Marketing Concepts Every Business Needs to Know
- 2. Marketing’s Role y ci t pa ca er om st cu ue et en dg re v bu s Marketing Management Operations Finance
- 3. Marketing is NOT... ...advertising or sales alone
- 4. Marketing is: Value Proposition “USP” Go-to-Market thru exit Growth Strategies Customer problem/ solution; value as customer sees it Market Segments Lowest Hanging fruit Business Model Sustainability; barriers to entry Competitive Strategy Value Chain Finding your niche; net work opportunities Revenue Model Follow the money/Volume/ Margin
- 5. Strategy... Inefficiency: More time More money Lost opportunity A B
- 7. Marketing Plan The 4 P’s & 2 C’s Product Price Customers Competition Promotion Place Distribution
- 8. Your Business in Marketing Terms Niche: What need do you fill? Bi z P lan Objectives Market (customers, competition, lifecycle, trends) SWOT Analysis Competencies: What are the 1-2-3 great things you offer or do really well? Differentiation: What makes you unique? Positioning: How your customer thinks about your product, service and/or business Brand: Your promise based on core competencies Visual Identity: The presentation of your brand
- 9. *: USP M&M’s Need? Premium chocolate, healthy snacks Competencies Unique capabilities History, technology, shelf, financial Differentiation Uniqueness Shape, flavor Positioning In your customers mind? Melts in your mouth, not in your hand Branding Promise Established, consistent Niche *Unique Selling Proposition
- 11. Product/Industry Lifecycle Intro Growth Build product awareness and develop a market for the product. Maturity Decline Competition heats up. Build brand preference and increase market share. Differentiation becomes critical. • Rejuvenate product with new features and finding new uses. Strong sales growth diminishes; competition steps up. Defend market share while maximizing profit. Maintain Possibly Reduce • Harvest: reduce costs and continue sell to loyal niche segments. • Discontinue: liquidate inventory Add features Harvest: or sell to another niche firm. Liquidate or sell
- 12. When the product is right, you don’t have to be a great marketer ter mo pro Lee Iacocca
- 13. Features Exercise What are some key features of your product or service?
- 16. Consumers (B2C) Geography Demographics Psychographics Behaviors Neighborhood Local State Regional National International Age Income Education Family Size Home Owner Ethnicity Values Lifestyle Personality Use Occasion Price Sensitivity Status (1st time?) Loyalty Readiness
- 18. Consumer Motivation SelfActualization What benefits does your product or service deliver to satisfy these needs? Esteem Social Safety Physiological Maslow’s Hierarchy of Needs
- 19. Prioritize Segment by clusters (i.e., Yuppies) Lowest hanging fruit Zen marketing
- 20. Take Aim: Who is Your Target? Lowest Hanging Fruit Evaluate Costs & Benefits Measurable Size & purchasing power Accessible Effectively/efficiently reached & served Substantial Large and/or profitable Actionable Effective/efficient marketing programs
- 21. Benefits Exercise Saves time Saves money Offers convenience Enables peace of mind Provides better profit opportunities Helps them focus on their business Preserves/enhances a particular lifestyle Benefits Features
- 22. Price Other Influences: What the market will bear Supply and demand Customer motivation Differentiation & Added Value $ Costs Industry trends Competition Look for “reference points” as a starting point to determining your price; in other words, prices of similar products or services in your industry.
- 23. Value is in the Customer’s Mind Not Yours Now or Later? Worth it? Can I afford it? Cheaper? Substitute? Brand?
- 24. Your Price Reference points Business model (i.e., volume) & strategy What drives your ability to charge more or less? Packaging Promotional pricing allowances
- 25. Distribution Supplier Manufacturer Distributor Wholesaler Retail Opportunities: • • • • • • Research Resource Click and Mortar Communication Negotiation Partnering Promotion Consumer
- 26. Competition Direct Substitutes Differentiation Similar products or ser vices What prospects might do or purchase instead Why you? Seattle Wedding Photographers •No pictures at all •Have a family member act as photographer •Ask guests to take pictures Likely or Unlikely? Why? •Awareness •Specialty •Portfolio/Website •Credibility: Experience, Education, Awards, Press •Referral (live/social) •Packages & Price •Added Value Ser vices More exclusive = fewer competitors
- 27. Desire? Eat? Candy? Brand? Socializing Exercising Eating Chips Candy Soft drink Chocolate Licorice Gummy Bears Dilletante Hershey Theo Godiva Toblerone Competition is in the Eye of the Customer
- 28. Research Make Better Decisions with Data
- 29. Essential Data Consumer insights Forecast: Price x Units Where customers go for information Number of competitors/impact Market sizing Sales trends Size of market overall Market share (guesstimate) Price reference points Untapped market opportunities
- 30. Types of Information Quantitative Qualitative Average price Units sold Number of competitors Number of buyers Market share Political/Economic climate Social trends Industry standards Consumer behavior Typical Distribution
- 31. Info Sources • Internal: Credit card receipts, transaction records, foot and Web traffic, inbound calls, etc. • Determine current margins, best selling products, highest margin products • Ask: Colleagues, management, salespeople, channel partners, customers, prospects • Trade organizations offer data • Industry and trade magazines: FindArticles.com • Consumer magazine media kits • Purchase information when needed and practical • Information you need, but can't buy: obser vation, sur veys, focus groups
- 32. Useful Tools Customers Geography Demographics freemaptools.com freeDemographics. com Google Maps Psychographics My Best Segments: claritas.com/ MyBestSegments/ Default.jsp Behaviors Social sites Media kits PEW/Internet Competition Google Places Yelp & other social sites Competitor websites
- 33. Ideas If you can’t find exact data, look at companies and industries closest to yours. “Steal” -- Don’t reinvent the wheel. Don’t get lost in the sauce. Define the information you need before you start. You’ll never have complete information. At some point, you’ll have to make assumptions. Test them and continually update.
- 34. Promotional Mix Getting the Word Out Personal Selling Advertising Public Relations Sales Promotion Paid “Free” Coupons Sampling Discounts
- 35. The Plan Goals Strategies Tactics Increase revenue Increase number of customers Capture market share Improve brand image Actions Measurement Re s o u rc e Budg s et Sc h e du le
- 36. Resources Use all for the greatest impact and results Smarts Time Contacts Relationships Partners Money: top down vs. bottom up budgeting Assets
- 37. Average SMB marketing spend: $475/month 21% spend more than $1,000/month Source: Search Engine Land, “Health & Medical SMBs Spend More on Marketing Than Other Industries,” Jan 15, 2014, Myles Anderson
- 38. Promotional Strategy The Close ” P i tch he “ T A Action First Contact Email(s)/Postcard(s) Website visit(s) A The “Need” Sign up I Interest: WIIFM Build Awareness, Get Attention: PR/Advertising D Desire: why you?: “Proof”
- 39. Messaging Nail your position in your customers’ mind Talk about your business in ways that your prospect understands and cares about Help them understand why you’re better and what’s in it for them Educate them about what you do so they value it
- 40. Simplify the Message Competencies Differentiation USP Need Point of the Arrow Benefits WIIFM
- 41. Use the Right Media New Media Process of Elimination Traditional Media list no PR X b Mo Email ge Wid n ia oc S l X n Wi ki Po d Environment Dig it al S i Review Sites Soc ial Ne two rks Links getAdvertising bud o ime ot s Blog Collateral Personal Selling ts X Search Your Business Web 2.0 RSS Direct Web ile gna ge cas ts s Boo kma rkin g
- 42. How to Choose? Will it reach my target audience? Is it a good fit with my plans? Is the timing right? Is it the best way to allocate my resources? Is there a cheaper alternative? Can I negotiate? Consider production costs. What are the expected short- and long-term results?
- 43. Smart timing will help a small budget go farther and have more impact Q1 Q2 Q3 Q4 Internal milestones, operations, resources... External seasonality, trade shows, business cycles, editorial calendars, holidays, school calendars... Marketing campaigns, PR, media, sales, events... Actions work backwards, deadlines Marketing Calendar
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