Download Building a Powerful Marketing Plan

CHAPTER
Building a Powerful
Marketing Plan
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
8
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.
!!
National Federation of Independent
Business Study
!! 55%
of small business owners say they do
not need marketing because their products
and services sell themselves.
Ch. 8: Building a Powerful Marketing Plan
Copyright © 2011 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 firms 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 clear
definition of a companys target
customers.
Examples: Harrahs Casino
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
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
8-6
Market Research
!!
!!
!!
Market research is the vehicle for gathering
the information that serves as the foundation
for the marketing plan.
Never assume that a market exists for your
companys 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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Market Research
How to Conduct Market Research:
1.!Define the objective.
2.!Collect the data.
!! Individualized
Ch. 8: Building a Powerful Marketing Plan
(one-to-one) marketing
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8-8
How to Become an Effective One-to-One Marketer
Identify your best customers,
never passing up the
opportunity to get their names.
Collect information on these
customers, linking their
identities to their transactions.
Enhance your products and
services by giving customers
information about them and how
to use them.
See customer complaints
for what they are - a
chance to improve
your service and
quality. Encourage
complaints and then
fix them!
Successful
One-to-One
Marketing
Calculate the long-term value
of customers so you know
which ones are most desirable
(and most profitable).
Make sure your companys
product and service quality
will astonish your customers.
Know what your customers
buying cycle is and time your
marketing efforts to coincide
with it - just-in-time marketing.
Ch. 8: Building a Powerful Marketing Plan
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Source: Adapted from Susan Greco,
The Road to One-to-One Marketing,
Inc., October 1995, pp. 56-66.
8-9
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
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
8 - 10
Relationship Marketing
(Customer Relationship Management)
In addition to the text
Involves developing and maintaining
long-term 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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Guerrilla Marketing Principles
!!
Find a niche and fill it.
!!
Use the power of publicity
!!
Dont 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:
Whats 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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FIGURE 8.1 The Connection between Branding and a USP
Source: Based on Brandsavvy, Highlands Ranch, Colorado
Ch. 8: Building a Powerful Marketing Plan
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8 - 16
Guerrilla Marketing Principles
(continued)
!!
Create an identity for your business
through branding.
Ch. 8: Building a Powerful Marketing Plan
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8 - 17
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
Fools 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
Dont make the mistake of
trying to build a brand on
these features!
Differentiation
Source:
What Really
Matters in Plan
Building a Brand,The
2004, www.mckinseyquarterly.com/newsletters/chartfocus/2004_05.htm
Ch. 8: Adapted
Buildingfrom
a Powerful
Marketing
CopyrightMcKinsey
© 2011Quarterly,
PearsonMay
Education,
Inc. Publishing as Prentice Hall
High
8 - 18
Guerrilla Marketing Principles
(continued)
!!
Create an identity for your business
through branding.
!!
Embrace social networking.
Ch. 8: Building a Powerful Marketing Plan
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8 - 19
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
An estimated 113 million blogs exist
with 5,000 of them from businesses.
!! 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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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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Online Videos
Study: 19% of Internet users watch
online videos every day.
!! Online video guidelines:
!!
!!
!!
!!
!!
!!
Think edutainment.
Be funny.
Connect with current events.
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.
!!
Focus on the customer.
Ch. 8: Building a Powerful Marketing Plan
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
8 - 24
Focus on the Customer
Only 6% of customers who experience a
problem contact the company to complain.
!!31%
tell family members, friends, and colleagues
about their negative experience.
!!6% of those people tell their horror stories to
six or more people.
!!For every 100% of customers who have negative
experiences with a business,
the company stands to lose
32 to 36 current customers
or potential customers.
Ch. 8: Building a Powerful Marketing Plan
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Focus on the Customer
(continued)
!!
Because 20% of a typical companys customers
account for about 80% of its sales, no business
can afford to alienate its best and most
profitable customers and survive!
!!
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.
Ch. 8: Building a Powerful Marketing Plan
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Focus on the Customer
(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
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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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.
!!
Focus on the customer.
!!
Be devoted to quality.
Ch. 8: Building a Powerful Marketing Plan
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8 - 28
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.
!! Focus on the customer.
!! Be devoted to quality.
!! Pay attention to convenience.
!!
Ch. 8: Building a Powerful Marketing Plan
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Attention to Convenience
The average U.S. work week is 42.5 hours,
an increase from 37.5 hours in 2003.
!!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?
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 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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Guerrilla Marketing Principles
(continued)
!!
Concentrate on innovation.
Ch. 8: Building a Powerful Marketing Plan
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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.
!!
Be dedicated to service and customer
satisfaction.
!! Survey:
25% of customers have walked
out of a store within the past year
because of poor service.
!! Survey:
80% say they will never return to
a business after a negative customer
service experience.
Ch. 8: Building a Powerful Marketing Plan
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Dedication to Service
Goal: To achieve customer astonishment!
!!
Listen to customers.
!!
Define superior service.
!!
Set standards and measure performance.
!!
Examine your companys service cycle.
!!
Hire the right employees.
!!
Train employees to deliver superior
service.
Ch. 8: Building a Powerful Marketing Plan
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Guerrilla Marketing Principles
(continued)
!!
Concentrate on innovation.
!!
Be dedicated to service and
customer satisfaction.
!!
Emphasize speed.
Ch. 8: Building a Powerful Marketing Plan
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8 - 38
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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FIGURE 8.2 Five Characteristics of a Great Product
Ch. 8: Building a Powerful Marketing Plan
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The Product Life Cycle
FIGURE 8.3
The Product Life Cycle
Ch. 8: Building a Powerful Marketing Plan
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
8 - 42
Price
!!
A key factor in the decision to buy
!!
Focus attention on non-price
competition
!! Free
trial offers
!! Free
delivery
!! Lengthy
!! Money
Ch. 8: Building a Powerful Marketing Plan
warranties
back guarantees
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Promotion
!!
Goal: To inform and persuade.
!!
Through advertising and other
communication techniques.
!!
Create an image.
!!
Marketing is not a battle of products;
it is a battle of perceptions.
Ch. 8: Building a Powerful Marketing Plan
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Conclusion
!!
A guerrilla marketing plan offers the
entrepreneur significant benefits.
!!
Target marketing is key.
!!
Create a competitive and edge
through customer focus, quality,
convenience, innovation,
service and speed.
Ch. 8: Building a Powerful Marketing Plan
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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