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