effectively marketing your business · 2016-04-29 · example . . . a “marketing services”...
TRANSCRIPT
1 Spring 2014 1
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
2 Spring 2014 2
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)
3 Spring 2014
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.
Spring 2014 4
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?
Spring 2014 5
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THE BUSINESS PLAN DEVELOPMENT FLOW
Market Analysis
PERSONAL GOALS
Market Strategy
Products & Services
FINANCIALS
Sales & Promotion
The Company
EXECUTIVE SUMMARY
Spring 2014
Business Planning Components
Spring 2014 7
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
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
Spring 2014
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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
Spring 2014 18
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!!
25 Spring 2014 25
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?
Spring 2014
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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
Spring 2014
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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)
Spring 2014 41
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
Spring 2014 43
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
Spring 2014 58
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 . . . .