Building a Powerful Marketing Plan

!! Marketing Building a Guerrilla Marketing Plan!! The process of creating and delivering desired goods and services to customers.!! Involves all of the activities associated with winning and retaining loyal customers.!! National Federation of Independent Business Study!! 55% of small business owners say they do not need marketing because their products and services sell themselves. 8-2

Building a Guerrilla Marketing Plan Guerrilla marketing strategies:!! Are unconventional, low-cost, and creative marketing techniques that allow a small company to realize a greater return from its marketing investment than do larger rivals.!! Do not require large amounts of money to be effective just creativity. 8-3

A Guerrilla Marketing Plan 1.! Pinpoints the specific target markets the company will serve. 2.! Determines customer needs and wants through market research. 3.! Analyzes a firm s competitive advantages and creates a marketing strategy to build a competitive edge. 4.! Helps to create a marketing mix that meets customer needs and wants. 8-4

Pinpointing the Target Market!! One objective of market research: Pinpoint the company's target market, the specific group of customers at whom the company aims its products or services.!! Marketing strategy must be built on clear definition of a company s target customers.!! Examples: Harrahs Casino 8-5

Pinpointing the Target Market!! Target customer must permeate the entire business merchandise sold, background music, layout, décor, and other features.!! Without a clear image of its target market, a small company tries to reach almost everyone and ends up appealing to few. 8-6

Market Research!! Market research is the vehicle for gathering the information that serves as the foundation for the marketing plan.!! Never assume that a market exists for your company s product or service; prove it!!! Market research does not have to be time consuming, complex, or expensive to be useful.!! Web-based market research online surveys!! Trend-tracking 8-7

Market Research How to Conduct Market Research: 1.!Define the objective. 2.!Collect the data.!! Individualized (one-to-one) marketing 8-8

How to Become an Effective One-to-One Marketer Identify your best customers, never passing up the opportunity to get their names. Enhance your products and services by giving customers information about them and how to use them. Collect information on these customers, linking their identities to their transactions. Successful One-to-One Marketing See customer complaints for what they are - a chance to improve your service and quality. Encourage complaints and then fix them! Calculate the long-term value of customers so you know which ones are most desirable (and most profitable). Make sure your company s product and service quality will astonish your customers. Know what your customers buying cycle is and time your marketing efforts to coincide with it - just-in-time marketing. Source: Adapted from Susan Greco, The Road to One-to-One Marketing, Inc., October 1995, pp. 56-66. 8-9

Market Research (continued) How to Conduct Market Research: 1.! Define the problem. 2.! Collect the data.!! Individualized (one-to-one) marketing!! Data mining 3.! Analyze and interpret the data. 4.! Draw conclusions and act. 8-10

Relationship Marketing (Customer Relationship Management) In addition to the text Involves developing and maintaining long-term relationships with customers so that they will keep coming back to make repeat purchases. 8-11

Relationship Marketing (Customer Relationship Management) Steps: In addition to the text!! Collect meaningful customer information and compile it in a database.!! Mine the database to identify best customers.!! Use the information to develop lasting relationships with best customers.!! Attract more customers who fit the best customer profile. 8-12

Guerrilla Marketing Principles!! Find a niche and fill it.!! Use the power of publicity!! Don t just sell; entertain!!! Entertailing!! Strive to be unique. 8-13

Guerrilla Marketing Principles!! Connect with customers on an emotional level.!! Build trust (continued)!! Define a unique selling proposition (USP) 8-14

Unique Selling Proposition!! A key customer benefit of a product or service that sets it apart from its competition.!! Answers key customer question: What s in it for me?!! Consider intangible or psychological benefits as well as tangible ones.!! Communicate your USP to your customers often. 8-15

FIGURE 8.1 The Connection between Branding and a USP Source: Based on Brandsavvy, Highlands Ranch, Colorado 8-16

Guerrilla Marketing Principles (continued)!! Create an identity for your business through branding. 8-17

Building a Brand In addition to the text High Relevance Low Antes Features that are important to customers but all competitors provide them Every company in the market must ante up on these features. Neutrals Features that are irrelevant to customers These features are useless when it comes to branding. Drivers Features that are both important to customers and are highly differentiated from those of competitors These are the attributes on which a company must focus to build its brand.1 Fool s Gold Features that are unique to your company but do not drive customers loyalty to your product and services Don t make the mistake of trying to build a brand on these features! Low Differentiation High Source: Ch. 8: Adapted Building from a Powerful What Really Marketing Matters Plan Building a Brand, The Copyright McKinsey 2011 Quarterly, Pearson May Education, 2004, www.mckinseyquarterly.com/newsletters/chartfocus/2004_05.htm Inc. Publishing as Prentice Hall 8-18

Guerrilla Marketing Principles (continued)!! Create an identity for your business through branding.!! Embrace social networking. 8-19

Guerrilla Marketing Principles!! Create an identity for your business through branding.!! Embrace social networking.!! Start a blog. (continued) 8-20

Blogging!! An estimated 113 million blogs exist with 5,000 of them from businesses.!! Economical and effective online communication.!! Blog Guidelines:!! Be honest, balanced, and interesting.!! Post blog entries consistently so that readers have a reason to return.!! Ask customers for feedback. 8-21

Guerrilla Marketing Principles!! Create an identity for your business through branding.!! Embrace social networking.!! Start a blog. (continued)!! Create online videos. 8-22

!! Study: 19% of Internet users watch online videos every day.!! Online video guidelines:!! Think edutainment.!! Be funny.!! Connect with current events.!! Involve customers.!! Keep it short. Online Videos 8-23

Guerrilla Marketing Principles!! Create an identity for your business through branding.!! Embrace social networking.!! Start a blog. (continued)!! Create online videos.!! Focus on the customer. 8-24

Focus on the Customer Only 6% of customers who experience a problem contact the company to complain.!!31% tell family members, friends, and colleagues about their negative experience.!!6% of those people tell their horror stories to six or more people.!!for every 100% of customers who have negative experiences with a business, the company stands to lose 32 to 36 current customers or potential customers. 8-25

Focus on the Customer (continued)!! Because 20% of a typical company s customers account for about 80% of its sales, no business can afford to alienate its best and most profitable customers and survive!!! Research shows that repeat customers spend 67% more than new customers.!! Attracting new customers costs the typical business seven to nine times as much as keeping existing customers. 8-26

Focus on the Customer (continued) Companies that are successful at retaining their customers constantly ask themselves (and their customers) four questions: 1. What are we doing right? 2. How can we do that even better? 3. What have we done wrong? 4. What can we do in the future? 8-27

Guerrilla Marketing Principles!! Create an identity for your business through branding.!! Embrace social networking.!! Start a blog. (continued)!! Create online videos.!! Focus on the customer.!! Be devoted to quality. 8-28

How Do Americans Define Quality in a Product?!! Reliability (average time between breakdowns)!! Durability (how long an item lasts)!! Ease of use!! Known or trusted brand name!! Low price 8-29

How Do Americans Define Quality in a Service?!! Tangibles - equipment, facilities, people!! Reliability - doing what you say you will do!! Responsiveness - promptness in helping customers!! Assurance and empathy - conveying a caring attitude 8-30

Guerrilla Marketing Principles (continued)!! Create an identity for your business through branding.!! Embrace social networking.!! Start a blog.!! Create online videos.!! Focus on the customer.!! Be devoted to quality.!! Pay attention to convenience. 8-31

Attention to Convenience The average U.S. work week is 42.5 hours, an increase from 37.5 hours in 2003.!!Is your business conveniently located near customers?!!are your business hours suitable to your customers?!!would customers appreciate pickup and delivery services?!!do you make it easy for customers to buy on credit or with credit cards? 8-32

Attention to Convenience (continued)!! Are your employees trained to handle business transactions quickly, efficiently, and politely?!! Does your company offer extras that would make customers easier?!! Can you bundle existing products to make it easier for customers to use them?!! Can you adapt existing products to make them more convenient for customers?!! Does your company handle telephone calls quickly and efficiently? 8-33

Guerrilla Marketing Principles (continued)!! Concentrate on innovation. 8-34

Concentration on Innovation!! Innovation!! The key to future success.!! One of the greatest strengths of entrepreneurs. It shows up in the new products, techniques, and unusual approaches they introduce.!! Entrepreneurs often create new products and services by focusing their efforts on one area and by using their size and flexibility to their advantage. 8-35

Guerrilla Marketing Principles (continued)!! Concentrate on innovation.!! Be dedicated to service and customer satisfaction.!! Survey: 25% of customers have walked out of a store within the past year because of poor service.!! Survey: 80% say they will never return to a business after a negative customer service experience. 8-36

Dedication to Service Goal: To achieve customer astonishment!!! Listen to customers.!! Define superior service.!! Set standards and measure performance.!! Examine your company s service cycle.!! Hire the right employees.!! Train employees to deliver superior service. 8-37

Guerrilla Marketing Principles arket (continued)!! Concentrate on innovation.!! Be dedicated to service and customer satisfaction.!! Emphasize speed. 8-38

Emphasis on Speed (continued)!! Re-engineer the process rather than try to do the same thing - only faster.!! Create cross-functional teams of workers and empower them to attack and solve problems.!! Set aggressive goals for production and stick to the schedule. 8-39

Emphasis on Speed (continued)!! Rethink the supply chain.!! Instill speed in the company culture.!! Use technology to find shortcuts wherever possible.!! Put the Internet to work for you. 8-40

The Product Life Cycle FIGURE 8.3 The Product Life Cycle 8-42

Price!! A key factor in the decision to buy!! Focus attention on non-price competition!! Free trial offers!! Free delivery!! Lengthy warranties!! Money back guarantees 8-43

Promotion!! Goal: To inform and persuade.!! Through advertising and other communication techniques.!! Create an image.!! Marketing is not a battle of products; it is a battle of perceptions. 8-44

Conclusion!! A guerrilla marketing plan offers the entrepreneur significant benefits.!! Target marketing is key.!! Create a competitive and edge through customer focus, quality, convenience, innovation, service and speed. 8-45