Marketing
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Presentation Transcript
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 Competition You 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?
Your customers are your best source of market research. Learn everything you can about them and record it. Then … Segment – Segment - Segment Know thy Customer
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 System
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 Space Analysis Strong Feature A Weak Weak Strong Feature B
Sailboat Rigger Sailboat Rigger Strong Traditional Boats ( vs. Modern) Weak Weak Strong Cruising (offshore) (vs. Racing)
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 Quality 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
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?
