Download PDF - Department of State Development

Marketing your
business
A guide for business operators in South Australia
www.statedevelopment.sa.gov.au/smallbusiness
Table of Contents
01 Overview ....................................................................................................... 3
02 What is marketing? ...................................................................................... 4
03 Defining and developing your competitive edge ....................................... 5
04 What is market planning? ............................................................................ 7
05 The Marketing Checklist – Preparing your marketing plan ....................... 8
06 Making your promotions effective ............................................................ 22
07 Media Release Checklist ............................................................................ 24
08 Summary ..................................................................................................... 26
09 Notes ........................................................................................................... 27
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01 Overview
Irrespective of the product or service, consumers today want choice. Unless your
business provides what they want, at prices they can afford and are willing to
pay, your future in business could be bleak.
Marketing in a small business means attracting and retaining customers matching what people want with what you can profitably supply.
This guide examines what’s involved in marketing, explains how to develop a
competitive edge, outlines the ingredients for a marketing plan, offers tips on how
to make your advertising effective and a Checklist for effective media releases.
Readers are advised:
• The purpose of this guide is to provide general introductory information.
• The guide does not purport to contain all the information that would be
relevant to any particular business opportunity.
• The guide is provided to interested persons on the basis that they will be
responsible for making their own assessment of that opportunity with the
assistance of the information provided.
• All figures contained in the guide should be regarded as estimates only based
on general samples and may be subject to error.
• The information in the guide should not be relied upon in substitution for
professional advice and individual investigation.
• Persons interested in pursuing any particular business opportunity are
strongly advised to fully inform themselves by taking professional advice as to
the extent of their rights and obligations—particularly in relation to any
proposed investment.
• The guide is provided subject to the terms of the formal disclaimer, which
appears on the last page.
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02 What is marketing?
Many people think that marketing is the same thing as selling. However,
marketing is a much broader concept and is best thought of as the groundwork
for successful selling. The Australian Marketing Institute refers to Peter Doyle’s
definition of marketing—‘the management process that seeks to maximise
returns to shareholders by developing and implementing strategies to build
relationships with high-value customers and to create a sustainable differentiable
advantage.’
Your understanding of marketing will be enhanced if you reflect on a
number of key aspects arising from this definition:
Marketing involves management. It has to be worked at; it does not just happen
automatically.
It is a process. It follows logical steps which can be planned.
It identifies customer needs. It researches the market to determine who your
customers are, how many there are and which products they want.
This last element is particularly important—many businesses make the
mistake of giving customers what they think they want, rather than what
customers want.
It anticipates customer requirements. This involves further research into what
potential customers want.
It satisfies the customer. Customers will not be satisfied until they have used the
product or service and either returned to purchase more or expressed
contentment with the buying decisions made.
A lesser result means you have more work to do.
The word customer is vital. If your business exists only to make a big profit, you
could well find yourself in trouble. Successful businesses have a strong customer
service ethic.
Marketing makes the customer the aim of your business. Marketing starts
with the customer— what does the customer want and how can your
business provide it? Marketing also ends with the customer—your
business has supplied the product and must ensure that the customer is
satisfied and happy to transact further business in the future.
Requirements are also important. Ongoing research needs to be undertaken of
customer requirements and their changing needs and tastes so that your
business is able to deliver what customers want in the future.
Profitability is a key word. No one expects your business to satisfy total
customer requirements. For example, at one dollar each, your business may
readily be able to sell all the widgets it can produce, but it may not necessarily
make a profit. This would mean that you could not stay in business and would not
therefore be able to meet future customers’ needs.
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03 Defining and developing your competitive
edge
In the business world, you can be a ‘me too’ business and follow the mob or
move ahead of the competition by developing points of difference. What makes
you different is called your unique selling proposition (USP) and is why people
purchase your products or services. It is the starting point in the development of
your marketing strategy.
The USP for your business will arise from activities which provide high value to
your customers and a strong ability to beat competitors. The aim is to identify the
primary factor that will make your business stand out from everyone else.
Here’s an action checklist to help you define and develop the USP for your
business:
CHECKPOINT
Develop an understanding of your market through careful observation and
listening to what consumers of your product or service are saying.
Identify what the major frustrations of your market segment are e.g. reliability,
back-up service, faulty equipment, careless service, dangerous environment etc.
Can you solve them?
Study what your competitors are doing. Can you do it better? Whatever they
neglect to do, can you do it and do it in a way which will impress your customers?
Ask yourself—why should a customer buy from me?
Identify if there are any unique benefits you offer that could be described as
extraordinary.
Make the invisible, visible—what would that be for you? Are there benefits that
you perhaps overlook telling your customers about?
Consider offering samples to get people excited about the superiority of your
product or service.
Offer more than anyone expects—what would this be?
Identify what aspect of your product or service you could guarantee (make sure
you can deliver). Explore ways to remove or lessen risk.
Explore ways to remove or lessen the risk.
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03 Defining and developing your competitive
edge
Once you have identified your USP, convey this message to the marketplace in
everything you do. Print it on the back of your business card, put it on the wall of
your waiting room, include it in marketing proposals and sales letters and
incorporate it into brochures.
Finally, remember that if what makes you special is really to work, your staff must
understand and be committed to it as well. It is then that your USP will become
the powerful tool needed to move you ahead of the competition.
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04 What is market planning?
You can approach the market in an ad-hoc manner to find customers and sell to
them or you can improve your effectiveness with a plan. A marketing plan brings
together all the relevant market factors and identifies the strategies and actions
required to achieve your sales goals.
The link between the marketing plan and your overall business plan is a crucial
one. Marketing is what attracts and retains customers, so your marketing plan is
a key driver of the performance of your business.
Marketing plans should be used in product oriented as well as service oriented
businesses.
A marketing plan is not simply an index of advertising or other promotional
activities.
A good marketing plan should begin with an evaluation of the entire potential of
the market for each product/service category and include an analysis of
consumer behaviour, the competition and their offerings, and the strengths and
weaknesses of the company as a competitor.
It should also outline the positioning of your product or service within the market,
based on product attributes, features and their related benefits.
Planned sales and promotional activity also need to be addressed.
In addition, consider the potential competitor and consumer reactions to your
activities in the marketplace.
Sales and profit forecasts for each product category should be developed to give
an overall picture of the money to be spent and the profits to be gained.
Finally, the plan should make a prediction at least three to five years ahead as to
the future directions for each product category.
A final step in the marketing planning process is to constantly evaluate and
monitor the performance of your marketing activities to ensure that you are on
the right track.
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05 The Marketing Checklist – Preparing your
marketing plan
The Marketing Checklist is designed to assist you in servicing the needs of your
target market efficiently, effectively and profitably.
It can be applied to your business, whether you are marketing a product or
service.
It provides headings and text to prompt your thinking around issues to consider
when designing a marketing strategy or developing a marketing plan, about
improving marketing activities you may already be doing and identifying
additional marketing opportunities to help you to grow your business. Each
section provides questions for you to answer about your business, and
background information on the concepts involved.
MARKETING CHECKLIST
Instructions
Read through the Marketing Strategy Development Procedure in the following
pages and then use the checklist to identify items you need to work on. Proceed
through each item of the checklist and its corresponding links, ticking off
each box as you progress.
KEY INTELLECTUAL PROPERTY ISSUE / TASK
1.
Market analysis
Conduct an analysis of the size and growth of your market:
• Ascertain the trends in your industry and how they affect your
activities.
• Identify the types of customer groups within your market.
• Analyse and determine which groups it is most profitable for
you to target.
2.
The Marketing Environment
Analyse the following aspects of the environment in which you
operate and determine their current and future effects on your
business:
• Social/cultural trends.
• Economic trends.
• Demographic trends.
• Political/legal/institutional trends.
• Ecological trends.
• Technological trends.
3.
Consumer Analysis
Analyse the needs and wants of your customers and consumers
and how your product/service can satisfy those needs.
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✓
N/A
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MARKETING CHECKLIST…CONTINUED
KEY INTELLECTUAL PROPERTY ISSUE / TASK
4.
Current Situation Analysis
Consider the current strengths and weaknesses in your
business, as well as the opportunities and threats in the market
place (this should have been outlined in 1 & 2 above).
• Strengths
• Weaknesses
• Opportunities
• Threats
5.
Competitor Analysis
Analyse the activities and characteristics of the competitors in
your market (both direct competitors and those who offer
substitute products/services to your customers).
6.
Establish the growth, profit and sales objectives for your
business.
7.
Select which of the strategic alternatives will meet your
objectives.
8.
Determine your strategy for growing your business.
8.
Determine what factors will differentiate you from your
competitors in the eyes of your customers and how will you
compete?
10.
Determine where you would like to be positioned in the eyes of
your customers relative to your competitors.
11.
Determine what your offering will be
• Product
• Price
• Place
• Promotion
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✓
N/A
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Summary of the Marketing Strategy Development Procedure:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Market Analysis
The Marketing Environment
Consumer Analysis
Current Situation Analysis
Competitor Analysis
Marketing Objectives
Marketing Strategy
Sustainable Competitive Advantage
Product/Brand Positioning
The Marketing Mix
1. Market Analysis
The first questions that a business must ask itself are “Who is the market?” and
“What business are we in?” This is an attempt to evaluate the entire market
potential and should be reviewed for each individual product category. This initial
stage does not target any individual market segment but reviews the market as a
whole including the domestic and export markets.
Market Size
Questions that need to be answered are:
• “What is the current market size?” or “How large is the potential market?” This
should be estimated in the relevant terms for the industry e.g., dollars, litres,
kg’s, units, etc.
• “Is the market growing, stable, or declining?” Where is the market heading and
how will this affect the products in the market?
• How many prospects are potential customers of the product?
• How many companies are currently competing in the market?
Answers to these questions can be sourced in many ways with direct (primary)
research being the most accurate. However, primary research is expensive, and
thus not always appropriate, while sources of secondary research such as trade
publications, census statistics, published surveys and the Internet are a very
good way to discover information about the size of a market.
Industry Trends
Significant industry trends that affect the purchasing habits of customers and
consumers should be noted and monitored. This could incorporate alterations to
pack sizes, types of variants, and services included with the product, promotional
methods, technological changes and the like.
Market Segmentation
Market segmentation refers to the ability to categorise different groups of
consumers in a market, due to their particular buying behaviour. Almost all
markets have some major distinctive segments. By focusing on particular
segments of a market small businesses can effectively compete in large markets.
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Segmentation can come about in many ways. Often several types of
segmentation are utilised. Almost all markets can be categorised by price and
quality points. However, price and quality issues do not form the clearest and
precise definition of segmentation within a marketplace, because this is not
useful for categorising consumers. Reasons for strong segmentation are most
often found through an examination of product use and the benefits consumers
derive from product use.
Categorising consumers based on the following leads to the identification of
market segments:
• Demographic—Measurable statistics such as age, income, occupation.
• Psychographic—Lifestyle preferences, attitudes, behavioural characteristics.
• Use Based—Frequency, rapidity, quantity used of a product.
• Geographic—Location of home, business, individual.
• Benefits sought—Specific outcomes derived from the product such as luxury
comfort, value etc.
Different elements may be combined to form the segment (e.g. women aged 25
to 35 who shop four to five times per month and purchase the product for its
luxurious qualities.) It is important to note that segments may change over time.
The way the market was segmented three years ago may not be the way the
market is segmented today.
Target Market
Once the market is segmented, a business should determine which of these it
can best serve with its product/service offering. Any marketing effort is more
likely to be successful if focused and tailored to the most appropriate segment of
the market. The business can then concentrate on satisfying the needs of this
segment in the design and delivery of the product as a total package.
It is almost impossible for one product or service to successfully compete in all
segments of the market. Choosing a target market helps to reduce the number of
direct competitors because the product it is not competing in the market as a
whole but only in the one segment. Thus, choosing a target market for the
product (or recognising the segment within which the product competes)
becomes extremely important. Indeed, this is the primary aim of segmenting the
market.
2. The Marketing Environment
Any trends that affect the entire society and the way the product or service is
marketed are part of the marketing environment. These issues effect the way in
which the market will perceive your product. They include:
Social/Cultural Trends
e.g. Increasing numbers of women in the workforce, increasing hours of work,
decreasing leisure time etc.
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Economic Trends
e.g. Increasing interest rates leading to increased mortgage costs and
decreasing disposable income.
Demographic Trends
e.g. Major trends including increasing average age of residents, movement of
baby boomers, number of births etc.
Political/Legal/Institutional Trends
e.g. Increasing regulation of business, restrictive trade practices, public interest
groups.
Ecological Trends
e.g. Raw materials supply, cost of energy, levels of pollution.
Technological Trends
e.g. Accelerating pace of technological change, causing changes in distribution
(e.g. Internet), creation of new products, competitors gaining an edge through
patents etc. Not all trends will be important to all businesses but you must be
careful to identify and consider those that do affect your product in your market.
3. Consumer Analysis
Note that there are two types of individuals that may be involved in the purchase
of your product. These are customers and consumers. For the purposes of this
document we will consider the customer as a person or entity (such as a
wholesaler, retailer, or distributor) who buys your product but does not actually
use it. They may ‘on-sell’ it to consumers or may simply be purchasing the
product/service on behalf of another entity. The consumer is the person or entity
who actually puts your product to use. Both customers and consumers will have
very different buying characteristics and motivations and both types of market will
be segmental in their own right. (Of course there are numerous occasions where
the customer is the consumer of the purchased product/service.)
This section will look at consumers only. Customers will need a similar approach.
Close evaluation of typical consumers in the market segments being targeted is
paramount to good marketing practice. In effect you must know who your
customers (or potential customers) are, geography, demographics and
psychographics (personality, lifestyle etc.) and the buying behavior of your
consumers better than they themselves would know their own behaviour. There
are countless possible behaviour patterns to consider. Try to focus on the
patterns that are most likely to determine the viability of the product in the market
place. Questions that should be answered are:
• What type of product features most appeal to these consumers?
• What are the benefits that these features provide to the consumer?
• How important are these features?
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• How are choices made between competing products?
• How much disposable income do the target consumers have to spend on this
product?
• How do these consumers reach decisions to purchase a particular product?
• How important is the brand in the buying decision?
• Which promotional mediums does the consumer most often view?
• What activities are these consumers most likely to engage in during their
leisure time?
Importantly, what you think motivates your consumer to purchase and what
actually motivates them to purchase may be very different. Thus, it is important to
gain information from the consumer and from objective observations on how the
consumer behaves.
4. Current Situation Analysis
This is an analysis of your current position and growth level—the “where are we
now?” If you don’t know where you are it is impossible to know how to get where
you want to be. A good method for analysing your current situation is a SWOT
analysis (Strengths, Weakness, Opportunities and Threats) of the product
and the company as a whole.
Strengths
What does your business/product do better than (or at least equivalent to) the
competition? (e.g. specific product attribute, perceived brand value, customer
service provided etc.).
If you do not have any entries in this section then your product/service is likely to
need major changes.
Weaknesses
What does your business/product do that is not as good as the competition?
Thought then needs to be given to if and how this should be compensated for or
overcome.
Opportunities
What area of the market could you enter (albeit with some modifications to the
product or business)? (e.g. increase pack size, additional service, new
packaging, move into other markets etc.).
Threats
What actions could threaten the product or standing in the market (e.g. new
competitor entry, major product failure, reduced promotional budget etc.).
5. Competitor Analysis
If your marketing plans focus on efforts to take market-share from your
competitors, then you need to be prepared for their reaction. For example, if you
introduce a new product or service with great fanfare at a lower price than offered
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by competitors, a price war may commence. This may culminate in the
elimination of all but the strongest, most competitive, and best-financed firms. To
avoid a competitive reaction that might backfire on you, don’t compete on price.
Instead, try targeting a small niche within the market place that is not directly
targeted by your competition.
Try to think like the competition before implementing any marketing strategies.
How would you react if you were an existing business and a competitor came out
with a new, improved, or lower-priced product that had the potential to chip away
at your consumer base and, ultimately, your profitability? Decide whether or not it
would be beneficial to the success of the business to alter the product, pricing, or
unique selling proposition.
Completing a SWOT analysis on each of your competitors is an advisable step
to forming the marketing strategy.
6. Marketing Objectives
Stating the objectives before beginning the strategy will guide the type of strategy
that you formulate. Marketing objectives must be SMART:
• Specific
• Measurable
• Achievable
• Realistic
• Time-bound
Marketing objectives are not simply sales objectives. They must describe the
market share objectives for each product and the segments within which each
product will achieve this market share. The more specific they are, the better they
can be utilised for measuring your progress. e.g. Increase market share in the
consumer hand-held mixer market from 10% to 15% through the launch of a new
product and consolidation of the existing product.
7. Marketing Strategy
Once you have a clear idea of the market that you are in, the competitors in that
market, the segments within the market, a thorough analysis of the current
situation, a true understanding of consumers and a set of realistic objectives, a
strategy can be devised. This becomes the plan for achieving the objectives.
Selecting Strategic Alternatives
There are many different types of strategy that can be used in each market, and
for different product categories. Whether to invest time and resources and where
to invest them are key decisions to be made.
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Strategies for Growth
Growth in Existing Product Markets involves increasing existing product sales in
the existing market. To grow you could:
• Increase market share through continuing promotional and sales support.
• Increase product usage.
• Increasing the frequency of usage.
• Increasing the quantity used.
• Developing a new application for current users.
Product Development
Providing new or modified products for the existing market. This could be
achieved by:
• Adding product features or making product refinements.
• Expanding the product line - opportunities for introducing better or exclusive
products in the future.
• Updating the product to provide a new model.
• Develop new products for the same market.
• Updating/enhancing labelling and packaging, branding.
• Raising the standard of customer service.
• Extending warranties or guarantees to your customers.
Market Development
Using the existing product and developing its use in new markets. For example:
• Target new segments of the market.
• Expand geographically.
Non-Growth Strategies
Withdraw
A decision to withdraw from a market could be made for many reasons including:
• Insufficient resources to compete.
• Business resources spread too thinly and to be focused in other areas (or on
other product categories).
• The competition in the market is too intense meaning restricting the business
from gaining reasonable volumes and market share.
• Price competition in the market is too intense resulting in little to no profit
being made on the product.
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Milk
A milking strategy is designed to gain the greatest profit out of a product line with
the least investment possible. This means, the resources spent on the product
category will be the minimum needed to maintain the current status. The greatest
profit margin will be drawn from the brand with minimum price activity. The
business focus will be in other areas. Milking strategies are particularly
appropriate for well-established products with little growth prospects. They
provide a steady cash flow for the organisation.
Hold
When the cost of achieving growth is considered too high it is often appropriate
to invest only to hold the current market share. This strategy aims to keep
existing consumers loyal to your product and not concentrate on gaining new
customers.
8. SUSTAINABLE COMPETITIVE ADVANTAGE
What makes your business better, special or different?
A Sustainable Competitive Advantage (SCA) is a means of competing that
provides a leverage or edge that is difficult for competitors to copy and is seen as
advantageous by consumers.
A SCA is a key to successfully competing in any market. Characteristics of
successful SCAs are:
• They are substantial enough to make a difference in the market.
• Are sustainable with regard to environmental changes.
• Are difficult for competitors to replicate.
• Are leveraged into visible attributes that influence consumer decisions.
• Means by which to gain a sustainable competitive advantage include
differentiation, low cost, concentrated, or niche.
Differentiation
Differentiation refers to making the product novel through a feature or benefit that
is relevant to the market or market segment. A thorough analysis of the
competitors and your product advantages is required. The following are some
examples of the means by which differentiation can occur. Several of these
strategies could be used at once:
• Product quality.
• Service quality.
• Brand name.
• Product features.
• Technical superiority.
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• Distribution channels
• Breadth of product line.
Many more strategies are possible using differentiation. The options are limited
only by what the customer perceives to be different and the importance placed
on the points of difference.
Low-Cost Strategy
A low-cost strategy relies on the ability to have the lowest cost in the industry at
all times and therefore allow the lowest price to be offered to customers. Anyone
employing a low cost and low price strategy must have the ability to match and
beat its competitors should a price war eventuate.
Methods of achieving a low cost strategy:
• No-frills product.
• Product design.
• Raw material source.
• Low-cost distribution.
• Labour cost advantage.
• Location advantage.
• Automation advantage.
• Reduced overheads.
• Experience in producing the product.
A point to note about a low cost strategy is that a low cost culture must exist in
the organisation. Everything that is done in the organisation must exist around
this one premise. Note that all companies will try to reduce their costs but this
does not mean that they are employing a low cost strategy. A low cost strategy is
extremely difficult to sustain long-term.
Concentrated
The concentrated thrust focuses on one part of the market or one product line
only. Focusing on one area allows the business to become expert in that area
(usually a small segment of the market) and therefore gain a competitive
advantage over generally much larger competitors.
Methods of concentration:
• Focusing on a product line.
• Targeting a segment.
• Geographic area.
• Focusing against low-share competitors.
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Niche
Niche strategies focus on one particular, usually small, segment of the market.
The segment is generally too small or difficult for major competitors to enter and
hence the niche competitor is left to hold the segment substantially alone. Niche
strategies require that customers see a significant difference in the competitor
and see real value in the position that the competitor owns in the market.
9. Product/Brand Positioning
Out of the strategy should come a unique positioning for the product. There
should be a clearly developed product/brand positioning within the market.
Positioning is the way in which consumers perceive the product/service with
respect to the rest of the market, and is a valid form of competitive advantage. It
should be noted that product positioning could take years to create in a market, is
difficult to change and is often the factor that most determines the success of the
product.
Once a position is decided it requires uniformity over a long period of time to
reinforce the message to the target market. There must be consistency in the
positioning through all elements of the marketing mix. Positioning can be based
around such factors as:
• A product attribute.
• A consumer benefit.
• A use or application of the product.
• A product class.
• The place of origin.
• The type of consumer.
• Competitive position in the market.
10. The Marketing Mix
Once a strategy for competing has been formulated it must be developed through
the elements of the marketing mix. The crux of any marketing strategy involves
four elements known as the marketing mix (or the 4 Ps). They are Product,
Price, Promotion and Place (also known as distribution). These elements are
the core ingredients to satisfying consumer needs and wants. All four elements
come together to provide the offering to the consumer.
Product
Key product features and their appropriate benefits are paramount. Take into
account the buying behaviour of the target market, competitive products and their
features and benefits. Also consider the product range with possible line
extensions or range rationalisation. What brand should be adopted for the
product and what will this mean to the consumer? Packaging is a consideration
as it communicates what your product is to the consumer. Service and back up
service all form part of the product offering. Thus, key decisions about the
product include:
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• Features.
• Range.
• Branding.
• Packaging.
• Additional accessories.
For service-oriented products, all of the aspects of presentation of the people
providing the service are important parts of the offering. This includes anything
that is visible (and important) to the customer, (e.g. does the customer expect
(and product positioning determine) that you be dressed in formal business attire
or should you be in branded sports shirts? If the customer sees your offices, what
messages do they convey and are they messages that are complimentary to
your product positioning?).
Price
The price must correspond with the product positioning and also consider what
pricing position you want to hold in the market. How important is price to the
target market?
In most markets, price is an indicator of quality—the higher the price the higher
the perceived quality. It is tempting to fall into the trap of using a cost-based
pricing system. In reality the price of your product should be “what the market will
bear”. It is also tempting to fall into the trap of trying to offer “a high quality
product at a price that everyone can afford”. In most cases this is again flawed
because your product will not be perceived as a high quality product due alone to
the price that it bears. In effect the price of the product will override the benefits
of the product. It is wrong to assume that offering people a better price gives
them better value for money. Value for money is a perception of the price
compared with the benefits derived from the product. In most markets and to
most people the price is far less important than the benefits that they will receive
from the product.
All types of pricing decisions should be considered and planned, including:
• Standard price.
• Price specials.
• Discounts to trade and distributors.
• Payment terms.
• Payment methods.
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Promotion
The promotional element in the marketing mix determines how you communicate
with customers and what promotional tools or tactics are used to achieve the
marketing objectives. Again, knowing the buying behaviour of the target market is
very important. What media do they view, how frequently and what is their
reason for using it? The promotional mix must comply with the product
positioning and, in fact, it should not contradict in any way the prescribed
positioning. Look at emerging trends and changing patterns. For example, many
businesses use social media as a way of engaging customers and to promote
them.
Promotional activities may include:
•
Advertising.
•
Sales promotions.
•
Publicity.
•
Personal selling.
•
Events.
•
Sponsorships.
•
Public relations.
• Promotional materials such as brochures or gifts.
• Direct marketing / selling.
• Public relations.
• Communication methods with customers and potential customers e.g. the
Internet, Social media etc.
• Appearance of premises and staff.
Communication Plan
Developing a communications plan is an important part of deciding on the
promotional elements that should be used. Most often a combination of elements
will be involved. Keeping the target market and the strategy for the product in
mind are the keys to developing a good plan. If the objective is to enter new
markets then this will produce a different plan to one aimed at increasing market
share by getting current consumers to purchase more. The former strategy will
produce a plan that concentrates on finding new customers and could therefore
involve broader advertising and cold call selling, whereas the latter strategy could
produce a plan that involves more intensive selling to existing customers with
volume-related sales promotions. Developing a communications plan is a skill in
itself and is likely to require experts in the field of marketing, together with
specific advertising and promotions experts.
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05 The Marketing Checklist – Preparing your
marketing plan
Distribution
In most industries the distribution channels tend to be fairly well established. This
does not mean that this part of the marketing mix should not be reviewed. In fact
changes to the distribution channel or changes to the way in which you sell to the
channel can provide great opportunities.
Questions you should address include:
• How and where will the product be placed so that consumers have access to it
and how will the sale be made?
• Will you be using wholesalers, distributors, retailers, sales staff / agents or
going direct to the consumer?
• Is a combination of distribution points appropriate and, if so, how will you
balance the flow of product, discounts given, and territories covered by each
distribution point?
In effect the distribution points are also your customers and require as much
consideration regarding buying habits as you give end users. Specific
communication campaigns can address the distribution channel and have as
great or greater success as those that address the consumer. This therefore
suggests that a strategy for dealing with the distribution points needs to be
developed and enacted in the same way that a strategy is developed for
consumers.
Putting it all together
Once you have determined the initial strategy you may find that new issues arise
in previous steps of the process. These should be worked and reworked into the
entire marketing strategy. If there are key elements of the process that are
missing, it is very likely that the strategy devised will be flawed. Working through
the whole process (if necessary with the help of marketing professionals) is
important to getting the strategy right. A good marketing strategy, correctly
implemented, will give your company the edge over the competition and help
guarantee business success.
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06 Making your promotions effective
Advertising is a form of communication that helps to get customers to come to
you. It works on the principle of A-I-D-A:
Attention—potential customers must know your product or service exists.
Interest—they must be interested in the product or service.
Desire—they must be encouraged to want the product or service.
Action—they must be encouraged to buy.
Before you race off to prepare your advertising copy, first establish a clear
objective of what you are seeking to achieve with your advertisement. Next,
identify your target market, that is, the people who are likely to make the decision
on whether or not to buy your product or service. Remember that customers will
focus on the benefits you offer.
Advertising can be delivered through a variety of media, including billboards,
brochures, cinema, internet, letterbox drops, magazines, mail, newsletters,
newspapers, posters, radio, signage on buses and taxis and television. Which
medium should you choose? This is best answered by considering where your
audience is and which medium will reach them most successfully for the least
cost.
While each form of advertising needs a different writing style and presentation
structure, the messages you send out should be consistent and reinforce one
another. Two other vital questions need to be addressed—how much you are
prepared to spend? and how you will measure the success of your investment?
To increase the effectiveness of your advertisements, follow these practical
tips:
Flag down your prospective customers in the headline. Aim your appeal at such
basic human needs as making money, saving time and effort, impressing others,
gaining more leisure, self-improvement, the need to belong etc.
In your headline or first paragraph, promise a benefit (implied or real) that is
important to readers in your niche market so that it draws them into the copy.
Build rapport by showing your readers that you understand their frustrations with
your industry, their problems and their concerns.
Elaborate on your most important benefit in the opening copy.
Include a graphic, where appropriate, that reiterates the main benefit.
Tell the reader exactly what is on offer.
Use sub-headings that summarise the benefits for easy scanning.
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06 Making your promotions effective
CONTINUED…
To increase the effectiveness of your advertisements, follow these practical
tips:
Back up your statements with proof and endorsements, to demonstrate low level
risk. Tell your readers what they may lose if they fail to act.
Make an offer.
Give clear and straightforward directions on how to act.
Use an easily readable typeface.
Make the advertisement clear and uncluttered.
A final word—none of this will matter if you have not developed a strong USP.
You will always under-perform without a clear message that differentiates your
product or service and demonstrates exciting and believable benefits to your
customers.
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07 Media Release Checklist
A media release is a written communication for targeted news media about a
newsworthy event, aimed at generating some positive editorial coverage for your
business. Essentially it is the bare facts of a story about your business, whether it
is a paragraph announcing a new appointment or a one-page summary of a
complicated report.
WHY WRITE MEDIA RELEASES?
Media releases are written to encourage journalists to write a positive story about
your business.
• Media releases give you the chance to offer a selection of facts and views and
you get to decide what information you want to provide.
• Media releases, and the possible publicity generated, can help to establish
your business as innovative, informed, and a responsible citizen, and can be a
powerful part of your marketing strategy.
• Positive publicity helps to build awareness of your brand.
• Audience members tend to place more reliance on editorial coverage than on
advertising as it is generally thought to be unbiased, objective information.
TIPS FOR A GOOD RELEASE
• Make sure there is an angle for the media release—put an interesting slant on
the subject that will have particular relevance to the reader of the publication.
Read some of the stories in recent issues to get a feel of what is wanted.
• Make sure your lead paragraph is strong in content and demands attention
(you only have around 30 seconds to grab the attention of the recipient of your
release).
• Check your spelling and grammar!
• Avoid jargon—ask someone outside your business to check that your media
release is easy to understand.
• Use everyday language and don’t indulge in obscure and inflated expression.
• Use simple sentences and switch to a new paragraph after each sentence.
Limit sentences to 25-30 words.
• Consider media training for any of your staff who may appear on radio or
television.
EXAMPLES OF TOPICS FOR MEDIA RELEASES
(from Public Relations Institute of Australia:
www.pria.com.au / Tel: (02) 8935 7709 )
• New product releases.
• Major installations completed.
• Background information relevant to your business on a current issue in the
media.
• New senior appointments.
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07 Media Release Checklist
• New technological advances.
• Major contracts won.
• Important quality approvals and/or awards.
• Upcoming announcements or events.
MEDIA RELEASE CHECKLIST
Instructions
Proceed through each item of the checklist and its corresponding links, ticking off
each box as you progress.
1.
2.
3.
4.
5.
6.
KEY MEDIA RELEASE ISSUE / TASK
Ask your customers what media they use
(print media, broadcast, electronic).
Suggestions for how to go about this include conducting surveys,
contacting a few key customers by phone or e-mail, observing
your competitors etc.
Develop a database of key media contacts
(editors and key reporters of publications read by your target
audience).
✓
N/A
Alert your team to any possible topics for media releases
(i.e. include ‘Topics for Media Releases’ as an agenda item in
your regular team meetings).
Ensure topics are newsworthy
Just because it is interesting to you does not mean it is
interesting to the media or to your target audience. It also needs
to be relevant and timely.
Writing the release
Generally, a media release should contain the following:
• The date of issue to the media.
• Whether it is for immediate release or to be embargoed to a
particular date.
• A headline (to generate interest and summarises what the
release is about).
• An introductory paragraph (provides some brief background
and summarises the topic of the release).
• One to two paragraphs covering the fundamentals of the
news—WHO, WHAT, WHERE, WHEN, HOW, WHY.
• A quotation from a key individual.
• Contact details of an informed individual for the press to
contact if required.
• Photograph(s), graphs, diagrams if appropriate
Include double line spacing and large margins.
Once you are satisfied with the release, send it
(via fax or email) to the appropriate target media.
Have your key contact person alerted to the release and have
them ready and available for possible calls by the media.
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08 Summary
1
Marketing is the management process responsible for
identifying, anticipating and satisfying customer
requirements.
2
The marketing plan of a small business should be
developed in the form of a marketing mix in which
advertising, promotion, selling, pricing, distribution
and other marketing activities are blended into
combinations that are likely to produce the highest
returns at the lowest cost.
3
Market segmentation is the division of the total market
into separate and identifiable groups.
4
Target marketing is the selection of a particular market
segment and the development of a marketing mix
strategy for that segment.
5
Successful marketing means relating the product,
price, place, promotion and service to the customer.
6
Your unique selling proposition (USP) is the unique
benefit or promise that you hold out to your
prospective customer; it’s what separates your
business from the rest of the market.
7
Advertising works on the principle of attention,
interest, desire and action.
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09 Notes
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Department of State Development
GPO Box 320
Adelaide SA 5001
T: +61 8 8226 3821
E: [email protected]
W: www.statedevelopment.sa.gov.au/smallbusiness
DISCLAIMER
The Government of South Australia gives no warranty and makes no
representation, whether express or implied, as to the accuracy of information
contained within this guide or the suitability of the information for any purpose.
Any use of the information contained in this guide (whether authorised or not) is
at the users’ sole risk and the Government of South Australia disclaims
responsibility for any loss or damage incurred as a result of such use. The
information is provided solely on the basis that users of the information will make
their own assessment of the accuracy of the information and users are advised to
verify all information contained within this document. Any information about the
law in Australia or South Australia is provided as general information only and is
not legal advice. This guide is a starting point only and is not a substitute for legal
or professional advice. While the Department has attempted to ensure the
information is accurate at the time of publishing, no responsibility will be
accepted for any errors or omissions and the Government of South Australia will
not be liable for any loss or damage incurred by any person as a consequence of
any use, reference or reliance on this information. Any such use, reference or
reliance shall be at the sole risk of that person who should seek their own legal
and/or professional advice if required.
COPYRIGHT
Produced by the South Australian Government
© March 2015
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