marketing for entrepreneurs
DESCRIPTION
Marketing 101 for Entrepreneurs. Includes target marketing, social media, marketing mix. Prepared by Maine Social Media Marketing Berserker, John MooreTRANSCRIPT
MarketingMarketingFor Entrepreneurs
Windsor PRhttp://www.windsorpragency.comTwitter: @WindsorPRFacebook: http://www.facebook.com/WindsorPR
What is Marketing?What is Marketing?“Because the purpose of business is to create a customer, the business enterprise has two--and only two--basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business”
- Peter F. Drucker
What is Marketing?What is Marketing?• AMA Definition:
“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”
• John’s Definition:“Marketing is anything you do which affects the behavior of customers. Ideally marketing is intended to generate behavior which has a positive effect on the business.”
What is Marketing?What is Marketing?• Includes
oMarketing Mixo Location SelectionoCustomer ServiceoBrandingoHow you Answer the Phoneo The Cleanliness of Your Bathroomso Etc…
Pre Startup ActivitiesPre Startup Activities• Identify a Target Market• Identify the Problem• Competitive Research• Points of Potential Differentiation
Target MarketTarget Market• Trying to create a new market is an uphill and
expensive battleo Ideally sell to people already buying similar
products / services• Questions
o Is the target niche identifiable?o Can they afford what you’re selling?o Do they want or need something that your
product / service provides?
Doug Hall ResearchDoug Hall Research• 6 year analysis of 4000 brands came up with 3
success criteria
1. Overt BenefitLow: 13%, Medium: 26%, High: 38%
2. Real Reason to BelieveLow: 18%, Medium: 29%, High: 42%
3. Dramatic DifferenceLow: 15%, Medium 40%, High: 53%
BenefitsBenefits• Features are things or
characteristics• Benefits answer the question,
“So, what’s in it for me?”
Reason To BelieveReason To Believe• Credibility, Proof of Claims, Explanation How• What types of things increase credibility?
o Presso Testimonialso Endorsements
• Proof of claimso Real numberso Researcho Before and After Photos
• How Does it Work?
Dramatic DifferenceDramatic Difference• People resist:
oChangeo Sales – fear a loss of control
• To gain attention, your difference must be significant
Marketing Mix (4Ps)Marketing Mix (4Ps)• Neil Borden – Marketing Mix - 1948• Marketing Resource Distribution to:
“achieve the ideal way for the organization to reach and satisfy their customers in their target market
• Essential to marketing planning
Marketing Mix (4Ps)Marketing Mix (4Ps)• Product• Price• Place• Promotion
Positioning (The 5Positioning (The 5thth P) P)• The process by which marketers create an
identity in the minds of the target marketo Finding “mindspace”o Again Differentiation
• May includeo Brandingo Any of the 4 Pso Channelo Target Market
• Memes, slogans, jingles, logos
Emotion as a Key Emotion as a Key ElementElement
• All decisions are based on emotion and justified with logic
• We buy a lot of stuff to feel good.• We move away from pain and towards
pleasure
3 Ways to Increase 3 Ways to Increase RevenueRevenue
1. Increase your number of customers2. Increase your average transaction
size3. Increase your rate of transactions
per customer
Understand Average Understand Average Customer Lifetime ValueCustomer Lifetime Value
• Average Transaction Amount• Average rate at which a customer buys• Average length of time someone remains a
customer
Example: An average customer buys $10 per transaction, 12X per year, and stays a customer for 3 years.
The Average Customer Lifetime Value = $360
Average Customer Average Customer Lifetime ValueLifetime Value
Example (continued):
Your ACLV is at $360.
Let’s you can add an upsell that increases the average transaction to $12. Now, you run a promotion that get’s a customer in 2 more times per year (14 times). And you spend effort on retention and keep your average customer for 4 years.
New ACLV = $672, a lifetime revenue increase of 86.6%
Average Customer Average Customer Lifetime ValueLifetime Value
• If you have 2,000 customers, with an average yearly spend of $120 (12 purchases a year at $10 average), your revenue is $240,000 per year.
• Again increase the purchases to 14 times per year at $12 average purchase and your yearly revenue goes to: $336,000 (+40%)
• Now, increase your customer base by 10% to 2,200 as well and your yearly revenue is: $369,000 or (+54%)
So, Where Can You So, Where Can You Focus Marketing Focus Marketing
EffortsEfforts1. Customer acquisition
o 4-7 Times more expensive than generating repeat business
2. Customer retentiono Loyalty programso Personal toucheso Good customer service
3. Increasing transaction rateso Future couponso Reminders
4. Increasing average transaction amountso Upsaleso Pricingo Add-ons
Simplified Marketing Simplified Marketing CycleCycle
1. Get AttentionPeple need to know you exist.
2. PositionYou must gain peoples trust.
3. SellObtain the sale.
Simplified Marketing Simplified Marketing StrategyStrategy
1. Find out where your target market congregates.
2. Go there.
3. Provide value.
Best Promotional Best Promotional ToolsTools
Higher up = Most effective + least expensive
1.Website (must have)2.PR3.Social media4.Word of mouth5.One on one sales6.Direct mail7.Paid advertising