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Marketing. Building a strong foundation for success. Discussion Questions. What is marketing? How is marketing different from sales?. Definitions. Marketing is generating leads for sales Sales is turning leads into customers. Marketing Questions. Who is your customer?
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Marketing Building a strong foundation for success
Discussion Questions What is marketing? How is marketing different from sales?
Definitions • Marketing is generating leads for sales • Sales is turning leads into customers
Marketing Questions • Who is your customer? • Who is your competition? • What is your environment? • Where will you locate? • What will you charge? • How will you sell/distribute?
The Marketing Triangle Customer Competition You Market demand | Pricing | Distribution | Publicity | Location
Your Customer • Who is your current customer • Who is your ideal customer • Where is your customer • When does he/she buy • How many customers are there
Your Environment • What is the demand/need for your P/S? • How established is your market? • How saturated is your market? • What are the barriers to entry? • What seasonality issues exist? • How price sensitive is your market? • What are the market trends?
Your customers are your best source of market research. Learn everything you can about them and record it. Then … Segment – Segment - Segment Know thy Customer
North American Industry Classification System (NAICS) • Replaced the Standard Industrial Classification System (SIC Codes) • Developed by US, Canada, and Mexico • Fore example: 236118 Residential Remodelers • North American Product Classification System
Customer Database • Build a database of all your customers • Record every phone call • Record every transaction • Record profile and segment data • Differentiate them by needs and value • Rank by frequency and money spent
Customer Profitability • Not all customers are equal • Some are a pain-in-the-neck • Some are expensive • And some are highly profitable Choose your customers wisely!
Discussion Question What is competitive analysis?
Competitive Analysis • Who are they? • Where are they? • How many are there? • What are their strengths and weaknesses? • Why you and not them - differentiation? • Who are their customers? • What are the barriers to entry? • What do they charge?
Discussion Question Where do you get competitor information?
Sources of competitor information • Internet • Yellow Pages • Personal visits to offices and facilities • Advertising • Customers – past and current • Speeches and presentations • Tradeshows and professional conferences • Articles in newspapers and magazines • Market research firms • Company brochures • Computer databases like Dun and Bradstreet • Libraries
Competitive Space Analysis Strong Feature A Weak Weak Strong Feature B
Sailboat Rigger Sailboat Rigger Strong Traditional Boats ( vs. Modern) Weak Weak Strong Cruising (offshore) (vs. Racing)
Discussion Question How do you set a price for your product or service?
Setting your Pricing • Comparables / Competition • Value to customer • Breakeven analysis • Desired profit margin • Market differentiation • Price versus volume • Price versus quality
Price versus Quality Price versus Quality
Discussion Question How will you become known to your customers?
Exposure/Promotion Alternatives • Word of mouth - viral • Web page – number one • Business Cards – a must, simple, web address • Signs – shop, auto, anywhere you can • Brochures – may only need the internet • Direct mail – better, more targeted, expensive • Door-to-door – in certain situations • Advertising – expensive, difficult to measure
If must advertise… Two most important words: • Testing • Repetition
Free Publicity • Notoriety, word of mouth, reputation • Articles by or about you • Press releases • PSA (Public Service Announcements) • Seminars/lectures/demonstrations • Referrals/rumors/epidemics • Trade associations
Trade Associations • Join your trade association • Take a leadership position • Subscribe to professional magazines • Speak at conferences • Write articles
Tipping Point - Gladwell • Successful marketing is like a contagious disease – An epidemic • Law of the Few • Changes/growth happens fast • Power of Context
Branding and Image • Business name • Dress/uniforms/appearance • Logo • Slogans • Office/store front/location
Discussion Question What makes a good name?
Business Name “…ables” • Expandable/Scaleable – grow with business • Web-able – works web address and for email • Memorable – does not have to be descriptive • Saleable – adds value when you sell business • Understandable – easy to say, spell, pronounce, remember, unique • Applicable - appropriate for business type
Use of Personal Names • Lawyers • Doctors • Consultants • Engineers • Contractors • Designers
Web Names – Phone number of the future • Memorable • Short - less than 10 char • Easy to type and use with email (avoid spec char) • URL – Universal Record Locator • TLD, ccTLD (.com, .biz, .net, .bz, .info) • Like an area code or file extension • Biz will be the com of the future • Test/buy similar and obvious names • Use for signage, advertising, email • Relate to company
Web Site – An absolute must! • On-line brochure • Integrate into your business • Viral marketing • Easy to navigate • Order processing • Physical appearance • Keep it simple • Fit the screen • Fit the page • Sell gently • Minimize the menu items
Homework • Write the marketing section of your business plan • Describe your ideal customer • Segment your market • Prepare a competitive analysis grid • How will you price your product or service? • How will you advertise/promote your p/s? • Name a trade or professional organization you can join • Where will you get leads?
