Building a Powerful Marketing Plan This fishing lure manufacturer I know had all these flashy green and purple lures. I asked, ‘Do fish take these?’ ‘Charlie,’ he said, ‘I don’t sell these lures to fish!’…Charles Munger
Guerilla Marketing Pinpoint the specific target markets Determine customer needs and wants Analyze firm’s competitive advantage and build marketing strategy around that Create marketing mix that meets customers’ needs and wants
Definition of Marketing The process of creating and delivering desired goods and services to customers; involves all of the activities associated with winning and retaining loyal customers. Guerilla marketing: unconventional, low-cost, creative marketing designed to give small businesses an edge over their larger, richer, more powerful rivals.
Pinpointing the Target Market Target market: the specific group of customers at whom a company aims to sell its goods and services Demographic Growth Rate to 2050 Asians: 212.9% Hispanic: 187.9% Black: 71.3% White: 7.4%
Market Research The vehicle for gathering the information that serves as the foundation for the marketing plan; it involves systematically collecting, analyzing, and interpreting data pertaining to a company’s market, customers, and competitors.
How to Conduct Market Research Step 1: Define the Objective Step 2: Collect the Data Step 3: Analyze and Interpret the Data Step 4: Draw conclusions and act!
Primary Research Customer surveys and questionnaires Focus groups Daily transactions Other ideas
Secondary Research Business directories Direct mail lists Demographic data Census data Forecasts Market research Articles Local data World Wide Web
Tips from Faith Popcorn Read as many current publications as possible Watch the top 10 TV shows See the top 10 movies Talk to at least 150 customers a year about what they are buying and why (make that 365) Talk with 10 of the smartest people you know Listen to children
Individualized Marketing Individualized (one-to-one) marketing: a system based on gathering data on individual customers and developing a marketing program designed to appeal specifically to their needs, tastes and preferences Data Mining: • Geographic • Demographic • psychographic See Figure 8.2, p. 274
Customer Relationship Management • Connect and collect • Learn • Build relationships • Sell, Service, Delight • Analyze
4 Levels of Customer Sensitivity • Customer Awareness • Customer Sensitivity • Customer Alignment • Customer Partnership
Guerilla Marketing Principles • Find a niche and fill it – guerilla tactics • Don’t just sell, entertain - entertailing • Strive to be unique • Connect on an emotional level - USP • Create an identity through branding • Start a blog • Focus on the customer - CEM • Devotion to quality - TQM • Attention to convenience • Concentration on innovation • Dedication to service and customer satisfaction – Customer Delight • Emphasis on Speed - TCM
Create tip sheets Create an award Conduct a contest Collect testimonials Get a journalist to write about you Find unique ways to thank customers Show an interest in customer needs Give a freebie occasionally Create a newsletter Cooperate with other businesses Use competitor’s coupons against them Market uniqueness Guerilla Marketing Tactics • Organize community-oriented project • Sponsor memorable events • Look out for new niches • Speak at many occasions • Ask for referrals • Sell at every opportunity • Develop sales script (elevator speech) • Offer gift certificates • Create samples • Offer 100% money-back guaranty • Create ‘Frequent Buyer’ program • Clip articles and send reprints • Code coupons on ads
Unique Selling Proposition A unique customer benefit of a product/service that sets it apart from competition; answers the critical question every customer asks: ‘What’s in it for me?’ Intangible or psychological benefit – save them time or money, improve their self-esteem, make their lives better, make them feel better while at the same time protecting the environment
Superior Customer Service Hire for attitude, train for skills Train employees to provide excellent customer service Treat employees the way you want them to treat customers Empower employees to take care of your customers “Wow” your customers with service Listen…and learn from your customers Pay attention to the details Instill a service attitude into the company culture Use technology (where appropriate) to improve customer service
Antes Features that are important but all competitors have them Neutrals Features that are irrelevant to customers Drivers Features that are both important to customers and are highly differentiated Fool’s Gold Features that are unique but do not drive customer loyalty Branding R E L E V A N C E DIFFERENTIATION
Focus on the Customer • 67% stop buying because of poor treatment • 96% never complain about poor service • 91% will not buy again • 100% of unhappy customers will tell 9 others • 13% of unhappy customers will tell 20 others
Principles of Customer Experience Management • Intimate understanding of each customer’s needs and wants • Personal, customized messages in marketing, sales, service, and advertising • Consistent, courteous, and professional treatment by everyone in the company • Responsive, rapid handling of requests, questions, problems and complaints • Helpful information and advice delivered proactively, where appropriate • Involvement of caring, well-trained people rather than strict reliance on technology for service delivery • Long-term view of the company/customer relationship rather than on ‘making a sale’ • Emphasis on sustaining an ongoing relationship built on trust and respect • Frequent and visible demonstrations of commitment to nurturing the company/customer relationship
Strategies for Developing and Retaining Customers • Identify best customers and make them return • When you have a dissatisfied customer, fix the problem fast • Make sure your systems make it easy to buy from you • Encourage customer complaints • Contact lost customers-find out why they left • Ask employees for feedback • Get total commitment from employees • Allow managers to wait on customers • Carefully select and train everyone • Develop a service theme that communicates your attitude • Reward employees ‘caught’ providing excellent service • Call customers by name Remember: the customer pays the bills. Special treatment wins customers and keeps them coming back.
Total Quality Management • Build quality into processes • Foster teamwork • Establish long-term ties with suppliers • Train mangers and employees • Empower workers at all levels • Get managers to commit to total quality • Rethink processes • Be willing to make changes • Reward employees for quality work • Develop company-wide strategy for continuous improvement
Convenience • Is your business located near your customers? • Are your business hours suitable to them? • Would customers appreciate pickup and delivery service? • Is it easy to pay with credit cards? • Are you handling transactions quickly, efficiently and politely? • Do you offer extras to make their lives easier? • Can you bundle services to make it easier? • Can you adapt products to make them convenient? • Do you handle telephone calls quickly and efficiently?
Customer Service-Delight Them • Listen to customers • Define superior service • Set standards and measure performance • Examine your company’s service cycle • Hire the right employees • Train the employees • Empower the employees • Treat employees as you would customers • Use technology • Reward superior service • Get top manager’s support • View customer service as an investment
Delight the Customer!
Time Compression Management • Speeding new products to market • Shortening customer response time in manufacturing and delivery • Reducing the administrative time to fill an order
The Marketing Mix P • roduct • lace • rice • romotion
Promotion marketing sales
Sales Forecasting • Now that you have described your products, services, customers, markets, and marketing plans in detail, it’s time to attach some numbers to your plan. Use a sales forecast spreadsheet to prepare a month-by-month projection. The forecast should be based on your historical sales, the marketing strategies that you have just described, your market research, and industry data, if available. • You may want to do two forecasts: 1) a "best guess", which is what you really expect, and 2) a "worst case" low estimate that you are confident you can reach no matter what happens. • Remember to keep notes on your research and your assumptions as you build this sales forecast and all subsequent spreadsheets in the plan. This is critical if you are going to present it to funding sources.
Marketing Plan • Market research - Why? How?. • Economics • Product • Customers • Competition • Niche • Strategy • Promotion • Promotional Budget • Pricing • Sales Forecast • Marketing Expense Budget Niche . Strategy . Promotion Promotional Budget Pricing Niche . Strategy . Promotion Promotional Budget Pricing Niche . Strategy . Promotion Promotional Budget Pricing .