Download Product - The Alameda County SBDC (Small Business Development

Startup Boot Camp
Kick Starting Success for
California’s Retail, Restaurant and
Service Entrepreneurs!
Day 3 — Session 1
REVIEW/QUESTIONS
From Day 1

How are you coming with your definitions of your:
–
–
–
–
Customer
Product/Service
Competition
Pricing
3
From Day 2

Let’s discuss question from Day 2’s assignments
–
What sources of market research have you found?
–
What questions do you have regarding . . . .
• Estimating sales
• Startup vs. operating costs
• Developing cash flow projections
4
“People don't need to necessarily see me
in the jersey to understand who I am and
what message I'm trying to get across with
the things that I'm marketing.”
– Dwyane Wade
MARKETING BASICS
Importance Of Marketing

Marketing pulls it all together

Marketing is more than placing an advertisement
–
It’s about developing the right product(s) or service(s), at the right
price, at the right place, in the right quantities at the right time and
offering it to the right customer

Marketing drives sales

Sales drive profits
6
The 4Ps of Marketing

Product: Whatever you are selling

Price: The amount of money asked for, or given in
exchange for your product

Place: Distribution channels (where will your customers
find the product/service)

Promotion: An activity designed to encourage the
purchase of a product
And don’t forget . . . . People!
7
Marketing Mix Definition?

How the 4Ps are combined is known as the Marketing
Mix. It’s the coordination of product/service design,
pricing decisions, distribution, and promotional decisions
to form a consistent and effective marketing
program.
8
What’s The Marketing Mix?




Product?
Price?
Place?
Promotion?
9
What’s The Marketing Mix?




Product?
Price?
Place?
Promotion?
10
What’s The Marketing Mix?




Product?
Price?
Place?
Promotion?
11
Product

Remember your target customer, their needs and wants

Tailor your product/service to your customer
12
Price

Must make sense given the:
–
–
–
–
Markets served and the target customer
Products/services offered
Operational costs/method of distribution
Competition/perceived competitive advantage
13
Place

Where will your customers find you?
14
Place

Where will your customers find you?
15
Place

Where will your customers find you?
16
Promotion

Methods a company uses to communicate its
message to its target market and Brand its
product or service
– 5 Promotional Strategy Methods:
•
•
•
•
•
Advertising
Sales Promotion
Public Relations
Personal Selling
Direct Marketing
17
Branding

Branding (positioning)
– The battle for your customers’ minds.
– Who will the customers think of first, when making a decision on
your product/service type?
18
The Message

Lends itself to multiple media

From t-shirts and hats to cable ads

Shorter is better

Distinctive

Memorable

Examples:
–
–
You Deserve a Break Today
The Ultimate Driving Machine
19
Advertising


The message(s) and what they say about your company and its
products
The mediums used and how they are perceived by different
audiences

The mix of media combined with the message(s)

Can reach masses of geographically dispersed buyers

Message must be repeated many times to move customers to take
action

Impersonal one-way, one-to-many communication

Can be very costly
20
Media Choices

Yellow pages

Newspaper

Other print

Radio

TV/Cable

Press Releases

The business systems and collateral materials

The Internet
21
Yellow Pages

Everyone’s favorite — sold hard by the phone company

Mass market reach

Low cost per thousand but expensive overall

Most over use with diminishing effects

Web based version often a better value

Is your business really that mass market driven?

Some exposure is good — keep it small and focused
22
Newspaper






Run of press is also mass market
Classified ads and retailing driven
Has lost ground to all other media
Older readership
Alternative papers
Special editions & sections:
– Directories
– Home repair guide
– Real estate Sunday section

Local retailers can drive traffic with deals, sales and
coupons
23
Other Print

Specialty magazines

Chamber of Commerce newsletters

Industry Associations

Depends on the product and customer

Can be high cost per thousand

Hard to measure and control

Keep it small and focused
24
Radio

Lots of very targeted media choices

Radio stations have detailed information about their
customers’ demographics

Great for campaigns where high frequency is a plus

Ads not expensive to produce
25
Cable TV

Lots of choice by market and system

Good for targeted marketing with a TV flair

Companies have in-house production resources

Many day/time choices

Easy to measure and track — URL and phone number in the ad

Excellent viewer-ship information

Immediate if it works well

Lots of choices and deals
26
Promotion

Wide assortment of tools

Attracts consumer attention

Offers strong incentives to buy

Invites and rewards quick consumer response

Effects are short-lived

The idea is to generate immediate sales
27
Promotion

Public relations

Events

Sponsorships

Pricing

Innovative sales and promotions

Good works
28
Promotion Examples







Samples
Coupons
Rebates
Cents-off Deals
Premiums
Advertising
Specialties




29
Patronage Rewards
Point-of-Purchase
Promotions
Contests
Sweepstakes
Games
Public Relations

Very believable

Reaches people who avoid salespeople and ads

Can dramatize a company or product

Tends to be used as an afterthought

Planned use can be effective and economical
30
Public Relations

Cheaper to get them to write about you than to write
about yourself

Worth a PR firm’s cost if you are doing something
noteworthy and different

Many angles to play for all companies

A PR Agent will network you into the correct channels to
get press
31
Examples Of Public Relations







News
Speeches
Special events
Buzz marketing
Mobile marketing
Written materials
Editorials





32
Audiovisual
materials
Corporate identity
materials
Public service
activities
Web sites
Blogs
Public Relations “Kit”

Biography of You

Fact Sheet (bullet points which answer –who, what,
where, when, why)

Business Information (Biography about the business)

Pictures of the business and product/service

An article about something newsworthy & amazing that
the business has done

Public Relations Kit
33
Personal Selling

Personal interaction between two or more people

Allows relationship building

Most expensive promotion tool
34
Sales

Product/service knowledge — the more knowledgeable a
salesperson is about a product, the easier it is for
her/him to explain it to others

Training is important

Make sure they know what to say and have the tools to
say it well
35
Is This A Salesperson?
36
Direct Marketing

4 characteristics of Direct Marketing:
–
–
–
–

Nonpublic (private)
Immediate
Customized
Interactive
Benefits
–
–
–
–
–
Powerful tool
Can be highly targeted
Can tailor offers to individual needs
Can be timed to reach prospects at just the right moment
Low-cost and efficient
37
Direct Marketing Examples

Examples of Direct Marketing
–
–
–
–
–
Telemarketing
Direct-Mail Marketing
Catalog Marketing
Direct Response TV Marketing (i.e. infomercial and shopping channels)
Kiosk Marketing
38
The Elevator Pitch

Whether you are trying to raise capital, promote your company, or promote
yourself, it’s essential to have an “elevator pitch.” You must communicate
your main message quickly, clearly, and distinctly to someone who doesn’t
even know you. A good pitch takes planning and practice to deliver it
quickly, on the spot, and under pressure. 30 seconds to a maximum of 1
minute!

You — your business name — what you do — any special/unique
capabilities — what kind of customers can benefit from your business and
how you help them. If time, include an example of something great you
have done that helped a customer

“If you're a restaurateur and can't keep your regulars coming back, you're
lost. Using proprietary online and offline survey techniques, Trey Research
will find out how you can stop the losses and start generating profit.”
39
The Marketing Plan

The schedule of all the planned marketing activities
to be performed over a period of time
40
Elements

The market research is done

The heavy user group identified

The message is clear, concise and tested

The approach is balanced

Spending is within budgets

Feedback systems allow tracking and measurement

Willingness to change and adjust based on results
41
Marketing Budget

What the business can afford

What it needs to spend to be competitive

Fixed or Variable Costs model

Total communications costs

New businesses:
–
–
–
–
Always spend more
Need to get known
Build a client base
Make mistakes while trying media
42
How To Spend The Money

Driven by the business plan and the target market
customer

Reach your “heavy user” as often as possible

Budget by the month

Structure marketing campaigns

Manage costs by the campaign
43
How Much To Spend

A function of:
–
–
–
–
–
–
The business model
Your profit vs. growth objectives
Stage of the company
Gross margins
Competition
Cash

5% is about as little as one can spend

12% is about the maximum

Averaged over the year — seasonal peaks and valleys

Fish all day when they are running

Don’t waste money when they’re not
44
Spending Levels

Model would be something like this:
– $1.00
– .55
– .45
– .09
– .09
– .09
– .05
– .13
Net Revenue
Cost of Goods Sold
Gross Margin
Occupancy/Web Costs
G&A
Sales and Marketing
Interest and other cash
Profit before Taxes
45
Spending Levels

Higher Gross Margins means more $$$ for Marketing

Sometimes you must over spend to launch a new
business, new product, stay competitive or grow
46
Promotion Ideas

Always carry business cards. Give them freely and ask
permission to leave them in places your target market
may visit

Print the products you sell or services offered on the
back of your business cards

Create a calendar for customers with your shop's name
and address on it

Join a trade association or organization related to your
industry
47
Promotion Ideas (cont’d)

Collect your customers’ email and mailing addresses by
offering your customers an additional % on their next
sale (which you will email to them to confirm the email
address)

Have a drawing for a product or a gift certificate. Use the
entry forms to collect customers' mailing addresses

Develop a brochure of services your shop offers

Conduct monthly clinics about a product or service you
offer
48
Promotion Ideas (cont’d)






Print a tagline for your business on letterhead, fax cover
sheets, e-mails and invoices
Develop a website. Use a memorable URL
Include customer testimonials in your printed and online
literature
Promote yourself as an expert
Submit to the local newspaper, trade journal or other
publications
Host an after-hours gathering for your employees and
their friends/relatives
49
Promotion Ideas (cont’d)

Provide free t-shirts with your logo to your staff to wear

Create an annual award and publicize it

Create a press kit and keep its contents current

Use an answering machine or voice mail system

Distribute specialty products such as pens, mouse pads,
or mugs with your store's logo
Give a speech

50
Promotion Ideas (cont’d)

Sponsor an Adopt-a-Highway area in your community

Donate your product or service to a charity event or
auction

Maintain your on-line presence

Advertise in creative locations such as park benches,
buses, and popular Web sites

Improve your building signage
51
Promotion Ideas

Create window displays in locations away from your
shop. Airports, hospitals, and large office buildings
occasionally have display areas they rent to local
businesses

Cross-market with local non-competing businesses

Team up with a non-competing business in your area to
offer a package promotion

Pick the slowest day to hold a 1-day sale
52
Promotion Ideas

Create a loyalty program to reward existing customers

Send hand-written thank you notes to important
customers every chance you get

Use brightly colored envelopes and unique stationary
when sending direct mail pieces

Show product demos or related videos on a television on
the sales floors during store hours

Book a celebrity guest for an event at your store
53
Measurement Systems






Need to measure results
Gauge results quantitatively
Track leads and conversion to sales
Use the results to adjust future spending
Fund winners
Kill losers
54
Measurement Systems

Some ways to track results:
–
–
–
–
–
Special phone numbers
Web site landing pages
Web based surveys
Questions when people call
Coupon codes

Simple tracking systems are the best

Use the data to adjust spending
55
Your Marketing Network

You may use:
–
–
–
–
Ad agency
PR representative
Graphic designer
Ability to send out email blasts

Don’t be afraid of managing multiple resources

Set budgets

Expect results and measure them
56
Example

Take out a blank sheet of paper.

Remember the bicycle shop:
Take 3 minutes and write down marketing
ideas it should pursue
57
EXERCISE: Marketing Plan

Take out the 7th sheet labeled “Marketing” and fill in
ideas you tend to consider for the various elements of
your marketing plan.
58
“People share, read and generally engage more
with any type of content when it’s surfaced through
friends and people they know and trust.”
– Malorie Lucich, Facebook
INTERNET MARKETING
Internet Marketing Topics

What is Internet Marketing (aka eMarketing)?

Internet Marketing Toolkit

Resources for Internet Marketing
60
Internet Marketing Objectives

Understand the difference between OFFLINE and ONLINE
Marketing

Identify the elements of the Internet Marketing Toolkit

Understand the role of a website and eNewsletter in marketing your
business online

Gain insight regarding web-based tools that you can use to market
your business online

Basic understanding of Search Engine Marketing (SEM) and why it
is Important

Basic understanding of Social Media and Online Directories and
why they are important
61
Offline Marketing
“One to Many”
Company Message
Messages
Audience
62
Online Marketing Or “eMarketing”
“Many to Many”
Audience
Newsletters
Audience
Website
Company Message
SEO
63
Audience
Social Media
Audience
Learn Your Online Audience

What Are they Looking For?

Where are they on the Internet?

How Do they Find You?

What are Your Competitors
doing?

Develop a set of questions to
survey your current or
perspective clients

Do your research!
64
Internet Marketing Goal
65
The Internet Marketing Toolkit

Company Website

Search Engine Marketing (SEM)

Email Marketing Newsletter

Social Media

Online Directories and Review Sites
66
eMarketing Toolkit: Website
Goal: Make Your Website Valuable to Your Audience
67
Develop Your Presence Online
68
Options For Building A Website

Use Do-it-yourself Website Builders
− Large National ISPs (GoDaddy, Yahoo!, etc.) provide
website builders with their hosting packages

Buy a Website Template
− Buy template and customize it yourself or pay a website
designer

Hire a Website Designer
− Pay a website designer to create a customized website
For more information see “Options for Building & Hosting a Website” on the ACSBDC
Website: http://acsbdc.org/technology-topics/website-hosting
69
Options for Building a Website
Do-it-yourself Website Builders

Large National ISPs (GoDaddy, Yahoo!, etc.) provide
website builders with their hosting packages

COSTS: Domain Registration $8 – 40 per year; Hosting
$6 – 50 per month

Typical Vendors:
−
−
−
Yahoo! Small Business
GoDaddy
Network Solutions
70
Options for Building a Website
Website Templates

Buy template and customize it yourself or pay a
website designer

COSTS: Template Free - $300; Domain
Registration $8 – 40 per year; Hosting $6 – 50 per
month

Typical Template Vendors
−
−

Dream Template
Template Monster
Content Management Systems
− Drupal
− WordPress
71
Options for Building a Website
Website Designers

Pay a website designer to create a customized website
COSTS: Design $2000 minimum; Domain Registration $8 – 40 per
year; Hosting $6 – 50 per month

Directory of Website Design Professionals:

− Elance

Typical WYSIWYG (What-You-See-Is-What-You-Get) Website Editors:
− Coffee Cup
− MS FrontPage
− Dreamweaver
72
Creating Your Website - Content
Create a Website Site
Map - A List of What
Goes Into Your Web Site
73
Example: Website Content
Can you identify
marketing elements
on this website
Homepage that
work well?
74
Example: Web Site Content
Company Logo
Seasonal
Offer
See what
they sell
Incentive
Social Media
75
Website Content: “What to say?”

Customer Analysis:
– Customer Analysis Overview ACSBDC Website:
http://acsbdc.org/business-topics/customer-analysis
– Conduct a customer analysis to identify customer buying criteria, provide
a behavior analysis and specify customer demographics
– The customer buying criteria and behavior analysis can be used to
formulate the Website Content
– The customer demographics identify the best marketing channels
Buying Criteria
Customer Analysis
Website Content
Behavior Analysis
Customer Demographics
76
Marketing Channels
EXERCISE: Website

Take out the sheet of paper labeled “Website” and the
previous Customer Analysis exercise. Then on the
Website sheet write out:
− Some potential domain names that you think would make for a good
Website URL for your business
− Your initial strategy for creating the website (e.g. build it yourself, buy a
template or hire a website designer)
− The first level of the Website Site Map. What will be the first level of
pages below your homepage (e.g. Products, Services, About page,
Contact Us, etc.)
− Use the insights gained from the customer analysis exercise to
generate a snappy introduction for your Website’s Homepage.
(Remember keep it to 50 words or less as you will only have a few
seconds to make a good impression with new website visitors.)
77
eMarketing Toolkit: eNewsletter
Goal: Keep Customer Informed
78
Example: Email Newsletter
Can you identify
marketing elements
on this Email
Newsletter that
work well?
79
Example: Email Newsletter
Incentive
Know the
fav products
and put them
front and center
Reinforce
theme
on website
Home page
Social Media
80
Email Marketing Services
Common Email Marketing Services
81
Email Marketing: Basics

Build an email list
– Include subscription on your website
– Ask customers for their email address (in the store)
– Build the list at any events you attend

Create a newsletter that your audience will
value
– Perhaps include an incentive
82
Email Marketing: Tracking & Analysis
The Key Benefit of Online Marketing is the
ability to track and analyze results, then
quickly iterate and adjust for optimal
performance
83
eMarketing Toolkit: SEM
What is Search Engine Marketing (SEM)?
Goal: Help Your Target
Audience Find You
84
Search Engine Marketing: SEM
How Does Search Engine Marketing Work?
85
Types of Search Engine Marketing
Two Primary Types of Search Engine Marketing
86
Search Engine Optimization: SEO
Search Engine Optimization (SEO): “Organic Search”
87

Dependent on keywords

Select the right keywords
for your product/service

Include those keywords
in the text or “copy” of
your website

Include keywords in the
code “behind” your
website
Search Engine Optimization:Tactics

The Search Engine Optimization (SEO) tactics which
Webmasters should consider implementing are:
−
−
−
−
−
−
−
(Web) Page Titles and Page Descriptions
Image Names and ALT Descriptions for Images
Text-based Content and Links (instead of rich media)
Keywords in Domain Name and Page Links
Keyword Density of (Web) Page Content
High Quality/Unique/Fresh Content
Inbound Links from Reputable Websites
Please see “Techniques for Optimizing Websites” on the ACSBDC
Website for more information:


http://acsbdc.org/technology-topics/optimize-websites
ACSBDC Website SEO Content Includes: How Search Engines Work, Techniques for Optimizing
Websites, Keyword Density SEO, Free Website Optimization Tools & Google Webmaster Tools
88
SEM: Keyword Advertising
Pay-Per-Click (PPC) – Keyword Advertising
 Purchase keywords through
individual search engine (e.g.
Google, Bing, etc.)
 Set an overall budget, price per
click and time period
 You pay when users “click” on
your advertisement, up to the
limit of the overall budget
 Must purchase keywords for
each individual search engine
89
Keyword Advertising Advice

Keyword Advertising (paid search)
– In general, broad keywords are more expensive
• “Car” versus BMW X5
– Optimize one item at a time so you can:
• Track performance and analyze results
– Main considerations:
• Relevancy of the keyword
• Landing page
• Cost of acquisition
See ACSBDC Website Help Content: “Keyword Advertising”


http://acsbdc.org/technology-topics/keyword-advertising
TOPICS INCLUDE: Keyword Advertising & Google AdWords
90
SEM Tools
Search Engine Marketing Tools
91
eMarketing Toolkit: Social Media
Goal: Engage Customers

Build loyalty

Customers market for you

Customer developed content

Product enhancements
92
eMarketing Toolkit: Social Media
Common Social Media Platforms
“Also, special content Blogs or anywhere YOUR customers congregate!”
93
Facebook Timeline: Scream Sorbet
Collect Customer Endorsements!
Update Regularly!
Engage Customers!
94
Facebook About Page: Scream Sorbet
Contact Information
Store Hours
Personalize Content
95
95
Keeping it Relevant!

Watch, Listen, and Learn

Engage in the Conversation

Be Present

Stay Active
96
eMarketing Toolkit: Online Directories

Online Directories and Review Sites for retail
and service based businesses
–
–
–
–
Yahoo Local
Google Places (aka Google Plus Local*)
Yelp!
Angie’s List
*NOTE: Google is currently rebranding “Google Places” as “Google Plus Local”
however most of Google’s online documentation is still labeled as “Google Places”!
97
Example: Scream Sorbet (Oakland)
http://screamsorbet.com
Sells at Farmer’s Markets, also has retail stores Temescal & SF
Makes fresh sorbet & gelato. Established 2009.
98
Google Search vs. Places

Google Search

Google Places
– Website scanned and
www.google.com/places
indexed by search engine
– Need Google account to claim
robots
your listing
– Use SEO techniques to
– Requires verifiable address
improve ranking
– Can fill in basics first, then add
detail later
RESULT: Customers find
business on Google
Search
RESULT: Business listing
shows on Google Maps
99
Google Places: Scream Sorbet
100
Google Maps: Scream Sorbet
101
Claim Your Google Places Listing

Click on the name of your business in the search results in
the left-hand panel of Google Maps

In the information box that appears, click “more info” next to
your business’s name

In the right hand menu, scroll down to IS THIS YOUR
BUSINESS? And click on “Manage this page”

Three options appear: You can Add, Edit or Suspend the
listing.

For each of these options, Google will ask you to verify that
you are the business owner. You can chose to receive a
PIN by phone, SMS or by Post Card. Once you receive
the PIN you can complete the verification process.
See Google Places Support for more information:
http://support.google.com/places/
102
Scream Sorbet on Yelp
103
Do you need Yelp?

Yes

– You need to monitor what
people say
– You need to manage your
listing
• Ask customers for good
reviews
• Postcards asking for
Yelp reviews
• Ask for Yelp feedback in
email newsletters, etc
No
– Yelp reviews aren’t always
considered reliable,
especially for non-food,
entertainment
– Yelp perceived as favoring
paid advertisers
104
Exercise: Internet Marketing Plan

Take out the new sheet of paper labeled “Internet
Marketing Plan.” Then on the sheet of paper:
− Write out a list of potential Keywords that you will incorporate into
your website text and coding (for Search Engine Optimization)
and could potentially use for Keyword Advertising.
− What is your Internet Marketing Budget? Include an initial fixed
amount for Website, etc. and also the monthly expenses you are
willing to incur.
− What Internet Marketing Tool Kit elements will you deploy first
(e.g. email newsletter, Facebook page) and why? Fill out the
Internet Marketing Planning Table, choosing high/medium/low for
the Priority column, and the reason for the chosen priority in the
Notes column.
105
Internet Marketing References
Resource
Description
Web Address
www.blogger.com
Blogger
Free Blogging Platform
CoffeeCup
Website Design
Software
Email Marketing Service
www.coffeecup.com
Email Marketing Service
www.cooleremail.com
Dream Template
Website Templates
www.dreamtemplate.com
Elance
Freelance Internet
Consultants
Social Media Platform
www.elance.com
Constant
Contact
Cooler Email
Facebook
106
www.constantcontact.com
www.facebook.com
Internet Marketing References
Resource
Description
Web Address
www.google.com/analytics
Google
Analytics
Google Places
Free Website Analytics
Service
Free Online Directory
www.google.com/places
Homestead
Website Hosting Service
www.homestead.com
HP Logoworks
www.logoworks.com
iContact
Graphics & Website
Design Service
Email Marketing Service
LinkedIn
Social Media Platform
www.linkedin.com
Mail Chimp
Email Marketing Service
www.mailchimp.com
107
www.icontact.com
Internet Marketing References (continued)
Resource
Ning
Odesk
Open Web
Analytics
Twitter
Vertical Response
vWorker
Description
Social Website
Design Service
Freelance Internet
Consultants
Open Source Web
Analytics
Micro-blogging
Social Media
Platform
Email Marketing
Service
Freelance Internet
Consultants
108
Web Address
www.ning.com
www.odesk.com
www.openwebanalytics.com
www.twitter.com
www.verticalresponse.com
www.vworker.com
Internet Marketing References (continued)
Resource
WebSort
(cardsorting)
Wordpress
Wordtracker
Yahoo Small
Business
Description:
Web Address:
www.websort.net
Website Design
Application/Service
Website Content
Management Application
SEM Application &
Service
Website Hosting Service
109
www.wordpress.com
www.wordtracker.com
www.smallbusiness.yahoo.com
SEM Resources
Keyword & SEO Research Resources
 Google AdWords Main Page:
http://adwords.google.com
 Wordtracker Keyword Research and SEO Tools
http://www.wordtracker.com
 Google’s Search Insights Tool
http://www.google.com/insights/search
110
Internet Marketing Acknowledgments
KIMCO and the California SBDC gratefully acknowledge the
contributions of the following organizations in providing content
and motivation for the Internet Marketing section of the KIMCO
Workshop:

California Resources and Training (CARAT)
Carat provides free webinars on a variety of technology topics
− For CARAT’s Technology Training Events:
− http://www.caratnet.org/calendar.htm
−

Oakland Local
−
http://oaklandlocal.com
111
Startup Boot Camp — LUNCH
“I haven't trusted polls since I read that 62% of
women had affairs during their lunch hour. I've
never met a woman in my life who would give
up lunch for sex.”
– Erma Bombeck