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Marketing. Building a strong foundation for success. Discussion Questions. What is marketing? How is marketing different from sales?. Definitions. Marketing is generating leads for sales Sales is turning leads into customers. Marketing Questions. Who is your customer? - PowerPoint PPT Presentation
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Marketing
Building a strong foundation for success
Discussion Questions
What is marketing?
How is marketing different from sales?
Definitions
Marketing is generating leads for sales Sales is turning leads into customers
Marketing Questions
Who is your customer? Who is your competition? What is your environment? Where will you locate? What will you charge? How will you sell/distribute?
The Marketing Triangle
Customer
You Competition
Market demand | Pricing | Distribution | Publicity | Location
Your Customer
Who is your current customer Who is your ideal customer Where is your customer When does he/she buy How many customers are there
Your Environment
What is the demand/need for your P/S? How established is your market? How saturated is your market? What are the barriers to entry? What seasonality issues exist? How price sensitive is your market? What are the market trends?
Know thy Customer
Your customers are your best source of market research. Learn everything you can about them and record it. Then …
Segment – Segment - Segment
Segment your market
Demographics
Age
Sex
Education
Income
Race
Marital status
Location
Car/house owner
Psychographics
Life style choices
Personal interests
Likes and dislikes
Magazine readership
Travel interests
Hobbies
Health
Fashion preference
Biz to Biz
NAICS / SIC
Number of employees
Type of business
Annual Income
Public/private
Job title
North American Industry Classification System (NAICS)
Replaced the Standard Industrial Classification System (SIC Codes)
Developed by US, Canada, and Mexico Fore example: 236118 Residential
Remodelers North American Product Classification Syste
m
Customer Database
Build a database of all your customers Record every phone call Record every transaction Record profile and segment data Differentiate them by needs and value Rank by frequency and money spent
Customer Profitability
Not all customers are equal Some are a pain-in-the-neck Some are expensive And some are highly profitable
Choose your customers wisely!
Discussion Question
What is competitive analysis?
Competitive Analysis
Who are they? Where are they? How many are there? What are their strengths and weaknesses? Why you and not them - differentiation? Who are their customers? What are the barriers to entry? What do they charge?
Discussion Question
Where do you get competitor information?
Sources of competitor information
Internet Yellow Pages Personal visits to offices and facilities Advertising Customers – past and current Speeches and presentations Tradeshows and professional conferences Articles in newspapers and magazines Market research firms Company brochures Computer databases like Dun and Bradstreet Libraries
Competitive Analysis Grid
You Comp1 Comp1 Comp3
Annual Sales
Employees
Web Page
Price
Strengths
Weaknesses
Competitive Space Analysis
Strong
Weak
Feature BWeak Strong
Feature A
Sailboat Rigger
Strong
Weak
Cruising (offshore)(vs. Racing)
Weak Strong
Traditional Boats
( vs. Modern)
Sailboat Rigger
Discussion Question
How do you set a price for your product or service?
Setting your Pricing
Comparables / Competition Value to customer Breakeven analysis Desired profit margin Market differentiation Price versus volume Price versus quality
Price versus Volume
Low Volume High Volume
Low
PriceDEATH Very Difficult
High
Price
Sweet spot for
Small Business
High distribution
And support cost
Price versus Quality
Low Quality High Quality
Low
Price
Economy
Difficult
Penetration
Difficult long term
High
Price
Skimming
Doomed
Premium
Ideal for Small Biz
Price versus Quality
Discussion Question
How will you become known
to your customers?
Exposure/Promotion Alternatives
Word of mouth - viral Web page – number one Business Cards – a must, simple, web address Signs – shop, auto, anywhere you can Brochures – may only need the internet Direct mail – better, more targeted, expensive Door-to-door – in certain situations Advertising – expensive, difficult to measure
If must advertise…
Two most important words:
Testing Repetition
Free Publicity
Notoriety, word of mouth, reputation Articles by or about you Press releases PSA (Public Service Announcements) Seminars/lectures/demonstrations Referrals/rumors/epidemics Trade associations
Trade Associations
Join your trade association Take a leadership position Subscribe to professional magazines Speak at conferences Write articles
Tipping Point - Gladwell
Successful marketing is like a contagious disease – An epidemic
Law of the Few Changes/growth happens fast Power of Context
Branding and Image
Business name Dress/uniforms/appearance Logo Slogans Office/store front/location
Discussion Question
What makes a good name?
Business Name “…ables”
Expandable/Scaleable – grow with business Web-able – works web address and for email Memorable – does not have to be descriptive Saleable – adds value when you sell
business Understandable – easy to say, spell,
pronounce, remember, unique Applicable - appropriate for business type
Use of Personal Names
Lawyers Doctors Consultants Engineers Contractors Designers
Pros ConsBuilds prof repTraditionalEgo gratifying
Limiting in Scope
You may not want to sell it
Diff to spell or pronounce
Too commonProb w star
empl
Web Names – Phone number of the future
Memorable Short - less than 10 char Easy to type and use with email (avoid spec char) URL – Universal Record Locator TLD, ccTLD (.com, .biz, .net, .bz, .info)
– Like an area code or file extension– Biz will be the com of the future
Test/buy similar and obvious names Use for signage, advertising, email Relate to company
Web Site – An absolute must!
On-line brochure Integrate into your business Viral marketing Easy to navigate Order processing Physical appearance
– Keep it simple– Fit the screen– Fit the page– Sell gently– Minimize the menu items
Homework
Write the marketing section of your business plan– Describe your ideal customer– Segment your market– Prepare a competitive analysis grid– How will you price your product or service?– How will you advertise/promote your p/s?– Name a trade or professional organization you can join– Where will you get leads?
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