Scarb Eesbm6e PPT 08

CHAPTER
Building
Building aa Powerful
Powerful
Marketing
Marketing Plan
Plan
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Building a
Guerrilla Marketing Plan
Marketing
The process of creating and delivering
desired goods and services to customers.
Involves all of the activities associated with
winning and retaining loyal customers.
National Federation of Independent

Business Study
55% of small business owners say they do

not need marketing because their products
and services sell themselves.
Ch. 8: Building a Powerful Marketing Plan
8-2
Building a
Guerrilla Marketing Plan
Guerrilla marketing strategies:
Are unconventional, low-cost, and
creative marketing techniques that
allow a small company to realize a
greater return from its marketing
investment than do larger rivals.
Do not require large amounts of
money to be effective just creativity.
8-3
A Guerrilla Marketing Plan

1. Pinpoints the specific target markets the
company will serve.
2. Determines customer needs and wants
through market research.
3. Analyzes a firms competitive advantages
and creates a marketing strategy to build
a competitive edge.
4. Helps to create a marketing mix that
meets customer needs and wants.
8-4
Pinpointing the
Target Market
One objective of market research: Pinpoint

the company's target market, the specific
group of customers at whom the company
aims its products or services.
Marketing strategy must be built on clear
definition of a companys target customers.
Examples: Great Call and Lexus
of Palm Beach
8-5
Pinpointing the
Target Market
Target customer must permeate the

entire business merchandise sold,
background music, layout, dcor, and
other features.
Without a clear image of its target

market, a small company tries to reach
almost everyone and
ends up appealing to few.
8-6
Market Research
Market research is the vehicle for gathering

the information that serves as the foundation
for the marketing plan.
Never assume that a market exists for your
companys product or service; prove it!
Market research does not have to be time
consuming, complex, or expensive to be
useful.
Web-based market research online surveys

Trend-tracking
8-7
Tracking Trends
Read many diverse current publications
Monitor blogs and newsgroups
Watch the top 10 TV shows
See the top 10 movies
Talk to at least 150 customers a year
Talk with the 10 smartest people you know
Listen to your children and their friends
8-8
Market Research
How to Conduct Market Research:
1. Define the objective.
2. Collect the data.
Individualized (one-to-one) marketing
8-9
How to Become an Effective One-to-One Marketer

Identify your best customers,
never passing up the
opportunity to get their names.
Collect information on these

customers, linking their
identities to their transactions.
Enhance your products and

services by giving customers
information about them and how
to use them.
See customer complaints

for what they are - a
chance to improve
your service and
quality. Encourage
complaints and then
fix them!
Successful
One-to-One
Marketing
Calculate the long-term value

of customers so you know
which ones are most desirable
(and most profitable).
Make sure your companys

product and service quality
will astonish your customers.
Know what your customers
buying cycle is and time your
marketing efforts to coincide
with it - just-in-time marketing.
Source: Adapted from Susan Greco,

The Road to One-to-One Marketing,
Inc., October 1995, pp. 56-66.
8 - 10
Market Research
(continued)
How to Conduct Market Research:

1. Define the problem.
2. Collect the data.
Individualized (one-to-one) marketing
Data mining
3. Analyze and interpret the data.

4. Draw conclusions and act.
8 - 11
Relationship Marketing
(Customer Relationship Management)
In addition to the text
Involves developing and maintaining

long-term relationships with customers
so that they will keep coming back to
make repeat purchases.
8 - 12
Relationship Marketing
(Customer Relationship Management)
Steps:
Collect meaningful customer information
and compile it in a database.
Mine the database to identify best
customers.
Use the information to develop lasting
relationships with best customers.
Attract more customers who fit the best
customer profile.
8 - 13
The Relationship Marketing Process

If you have done
everything else
correctly, this step is
relatively easy. Superb
customer service is the
best way to retain
your most valuable
customers.
Analyze
Sell,
Service,
& Satisfy
Build
Relationships
Conduct detailed customer

intelligence to pinpoint most valuable
customers and to learn all you can
about them, including their lifetime
value (LTV) to the company.
Connect
&
Collect
Based on what you have

learned, contact
customers with an offer
designed for them.
Make customers feel
special and valued.
Learn
Make contact with most valuable

customers and begin building a
customer database using data mining
and data warehousing techniques.
Learn from your customers by

encouraging feedback from them;
develop a thorough customer profile and
constantly refine it.

8 - 14
Steps in CRM
Collect meaningful information on existing

customers and compile it in a database.
Mine the database to identify the companys
best and most profitable customers and their
buying habits.
Use the information to establish lasting
relationships with these customers.
Attract more customers who fit the profile of
the companys best customers.
8 - 15
Four Levels of Customer Sensitivity

Level 4: Customer Partnership
Level 3: Customer Alignment
Level 2: Customer Sensitivity
Level 1: Customer Awareness

8 - 16
Guerrilla Marketing Principles
Find a niche and fill it.
Use the power of publicity
Dont just sell; entertain!
Entertailing
Strive to be unique.
8 - 17

(continued)
Connect with customers on an emotional

level.
Build trust
Define a unique selling proposition

(USP)
8 - 18
Unique Selling Proposition
A key customer benefit of a product or

service that sets it apart from its
competition.
Answers key customer question:
Whats in it for me?
Consider intangible or psychological
benefits as well as tangible ones.
Communicate your USP to your
customers often.
8 - 19
FIGURE 8.1 The Connection between Branding and a USP

Source: Based on Brandsavvy, Highlands Ranch, Colorado
8 - 20

(continued)
Create an identity for your business

through branding.
8 - 21
Building a Brand
Relevance
High
Antes
Drivers
Features that are important

to customers but all
competitors provide them
Features that are both

important to customers and are
highly differentiated from those
of competitors
Every company in the

market must ante up on
these features.
These are the attributes on

which a company must focus to
build its brand.1
Neutrals
Fools Gold
Features that are irrelevant to

customers
Features that are unique to

your company but do not drive
customers loyalty to your
product and services
These features are useless

when it comes to branding.
Lo
w
Dont make the mistake of

trying to build a brand on these
features!
Lo
High
Differentiation
w
Ch. 8: Adapted
Buildingfrom
a Powerful
Marketing
Source:
What Really
Matters in Plan
Building a Brand, The McKinsey Quarterly, May 2004, www.mckinseyquarterly.com/newsletters/chartfocus/2004_05.htm
8 - 22

(continued)
Create an identity for your

business through branding.
Embrace social networking.
8 - 23
Social Networking
Social networks sites, such as Facebook

and MySpace, allow entrepreneurs to
connect with potential and existing
customers at little or no cost.
More than half of Facebook users are
over the age of 25.
These sites now offer business survey
tools and advertising functions
for promotional purposes.
8 - 24

(continued)

Start a blog.
8 - 25
Blogging
An estimated 113 million blogs exist

with 5,000 of them from businesses.
Economical and effective online
communication.
Blog Guidelines:
Be honest, balanced, and interesting.
Post blog entries consistently so that
readers have a reason to return.
Ask customers for feedback.
8 - 26
Blogging
(continued)
Strive to cultivate the image of an

expert or a trusted friend on a topic
that is important.
Use services such as Google Alerts
that scan the Web for a companys
name and send e-mail alerts when they
find posts.
Promote the blog via e-mail and
promotional Web Sites.
8 - 27

(continued)

Start a blog.
Create online videos.
8 - 28
Online Videos
Study: 19% of Internet users watch

online videos every day.
Online video guidelines:
Think edutainment.
Be funny.
Connect with current events.
Involve customers.
Keep it short.
8 - 29

(continued)

Start a blog.
Focus on the customer.
8 - 30
Focus on the Customer

Only 6% of customers who experience a
problem contact the company to complain.
31%
tell family members, friends, and colleagues

about their negative experience.
6% of those people tell their horror stories to
six or more people.
For every 100% of customers who have negative
experiences with a business,
the company stands to lose
32 to 36 current customers
or potential customers.
8 - 31

(continued)
Because 20% of a typical companys customers

account for about 80% of its sales, no business
can afford to alienate its best and most
profitable customers and survive!
Research shows that repeat customers spend

67% more than new customers.
Attracting new customers costs the

typical business seven to nine times
as much as keeping existing customers.
8 - 32
Principles of Customer Experience Management (CEM)

Every customer interaction should be:

Intimate
Intimate
Personal
Personal
Consistent,
Consistent,courteous,
courteous,and
andprofessional
professional
Satisfied,
Satisfied,
loyal,
loyal,
repeat
repeat
Responsive
Responsive
Helpful
Helpfulinformation
informationand
andadvice
advice
Involvement
Involvementof
ofcaring,
caring,well-trained
well-trainedpeople
people
Long-term
Long-termrelationship
relationshipview
view
Emphasis
Emphasison
onsustaining
sustainingan
anongoing
ongoing
relationship
relationship
Nurturing
Nurturingthe
thecompany/customer
company/customerrelationship
relationship
(and
(andprofitable)
profitable)
customers
customers
Source: Adapted from Wake-Up Call: To Fix CRM, Fix the

Customer Experience Now!, BearingPoint White Paper (
www.bearingpoint.com, Fall 2005, p. 5.
8 - 33

(continued)
Companies that are successful at retaining

their customers constantly ask themselves
(and their customers) four questions:
1. What are we doing right?
2. How can we do that even better?
3. What have we done wrong?
4. What can we do in the future?
8 - 34

(continued)

Start a blog.
Be devoted to quality.
8 - 35
Devotion to Quality
Study: 60% of customers who change suppliers

do so because of problems with a companys
products or services.
World-class companies treat quality as a strategic
objective, an integral part of company culture.
The philosophy of Total Quality Management
(TQM):
Quality in the product or service itself.

Quality in every aspect of the business and its
relationship with the customer.
Continuous improvement in quality.
8 - 36
How Do Americans Define

Quality in a Product?
Reliability (average time between

breakdowns)
Durability (how long an item lasts)
Ease of use
Known or trusted brand name
Low price
8 - 37
How Do Americans Define

Quality in a Service?
Tangibles - equipment, facilities, people

Reliability - doing what you say you will do
Responsiveness - promptness
in helping customers
Assurance and empathy conveying a caring attitude
8 - 38

(continued)

Start a blog.
Be devoted to quality.
Pay attention to convenience.
8 - 39
Attention to Convenience
The average U.S. work week is 42.5 hours,
an increase from 37.5 hours in 2003.
Is your business conveniently located near
customers?
Are your business hours suitable to your
customers?
Would customers appreciate pickup and
delivery services?
Do you make it easy for customers to buy
on credit or with credit cards?
8 - 40
Attention to Convenience
(continued)
Are your employees trained to handle

business transactions quickly, efficiently, and
politely?
Does your company offer extras that would
make customers easier?
Can you bundle existing products to make it
easier for customers to use them?
Can you adapt existing products to make
them more convenient for customers?
Does your company handle telephone calls
quickly and efficiently?
8 - 41

(continued)
Concentrate on innovation.
8 - 42
Concentration on Innovation
Innovation
The key to future success.
One of the greatest strengths of
entrepreneurs. It shows up in the new
products, techniques, and unusual
approaches they introduce.
Entrepreneurs often create new products
and services by focusing their efforts on
one area and by using their size and
flexibility to their advantage.
8 - 43

(continued)
Be dedicated to service and customer

satisfaction.
Survey: 25% of customers have walked

out of a store within the past year
because of poor service.
Survey: 80% say they will never return to

a business after a negative customer
service experience.
8 - 44
Dedication to Service
Goal: To achieve customer astonishment!
Listen to customers.
Define superior service.
Set standards and measure performance.
Examine your companys service cycle.
Hire the right employees.
Train employees to deliver superior

service.
8 - 45
(continued)
Empower employees to offer superior

service.
Treat employees with respect and show

them how valuable they are.
Use technology to provide improved

service.
8 - 46
(continued)
Use mystery shoppers to measure customer

service
Reward superior service.
Get top managers support.
View customer service as an investment,

not an expense.
8 - 47

(continued)
Be dedicated to service and

customer satisfaction.
Emphasize speed.
8 - 48
Emphasis on Speed
Use principles of time compression

management (TCM):
Speed new products to market

Shorten customer response time in
manufacturing and delivery
Reduce the administrative time required to
fill an order.
Study: Most businesses waste

85 to 99% of the time required
to produce products or services!
8 - 49
Emphasis on Speed
(continued)
Re-engineer the process rather than try

to do the same thing - only faster.
Create cross-functional teams of
workers and empower them to attack
and solve problems.
Set aggressive goals for
production and stick to
the schedule.
8 - 50
Emphasis on Speed
(continued)
Rethink the supply chain.
Instill speed in the company culture.
Use technology to find shortcuts

wherever possible.
Put the Internet to work for you.
8 - 51
The Marketing Mix

Product
Place
Price
Promotion
8 - 52
FIGURE 8.2 Five Characteristics of a Great Product
8 - 53
The Product Life Cycle
FIGURE 8.3
The Product Life Cycle
8 - 54
Stages in the Product Life Cycle
Introductory stage
High
Costs
8 - 55

(continued)
Introductory stage
Growth and acceptance stage
High
Costs
High
Sales
Costs
Climb
8 - 56

(continued)
Introductory stage
Maturity and competition stage
High
Costs
Sales
Climb
Profits
Peak
8 - 57

(continued)
Introductory stage
Market saturation stage
High
High
Costs
Costs
Sales
Sales
Climb
Climb
Profits
Profits
Peak
Peak
Sales
Sales
Peak
Peak
8 - 58

(continued)
Introductory stage
Market saturation stage
Product decline stage
High
High
High
High
Costs
Costs
Costs
Costs
Sales
Sales
Climb
Climb
Profits
Profits
Profits
Peak
Peak
Peak
Sale
Sales
Sale
Sales
ss
Peak
Peak
Peak
Peak
Sales
Sales&&
Profits
Profits
Fall
Fall
8 - 59
FIGURE 8.4 Time between Introduction of Products
8 - 60
Place: Channels of Distribution

Consumer Goods
Manufactur
er
Consumer
Manufactur
er
Manufactur
er
Wholesale
r
Manufactur
er
Wholesale
r
Wholesale
r
Retailer
Consumer
Retaile
r
Consumer
Retaile
r
Consumer
8 - 61
Place: Channels of Distribution

Industrial Goods
Manufactur
er
Manufactur
er
Industrial User
Wholesale
r
Industrial User
8 - 62
Price
A key factor in the decision to buy
Focus attention on non-price

competition
Free trial offers
Free delivery
Lengthy warranties
Money back guarantees
8 - 63
Promotion
Goal: To inform and persuade.
Through advertising and other

communication techniques.
Create an image.
Marketing is not a battle of products;

it is a battle of perceptions.
8 - 64
Conclusion
A guerrilla marketing plan offers the

entrepreneur significant benefits.
Target marketing is key.
Create a competitive and edge

through customer focus, quality,
convenience, innovation,
service and speed.
8 - 65
All rights reserved. No part of this publication may be

reproduced, stored in a retrieval system, or transmitted, in any
form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of
the publisher. Printed in the United States of America.
8 - 66

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CHAPTER

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

National Federation of Independent

55% of small business owners say they do

Ch. 8: Building a Powerful Marketing Plan

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 8: Building a Powerful Marketing Plan

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

A Guerrilla Marketing Plan

Ch. 8: Building a Powerful Marketing Plan

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

One objective of market research: Pinpoint

Ch. 8: Building a Powerful Marketing Plan

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Target customer must permeate the

Without a clear image of its target

Ch. 8: Building a Powerful Marketing Plan

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Market research is the vehicle for gathering

Web-based market research online surveys

Ch. 8: Building a Powerful Marketing Plan

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Read many diverse current publications

Monitor blogs and newsgroups

Watch the top 10 TV shows

See the top 10 movies

Talk to at least 150 customers a year

Talk with the 10 smartest people you know

Listen to your children and their friends

Ch. 8: Building a Powerful Marketing Plan

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Individualized (one-to-one) marketing

Ch. 8: Building a Powerful Marketing Plan

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

How to Become an Effective One-to-One Marketer

Collect information on these

Enhance your products and

See customer complaints

Calculate the long-term value

Make sure your companys

Ch. 8: Building a Powerful Marketing Plan

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Source: Adapted from Susan Greco,

How to Conduct Market Research:

3. Analyze and interpret the data.

Ch. 8: Building a Powerful Marketing Plan

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Involves developing and maintaining

Ch. 8: Building a Powerful Marketing Plan

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Ch. 8: Building a Powerful Marketing Plan

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

The Relationship Marketing Process

Conduct detailed customer

Based on what you have

Make contact with most valuable

Learn from your customers by

Ch. 8: Building a Powerful Marketing Plan

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

In addition to the text

Collect meaningful information on existing

Ch. 8: Building a Powerful Marketing Plan