An Overview-What is Marketing?

Analysis of Current Market Situation

Examining Your “Marketing Mix”

Developing Your “Marketing Message”

Developing Your Own Marketing Plan

General Marketing Tips

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Marketing is ……

Your

Business Customer

Getting the RIGHT products/services in the hands of the RIGHT customer, at the RIGHT time, and at the RIGHT price .

Such Activities As . . .

Communications, Advertising, Public Relations,

and Promotions

Customer Service (including order fulfillment)

Pricing, positioning, forecasting sales

Sales (direct and indirect)

Strategic Planning (new products/markets of the future)

Market Research (competition, customer trends)

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Our Focus tonight . . .

Identifying Your “ideal customer”;

Defining the benefits of your Product or service in terms of its perceived value to those customers;

Communicating that value to those customers – to encourage them to purchase it.

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Business Plan vs. Marketing Plan

Are they “one-and-the-same?”

How do they fit together in the “planning process?”

Does one support the other?

Which do you develop first?

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THE BUSINESS PLAN DEVELOPMENT FLOW

Market Analysis

PERSONAL GOALS

Market Strategy

Products & Services

FINANCIALS

Sales & Promotion

The Company

EXECUTIVE SUMMARY

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Business Planning Components

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The Business Plan

The Marketing Plan The Financial Plan Company

Information Supporting Documents

Market Research Market Definition Target Customers

Competitive Analysis Marketing Mix

Strategy & Execution Anticipated Results

Sales Forecasts Results Tracking

Cash Flow Projections Income Projections P & L Statement Balance Sheet

Sources of Funding

Company Name & Information

Company Location Company Structure Principals Involved Employee & Mgmt.

Structure

Personal Resumes

Letters of Reference Copies of Leases

Contracts/Legal Docs. Other Bus. Mat’ls. &

Brochures Tax Returns

The Executive Summary

STEP 1: Analyze the Market Situation

Research Your market

Search for factual data Who, what, where, why, how often, how many, etc.

Examine data to support your “Objectives”

What are these data “Sources?”

Primary & Secondary

Your Customers & Products

Your Competition

The Marketplace

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Primary Research

Telephone

Web-based

Panels of experts

Surveys

E-mail

In person

Focus groups

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Secondary Research

Government Sources (federal & state)

Industry & General Business Sources

Internet Databases

NM State Library (reference mat’l)

Department of Commerce

Local Chamber of Commerce

State & Local Tax Authorities

Trade Associations

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Research Your Customers

• Customer & Prospect Profiles

• Market Segmentation

• Customer Perceptions

• Missed Opportunities??

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Who, Exactly, Are YOUR Customers?

Describe exactly who wants and needs your product/service

Write out a detailed description of this customer as if you were developing a character for use in a novel

focus on things like . . . age, income, education,

particular tastes, leisure activities – in short, what ever differentiates that person in the market

Example . . . A “Marketing Services” Company

My Ideal Customer is a service business owner with 15-100 employees and no internal marketing department located in the Chicago metropolitan area.

They have typically been in business for over 5 years. These businesses are outwardly successful

and have done very little active marketing. They have begun to feel constrained due to this lack of marketing.

The greatest problem my Ideal Customer faces is that they have lost control over the various marketing initiatives and marketing materials that have been created on the fly over the years. Internally, there is no marketing accountability and most, if not all, of the marketing responsibility falls to the owner of the business.

They have also found it difficult to grow their business beyond its current market share due to increasing competition. They desperately want to take their business to the next level.

The best way to reach these Ideal Prospects is through direct mail-offering productivity tools, business workshops sponsored by trusted business professionals, and referrals from other business professionals.

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Research Your Product/Service Why would someone buy/use this?

How important is price?

What is the life of the product?

How often will people need it?

What might customers like/dislike about it?

What will customers base their “purchase decision” on?

Does the product require any “follow-up” support?

. . . What’s the “Value Proposition” ??

“Is the perceived value of the use of your product or service equal-to or greater-than the cost of acquisition”?”

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Research Your Competition

Who are they – (size, location, product lines, support, image)?

What is their market share?

How long have they been in business?

What do they offer that you don’t?

How do they promote their products?

How do they position themselves?

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Your Competitors’ Customer

Study your competitors’ customers

How do competitors attract customers

Talk to customers

What do they use now?

What do they like/dislike about it?

Why would they switch to your offering?

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Research The Marketplace

• Seasonality

• Economic trends

• Legal issues

• Market size/Growth Potential

• Suppliers & resources

• Environmental issues

Develop Your “MARKETING MIX”

Product

Price

Place

Positioning

Promotion

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The 5 “P’s”

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The 5 P’s - Product

Successful products or services are those that customers want; that offer a benefit which is greater than the cost of acquisition; and that are easy to acquire . . .

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Product - Features vs. Benefits

FEATURE: A “thing” incorporated into a product or service…an ingredient.

BENEFIT: The end result of a consumer’s “use of “ the feature.

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Features VS Benefits Features Benefits

Xylotol in Gum

Contains Splenda

PH Balanced Shampoo

Micro Oils Shampoo

Pressure Treated Lumber

Fresher breath

Same sweet taste with less calories

Lower Acid, not as harsh on hair

Strengthens Hair Follicles

Better Withstands the elements/lasts longer

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Unique Features and Benefits

List the features that your product will offer that are different from or better than your competitors

e.g., open 7 days a week; Made with “organic” materials; very high disk storage density . . .

List the benefits of using your product. How will it make your customer’s life better?

e.g., convenience & accessibility; healthier & more sustainable; able to store pictures & movies . . .

Are the Benefits substantially better than the competition? If not, what will compel consumers to switch??

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The 5 P’s -- Price

What’s the cost to the customer?

Price including discounts and special offers

Price enticing the customer to switch brands

Price that “maps” to your image/quality

Price that allows the customer and you to both profit from the sale.

$ $ $ $ $ $ $

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The 5 P’s -- Place

When and where is your

product available?

How “convenient” is it for

the customer to buy (accessibility)?

“On-Line” vs. “Brick & Mortar”

Getting timing and place right is a big part of marketing!!

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The 5 P’s – Product Positioning

Finding the “niche” that sets you apart from your

competition . . .

Service/support

Price

Convenience

Image

The trick is to plot your unique position in the marketplace – hopefully at a comfortable distance from your major competitors

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Example - Fast Food

Target Customer

Working, busy, healthy lifestyle, enjoys Mexican food, works or lives near down town, owns a car, fun oriented

Features

location, open lunch & dinner, Fresh food, creative recipes, festive and friendly environment

Benefits

convenient, healthy Mexican fast-food, fun for family, great value

Bumble Bee’s Baja Grill “Fresh is Good”

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Product Positioning

Price

Expensive

Inexpensive

Fast Food Dine In Target Audience

Bumble Bee’s

McD

B Kng

Sonic

Geronimo

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The 5 P’s = Promotion

Points of Contact . . . what are all the ways you communicate the features and benefits of your product/service

to the customer?

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PROMOTION - Reaching Your Target Audience

Advertising

Publicity

Sales & Sales Promotion

Direct Mail (electronic & USPS)

Industry Analysts & Associations

Trade Shows & Conferences

Word of mouth/third party validation/references

The Internet

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Developing Your Marketing Message

Be Creative

Be Succinct

Be Unique

Is your message clear?

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And can your customers understand it?

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Your Message should . . .

Directly support marketing objectives and product position

Be Simple

Be relevant

Be meaningful

Be distinct

and, above all . . .

Motivate to action!

A Sample Message . . .

Ann’s Nursery (business) offers to

discerning growers and gardeners (target customers) high quality ornamental trees, shrubs and vines (products) backed by well known horticulturalist, Dr. Ann Murphy, and a one year money back “guarantee to grow” (unique features).

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PROMOTION - Reaching Your Target Audience

Advertising

Publicity

Sales & Sales Promotion

Direct Mail (electronic & USPS)

Industry Analysts & Associations

Trade Shows & Conferences

Word of mouth/third party validation/references

The Internet

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What’s the Difference????

If the circus is coming to town and you put up a sign that says" Circus coming to Rodeo Grounds Saturday,” That’s advertising

If you put the sign on the back of an elephant and walk him into downtown, That’s promotion

And if the elephant walks through the Mayor’s flower bed, That’s publicity

If you can get the Mayor to laugh about it, That’s public relations

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Advertising – Key Vehicles

Media

Print – newspapers, periodicals, etc.

Electronic – radio, TV

Trade Vehicles

Company brochures & flyers

The Yellow Pages

The Internet

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Publicity

Establish yourself and company as “expert” source

News Releases

Industry articles

Speaking Engagements

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Sales Promotion

Giveaways and Premiums

Cash Back

Coupons

Seasonal Specials

Contests and Games

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Direct Mail

Message – Timeliness, savings, etc.

Customer List - Key to Success

Mass VS targeted zip codes (Magazine subscribers opportunity)

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Trade Shows and Conferences

Exhibits – table tops to

large spaces

Speakers

Press

Customer and Prospect Entertainment

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The Internet . . .

Your Website Offers

Better Communications & Customer Service

A Real Competitive “Edge”

Cost Effective Marketing & Advertising

Great Marketing “Reach”

Spring 2014

Examine Your “MARKETING MIX”

Product

Price

Place

Positioning

Promotion

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The 5 “P’s”

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EXAMPLE - Veterinarian

. . . no matter how good your treatments are (product/service); how reasonable your fees (price); how convenient your location (place) . . . no one is going to bring their dog to you if they’ve never heard of you (promotion).

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Example - Lawyer

. . . no matter how reasonable your percentage is (price); how beautiful your office (place); how extensive your ad campaign (promotion) . . . no one is going to hire you if you’ve never won a case (product/service).

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Step 2: Establish Objectives

Determine business goals

$ sales/unit sales/revenue & profit expectations

Market share/customer base size

Product expansion opportunities

Promotional activities

Turn your goals into OBJECTIVES Increase annual revenues by 15% for the next year

Increase our customer base by 25 new customers each month

Add chargeable service agreements to Products A & B

Increase Product A exposure by doing quarterly “product briefs”

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Step 3: Identify Strategies to Achieve Objectives

What “actionable plans” can we implement

that will allow us to reach our objectives . . .

. . . RECOGNIZE THE DIFFERENCE . . .

OBJECTIVES = Where you want to be

STRATEGY = How you’ll get there

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Step 4: Identify Tactics to Implement Strategies

Objective - Increase sales by 15% by year’s end

Strategies -

1. Increase average sale size (product/volume)

2. Acquire more customers (market share)

3. Promote new products (add-on)

Tactics –

1. Increase price of product A

2. Broaden the number of distributors to “X”

3. Add a “service agreement” for product A

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Step 5: Budget the Plan

• Step 1 = Analyzed the Market Situation • Step 2 = Established Your Objectives • Step 3 = Developed Your Strategies • Step 4 = Identified Your Tactics Before you “Launch” your Strategy . . . “cost it”

• Revenue Assumptions • Costs/Expenses Identified • Cash Plan

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Step 6: Write the Marketing Plan

Why Write a Marketing Plan???

Your plan will provide you with a “starting point”

Your plan establishes an actual “schedule”

Your plan establishes the criteria by which to measure success

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The Marketing Plan

No business is too small to have a

Marketing Plan . . .

. . . in fact, thousands of viable and useful product/services fail every year because of inadequate market research, and/or a poorly developed marketing plan!

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The Marketing Plan Defines . . .

• What you have (product/service)?

• What problem does it solve (need)?

• How does it solve the need (features/benefits)?

• Who has that problem (targeted customers)?

• How will they know about it (promotion)?

• How will you get it to them (distribution/sales)?

• How much will it cost them (price)?

• How many will you sell (sales/revenue)?

• How much will it cost you (expenses)?

• How much can you make (profit)?

• Who else offers this (competition)?

• Why are you different (competitive positioning)?

The Marketing Plan is a “roadmap”

It determines where your company fits in the marketplace

It will help you implement a strategy to get there

It will support your day-to-day operations

It will serve as a benchmark

in measuring your success

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The Marketing Plan – Outline

I. Objectives

II. Research to Support Objectives

III. Marketing Mix

IV. Strategy & Execution

V. Anticipated Results

VI. Tracking Actual Results

VII. Final Review-Results against Objectives

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Marketing Plan Tips

Set realistic expectations

Make goals specific, measureable & achievable in a stated timeframe

Support your ideas with specific costs and timetables

Match objectives to your budget

Revise and update our plan regularly

Market Plans are Dynamic

Revisit your strategy and plans frequently (quarterly? Semi-annually?) Determine . . .

Do your customers agree with the “features & benefits” of your product/Service?

Is your pricing competitive?

Does your product/service need upgrading?

What is competition doing?

What is the general market doing?

What, from the plan, is working & not working?

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Lastly: Track your Results

Sales

Customer Base

Profits

Image

Additional Marketing Tips . . .

Modify your advertising – don’t stop it!

Join a local “networking” group

Form strategic alliances

Be creative in your activities

Ask customers for referrals

Free offers

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The Value of Customer Service

Why customers leave . . .

9% leave because they are enticed away by a

competitor

9% move away

14% leave because their complaints aren’t answered

68% never return because they are treated with indifference!

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Some final observations . . .

Marketing, itself, is a “cyclical process”

Make marketing part of your daily business operations …

Constantly remind yourself of your current objectives

Continually evaluate your advertising/promotion options

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OK . . . .