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Creating a PowerfulMarketing Plan
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Building a Guerrilla Marketing Plan
Marketing
The process of creating and delivering desiredgoods and services to customers.
Involves all of the activities associated with
winning and retaining loyal customers.
Guerrilla marketing strategies
original, low-cost creative marketing techniques
that allow a small company to wring more bangfrom its marketing bucks.
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A Guerrilla Marketing Plan
1. Pinpoints the specific target markets thecompany will serve.
2. Determines customer needs and wants throughmarket research.
3. Analyzes a firm's competitive advantages andbuilds a marketing strategy around them.
4. Creates a marketing mix that meets customer
needs and wants.
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Pinpointing the Target Market
First step in building a guerrilla marketing planis to pinpoint the company's target market The specific group of customers at whom the
company aims its products or services.
The more a business learns about its local markets, itscustomers and their buyers habit and preferences, themore it can focus its marketing effort.
Without a clear image of its target market, a
small company tries to reach almost everyoneand ends up appealing to almost no one! Learn how to reach the target market and offer
goods and services designed specifically for them
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Determines Customer Needs And WantsThrough Market Research
Market research is the vehicle for gathering theinformation that serves as the foundation for themarketing plan.
It involves systematically collecting, analyzing andinterpreting data about companys market, customers
and competitors.
The objective of marketing research is to learn how toimprove the level of satisfaction for existing customers
and to find ways to attract new customers.
Market research does nothave to be timeconsuming, complex, or expensive to be useful.
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How to Conduct Market Research: Define the problem. List all possible factor that could have caused it.
Collect the data. Individualized (one-to-one) marketing
A system based on gathering data on individual customers anddeveloping a marketing program designed to appeal specifically totheir needs tastes and performance
Customer survey Focus group Daily transaction Other idea (suggestion system)
Data mining A process in which computer software that uses statistical analysis,
database technology and artificial intelligence finds hidden patterns,trends and connections in data so that business owners can makebetter marketing decisions and prediction about customers behavior.
Analyze the data and interpret the results.
Draw conclusions and act.
Determines Customer Needs And WantsThrough Market Research
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Plotting a Guerrilla Marketing Strategy:Relationship Marketing
Customer Relationship Management Involves developing and maintaining long-term
relationshipswith customers so that they willkeep coming back to make repeat purchases.
Small companies have an advantage over theirlarger rivals at relationship marketing.
Requires a company to make customer service
an inclusive part of its culture.
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Steps in CRM
Collect meaningful information on existingcustomers and compile it in a database.
Mine the database to identify the companys bestand 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
companys best customers.
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Guerrilla Marketing Strategies
Find a niche and fill it.
Niche strategy allows a small company to maximize theadvantage of its size
Dont just sell; entertain. Entertailling- a marketing concept designed to draw
customers into a store by creating a kaleidoscope of
sights, sounds, smells and activities, all designed toentertain and of course sell.
Strive to be unique. To create an image of uniqueness.
Create an identity for your business. Can use vision to market their companies and theirproduct and services
Connect with customers on an emotional level. Customer receives an emotional boost every time they
buy the product.
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Guerrilla Marketing Strategies
Focus on the customer. Develop a customer focus and inspire a customer
satisfaction attitude throughout the company.
Devotion to quality. World-class companies treat quality as a strategic
objective, an integral part of the company culture. This is 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
Attention to convenience. Customers increasingly are looking for convenience
Location, timing, service, extra offer, well trained employees,efficiency
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Guerrilla Marketing Strategies
Concentration on innovation. Entrepreneurs often create new products and services by focusing
their efforts on one area and by using their size and flexibility to theiradvantage.
Dedication to service and customer satisfaction. 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.
Empower employees to offer superior service.
Use technology to provide improved service.
Reward superior service.
Get top managers support.
View customer service as an investment, not an expense
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Guerrilla Marketing Strategies
Emphasis on speed.
Use principles of time compression management(TCM):
Speed new products to market.
Shorten customer response time in manufacturing anddelivery.
Reduce the administrative time required to fill anorder.
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Benefits of Marketing on theWorld Wide Web
Even the smallest companies canmarket their products and servicesaround the globe.
67% of small businesses thatestablished Web sites said theirsites brought in new customers.
The Web can be the Great
Equalizer in a small companys
marketing program.
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The Marketing Mix
Product
Place
Price Promotion
$
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Stages in the Product Life Cycle
Introductory stage
Slow sales growth, highest promotional expense, highestproduct prices and negligible profit. Strategy
Rapid Skimming Strategy- high price, high promotional expense Slow Skimming Strategy- high price, low promotional expense
Rapid Penetration Strategy low price, high promotional strategy Slow Penetration Strategy- low price, low promotional strategy
Growth and acceptance stage Strategy
Improve product quality and add new product features and
improved styling Add new models Enters new market segment Increase distribution coverage and enters new distribution channel Shift to product conviction promotion
Lower price to attract new price sensitive buyers
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Stages in the Product Life Cycle
Maturity and competition stage
Increase in sales at decreasing rate Strategy
Market modification Sales can be increased by increasing thebrand users or by increasing the usage rate per user or both
Product modification quality improvement, feature improvement,
style improvement Market mix modification change any component of marketing mix
Product decline stage Lower sales due to availability of new substitutes and
changes in the consumer tastes and preferences. Strategy
Reducing the number of items produced and promotional expense.
Discarding the product
Repositioning the product
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Stages in the Product Life Cycle
Increase sales
at decreasing
rate
Sales &
Profits
Fall
Lunching
of the
product
Rapid Increase
in Sales and
Maximum
Profitability
Introduction Growth Maturity Decline
Total market sales
Total market profit
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Channels of Distribution Consumer Goods
Manufacturer
Manufacturer
Consumer
Retailer Consumer
Manufacturer Retailer ConsumerWholesaler Wholesaler
Manufacturer Retailer ConsumerWholesaler
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Channels of Distribution Industrial Goods
ManufacturerIndustrial User
Manufacturer Wholesaler Industrial User
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Developing a Marketing Communications Plan
Step 1: Create specific, measurable objectives.
Step 2: Identify and analyze the target audience.
Step 3: Design an advertising message and
choose the media for transmitting it.
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Promotion Includes
Publicity any commercial news covered by the mediathat boosts sales but for which the smallbusiness does not pay.
Personal selling the personal contact between sales personnel
and potential customers resulting from salesefforts.
Advertising any sales presentation that is non-personal in
nature and is paid for by an identified sponsor.
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Build Ads Around a Unique Selling Proposition(USP)
USP - A key customer benefit of a product orservice that answers the critical question thateverycustomer asks: What's in it for me?
Identify your product or service's USP by describingthe primary benefit it offers customers and then listother secondary benefits it provides.
Dont overlook the intangible or psychological
benefits your product or service offers. Briefly list a few facts that support this USP.
Then, focus your ads to stress these top benefitsand the facts supporting them!
Five Fundamentals of a Successful Advertisement
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Five Fundamentals of a Successful Advertisement.
It should attract attention.It should emphasize a keybenefit of the product or
service to the customer.
It should communicatethe companys UniqueSelling Proposition (USP).
It should prove the USPand benefits to the customerwith facts, statistics, ortestimonials.
It should motivate customersto take action immediately.
Source: Adapted from Jerry Fisher, Fine Print, Entrepreneur, November 1994, pp. 145-
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S f l P l S lli R i
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Successful Personal Selling Requires aSelling System
Create trust and respect - Establish rapport withprospect.
Interview the prospect - Let the prospect talk todetermine the key criteria that influence the buying
decision. Demonstrate, explain, and show Make clear thebenefits of your product or service.
Validate - Prove the claims about your product or
service. Overcome objections- Listen for objections and try to
overcome them.
Close - Stop talking and ask for the order.
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Advertising Media Options
Outdoor ads
Transit advertising
Directories Trade shows
Specialty advertising
Point-of-purchaseads
Word-of-Mouth
Newspapers
Radio Television
Magazines
Direct mail
World Wide Web
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Newspapers
Advantages
Selected geographiccoverage
Flexibility
Timeliness
Communication potential
Low cost Prompt responses
Disadvantages
Wasted readership
Reproductionlimitations
Lack of prominence
Declining readership
Short ad life
R di
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Radio
Advantages Universal infiltration
Market segmentation
Flexibility and timeliness Friendliness
Disadvantages
Poor listening Need for repetition
Limited message
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Television
Advantages
Broad coverage
Visual advantage Flexibility
Design and productionassistance
Disadvantages
Brief exposure
Clutter Zapping
Fragmented audience
Costs
M i
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Magazines
Advantages Long life spans
Multiple readership
Target marketingAd quality
Disadvantages
Cost Long closing times
Lack of prominence
Di t M il
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Direct Mail
Advantages
Selectivity
Flexibility
Reader attention
Rapid feedback
Measurable results
and testablestrategies
Effectiveness
Disadvantages
Inaccurate mailinglists
Clutter
High relative costs
High throwaway rate
Ad ti i th W b
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Advertising on the Web
Banner ads
Pop-up ads
Cookies
Full-page ads
Push technology ads
E-mail ads
Permission e-mail Spam
O
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Outdoor Advertising
Advantages High exposure
Broad reach
Flexibility Cost efficiency
Disadvantages Brief exposure
Limited ad recall Legal restrictions
Lack of prominence
T i Ad i i
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Transit Advertising
Advantages Wide coverage
Repeat exposure
Low cost Flexibility
Disadvantages
Generality Limited appeal
Brief message
Di t i
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Directories
Advantages
Prime prospects
Long life
Disadvantages
Lack of flexibility
Ad clutter
Obsolescence
T d Sh
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Trade Shows
Advantages
Natural market
Pre-selected audience
New customer market
Cost advantage
Disadvantages
Increasing costs
Wasted effort
S i lt Ad ti i
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Specialty Advertising
Advantages
Reaching selected audiences
Personalized nature
Versatility
Disadvantages
Potential for waste
Costs
Preparing An Ad ertising B dget
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Preparing An Advertising Budget
What is affordable
Matching competitor's advertising expenditures
Percentage of Sales
Past Sales
Forecasted Sales
Objective-and-Task
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2 3 . 5 %
19.3% 19.1%
7 . 7 %
5 . 9 %4 . 8 %
1.9% 2 . 2 %2 . 5 %
13.0%
0%
5%
10%
15%
20%
25%
P
ercent
Telev
ision
Direct
News
pape
rsRa
dio
Directories
Maga
zines
Pape
rs
Outd
oor
Inte
rnet Other
Medium
Advertising Expenditures by Medium
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How To Advertise Big On A Small Budget
Take advantage of cooperative advertising. Consider shared advertising.
Repeat ads that have been successful.
Use identical ads in different media. Hire independent copywriters and artists.
Concentrate advertising when customers are
most likely to buy.
Maximize publicity with techniques such ascause marketing.
The Factors That Must Be Considered When
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The Factors That Must Be Considered WhenDetermining Price
The factors that small business owners mustconsider when determining price for goods andservices includes: Product/service costs Market factors - supply and demand
Sales volume Competitors' prices The company's competitive advantage Economic conditions Business location Seasonal fluctuations Psychological factors Credit terms and purchase discounts Customers' price sensitivity
Desired image
What determines price?
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What determines price?
Price Ceiling ("What will the market bear?")
Price Floor ("What are the company's costs?")
AcceptablePriceRange
?
?
?
?
?
??
?
?
?
?
Final Price (What is the
company's desired "image?")
?
Pricing Strateg
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Pricing Strategy
Introducing new product
Goals: Getting the product accepted
Maintaining market share as competition grows
Earning a profit
Strategy Penetration
set prices below competitors to gain market entry
Skimming
set higher prices for new products and for markets with littleor no competition.
Sliding-down-the-demand-curve
set higher prices initially and slide down as technologyimproves and/or one step ahead of competitors
Pricing Techniques
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Pricing Techniques
Odd pricing
12.95 appears to be cheaper than 13.00
Price lining Several different price range. Ex- DVD price
Leader pricing
Marks down the customary price
Geographical pricing
Zone Pricing - Different price for customers located in different territoriesbecause of different transportation cost.
Delivered Pricing same price regardless of location
FOB pricing sells on the condition that customers will pay all theshippingcost
Opportunistic pricing
Charging high when goods and services are short in supply
Discounts
Multiple unit pricing discounts if purchased in quantity.
Suggested retail prices
P i i f R t il M k
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Pricing for Retailers: Markup
Dollar Markup = Retail Price - Cost of Merchandise
Percentage (of Retail Price) Markup =Dollar MarkupRetail Price
Percentage (of Cost) Markup = Dollar Markup
Cost of UnitExample:
Dollar Markup = $25 - $15 = $10
Percentage (of Retail Price) Markup =$10
$25= 40%
Percentage (of Cost) Markup =$10
$15= 67%
Pricing for Manufacturers Breakeven Selling Price
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Pricing for Manufacturers: Breakeven Selling Price
BreakevenSelling
Price
Quantity
Example:
=Profit
Variable costper unit produced
TotalfixedcostsX
{{ x
}}+
Quantity produced
Breakeven
Selling
Price
=$0 6.98/unit 50,000 /unit $110,000X { x }+
50,000 units= $9.18 per unit
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Pricing for Service Firms: Price per hour
Price per Hour = Total cost per x 1.00productive hour (1 - net profit target
as % of sales)
Example: Neds TV Repair Shop
Price per Hour = $13.44 per x 1
hour (1 -.18)= $16.38 per hour
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