Chapter 9: Guerrilla Marketing Plan Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1 Building a Guerrilla Marketing Plan

Copyright Copyright ©©2009 Pearson Education, Inc. Publishing as 2009 Pearson Education, Inc. Publishing as Prentice HallPrentice Hall

11Chapter 9: Guerrilla Marketing PlanChapter 9: Guerrilla Marketing Plan

Building a Guerrilla

Marketing Plan



MarketingMarketing

The process of creating and delivering The process of creating and delivering desired goods and services to customers desired goods and services to customers and involves all of the activities and involves all of the activities associated with winning and retaining associated with winning and retaining loyal customersloyal customers

““Secrets” Secrets” Understand target customers’ needs, demands, and Understand target customers’ needs, demands, and wants before competitors canwants before competitors can

Offer them products and services to satisfy Offer them products and services to satisfy those needs, demands, and wantsthose needs, demands, and wants

Provide customers with quality, service, Provide customers with quality, service, convenience, and value so they will keep coming convenience, and value so they will keep coming backback

A Winning Marketing A Winning Marketing StrategyStrategy

Three vital resources:Three vital resources: PeoplePeople - the most important ingredient - the most important ingredient in a successful marketing strategyin a successful marketing strategy

InformationInformation - the fuel that feeds the - the fuel that feeds the marketing engine; without it, the marketing engine; without it, the marketing engine sputters and stops marketing engine sputters and stops

TechnologyTechnology - a powerful marketing - a powerful marketing weapon, but what matters most is how a weapon, but what matters most is how a company integrates technology into its company integrates technology into its overall marketing strategyoverall marketing strategy

Copyright Copyright ©©2009 Pearson Education, Inc. Publishing as Prentice Hall2009 Pearson Education, Inc. Publishing as Prentice HallChapter 9: Guerrilla Marketing PlanChapter 9: Guerrilla Marketing Plan 33



A Guerrilla Marketing A Guerrilla Marketing PlanPlan

Unconventional, low-cost, Unconventional, low-cost, creative techniques that allow a creative techniques that allow a company to wring a big “bang” company to wring a big “bang” from its marketing bucks from its marketing bucks

Example: Jones SodaExample: Jones Sodahttp://www.jonessoda.com/http://www.jonessoda.com/

http://www.jonessoda.com/



Four Objectives of a Four Objectives of a Guerrilla Marketing Guerrilla Marketing PlanPlan Pinpoint the target markets a Pinpoint the target markets a company will servecompany will serve

Determine customer needs, wants, and Determine customer needs, wants, and characteristics through market characteristics through market researchresearch

Analyze a company’s competitive Analyze a company’s competitive advantages and build a marketing advantages and build a marketing strategy around themstrategy around them

Create a marketing mix that meets Create a marketing mix that meets customer needs and wantscustomer needs and wants



Pinpointing the Target Pinpointing the Target MarketMarket First step: Identify the First step: Identify the company's company's target markettarget market, the , the group of customers at whom the group of customers at whom the company aims its products or company aims its products or servicesservices

An effective marketing program An effective marketing program depends on a clear, concise depends on a clear, concise definition of the firm's definition of the firm's targeted customers, targeted customers, notnot a a “one-size-fits-all approach”“one-size-fits-all approach”



Pinpointing the Target Pinpointing the Target MarketMarket Key: Understanding target Key: Understanding target customers’ unique needs, customers’ unique needs, wants, and preferences wants, and preferences

Opportunity: Increasing Opportunity: Increasing populations of multicultural populations of multicultural customerscustomers

U.S. Buying Power and Growth Rate by Ethnic Group

$10,063.9

$1,086.5 $1,023.4$578.8

$69.2 $111.70

2,000

4,000

6,000

8,000

10,000

12,000

WhiteHispanic

African-AmericanAsian-AmericanAmerican Indian

Multiracial

Group

Buying Power (in billions of $)

0%

50%

100%

150%

200%

250%

300%

350%

400%

Percentage Increase from 1990 to

2009

Buying Power

PercentageIncrease from1990 to 2009

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall



Pinpointing the Target Pinpointing the Target MarketMarket Key: Understanding target Key: Understanding target customers’ unique needs, customers’ unique needs, wants, and preferences wants, and preferences

Opportunity: Increasing Opportunity: Increasing populations of multicultural populations of multicultural customerscustomers

Target customer must Target customer must permeate the entire business permeate the entire business



Market ResearchMarket ResearchMarket research - the vehicle for Market research - the vehicle for gathering the information that gathering the information that serves as the foundation for the serves as the foundation for the marketing planmarketing plan

How to Conduct Market Research:How to Conduct Market Research: Define the objectiveDefine the objective Collect the dataCollect the data



Collect the DataCollect the Data Individualized (one-to-one) Individualized (one-to-one) marketingmarketing – a system of – a system of gathering data on individual gathering data on individual customers and then customers and then developing a marketing plan developing a marketing plan designed specifically to designed specifically to appeal to their needs, appeal to their needs, tastes, and preferences tastes, and preferences

How to Become an Effective One-to-One How to Become an Effective One-to-One MarketerMarketer

Identify your best customers, never passing up the

opportunity to get their names.

Collect information on thesecustomers, linking their

identities to their transactions.

Calculate the long-term valueof customers so you know

which ones are most desirable(and most profitable).

SuccessfulOne-to-OneMarketing

Know what your customers’buying cycle is and time yourmarketing efforts to coincide

with it - “just-in-time marketing.”

Make sure your company’sproduct and service quality

will astonish your customers.

See customer complaints for what they are - a chance to improve your service and

quality. Encourage complaints and then

fix them!

Enhance your products andservices by giving customers

information about them and howto use them.

Source: Adapted from Susan Greco, “The Road to One-to-One Marketing,” Inc., October 1995, pp. 56-66.



Individualized (one-to-one) Individualized (one-to-one) marketingmarketing – a system of gathering – a system of gathering data on individual customers and data on individual customers and then developing a marketing plan then developing a marketing plan designed specifically to appeal designed specifically to appeal to their needs, tastes, and to their needs, tastes, and preferences preferences

Much valuable information Much valuable information about customers is already about customers is already hidden inside companies; the hidden inside companies; the key is mining it!key is mining it!

Collect the DataCollect the Data



Data MiningData Mining A process in which computer software A process in which computer software that uses statistical analysis, that uses statistical analysis, database technology, and artificial database technology, and artificial intelligence finds hidden patterns, intelligence finds hidden patterns, trends, and connections in data so trends, and connections in data so business owners can make better business owners can make better marketing decisions and predictions marketing decisions and predictions about customers’ behaviorabout customers’ behavior

Example: Henry Singer Fashion Group Example: Henry Singer Fashion Group



Market ResearchMarket Research

Analyze and interpret the dataAnalyze and interpret the data Put the information to workPut the information to work

Market research is the vehicle Market research is the vehicle for gathering the information for gathering the information that serves as the foundation that serves as the foundation for the marketing planfor the marketing plan

How to Conduct Market Research:How to Conduct Market Research: Define the objectiveDefine the objective Collect the dataCollect the data



Relationship MarketingRelationship Marketing Involves developing, maintaining, Involves developing, maintaining, and managing and managing long-term relationships long-term relationships with customers so that they will with customers so that they will keep coming back to make repeat keep coming back to make repeat purchasespurchases

Steps:Steps: Build database of customer informationBuild database of customer information Identify best and most profitable Identify best and most profitable customerscustomers

Develop lasting relationships with Develop lasting relationships with these customersthese customers

Attract more customers like themAttract more customers like them



FISH! PrinciplesFISH! Principles

1.1. FISH Principle 1. Choose FISH Principle 1. Choose your attitudeyour attitude

2.2. FISH Principle 2. PlayFISH Principle 2. Play

3.3. FISH Principle 3. Make FISH Principle 3. Make their daytheir day

4.4. FISH Principle 4. Be FISH Principle 4. Be present present



Guerrilla Marketing Guerrilla Marketing PrinciplesPrinciples Find a niche and fill it Find a niche and fill it Don’t just sell; entertain Don’t just sell; entertain – “entertailing” – “entertailing”

Connect with customers on Connect with customers on an emotional levelan emotional level

Build a consistent Build a consistent branding strategybranding strategy

Building a BrandBuilding a Brand

HighHigh

LowLow

LowLow HighHighDifferentiationDifferentiation

Rel

evan

ceR

elev

ance

““Antes”Antes”

Features that are important Features that are important to customers but all to customers but all competitors provide themcompetitors provide them

Every company in the market Every company in the market must “ante up” on these must “ante up” on these features.features.

““Drivers”Drivers”

Features that are both Features that are both important to customers and important to customers and are highly differentiated are highly differentiated from those of competitorsfrom those of competitors

These are the attributes on These are the attributes on which a company must which a company must focus to build its brand.focus to build its brand.

““Fool’s Gold”Fool’s Gold”

Features that are unique to Features that are unique to your company but do not your company but do not drive customers’ loyalty to drive customers’ loyalty to your product and servicesyour product and services

Don’t make the mistake of Don’t make the mistake of trying to build a brand on trying to build a brand on these features!these features!

““Neutrals”Neutrals”

Features that are irrelevant Features that are irrelevant to customersto customers

These features are useless These features are useless when it comes to branding.when it comes to branding.

Source: Adapted from “What Really Matters in Building a Brand,” The McKinsey Quarterly, May 2004, www.mckinseyquarterly.com/newsletters/chartfocus/2004_05.htm



Guerrilla Marketing Guerrilla Marketing PrinciplesPrinciples

Start a blogStart a blog Use social commerceUse social commerce Strive to be uniqueStrive to be unique Focus on the customerFocus on the customer



Focus on the Focus on the CustomerCustomer Customers are 5x more likely to leave Customers are 5x more likely to leave because of poor service than for because of poor service than for quality or pricequality or price

94% of dissatisfied customers 94% of dissatisfied customers never never complain complain about rude or discourteous about rude or discourteous service, but...service, but... 91% will 91% will notnot buy from that business again buy from that business again 31% will tell others about their negative 31% will tell others about their negative experienceexperience

48% have avoided a store because of 48% have avoided a store because of someone else’s negative experience with someone else’s negative experience with itit



How to Focus on the How to Focus on the CustomerCustomer

When you create a dissatisfied When you create a dissatisfied customer, fix the problem customer, fix the problem fastfast

EncourageEncourage customer complaints customer complaints Ask employees for feedback on Ask employees for feedback on improving customer serviceimproving customer service

Get total commitment to superior Get total commitment to superior customer service from top customer service from top managers - and allocate resources managers - and allocate resources appropriatelyappropriately



How to Focus on the How to Focus on the CustomerCustomer

Allow managers to wait on customers Allow managers to wait on customers occasionallyoccasionally

Develop a service theme that Develop a service theme that communicates your attitude toward communicates your attitude toward customerscustomers

Reward employees “caught” providing Reward employees “caught” providing exceptional service to customers exceptional service to customers

Carefully select and train Carefully select and train everyoneeveryone who will deal with customerswho will deal with customers

(Continued)




Start a blogStart a blog Use social commerceUse social commerce Strive to be uniqueStrive to be unique Focus on the customerFocus on the customer Retain existing customersRetain existing customers

The High Cost of Lost The High Cost of Lost CustomersCustomers

If you lose . . .Spending $5

weekly

Spending $10

weekly

Spending $50

weekly

Spending $100

weekly

Spending $200

weekly

Spending $300

weekly

1 customer a day $ 94,900 $ 189,800 $ 949,000 $ 1,898,000 $ 3,796,000 $ 5,694,000

2 customers a day 189,800 379,600 1,898,000 3,796,000 7,592,000 11,388,000

5 customers a day 474,500 949,000 4,745,000 9,490,000 18,980,000 28,470,000

10 customers a day 949,000 1,898,000 9,490,000 18,980,000 37,960,000 56,940,000

20 customers a day 1,898,000 3,796,000 18,980,000 37,960,000 75,920,000 113,880,000

50 customers a day 4,745,000 9,490,000 47,450,000 94,900,000 189,800,000 284,700,000

100 customers a day 9,490,000 18,980,000 94,900,000 189,800,000 379,600,000 569,400,000




About 70% of a company’s sales About 70% of a company’s sales come from existing customerscome from existing customers

Because 20% of a typical Because 20% of a typical company’s customers account for company’s customers account for about 80% of its sales, no about 80% of its sales, no business can afford to alienate business can afford to alienate its best and most profitable its best and most profitable customers and survive!customers and survive!

Retain Existing Retain Existing CustomersCustomers



Repeat customers spend 67 Repeat customers spend 67 percent more than new customers percent more than new customers

Replacing lost customers is Replacing lost customers is expensive; it costs expensive; it costs 7 to 9 7 to 9 timestimes as much to attract a new as much to attract a new customer as it does to sell to customer as it does to sell to an existing one!an existing one!

Retain Existing Retain Existing CustomersCustomers




Start a blogStart a blog Use social commerceUse social commerce Strive to be uniqueStrive to be unique Focus on the customerFocus on the customer Focus on the customerFocus on the customer Retain existing customersRetain existing customers Devotion to qualityDevotion to quality



Devotion to Devotion to QualityQuality

World-class companies treat quality World-class companies treat quality as a strategic objective, an as a strategic objective, an integral part of the company cultureintegral part of the company culture

Total Quality Management (TQM) - Total Quality Management (TQM) - quality not just in the product or quality not just in the product or service itself, but in service itself, but in every every aspect aspect of the business and its relationship of the business and its relationship with the customer and continuous with the customer and continuous improvement in the quality delivered improvement in the quality delivered to customers to customers

The Quality DMAIC The Quality DMAIC ProcessProcess

Incr

eas e

d R

etu

rn o

n Q

ual

ity

Inve

stm

ent

Define

Define the problem.Define the problem.

Mea

sure

Measure importantMeasure importantoutcomes. outcomes.

Analyze

Use statistical tools Use statistical tools to find causes of qualityto find causes of qualityproblems. problems.

Improve

Make changes toMake changes tothe process and measurethe process and measureimprovements. improvements.

Control

Sustain Sustain quality quality improvements.improvements.

Adapted from: Walter H. Ettinger, MD, “Six Sigma,” Trustee, September 2001. P. 14.



How Do Americans How Do Americans Define “Quality?”Define “Quality?” Reliability (average time between Reliability (average time between breakdowns)breakdowns)

Durability (how long an item lasts)Durability (how long an item lasts) Ease of useEase of use Known or trusted brand nameKnown or trusted brand name Low priceLow price

Quality

Quality



Quality GuidelinesQuality Guidelines Build quality into the process; don’t Build quality into the process; don’t rely on inspection to obtain qualityrely on inspection to obtain quality

Emphasize simplicity in designEmphasize simplicity in design Foster teamworkFoster teamwork Establish long-term ties with select Establish long-term ties with select supplierssuppliers

Provide managers and employees with Provide managers and employees with the training needed to produce qualitythe training needed to produce quality

Empower workers at all levels of the Empower workers at all levels of the organization organization



Quality GuidelinesQuality Guidelines Get managers’ commitment to the Get managers’ commitment to the quality philosophyquality philosophy

Rethink the processes the company Rethink the processes the company uses now. Is there a better way?uses now. Is there a better way?

Reward employees for quality work Reward employees for quality work

Develop a company-wide strategy Develop a company-wide strategy for continuous improvement of for continuous improvement of product and service quality product and service quality

(Continued)




Attention to convenienceAttention to convenience



Is your business conveniently Is your business conveniently located near customers?located near customers?

Are your business hours suitable Are your business hours suitable to your customers?to your customers?

Would customers appreciate pickup Would customers appreciate pickup and delivery services?and delivery services?

Does your company make it easy Does your company make it easy for customers to buy on credit or for customers to buy on credit or with credit cards?with credit cards?

Attention to Attention to ConvenienceConvenience



Attention to Attention to ConvenienceConvenience Are you using technology to Are you using technology to enhance customer convenience?enhance customer convenience?

Are your employees trained to Are your employees trained to handle business transactions handle business transactions quickly, efficiently, and quickly, efficiently, and politely?politely?

Do your employees use common Do your employees use common courtesy when dealing with courtesy when dealing with customers?customers?



Attention to Attention to ConvenienceConvenience Does your company offer “extras” Does your company offer “extras” to make customers’ lives easier?to make customers’ lives easier?

Can you adapt existing products Can you adapt existing products to make them more convenient for to make them more convenient for customers? customers?

Does your company handle Does your company handle telephone calls well?telephone calls well?




Attention to convenienceAttention to convenience Concentration on Concentration on innovationinnovation



Concentration on Concentration on InnovationInnovation Innovation - the key to Innovation - the key to future successfuture success

Innovation - one of the Innovation - one of the greatest strengths of the greatest strengths of the entrepreneur, showing up in entrepreneur, showing up in the new products, the new products, techniques, and unusual techniques, and unusual approaches they introduce approaches they introduce



Concentration on Concentration on InnovationInnovation Product Development and Product Development and Management Association Study Management Association Study of top performing companies of top performing companies across 400 industries: New across 400 industries: New products accounted for 49% products accounted for 49% of profits, more than twice of profits, more than twice as much as their less as much as their less innovative competitors innovative competitors



Stimulating InnovationStimulating Innovation Make innovation a priority in the Make innovation a priority in the company company

Measure the company’s innovative Measure the company’s innovative abilityability

Set goals and objectives for innovationSet goals and objectives for innovation Encourage new product or service ideas Encourage new product or service ideas among employeesamong employees

Listen to customers Listen to customers Always be on the lookout for new Always be on the lookout for new product and service ideasproduct and service ideas

Keep a steady stream of new products Keep a steady stream of new products and services coming and services coming




Attention to convenienceAttention to convenience Concentration on Concentration on innovationinnovation Dedication to service and Dedication to service and customer satisfactioncustomer satisfaction



GoalGoal: to achieve : to achieve customer customer astonishmentastonishment!!

How can you improve your service?How can you improve your service? Listen to customersListen to customers Define “superior service”Define “superior service” Set standards and measure Set standards and measure performanceperformance

Examine your company’s service cycleExamine your company’s service cycle Hire the right employeesHire the right employees

Dedication to Dedication to ServiceService



Dedication to Dedication to ServiceService Train employees to deliver superior Train employees to deliver superior serviceservice

Empower employees to offer superior Empower employees to offer superior serviceservice

Use technology to provide improved Use technology to provide improved serviceservice

Reward superior serviceReward superior service Get top managers' supportGet top managers' support Give customers an unexpected surpriseGive customers an unexpected surprise




Attention to convenienceAttention to convenience Concentration on Concentration on innovationinnovation

Dedication to service Dedication to service and customer and customer satisfactionsatisfaction

Emphasis on speedEmphasis on speed



Emphasis on SpeedEmphasis on SpeedThree aspects of TCM - Time Three aspects of TCM - Time Compression Management:Compression Management:

1. Speeding new products to market1. Speeding new products to market2. Shortening customer response 2. Shortening customer response time in manufacturing and time in manufacturing and deliverydelivery

3. Reducing the administrative time 3. Reducing the administrative time required to fill an orderrequired to fill an orderCompanies using TCM have discovered Companies using TCM have discovered that manufacturing takes only 5% - that manufacturing takes only 5% - 10% of total lead time10% of total lead time



Re-engineer the process rather than try to Re-engineer the process rather than try to do the same things - only fasterdo the same things - only faster

Study every phase of the business process, Study every phase of the business process, looking for ways to shorten itlooking for ways to shorten it

Create cross-functional teams of workers Create cross-functional teams of workers and empower them to attack and solve and empower them to attack and solve problemsproblems

Share information and ideas across the Share information and ideas across the companycompany

Set aggressive goals for production and Set aggressive goals for production and stick to the schedulestick to the schedule

Instill speed in the company cultureInstill speed in the company culture Use technology to find shortcuts wherever Use technology to find shortcuts wherever possiblepossible

Emphasis on SpeedEmphasis on Speed



With an attractive Web site, With an attractive Web site, even the smallest companies can even the smallest companies can market their products and market their products and services around the globeservices around the globe

The Web can be the “Great The Web can be the “Great Equalizer” in a small company’s Equalizer” in a small company’s marketing strategymarketing strategy

Marketing on the Marketing on the World Wide WebWorld Wide Web



Marketing on the Marketing on the World Wide WebWorld Wide Web

2010: E-commerce accounts for 2010: E-commerce accounts for 13% of total retail sales 13% of total retail sales

Do it right! Do it right! Empirix study: 20% of online Empirix study: 20% of online shoppers say that a negative shoppers say that a negative online experience caused them to online experience caused them to stop doing business – both online stop doing business – both online and offline – with a company and offline – with a company

The Marketing The Marketing MixMix

PProductroduct

PPlacelace

PPricerice

PPromotionromotion


Stages in the Product Life Stages in the Product Life CycleCycle

Introductory stageIntroductory stage

HighCosts



Introductory stageIntroductory stage Growth and acceptance stageGrowth and acceptance stage

HighCosts

HighCosts

HighCosts

SalesClimb



Introductory stageIntroductory stage Growth and acceptance stageGrowth and acceptance stage Maturity and competition Maturity and competition stagestage

HighCosts

SalesClimb

ProfitsPeak

HighCosts

SalesClimb

ProfitsPeak



Introductory stageIntroductory stage Growth and acceptance stageGrowth and acceptance stage Maturity and competition Maturity and competition stagestage

Market saturation stageMarket saturation stage

HighCosts

SalesClimb

ProfitsPeak

SalesPeak

HighCosts

SalesClimb

ProfitsPeak

SalesPeak



Introductory stageIntroductory stage Growth and acceptance stageGrowth and acceptance stage Maturity and competition stageMaturity and competition stage Market saturation stageMarket saturation stage Product decline stageProduct decline stage

HighCosts

HighCosts

ProfitsPeak

ProfitsPeak

SalesPeak

SalesPeak

Sales &ProfitsFall

Sales &ProfitsFall

HighCosts

SalesClimb

ProfitsPeak

SalesPeak

HighCosts

SalesClimb

ProfitsPeak

SalesPeak


Channels of DistributionChannels of DistributionConsumer GoodsConsumer Goods

Manufacturer

Manufacturer

Consumer

Retailer

Consumer

Manufacturer

Retailer

ConsumerWholesale

rWholesale

r

Manufacturer

Retailer

ConsumerWholesaler


Channels of DistributionChannels of DistributionIndustrial GoodsIndustrial Goods

Manufacturer

Industrial User

Manufacturer

Wholesaler

Industrial User




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Chapter 9: Guerrilla Marketing Plan Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1 Building a Guerrilla Marketing Plan