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Ch. 8: Building a Powerful Marketing Plan
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© 2014 Pearson Education, Inc. Publishing as Prentice Hall
8-1
Building a
Guerrilla Marketing Plan

Marketing
The process of creating and delivering desired
goods and services to customers.
 Involves all of the activities associated with
winning and retaining loyal customers.


A solid business plan needs to contain both a
financial plan and a marketing plan.
Ch. 8: Building a Powerful Marketing Plan
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© 2014 Pearson Education, Inc. Publishing as Prentice Hall
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Building a
Guerrilla Marketing Plan
Guerrilla marketing strategies:
► Are
unconventional, low-cost, and
creative marketing techniques that allow
a small company to realize a greater
return from its marketing investment than
do larger rivals.
► Do not require large amounts of money
to be effective – just creativity.
Ch. 8: Building a Powerful Marketing Plan
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A Guerrilla Marketing Plan
1. Pinpoints the specific target markets the
company will serve.
2. Determines customer needs and wants
through market research.
3. Analyzes a firm’s competitive advantages
and creates a marketing strategy to build a
competitive edge.
4. Helps to create a marketing mix that meets
customer needs and wants.
Ch. 8: Building a Powerful Marketing Plan
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Pinpointing the
Target Market



One objective of market research: Pinpoint
the company's target market, the specific
group of customers at whom the company
aims its products or services.
Marketing strategy must be built on a clear
definition of a company’s target customers.
Example: Hot Mama
Ch. 8: Building a Powerful Marketing Plan
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Pinpointing the
Target Market

Target customer must permeate the entire
business – merchandise sold, background
music, layout, décor, and other features.

Without a clear image of its target market,
a small company tries to reach almost
everyone and ends up appealing to few.
Ch. 8: Building a Powerful Marketing Plan
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Market Research

Determining customer needs.


Market research is the vehicle for gathering the
information that serves as the foundation for the
marketing plan.


Demographics
Never assume that a market exists for your
company’s product or service; prove it!
Market research does not have to be time
consuming, complex, or expensive to be useful.


Web-based market research – online surveys
Trend-tracking
Ch. 8: Building a Powerful Marketing Plan
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Tracking Trends

Read many diverse current publications

Watch the top 10 TV shows

See the top 10 movies

Talk to at least 150 customers a year

Talk with the 10 smartest people you know

Listen to your children and their friends
Ch. 8: Building a Powerful Marketing Plan
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Market Research
How to Conduct Market Research:
1. Define the objective.
2. Collect the data.

Individualized (one-to-one) marketing
 Primary
research
 Secondary
Ch. 8: Building a Powerful Marketing Plan
Copyright
research
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Market Research
(continued)
How to Conduct Market Research:
1. Define the problem.
2. Collect the data.
 Individualized (one-to-one) marketing
 Data mining
3. Analyze and interpret the data.
4. Draw conclusions and act.
Ch. 8: Building a Powerful Marketing Plan
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© 2014 Pearson Education, Inc. Publishing as Prentice Hall
8 - 10
Relationship Marketing
(Customer Relationship Management)
In addition to the text
Involves developing and maintaining longterm relationships with customers so that
they will keep coming back to make repeat
purchases.
Ch. 8: Building a Powerful Marketing Plan
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Relationship Marketing
(Customer Relationship Management)
In addition to the text
Steps:
Collect meaningful customer information and
compile it in a database.
 Mine the database to identify “best” customers.
 Use the information to develop lasting
relationships with “best” customers.
 Attract more customers who fit the “best”
customer profile.

Ch. 8: Building a Powerful Marketing Plan
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The Relationship Marketing Process
If you have done everything
else correctly, this step is
relatively easy. Superb
customer service is the
best way to retain
your most valuable
customers.
Analyze
Sell,
Service,
& Satisfy
Conduct detailed customer intelligence to
pinpoint most valuable customers and to
learn all you can about them, including
their lifetime value (LTV) to the company.
Build
Relationships
Connect
&
Collect
Based on what you have
learned, contact customers
with an offer designed for
them. Make customers feel
special and valued.
Learn
Make contact with most valuable customers
and begin building a customer database
using data mining and data warehousing
techniques.
Learn from your customers by encouraging
feedback from them; develop a thorough
customer profile and constantly refine it.
Ch. 8: Building a Powerful Marketing Plan
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© 2014 Pearson Education, Inc. Publishing as Prentice Hall
In addition to the text
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Steps in CRM
In addition to the text




Collect meaningful information on existing
customers and compile it in a database.
Mine the database to identify the company’s
best and most profitable customers and their
buying habits.
Use the information to establish lasting
relationships with these customers.
Attract more customers who fit the profile of the
company’s best customers.
Ch. 8: Building a Powerful Marketing Plan
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Four Levels of Customer Sensitivity
In addition to the text
Level 4: Customer Partnership
Level 3: Customer Alignment
Level 2: Customer Sensitivity
Level 1: Customer Awareness
Ch. 8: Building a Powerful Marketing Plan
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Guerrilla Marketing Principles

Find a niche and fill it.

Use the power of publicity

Don’t just sell; entertain!


“Entertailing”
Strive to be unique.
Ch. 8: Building a Powerful Marketing Plan
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Guerrilla Marketing Principles
(continued)

Connect with customers on an emotional
level.

Build trust

Define a unique selling proposition (USP)
Ch. 8: Building a Powerful Marketing Plan
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Unique Selling Proposition




A key customer benefit of a product or
service that sets it apart from its
competition.
Answers key customer question: “What’s in
it for me?”
Consider intangible or psychological
benefits as well as tangible ones.
Communicate your USP to your
customers often.
Ch. 8: Building a Powerful Marketing Plan
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Branding and a USP
Ch. 8: Building a Powerful Marketing Plan
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Guerrilla Marketing Principles
(continued)

Create an identity for your business
through branding.
Ch. 8: Building a Powerful Marketing Plan
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Building a Brand
Relevance
High
In addition to the text
“Antes”
“Drivers”
Features that are important
to customers but all
competitors provide them
Features that are both
important to customers and are
highly differentiated from those
of competitors
Every company in the
market must “ante up” on
these features.
These are the attributes on
which a company must focus to
build its brand.1
“Neutrals”
“Fool’s Gold”
Features that are irrelevant to
customers
Features that are unique to
your company but do not drive
customers’ loyalty to your
product and services
These features are useless
when it comes to branding.
Low
Low
Don’t make the mistake of
trying to build a brand on
these features!
Differentiation
Ch. 8: Adapted
Buildingfrom
a Powerful
Marketing
Source:
“What Really
Matters in Plan
Building a Brand,”
The McKinsey
May
2004, www.mckinseyquarterly.com/newsletters/chartfocus/2004_05.htm
Copyright
© 2014Quarterly,
Pearson
Education,
Inc. Publishing as Prentice Hall
High
8 - 21
Guerrilla Marketing Principles
(continued)

Create an identity for your business
through branding.

Embrace social marketing.
Ch. 8: Building a Powerful Marketing Plan
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Social Media Used as
Marketing Tools
Ch. 8: Building a Powerful Marketing Plan
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Embrace Social Marketing


Social networks sites, such as Facebook,
LinkedIn, and Twitter, allow entrepreneurs
to connect with potential and existing
customers at little or no cost.
44% of entrepreneurs use social media to
connect with existing and potential
customers.
Ch. 8: Building a Powerful Marketing Plan
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Benefits of Social Media
Marketing
Ch. 8: Building a Powerful Marketing Plan
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Guerrilla Marketing Principles
(continued)

Create an identity for your business
through branding.

Embrace social networking.

Start a blog.
Ch. 8: Building a Powerful Marketing Plan
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Blogging

Nearly 134 million people in the U.S. read
blogs and 39% of companies use blogs as
part of their marketing strategies.


Economical and effective online
communication.
Blog Guidelines:
► Be
honest, balanced, and interesting.
► Post blog entries consistently so that
readers have a reason to return.
► Ask customers for feedback.
Ch. 8: Building a Powerful Marketing Plan
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Blogging
(continued)
► Strive
to cultivate the image of an expert
or a trusted friend on a topic that is
important.
► Use services such as Google Alerts that
scan the Web for a company’s name and
send e-mail alerts when they find posts.
► Promote the blog via e-mail and
promotional Web Sites.
Ch. 8: Building a Powerful Marketing Plan
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Guerrilla Marketing Principles
(continued)

Create an identity for your business
through branding.

Embrace social networking.

Start a blog.

Create online videos.
Ch. 8: Building a Powerful Marketing Plan
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8 - 29
Online Videos


YouTube reports that visitors view 3 billion
videos per day.
Online video guidelines:
►
►
►
►
►
Think “edutainment.”
Be funny.
Post videos on multiple social media sites.
Involve customers.
Keep it short.
Ch. 8: Building a Powerful Marketing Plan
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Guerrilla Marketing Principles
(continued)

Create an identity for your business
through branding.

Embrace social networking.

Start a blog.

Create online videos.

Host a special event.

Focus on customer satisfaction.
Ch. 8: Building a Powerful Marketing Plan
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8 - 31
Focus on Customer
Satisfaction
Surveys show 79% of unhappy customers tell
others about their experiences.
 48% of shoppers say they won’t patronize stores
where they know others have had negative
experiences.
 For every complaint a company receives, 17
other complaints go unspoken.
 Disgruntled customers often post their
experiences online.
 80% of shoppers have changed their
minds about a purchase after reading
negative information online.
Ch. 8: Building a Powerful Marketing Plan
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Focus on Customer
Satisfaction
To achieve stellar customer service and
customer satisfaction:
► Examine your company’s service cycle
► Set standards and measure performance
► See customer complaints as a mechanism
for improving customer service
► Listen to customers
► Define superior service
Ch. 8: Building a Powerful Marketing Plan
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Focus on Customer
Satisfaction
► When
you create a negative customer
experience, apologize and fix it – fast
► Empower employees to offer superior
service
► Train employees to deliver superior
service
► Hire the right employees
► Get top managers’ support
Ch. 8: Building a Powerful Marketing Plan
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Focus on Customer
Satisfaction
► Treat
employees with respect and show them
how valuable they are
► Use technology to provide improved
experience
► View customer service as an investment, not
an expense
► Reward superior service
► Give customers an unexpected
surprise
Ch. 8: Building a Powerful Marketing Plan
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Principles of Customer Experience Management (CEM)
In addition to the text
Every customer interaction should be:
• Intimate
• Personal
• Consistent, courteous, and professional
Satisfied,
loyal,
repeat
• Responsive
• Helpful information and advice
• Involvement of caring, well-trained people
(and profitable)
• Long-term relationship view
customers
• Emphasis on sustaining an ongoing
relationship
• Nurturing the company/customer relationship
Source: Adapted from “Wake-Up Call: To Fix CRM, Fix
the Customer Experience Now!, BearingPoint White
Paper (www.bearingpoint.com, Fall 2005, p. 5.
Ch. 8: Building a Powerful Marketing Plan
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8 - 36
Guerrilla Marketing Principles
(continued)

Create an identity for your business
through branding.

Embrace social networking.

Start a blog.

Create online videos.

Host a special event.

Focus on customer satisfaction.

Retain existing customers.
Ch. 8: Building a Powerful Marketing Plan
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8 - 37
Retain Existing Customers




A company must land 12 to 20 new
customers to offset the impact of one lost
loyal customer!
Research shows that repeat customers
spend 67% more than new customers.
Attracting new customers costs the
typical business seven to nine times
as much as keeping existing customers.
Practice customer experience management.
Ch. 8: Building a Powerful Marketing Plan
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8 - 38
Retain Existing Customers
(continued)
Companies that are successful at
retaining their customers constantly ask
themselves (and their customers) four
questions:
1. What are we doing right?
2. How can we do that even better?
3. What have we done wrong?
4. What can we do in the future?
Ch. 8: Building a Powerful Marketing Plan
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Guerrilla Marketing Principles
(continued)








Create an identity for your business
through branding.
Embrace social networking.
Start a blog.
Create online videos.
Host a special event.
Focus on customer satisfaction.
Retain existing customers.
Be devoted to quality.
Ch. 8: Building a Powerful Marketing Plan
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Devotion to Quality


World-class companies treat quality as a
strategic objective, an integral part of company
culture.
The philosophy of Total Quality Management
(TQM):
► Quality in the product or service itself.
► Quality in every aspect of the business and its
relationship with the customer.
► Continuous improvement in quality.
Ch. 8: Building a Powerful Marketing Plan
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How Do Americans Define
Quality in a Product?

Reliability (average time between
breakdowns)

Durability (how long an item lasts)

Ease of use

Known or trusted brand name

Low price
Ch. 8: Building a Powerful Marketing Plan
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How Do Americans Define
Quality in a Service?




Tangibles - equipment, facilities, people
Reliability - doing what you say you will do
Responsiveness - promptness
in helping customers
Assurance and empathy conveying a caring attitude
Ch. 8: Building a Powerful Marketing Plan
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Guerrilla Marketing Principles
(continued)









Create an identity for your business through
branding.
Embrace social networking.
Start a blog.
Create online videos.
Host a special event.
Focus on customer satisfaction.
Retain existing customers
Be devoted to quality.
Pay attention to convenience.
Ch. 8: Building a Powerful Marketing Plan
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Attention to Convenience
Successful companies go out of their way to make
sure it’s easy for customers to do business with them.
Questions to ask:
► Is your business conveniently located near
customers?
► Are your business hours suitable to your
customers?
► Would customers appreciate pickup and delivery
services?
► Do you make it easy for customers to buy on credit
or with credit cards?
► Do your employees treat customers with courtesy?
Ch. 8: Building a Powerful Marketing Plan
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Attention to Convenience
(continued)
Are your employees trained to handle business
transactions quickly, efficiently, and politely?
► Does your company offer “extras” that would
make customers’ lives easier?
► Can you bundle existing products to make it
easier for customers to use them?
► Can you adapt existing products to make them
more convenient for customers?
► Does your company handle telephone calls
quickly and efficiently?
►
Ch. 8: Building a Powerful Marketing Plan
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8 - 46
Guerrilla Marketing Principles
(continued)

Concentrate on innovation.
Ch. 8: Building a Powerful Marketing Plan
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8 - 47
Concentration on Innovation


Innovation

The key to future success.

One of the greatest strengths of
entrepreneurs. It shows up in the new
products, techniques, and unusual
approaches they introduce.
Entrepreneurs often create new products
and services by focusing their efforts on
one area and by using their size and
flexibility to their advantage.
Ch. 8: Building a Powerful Marketing Plan
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Guerrilla Marketing Principles
(continued)

Concentrate on innovation.

Emphasize speed.
Ch. 8: Building a Powerful Marketing Plan
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Emphasis on Speed

Use principles of time compression
management (TCM):
► Speed
new products to market
► Shorten customer response time in
manufacturing and delivery
► Reduce the administrative time required to fill
an order.

Study: Most businesses waste
85 to 99% of the time required
to produce products or services!
Ch. 8: Building a Powerful Marketing Plan
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Emphasis on Speed
(continued)



Re-engineer the process rather than try to
do the same thing - only faster.
Create cross-functional teams of workers
and empower them to attack and solve
problems.
Set aggressive goals for
production and stick to
the schedule.
Ch. 8: Building a Powerful Marketing Plan
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Emphasis on Speed
(continued)

Rethink the supply chain.

Instill speed in the company culture.

Use technology to find shortcuts wherever
possible.

Put the Internet to work for you.
Ch. 8: Building a Powerful Marketing Plan
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Ch. 8: Building a Powerful Marketing Plan
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