Marketing Mistakes for the Entrepreneur

1. Marketing Mistakes for the Entrepreneur Moderated by: Chris Hosted by: Westbank Community Library

2. Announcements • Check the Calendar and use those resources available. • Only two more classes, last class outside • Inside Man Privacy Episode Friday 10 pm CNN ch. 46 (put on your smartphone calendar and add a reminder) • Possible Summer Networking Program • Cosmos Sunday nights 8 pm Ch. 2 FOX (only three more episodes left)

3. Let’s back up a minute and talk about managing your team

4. Anytime you are about to bring someone on your team, give them something to remember

5. Hiring Temps or Contractors/Freelancers • Starbucks Method of Hiring • Meet at Starbucks to conduct business (or any public location) • Conduct your interviews there or brainstorming sessions • After you’ve hired your person or select individuals • Offer to buy them something to eat and drink • You want them comfortable while their working • For you bring a book or something else to work on (knock out 2 birds with 1 stone) • Make sure they know to ask any questions and not to worry about interrupting. • Make sure you have detailed drawings or layouts for what you expect from them. Anything to make their job easier. • Pay in cash • Repeat if you like their work habits

6. Tips about Managing People • Only do evaluations if you are actually going to do something with them, otherwise big waste of money and time. (Most places considered most amazing employers don’t do this) • Don’t play favorites, this creates animosity among employees. (Happens a lot in companies) • If employees are virtual or remote (they work from home and see only rarely) make expectations and deadlines very clear; let them set the work schedule • Don’t look for the perfect employee, they don’t exist • Hire based on talent and let them create their own work space with strict expectations • Make them feel appreciated, don’t hold back on compliments but also be strict about sore spots.

7. It takes time to learn how to manage people

8. So don’t stress yourself out if an employee quits because they think you are unfair.

9. How do you fix something like that?

10. Here’s how • Relate your only human and no one is perfect • Ask to talk with them about their struggles at work • Never assume everything is perfect for them • Ask how you can help • Offer resources that are available for their job • Bottom Line • Communicate with them as a person on their level

11. Now let’s get into Marketing

12. Remember when Taco Bell just had lunch and dinner items?

13. Now they have breakfast items

18. Anyone know the mistake they made in this marketing campaign?

19. No one knows Taco Bell for breakfast, so why do it?

20. They want the market (breakfast) share of what other fast food places have.

21. Is that a good idea?

22. Extending the Line • Also known as the following • Product Line Extension • Brand Extension • Definition: use of an established product’s brand name for a new item in the same product category • From Wiki entry on Product Line Extension • “Line Extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavors, forms, colors, added ingredients, package sizes”

23. Reasons for Extending the Line • Increase market share (profits) • Introduce new items on an established market • Bring in more customers • Customers are asking if they carry those items • Customers requests • Feedback • Surveys • Appeal to consumer interests • To capitalize on brand extension

24. Still, is it a good idea?

25. Examples of Brands that failed to extend • Coke Cola • New Coke 1985 • No one liked the look and taste of it, Pepsi soon got new customers • Smith and Wesson • Famous Gun Maker decided to sell Mountain Bikes for the public 2002 • Originally made for police officers, but failed to understand their public survey about what consumers would buy from S/W. • Cosmopolitan • Yogurt 1999 • Made the mistake of extending their brand in the wrong direction, very different industries • Mircrosoft • WebTV 1995 • Offered internet connection vistv sets. Today it would work but not back when the internet just got started. (Quick Fact, Internet came out in 1991) • Mistake made was wrong time period for product launch (launching too early)

26. Should you extend? • First time entrepreneurs should not • Focus on the one or two things you do best • If you make ice cream, don’t add in yogurts, or Gelato • Product line extensions confuses consumers what your good at doing • Most first timers don’t have the space to extend • If you make shirts, don’t add jeans • If you build computers, don’t add printers • If you sell homes, don’t add cars • Focus on being the best at one thing

27. Marginal Niche • Product Line Extension under an established brand name requires educating. • Educating the public is expensive • If you are known for cooking only lunch or dinner items, don’t jump into breakfast because everyone else is doing it

28. So Why do companies do it? • They fell for the numbers • Their market research into other industries blinded them to their company focus • They wanted their share of the pie • They didn’t stop to think if it matched their brand