Flying Start Rally 2006

Flying Start Rally 2006

Basics of Marketing

John McMillan, McMillan Technologywww.mcmillantech.co.uk

Marketing

If you have the right team and get the marketing right, you will succeed

If the marketing is wrong, you won’t

Marketing

Marketing is like an iceberg – 90% is below the surface

The essence of marketing is having the right product for the right customers

When Should I Start Marketing?

Most new companies start marketing too late

You need to start on day 1

If you design your product around the market you are much more likely to succeed

Step 1 – Get the Product Right

Who needs the product? How badly do they want it?

Casual interest Want it (desire) Want it badly (strong desire) Can’t live without it

The demand can be latent (They don’t know they want it)

The Product and Supplier

Can we realistically bring this to market?

Why would they buy from us? What is different about us?

The Unique Selling Proposition (USP) What is the competition?

Now and in the future?

Why Do Customers Choose a Supplier?

(The 4 Ps of marketing) Promotion

i.e. how they get to know about it Product

Think of a house Price Place

“Where do I buy it?”

Market Segments

You almost certainly can’t sell to the whole world HUGE marketing budget Tiny market share Tiny brand and reputation

So … Shrink your market

Market Segments

A segment must be Different Relevant Significant

(something special about its needs) Accessible Suitable size

Ideally about 5 - 10 times your target turnover

Example segments

Geographic Town, County, Region Ideal for retail and professions

Industry or profession Consumer interest

e.g. disco, koi carp, classic cars

Market Segment

A good segment would have some sort of “community” List of “members” can be found Journals exist Other forums exist – clubs, exhibitions They talk to each other

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

SWOT for small business

Strengths Flexibility No chain of command – no need to

approve Close to customers Comfort from small customers

Weaknesses Few resources

Market Research

You should really do this before committing

Talk to prospective customers How much to they like it, what are their

problems, how much will they pay? Research

Internet Reference library

Marketing Methods

Advertising Expensive Whole campaign needed

1 ad is never effective Needs targeted media Local papers Magazines Posters Web sites

Marketing Methods

Mail shots You have high control Fairly slow, several needed 2 seconds before it goes in the bin Can put out a lot of information

Email Cheap and rapid Problems with spam

Marketing Methods

Point of sale Great for retailers On site boards Vans

Exhibitions and shows Expensive Mixed targeting

Make sure you follow up

Marketing Methods

Web site Vast potential to give information The user can select what he wants to read Ability to distribute demos and samples Easy to keep up to date

How do they find the site? Search engines Links from club sites &c

A web site can be used to back up other methods

Marketing Methods

Telesales Dealers, Distributors and Agents

Easier to find than end customers They will want a cut, but will this cost

more than finding customers yourself? You lose a lot of control

People who can introduce you to customers

Marketing Methods

Be Creative There are many ways to market on a

budget Word of mouth

It’s how Google got there Networking

Get out and meet people Mutual help

“You scratch my back …”

Creative Marketing

Sponsorship It’s not a donation, it’s advertising

Visit exhibitions Be cheeky, hand out your card

Press articles Write articles, become an expert

Conduct master classes!

Branding and Reputation

Branding is about the way customers see you

Aim to be the first company a customer checks

Reputation is vital Rather a good reputation is

Word of mouth is the most powerful marketing tool

Finally

Marketing is like an iceberg Define your:

SWOT USP Market segment

Start on day 1 Select your methods Be creative

www.mcmillantech.co.uk