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Marketing
Ohio Outback
Economic Development Roundtable
Julie M. Fox
Program Director
Business & Economic Development Network
The Ohio State University South Centers
http://southcenters.osu.edu
Overview
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What Is Marketing
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Market Research & Planning
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Marketing Strategy & Implementation
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Resources
Marketing Is …
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According to the Dictionary of Marketing Terms, 2d
edition, published by the American Marketing Association,
c1995, marketing is the process of planning and
executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational
objectives.
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Transaction for a Profit
Marketing Is…
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EVERYTHING you do to promote your business from the
moment you conceive of it to the point at which customers buy
your product or service and begin to patronize your business on
a REGULAR basis. - Jay Conrad Levinson, Guerrilla Marketing
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Name & Image of your business
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Location
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Packaging … Colors, sizes, shapes of your product
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Advertising & Public Relations
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Marketing Strategies
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Sales Presentations
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How you handle telephone calls
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How you present yourself
Marketing Is…
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Marketing recognizes that people don’t buy a product
or service, they buy expectations or solutions to their
problems.
Traditional Approach
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Product – customer needs and wants/satisfy and solutions
Place – making available and convenient to customer
Price – to reflect the marketplace … profit
Promotion – communicating, creating desire & developing
relationships
A Market Is … a group of people who are willing and
able to become and to remain your customers.
Getting Your Message to Market
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260,000 Billboards
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11,520 Newspapers
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11,536 Periodicals
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27,000 Video Outlets (+ cable and dish)
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40,000 New Book Titles each year in US (300,000 worldwide)
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60 Billion Pieces of Direct Mail
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100 Million Computers
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13.2 seconds for a page to load
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51 seconds looking at page
Source: Digital Aboriginal, Mikela Tarlow with Phillip Tarlow
Market Research
Know Customers –
To Reach & Serve Them
Customers: foundation of a successful business.
Know Market Area –
To Focus Efforts & Measure Results
Know Competition –
To Compete
Know Industry –
To Make Informed Decisions
What is Market Research


…The Process of
 Learning about potential customers, their
opinions, habits, trends and future plans.
 Defining a marketing problem or
opportunity.
 Collecting/analyzing information to generate,
re-define and evaluate marketing activities.
Why – Ask & Answer Your Questions
 Make Profitable Decisions & Reduce Risk
Market / Business Plan
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A. Industry Description
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B. Target Markets/Customers & Trade Area
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Opportunity
C. Product / Service (includes Price, Packaging)
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Size, History/Life Cycle, Trends, Key Drivers, “Fit” in the Industry
Solution
D. Distribution (Place)
E. Customer Relations Management
F. Competitive Advantage (Overall Industry Attractiveness)
G. Marketing & Sales Strategies
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(If doing ONLY marketing plan – SWOT, Finance …)
Industry
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Analysis
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Associations
Publications
Events (Trade Shows)
Other Resources
Key Contacts
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Suppliers
Buyers
Competitors (direct, indirect)
Other
Target Market & Trade Area
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Analyzing Customers
Who
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uses product/service,
decides to buy,
actually buys,
influences purchasing …
Demographics
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Reflect physical characteristics as the basis for
segmenting people.
Age, Gender, Income Level, Education, Marital
Status, Household Type, Location, Occupation…
Target Market & Trade Area
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How they behave (where buy, when, how, why)
Psychographics
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Needs (security, esteem, love, acceptance, understanding,
good health, beauty)
Values (security, status, success, greed, simplicity)
Buying Styles (price, fads, quality, latest technology, luxury,
convenience)
Where do they get information to buy -- influence?
Cultures (modern, religious, liberal, conservative, artistic,
environmental)
Interests/Hobbies (sports, reading, fitness, workaholic,
cooking, gardening)
Expectations
Target Market & Trade Area
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Business-to-Business Markets
Profiles
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Annual Sales
Number of Employees
Legal Structure
Type of Business
Who Handles Purchasing
Where do they get information to buy
Procedures for buying
Target Market & Trade Area
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Secondary & Primary Data
Gather Primary Information Through:
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Phone, Fax &/or Internet Surveys
Personal Interviews
Intercepts
Mail and Inserts
Observations
Focus Groups
Cup of Coffee
Method Comparison
Basis of
Comparison
Mail, Internet,
&Fax Surveys
Telephone
Surveys
Personal
Interview Surveys
Cost per
completed survey
Usually the least
expensive,
assuming
adequate return
rate
Moderately expensive, assuming
reasonable
completion rate
Most expensive
because of
interviewer’s time
and travel expenses
Ability to probe
and ask complex
questions
Little, since selfadministered
format must be
short and simple
Some, since
interviewer can
probe and
elaborate on
questions
Much, since
interviewer can
show visuals, probe,
establish rapport
Opportunity for
interviewer to
bias results
None, since form
is completed
without
interviewer
Some, because of
voice inflection of
interviewer
Significant, because
of voice and facial
expressions of
interviewer
Anonymity given
respondent
Complete, since
no signature is
needed
Some, because of
telephone contact
Little, because of
face-to-face contact
Target Market & Trade Area
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Where
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Ohio - http://www.osuedc.org/current/main.php
U.S. - http://www.esribis.com/
Global - http://www.export.gov
Business-to-Business – http://www.census.gov
http://www.lib.umich.edu/govdocs/statsnew.html
Target Market & Trade Area
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Analyze
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Are there enough/too many target buyers?
Are they able and willing to spend $?
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Consumer Expenditure Survey,
www.bls.gov/cex
Product / Service
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Target Market & Trade Area (opportunity)
Product & Benefit (solution)
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Determining product lines and appropriate product
mix (depth and width)
New product development … Life Cycle
Price - market, skim, penetrate
Place (Distribution) – customer convenience
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Wholesalers, retailers, distributors, agents,
brokers, cooperatives
Product Life Cycle
Sales revenue
or profit
Stage of the product life cycle
Introduction
Growth
Maturity
Decline
Total industry
sales revenue
+
0
–
Total industry profit
Marketing
objective
Gain
Awareness
Stress
differentiation
Maintain
brand loyalty
Harvesting,
deletion
Competition
None
Growing
Many
Reduced
Product
One
More versions
Best sellers
Price
Skimming or
penetration
Gain share, deal
Full
product line
Defend share,
profit
Promotion
Inform, educate
Stress
competitive
differences
Reminder
oriented
Minimal
promotion
Place
(distribution)
Limited
More outlets
Maximum
outlets
Fewer outlets
Stay profitable
Pricing Considerations
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What are the costs?
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Raw Materials, Labor, Overhead, Taxes, Marketing
(package, promotion, distribution, service)
What
What
What
What
What
will customers pay?
image do you want to convey?
does competition charge?
will the market bear?
other challenges?
Why Analyze the Competition?
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Learn More About What the Customer Wants/
Doesn’t Want.
Discover un-served/underserved niche markets.
Get ideas for advertising, merchandising,
pricing, product mix, customer service…
Obtain valuable advise, support, information
(from remote competition – identify questions).
Determine your competitive advantage.
Competitive Analysis/Advantage
Who Are Your Competitors?
Direct (similar or substitute product/service)
Indirect Competitors (same dollars)
Future
How Many?
What are the number of firms that handle your service in the
area you have chosen to locate in? How many new in the last
1-2 years? How many failed/couldn’t compete? Why? Future?
How Do They Compete?
 Products, Price, Packaging, Quality, Selection
 Customer Service, Reliability, Expertise, Promotion
 Image/Reputation, Location, Store Layout
 Appearance, Sales Method, Credit Policy
 Availability, Management, Longevity/Stability,
 Customization – Customers/Creation – Product Develop
Competing for Customers
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Thinking Like a Customer
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As a customer what attracts me to a business or
product?
What do I expect from the businesses who serve me?
What must a company do to earn and keep my
business?
How are my customers like/unlike me?
How do other businesses:
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Welcome, Thank, Educate?
Attract, Interact, Act
Satisfaction, Loyalty, Commitment
Thinking Like A Customer
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Dig deeper into the "mind of the market“.
Despite the time and money spent on market
research, 60% to 80% of new offerings fail.
When it comes to buying, 95% of our decision
making takes place in the subconscious mind,
yet traditional marketing methods barely scratch
the surface of this information gold mine.
Consider how the mind, body, and environment
interact to drive our buying decisions.
– Gerald Zaltman, How Customers Think
Marketing
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Knowledge
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Industry
Customers & Trade Area / Opportunity
Product /Solution
Customer Relations
Competition
Action
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… STRATEGY & IMPLEMENTATION
Marketing & Sales Strategy
Selecting A Market Segment/s
•
2.
3.
4.
5.
Size:
The estimated size of the market to determine whether
or not it is worth going after.
Expected Growth
The size of the market may be small, but if it is growing
significantly it may be worth going after.
Competitive Position:
The less competition the more attractive the market –
Market Share
Cost of reaching the market:
Is the market accessible to a firm’s marketing actions?
If not it should not be pursued.
Compatibility with the organization’s objectives and
Marketing & Sales Strategy
Company Image/Identity
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The business name should reflect the nature of the business
“Joe’s Accounting” describes the business
“Joe and Associates” leaves you guessing
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The logo should be professionally designed to convey a desired
identity
Use your logo consistently on all visual business items
Business cards, letterheads, signage, advertising and
promotional materials
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Business cards allow your customers to contact you easily-make them
consistent with your logo
Location - Signage should lead the customer to your place of
business, Buildings should be inviting, clean, safe
Brand Image – Packaging, Self & Employees
Marketing & Sales Strategy
Consider Customer Communication Options
 Newspaper, Magazines, Direct Mail
 Yellow Pages & Other Directories
 Thrifty Shopper
 Billboards
 Radio
 Cable TV
 Specialty Advertising(caps, pens …)
 Brochures, Catalogs, Newsletters (print)
 Shows / Events
 Signage (front and in-store), Uniforms …
 Packaging Inserts
 Other - Internet, Telephone, Door-to-Door, …
Market Research …
Marketing Strategies
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Who?
 Right Audience – customer profile / target market
What?
 Right Message
 Elements: offer, benefit, proof, call to action
 Headline, Illustration, Text/Benefits, Close – Action/Contact
When
 Right Time, Frequency (4-9x), Consistency
Where
 Right Place, Media Choices
How Much
 Right Budget – leftover money, % of sales, comparative
Next Steps
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Balance Planning & Managing
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Plan
Focus
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Analyzing Ideas/Information
Action
What Matters
Integrate
Changes
Purpose
Why Act
Interpret & Evaluate
Measure & Compare
Gain Perspective on Variances
Tell the Story/Benefits
Create the Experience
Recognize - Life Changes …
Ongoing
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Act
Keep Informed –Stay in touch with industry,
customers, trade area, competition