Entrepreneurial mind sets

1. The Marketing Mix Entrepreneurial mind sets Module 6: Classroom Course This programme has been funded with support from the European Commission

2. Overview of marketing No matter how much you might love your idea, there’s no point in taking it any further if nobody else is going to love it. That’s where good old marketing comes in. 

3. Overview of marketing Here are just a few of the questions that you’re going to need to answer: • Would your “target market” actually want this? • What is your Unique Selling Point? • Where will they buy from me? • Have you thought about the price or fee you can charge? • Is it going to be worth your while? • What type of marketing will work best for you? • Where and when and how are you going to market it?

4. What is marketing? Identifying and satisfying your customers’ needs at a profit MARKETING PROCESS Selling Marketing Mix (4 Ps) Market Research

5. Marketing mix - The four P’s of Marketing PRODUCT Goods or services provided by a business Where customers can buy products/services or how products/services are distributed PLACE PRICE Amount charged for products and services PROMOTION How a business creates awareness in the market

6. Market planning is about getting the right balance between the four marketing Ps. Different marketing mixes can be used for different target customers.

7. PRODUCT Products and services must appeal to potential customers. You have to ensure there is demand for your product and state what is unique about it. Factors to consider: •  Customer needs and wants • Product mix / portfolio • Features and benefits • Quality • Appearance • Market position • Costs • Profit margin • Product shelf life

8. PRODUCT The features are great ways to define what a product is, but the benefits speak right to the people buying your product, and communicate how the product makes their lives better.

9. PRODUCT USPs The ‘Unique Selling Points’ of a product/service states clearly the features and benefits that make your product or service different from your competitors. For example, is it made of better quality materials? Is it more prestigious? Or the only one of its kind on the market? Your product may share certain features with similar items, for example, all fruit drinks include fruit and are drinkable. The unique benefit of your product may be that it’s proven to improve your skin. This would be your USP if it’s the only fruit drink on the market that can do this.

10. PRODUCT Examples of USPs: • Unique function or feature • Higher specification • Unique design • Technical feature • Better quality • Locally sourced materials

11. PRODUCT Find your niche The creative, digital and performing arts industry has plenty of businesses offering similar or the same product and it can be especially hard for consumers to differentiate between all the options. The truth is, no matter how talented you are and no matter how awe-inspiring your art may be, some consumers may not be able to tell the difference, and when faced with a choice, they will almost always choose the most convenient option. What niche?

12. PRODUCT Find your niche This is why you need to find a niche product/service, something that others aren’t offering, something that will make you and your business unique and recognisable – make is stand out from the crowd! Maybe that means focusing on portraits if you are an accomplished painter, or 3D designs if you are a graphic artist. No matter what the niche is, you should try to find one. That doesn’t mean you can’t include your other art in your business, but you may find a much more passionate customer base if you specialise in one type of art and become known for your ability to create that one type of art.

13. PLACE Where will customers buy your work? There are now many different options for you to sell your products as a designer or maker. You can sell direct to the public through markets, pop-ups and online shops, or you can sell through established retailers, boutiques and galleries.

14. PLACE Show & Sell - Ways of selling your creative products: • Work from home • Porta cabin • Directly at specific events - exhibitions, open studios, pop-up shops, markets and catwalk shows • Online marketplace i.e. Etsy, eBay, Not on the High Street • E-commerce website • Shop • Wholesale via galleries, shops or at trade shows • Van / mobile sales • Through re-sellers • Rented workshop space i.e. for workshops • Directly to private collectors or through commission • Customer’s premises • Innovation/start up hub • Unit at a Local Enterprise Agency • Unit at an industrial park

15. PLACE Factors to consider • Cost • Reliability of distribution channel • Customer location • Convenience

16. PLACE Factors to consider • Cost • Reliability of distribution channel • Customer location • Convenience

17. PRICE It is vital that you understand the relationship between price, cost and profit. This is outlined below: COST PROFIT PRICE

18. PRICE Things to consider: • Competition - what competitors charge for similar products or services • Cost to produce it • Set at a level that the market will accept • Is it a luxury or mass market item? Don’t undervalue your product or your time

19. PRICE The dynamics of the creative sector do not necessarily always operate in the same way as for businesses in other sectors in the economy. The creative sector is based on ‘symbolic goods’ (films, plays, music) where value is essentially dependent on the audience/consumer finding value in their meanings – so value is dependent on audience perception as much as creative content, which may or may not translate into a commercial return. Think profit! The price of your product or service must include both the costs to produce it and the additional costs associated with selling it.

20. PROMOTION Advertising If your business is invisible, it can't progress, so letting your target market know about what your business does and how it can benefit them is one of the most important keys to success. The internet is making it more and more possible and, importantly, less expensive, to reach customers directly. And there are many effective 'offline' methods which can provide a very valuable complement to your online activities. Sales Promotion Personal Selling Marketing Communications Mix Events & Experiences Interactive Marketing PR & Publicity Direct Marketing

21. PROMOTION Offline Promotional Methods • Personal selling i.e. networking • Free samples • Word of mouth • Signage • Demonstrations • Sales promotion i.e. BOGOF • Advertising i.e. business cards • Stationary i.e. Invoices, letter heads • Publicity i.e. press releases, competitions

22. PROMOTION Online Promotional Methods • Social media i.e. Facebook, Twitter, Instagram and Pinterest • Facebook competitions and promotions • Blogs • Videos • Website (include gallery to showcase images of your work) • Email marketing i.e. Mailchimp (free and easy to use) The balance of a promotional mix will depend on the marketing objectives, business type, target market and promotional budget.

23. PROMOTION Choosing a promotion method Choosing the right method of promotion for a business can be difficult. There are many factors to consider such as: • the target audience • effectiveness • message • budgets and costs • methods available • timing • legal issues • graphic design ability PROMOTIONAL PLAN What? How? When? Costs?

24. PROMOTION Choosing a promotion method Be clear about the purpose of the promotion method e.g. to create an awareness of a product or service. Consider how competitors promote their businesses and look for best practice methods. Monitor the impact of a promotional method carefully. This can be done by asking customers how they heard about the business and calculating the number of sales generated by a promotional method. promotional activity should be planned carefully.

25. PROMOTION

26. Social Media Creative entrepreneurs can benefit from using social networking systems such as Flickr, YouTube, Facebook, Twitter, Instagram and Pinterest. They are the equivalent of the ‘small talk’ which happens in face to face business networking and meetings. It is these snippets of information which help people to bond, like each other and build trust between them. The message must be right for the medium and so in contrast with business websites, the information on social networking sites is more personal, the atmosphere is more ‘laid back’, and the etiquette more informal.

27. Social Media • Pinterest • Instragam • Facebook • Snapchat • Twitter • YouTube • Flickr • Google+ • LinkedIn

28. Top tips - Social Media Social media will come naturally to young, creative people, so use this to network and reach out to people online. As an artist, you can use Facebook to keep up with other creative people and to follow mentors and creative groups. Twitter is really useful: not for direct selling, necessarily, but just to make contact with people in the creative, performing and digital arts industry. As a designer or artist products are visual by nature. Instagram and Pinterest are a perfect fit to display your work and visual inspiration.

29. Top tips - Social Media For many people, image-focused social media channels are less time and energy draining than Twitter and Facebook. Social networks like Twitter, Facebook, Pinterest, YouTube, Blogs and Instagram are cheap and potentially effective tools to promote your work and establish a voice as an artist. They are also a great way of keeping people up-to-date about your projects. Keep your personal life separate from your business contacts i.e. create a Facebook business page for your new creative enterprise. This allows you to post on Facebook and interact with other users without giving them access to your personal Facebook account.

30. Top tips Website A website can serve as a virtual portfolio of your work. Add some personal information so that customers can relate to you and become impressed by your accomplishments. Videos and blogging are also great ways to promote a creative enterprise. Build up a contact list to stay in touch with previous clients and other creatives.

31. Top tips Talk to people - Go out and talk to anybody, you never know where help may come from. Having a website, blog and online shop is so easy now that you don’t have to invest lots of money to get something out there.

32. Congratulations you have completed Module 6