Marketing BasicsFor

Small Business

What is Marketing?• Planning, integrating and executing a set of

strategies for selling products, services or ideas for the benefit of seller and buyer.

• The actions required to move products from the producer to the consumer (classical definition).

• Actions taken to put the salesperson in front of the customer. (Marketing and Sales).

Most people think that Marketing is a tool, but for many successful businesses it is a way of thinking.

It is a mindset which puts the customer first and ensures that the company never forgets that it needs customers to survive.

Effective marketing is required for survival – and it is absolutely critical for success.

Effective Marketing

• Provides the foundation for planning and the basis for a profitable relationship with your customers.

• Recognizes and analyzes customer needs.

• Provides guidance for product pricing, packaging, promotion and distribution.

Marketing

• Strategic• Essential• Long-term• Communication-

based• Customer-driven

Marketing Insights

• Identify market groups.

– Recognize the market groups that exist in your target market.

– What differentiates each group? What makes each unique?

Marketing Focus I

• Targeting

– Choose the group that will be the focus of your marketing campaign.

Marketing Focus II

• Positioning

– What message do you want to convey?– How do you want your customers to see

you?

Marketing Focus III

• Customer Value

• Cost

• Convenience

• Communications

What Is Important

1.What is your Business (Mission)?

2. Who is your client?

3. How does the client define value?

4. What is the marketing plan?

5. How do we evaluate our effectiveness?

Ask Yourself …

• Marketing is more than selling• Understand your client’s needs• Develop plans that reflect those needs• Support the Marketing function,

• Develop an effective training program• Find ways to sell / distribute products

and services more efficiently.

Remember…

CUSTOMER FOCUSED(How - What to Do - Ideas)

MARKETING

For Small Business

This part of the presentation introduces a variety of practical marketing approaches and ideas.

Use it, as applicable, to generate ways to help develop your own business.

Introduction

Be Innovative – Above AllTo build and maintain a business, you must be innovative. For example, if you are opening a new restaurant, you may, for a limited time, offer two dinners for the price of one.

A plumber may waive the service call fee if he is late for an appointment

These are not original ideas – you need to find and implement the ones which will work for you.

Find out what consumer incentives work in your business and the costs associated with various offers.

But, be careful. As a restaurant owner do not forget to put specific expiration dates on coupons or else you may be serving free or discounted food for a long time.

Incentives and Cost

To make a sale it is critical to reach the right person within your customer’s company. Addressing mail to Purchasing Manager or other company official is usually not effective.

Do your research and take care to be highly targeted in your business communications.

Reach the Decision Maker

Market and Marketing Research are vital to attain your business goals.

Identify your customers and personalize your communications. This applies to direct mail, permission- based email marketing and phone solicitation.

Research is Vital

Prospect identification should be a daily activity in any business. By making prospecting a continuing process, a steady flow of new sales leads will be produced. Never stop asking, "Who do we want to do business with”? Then enter all prospects into a database so they can be turned into customers over a period of time.

Customer Prospecting

Mailing dull direct-mail pieces will not work well. Ask yourself: ”Will anyone be intrigued enough to read the mailer before tossing it in the trash can”

A creative approach is necessary to be different and distinctive. You may need help from professional copy writers to make your mailers more effective.Remember, copywriting is an art.

Be Creative

Many business writers use impersonal words such as "As per our conversation...“ "Pursuant to our agreement...

There is no reason why business letters should not be friendly, conversational, interesting and use language which the customer is familiar with.

Again personalisation is vital.

Effective Letters

Have you asked selected prospects and customers how they view your business, products and services?

When creating an ad, a brochure or a sales presentation, it is critical that you keep in mind what the customer wants, needs and expects. These concerns must be met.

So, look for opportunities to obtain information which can help your marketing be more creative and targeted.

What Do Customers Care About

People make buying decisions after making comparisons. Tell customers and prospects why it is in their best interests to do business with you. Then make the sale.

Market - driven companies spend much time and effort influencing the way they are perceived by customers, prospects, investors and other stakeholders.

Influence How CustomersThink About Your Company

Customers are cautious. They don't like making mistakes or hasty decisions. This is why enticing offers are so valuable. "Try it for 30 days...free." "We won't charge your credit card for a month." "Your satisfaction is guaranteed." "Try the product for the weekend and use it all you want."

The goal is to overcome the customer's reluctance and then ultimately close the sale. Make it easy to say yes.

Make Compelling Offers

Do you use this excuse: "Oh, well. I can't be in the right place every time." Maybe, but your powerful message can.

Develop powerful incentives for your customers to keep you in mind every day.

For example, outstanding products and services promoted by a mix of relevant seminars, newsletters, blogs, bulletins, special events and informative articles will help ensure your success.

Right Place at the Right Time

One of the best ways to differentiate your products or services is to give them distinctive names.Do you remember Roto-Rooter and Weed Wacker? These names are trademarks and you should also consider trademarks for your important products.Give your products clever names which take on new meanings, thereby distinguishing your products from those of your competitors. Make sure, however, that the name appeals to your customers --- not just to you.

Name Your Product or Service

Persistence is power in marketing. Follow through long enough to produce proper results.

Marketing momentum comes from consistent effort. For example, if you start a newsletter, issue it on schedule and only include relevant information.

Remember, it takes time for customers and prospects to get acquainted and comfortable with your business.

Persistent & Consistent

Do you find that many ads, letters, brochures, and other sales materials you receive are filled with words, illustrations and data that are of little interest to you?

To help you write effectively for your publications, ask prospects what they want to know about your company and products. When you know your target customers you can meet their needs effectively.

Effective Communications

For example if your Rolls Royce needs service – and one dealer insists you bring it and another says he will pick it up on his flat bed truck – which would you prefer?

One dealer is clearly sending a signal that he doesn’t understand his customers and the other sends a powerful message - our customers are important.

Find a way to add value that is recognized by customers.

Understand Your Customers

Share all relevant information with your customers. This is the way to become a valued resource for them. When people use your ideas, they will buy what you sell and come back for more. Happy customers will recommend you to others. Satisfying customers’ needs builds trust.

Build Trust

Web Site Research• A web site is like oxygen for your marketing.

You must have it.

• Study your competitors’ web sites.

• Do successful competitors share common web strategies.

• Are the sites used for credibility and information and for Ecommerce as well?

• Can promotional literature be down-loaded?

• Do customers search the web before visiting your work shop, store or office?

• Do you meet customers at their homes or at their businesses?

• Do you close a sale based on one visit?• Do you make proposals which are then

evaluated and acted upon later?• Do customers use the web to check your

credibility before buying?

Web Strategy Considerations

Minimum Web Presence

• Establish a site which gives you credibility.

• Allow customers to download data which you would otherwise mail.

• Provide driving instructions to your location.

• Set up Email capability.

• Include relevant contact information.

Ecommerce Site – If needed--Highlights Only--

• Design your integrated web site.• Create a complete product data base.• Make it easy for customers to shop.• Provide full shopping cart capability.• Establish merchant account for checkout.• Put your web site name on all literature.• Create and execute a comprehensive Ecommerce

marketing plan.

• Is the logo fresh or is it dated? • Does it convey the right message and image?• Are web and email addresses on all documents • Do letterheads, mailing labels and business cards

convey a strong, positive message?

The corporate identity is the face you put on your company for all to see.

Company IdentityIt Makes a Difference

• You may apply all the theory and practical advice reviewed so far - and still fail.

• One reason could be - that you - the salesman/owner do not have effective selling skills.

• Let us review some of the important factors which will help you make the sale.

Meet The Super Salesman

Preparation• Prepare for the meeting with your customer.

• Know the product features and benefits.

• Dress appropriately for the meeting.

• Arrive with time to spare.

• Learn the name of the receptionist – and make a good impression. Next time you call she may make a special effort to help you.

• Turn off your cell phone.

Meeting The Customer --1• Meet your customer with a smile, eye contact

and a handshake if appropriate.

• Use his name properly and express your appreciation for the meeting.

• Comment on some office decorations which favorably reflects your customer’s interests.

• Exchange some pleasantries and quickly get down to business – time is precious.

Meeting The Customer --2• Make your sales presentation.• Invite questions and answer with confidence

which comes from product knowledge.• Review features/benefits as appropriate.• Overcome objections, if any.• Ask for the order.• When the customer has decided to buy from

you – quit selling. Anything you say beyond that point can work against you.

Meeting The Customer --3• Promptly follow up the meeting with any

information which you promised to provide. Again thank him for the meeting or order.

• When calling on the telephone use your best phone manners and avoid the use of a cell phone if the connection is poor.

• Provide after sale training and service as necessary to keep the customer satisfied..

Meeting The Customer -- 4

• Cultivate your relationship with the customer and earn his confidence and trust.

• Ask your customer for the name of another individual to whom you could sell your product.

• Make another successful sales call.

• Hone your selling skills and repeat this process over and over again.

Meeting The Customer -- 5• Maximize your ‘face’ time.• Minimize idle (travel) time by visiting several

customers during the same trip. Your cost per sales call will then be less.

• Use networking to obtain sales leads.• Donate your time or money to worthy causes if

this provides you exposure to your customers.• Go out of your way to help a customer who is in

trouble. He will remember you for the rescue effort.

Meeting The Customer --6

• Be prepared to document sales contracts.

• You may use your own sales forms.

• Your customers may use purchase orders.

• Either way, items sold, unit prices, delivery date, warranty, FOB point, means of shipment, product support and payment terms must be specified.

• Remember – always do the paperwork.

Meeting the Customer – 7

• Develop your ‘elevator’ sales pitch.

• Convey in 15 seconds what you are selling and make the listener want to hear more.

• Use this pitch when the opportunity arises, such as when you are boarding an airplane, standing in line to pay for your coffee, making a chance meetings at the homeowners association, etc. etc.

Tips From A Pro - 1

• Know who is attending your sales presentation.

• Will the customer have technical support during the meeting.

• Are you qualified to answer all technical questions, or do you need help from a pro.

• Is the old adage “I will get back to you with the answer” good enough.

Tips From A Pro – 2

• Confirm early in the meeting how much time is available for the sales presentation.

• Your customer may have a crisis to deal with or additional time to spare.

• Adjust your presentation accordingly.

• Make sure that you cover the key points of your presentation in the allotted time.

Tips From A Pro – 3

• Most presentations are now made using laptop computers and projectors.

• Bring several bound printed copies of your presentation in case of a technical glitch.

• During a projection presentation, it is usually best to wait until you are finished to hand out literature. This avoids the audience becoming distracted by reading your literature or otherwise getting out of sync with your presentation.

Tips From A Pro – 4

• Develop a practice of using both voice and email for follow up communications.

• An initial telephone follow up is likely to reach the answering machine. Leave a brief message.

• Follow up with a more detailed email.• Learn early in a relationship if the customer is

‘email centric’ or ‘voice message centric’. Also, determine how he absorbs information – be it by reading, conversation or visual presentations.

Tips From A Pro - 5

• As a happy customer, confirm that he is willing to become a reference for you.

• Ask him to agree to accept phone calls from your prospects.

• Ask him to allow you to bring prospects to his business to show off your products.

• A customer extolling the benefits of your products is a very powerful message.

Tips From A Pro - 6

• The product you are selling may be treated as a capital expenditure.

• Your customer may need to complete paperwork to document that the purchase meets certain financial criteria.

• Help your customer ‘justify’ the purchase by demonstrating that the acquisition of your product will meet the R.O.I criteria.

PUT THESE IDEAS TO PRACTICAL USE.

• As a guide for implementing effective marketing solutions.

• To review periodically and supplement with new ideas.

• As required reading for all marketing personnel.

How to Create a Successful

Marketing Plan

A marketing plan is a vital document which you have created and intend to follow to achieve your goals. If you are already in business, the marketing plan should reflect the strengths of your current efforts. If the plan is for a new product or service, it should define all critical elements of an effective marketing campaign.

What is a Marketing Plan?

Why Have a Marketing Plan?

• To document where you are

• To plan where you are going

• To define your objectives

Planning Considerations• See it as a process

• Keep it simple

• Develop a time-frame

• Have a simple revision process

• Harmonize with mission statement

• Make it a ‘Living Document’

Components of a Marketing Plan

• Mission Statement

• Executive Summary

• Internal Analysis

• External Analysis

• Objectives

• Marketing Strategies

•Identify Resources

• Implementation Plan

• Marketing Budget

• Evaluation Methods

• The organizational identity

• What business it is really in

• Desired Results

Mission StatementA concise description of

Mission Statement• Visionary

• Broad

• Realistic

• Motivational

• Concise

• Understandable

Mission Statement Example

“McDonald’s vision is to be the world’s bestquick restaurant experience. Being the best means providing outstanding quality, service, cleanliness and value so that we make every

customer smile”.

Executive Summary

• An overview of the plan

• Readable and concise

• Summary of main objectives

• Retrospective• Current situation • Future directions• Available resources• Strengths and weaknesses

Internal Analysis

External Analysis

• Economy• Demographics• Trends, Opportunities, Threats• Competition• Target market

• Analyze relevant trends

• Describe opportunities

• Detail any apparent threats

• Estimate probabilities of occurrence

Trends, Opportunities, & Threats

• Who are they• Product/service features• Pricing, packaging, promotion • Competitor

strengths/weaknesses• How are you different?

The Competition

• Current and potential customers

• Emerging requirements

• Market clusters

Target Markets

. What Do We Plan to Accomplish

Marketing Plan Objectives

• Customers/target markets

• Programs and services

• Packaging

• Pricing

• Promotion

Marketing Strategies

. Resources to be Applied

Marketing Resources

• Specific steps

• Responsibility

• Schedules

• Budget

Implementation Plan

Marketing Budget

• Advertising/media

• Direct mail

• Databases

• Printing/production

• Trade shows

Plan EvaluationMeasuring Effectiveness

• Schedule completion

• New/repeat customers

• Success rates of proposals

• Average contract size

• Total revenue growth.

Summary The marketing plan

• Is created by a formal process

• Provides a means of imposing discipline

• Defines success and is critical for its attainment

• Is a ‘living’ document

• Is updated as necessary.