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Transcript of Building a Guerrilla Marketing Plan Copyright ©2009 Pearson Education, Inc. Publishing as Prentice...
Building a Guerrilla Marketing Plan
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1
CONTENTSComponents of a guerrilla marketing plan
How small companies can pinpoint their target
market
Market research
Guerrilla marketing strategies
Online marketing
The marketing mix Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 2
Components of a guerrilla marketing plan3 vital resources:•People•Information•Technology 4 objectives: •Pinpoint the target market•Understand the target market •Build marketing strategies•Create marketing mix
3
MarketingThe process of creating and delivering desired
goods and services to customers and involves all of the activities associated with winning and retaining loyal customers
“Secrets” Understand target customers’ needs, demands, and
wants before competitors canOffer them products and services to satisfy those
needs, demands, and wantsProvide customers with quality, service, convenience,
and value so they will keep coming back
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 4
A Winning Marketing StrategyThree vital resources:
People - the most important ingredient in a successful marketing strategy
Information - the fuel that feeds the marketing engine; without it, the marketing engine sputters and stops
Technology - a powerful marketing weapon, but what matters most is how a company integrates technology into its overall marketing strategy
A Guerrilla Marketing PlanUnconventional, low-cost, creative
techniques that allow a company to wring a big “bang” from its marketing bucks
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 6
Four Objectives of a Guerrilla Marketing PlanPinpoint the target markets a company
will serveDetermine customer needs, wants, and
characteristics through market researchAnalyze a company’s competitive
advantages and build a marketing strategy around them
Create a marketing mix that meets customer needs and wants
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 7
Pinpointing the target market
8
Pinpointing the Target MarketFirst step: Identify the company's
target market, the group of customers at whom the company aims its products or services
An effective marketing program depends on a clear, concise definition of the firm's targeted customers, not a “one-size-fits-all approach”
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 9
Pinpointing the Target MarketKey: Understanding target
customers’ unique needs, wants, and preferences
Opportunity: Increasing populations of multicultural customers
Target customer must permeate the entire business
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 10
Market research
11
Determining customers’ needs and wants
Market ResearchMarket research - the vehicle for
gathering the information that serves as the foundation for the marketing plan
How to Conduct Market Research:Define the objectiveCollect the data
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 12
Collect the DataIndividualized (one-to-one) marketing – a
system of gathering data on individual customers and then developing a marketing plan designed specifically to appeal to their needs, tastes, and preferences
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 13
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.
Collect the Data - continued
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 15
Much valuable information about Much valuable information about customers is already hidden inside customers is already hidden inside companies; the key is mining it!companies; the key is mining it!
Data MiningA process in which computer software
that uses statistical analysis, database technology, and artificial intelligence finds hidden patterns, trends, and connections in data so business owners can make better marketing decisions and predictions about customers’ behavior
Example: Henry Singer Fashion Group
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 16
Market Research
Analyze and interpret the dataPut the information to work
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 17
Market research is the vehicle for Market research is the vehicle for gathering the information that serves gathering the information that serves as the foundation for the marketing as the foundation for the marketing planplan
How to Conduct Market Research:How to Conduct Market Research: Define the objectiveDefine the objective Collect the dataCollect the data
Guerrilla marketing strategies
18
FISH principlesGuerrilla marketing principles:•Find niche a fill it•Entertailing •Connect with customers on an emotional level •Build a consistent branding strategy •Start a blog•Use social network •Retain existing customers •Devotion to quality •Attention to convenience •Concentration on innovation•Dedication to service & customer satisfaction •Emphasis on speed
Relationship MarketingInvolves developing, maintaining, and
managing long-term relationships with customers so that they will keep coming back to make repeat purchases
Steps:Build database of customer informationIdentify best and most profitable customersDevelop lasting relationships with these
customersAttract more customers like them
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 19
FISH! Principles1. FISH Principle 1. Choose your attitude2. FISH Principle 2. Play3. FISH Principle 3. Make their day4. FISH Principle 4. Be present
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 20
Guerrilla Marketing PrinciplesFind a niche and fill it Don’t just sell; entertain –
“entertailing” Connect with customers on an
emotional levelBuild a consistent branding strategyStrive to be unique
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 21
Guerrilla Marketing Principles (continued)
Focus on the CustomerAverage American companies lose about
50% of its customer base every five years94% of dissatisfied customers never
complain about rude or discourteous service, but...
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 22
Focus on the Customer (continued)91% will not buy from that business again31% will tell others about their negative
experience48% have avoided a store because of someone
else’s negative experience with it
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 23
Focus on the Customer (continued)Customers are 5x more likely to leave
because of poor service than for quality or price
The typical business loses 1/3 of its customers each year
A retention of just 5% more customers would raise profits 25%
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 24
Guerrilla Marketing Principles (continued)Retain Existing CustomersBecause 20% of a typical company’s
customers account for about 80% of its sales, no business can afford to alienate its best and most profitable customers and survive!
Replacing lost customers is expensive; it costs 7 to 9 times as much to attract a new customer as it does to sell to an existing one!
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 25
Retain Existing Customers (continued)
About 70% of a company’s sales come from existing customers
Allowing shoppers to customize their products has the power to increase customer retention, satisfaction, and profits
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 26
How to Focus on the CustomerWhen you create a dissatisfied
customer, fix the problem fast Encourage customer complaints Ask employees for feedback on
improving customer serviceGet total commitment to superior
customer service from top managers - and allocate resources appropriately
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 27
How to Focus on the CustomerAllow managers to wait on customers
occasionallyDevelop a service theme that
communicates your attitude toward customers
Reward employees “caught” providing exceptional service to customers
Carefully select and train everyone who will deal with customers
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 28
(Continued)
Guerrilla Marketing Principles (continued)
Start a blogUse social networksDevotion to quality
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 29
Devotion to QualityWorld-class companies treat quality as
a strategic objective, an integral part of the company culture
Total Quality Management (TQM) - quality not just in the product or service itself, but in every aspect of the business and its relationship with the customer and continuous improvement in the quality delivered to customers
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 30
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 Define “Quality?”
Reliability (average time between breakdowns)
Durability (how long an item lasts)Ease of useKnown or trusted brand nameLow price
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 32
Quality
QualityQuality is the degree to which a set of inherent
characteristic fulfills requirements (ISO 9000:2005)
Guerrilla Marketing Principles (continued)
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 33
Attention to convenienceAttention to convenience Concentration on InnovationConcentration on Innovation Dedication to Service and Dedication to Service and
Customer SatisfactionCustomer Satisfaction Emphasis on SpeedEmphasis on Speed
Attention to ConvenienceIs your business conveniently located
near customers?Are your business hours suitable to
your customers?Would customers appreciate pickup
and delivery services?Does your company make it easy for
customers to buy on credit or with credit cards?
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 34
Attention to ConvenienceAre you using technology to enhance
customer convenience?Are your employees trained to handle
business transactions quickly, efficiently, and politely?
Do your employees use common courtesy when dealing with customers?
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 35
Attention to ConvenienceDoes your company offer “extras” to
make customers’ lives easier?Can you adapt existing products to
make them more convenient for customers?
Does your company handle telephone calls well?
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 36
Concentration on InnovationInnovation - the key to future successInnovation - one of the greatest
strengths of the entrepreneur, showing up in the new products, techniques, and unusual approaches they introduce
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 37
Concentration on InnovationProduct Development and Management
Association Study of top performing companies across 400 industries: New products accounted for 49% of profits, more than twice as much as their less innovative competitors
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 38
Stimulating InnovationMake innovation a priority in the company Measure the company’s innovative abilitySet goals and objectives for innovationEncourage new product or service ideas
among employeesListen to customers Always be on the lookout for new product
and service ideasKeep a steady stream of new products and
services coming
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 39
Guerrilla Marketing Principles
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 40
Attention to convenienceAttention to convenience Concentration on innovationConcentration on innovation Dedication to service and Dedication to service and
customer satisfactioncustomer satisfaction
Dedication to ServiceGoal: to achieve customer astonishment!How can you improve your service?
Listen to customersDefine “superior service”Set standards and measure performanceExamine your company’s service cycleHire the right employees
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 41
Dedication to ServiceTrain employees to deliver superior
serviceEmpower employees to offer superior
serviceUse technology to provide improved
serviceReward superior serviceGet top managers' supportGive customers an unexpected surprise
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 42
Guerrilla Marketing Principles
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 43
Attention to convenienceAttention to convenience Concentration on innovationConcentration on innovation Dedication to service and Dedication to service and
customer satisfactioncustomer satisfaction Emphasis on speedEmphasis on speed
Emphasis on SpeedThree aspects of TCM - Time
Compression Management:1. Speeding new products to market2. Shortening customer response time
in manufacturing and delivery3. Reducing the administrative time
required to fill an orderCompanies using TCM have discovered that manufacturing takes only 5% - 10% of total lead time
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 44
Emphasis on SpeedRe-engineer the process rather than try to do
the same things - only fasterStudy every phase of the business process,
looking for ways to shorten itCreate cross-functional teams of workers and
empower them to attack and solve problemsShare information and ideas across the
companySet aggressive goals for production and stick
to the scheduleInstill speed in the company cultureUse technology to find shortcuts wherever
possibleCopyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 45
Marketing on the www
46
Google AdSensePay per click
The Marketing mix
47
Creative Use of Advertising and Promotion
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 48
Developing a UniqueSelling Proposition (USP)
USP - A key customer benefit of a product or service that answers the critical question that every customer asks: "What's in it for me?"
Identify your product or service's USP by describing the primary benefit it offers customers and then list other secondary benefits it provides
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 49
Developing A UniqueSelling Proposition (USP)
Briefly list a few facts that support your product’s USP
Then focus your ads to stress these top benefits and the facts supporting them!
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 50
A Six-Sentence Advertising Strategy
1. What is the purpose of this ad?2. What USP can you offer customers?3. What other key benefits support your
USP?4. At whom are you aiming the ad?5. What response do you want from your
target audience?6. What image do you want to convey in
your ads?
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 51
Creating a Promotional Strategy
Publicity - any commercial news covered by the media that boosts sales but for which the small business does not pay
Personal selling - the personal contact between sales personnel and potential customers resulting from sales efforts
Advertising - any sales presentation that is non-personal in nature and is paid for by an identified sponsor
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 52
Tips for Stimulating PublicityWrite an article of
interest to customersSponsor an offbeat
event to attract attention
Involve celebrities “on the cheap”
Offer to be interviewed on TV and radio stations
Publish a newsletter Speak to local
organizations
Sponsor a seminarSponsor a seminar
Write news releases Write news releases and fax them to the and fax them to the mediamedia
Serve on community Serve on community and industry boards and industry boards and committeesand committees
Sponsor a community Sponsor a community project or support a project or support a nonprofit nonprofit organizationorganization
Promote a causePromote a causeCopyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Top Salespeople…Are enthusiastic and
alert to opportunities.Are experts in the
products or services they sell and understand how their products and services can help their customers.
Concentrate on select accounts with the greatest sales potential.
Plan thoroughly.Use a direct approach
with their customers.
Work from their Work from their customer’s customer’s perspective. perspective.
Use past success Use past success stories and testimonial. stories and testimonial.
Leave sales material Leave sales material with potential with potential customers.customers.
See themselves as See themselves as problem solvers, not problem solvers, not just vendors. just vendors.
Measure success by Measure success by customer satisfaction customer satisfaction as well as by sales as well as by sales volume. volume.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Successful Personal Selling Requires a Selling System
1. Prepare 2. Approach 3. Interview 4. Demonstrate, explain, and show5. Validate 6. Negotiate7. Close the sale
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 56
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Selecting Advertising Media: Key Questions
How large is my firm's trading area?
Who are my customers and what are their characteristics?
Which media are most likely to reach those customers?
What budget limitations do I face?
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 58
Selecting Advertising Media: Key Questions
Which media do my competitors use?
How important are repetition and continuity of my advertising message?
How does each medium compare with others in audience, reach, and frequency?
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 59
(Continued)
Comparing MediaAudience – the number of paid
subscribers a particular medium attracts
Reach – the total number of people exposed to an ad at least once in a period of time, usually 4 weeks
Frequency - the average number of times a person is exposed to an ad in that same time period
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 60
Selecting Advertising Media: Key Questions
Which media do my competitors use?How important are repetition and
continuity of my advertising message?How does each medium compare with
others in audience, reach, and frequency?
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 61
(Continued)
What does the advertising What does the advertising medium cost?medium cost?
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Advertising Media OptionsWord-of-mouth
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Word-of-Mouth Advertising
Make your business buzz-worthyPromote your company to “influencers”Make it easy for satisfied customers to
spread the wordUse the Web to amplify your company’s
word-of-mouth advertisingTap into the power of YouTube
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 64
Advertising Media OptionsWord-of-mouth
Sponsorships and Sponsorships and Special EventsSpecial Events
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Sponsoring Special EventsDon’t count on sponsorships for your entire
advertising campaignFind an event that is appropriate for your
company and its products and services Research the event and the organization
hosting it before agreeing to become a sponsor
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 66
Sponsoring Special EventsTry to become the dominant (or, better yet,
the only) sponsor of the event Clarify the costs and the level of participation
required for the sponsorship up frontGet involved in the event
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 67
(Continued)
Advertising Media OptionsWord-of-mouth Sponsorships and
Special EventsNewspapers
RadioRadio
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Snappy Radio Copy Should...
Mention the business often
Stress benefits to the listener
Use attention-grabbersZero in on a particular
audienceBe simple and to the
pointCopyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 69
Snappy Radio Copy Should...
Sell early and oftenBe written for the earBe rehearsed before
presentationUse positive action
wordsPut the listener in the
pictureFocus on getting a
responseCopyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 70
Advertising Media Options
TelevisionMagazinesSpecialty advertisingPoint-of-purchase ads
Word-of-mouthWord-of-mouth NewspapersNewspapers RadioRadio
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Advertising Media OptionsOut-of-home adsTransit advertisingDirect mailWorld Wide Web
Word-of-mouthWord-of-mouth NewspapersNewspapers RadioRadio TelevisionTelevision MagazinesMagazines Specialty Specialty
advertisingadvertising Point-of-purchase Point-of-purchase
adsads Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Advertising on the Web2011: U.S. companies spend $36.5
billion on Web advertising Types of ads:
BannerDisplayPop-upInterstitialContextualPay-per-click
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 73
E-Mail AdvertisingPermission e-mail vs. spam
Radicati Group study: 171 billion e-mails sent per day
71 percent of those are spamStick to marketing basics
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 74
E-Mail AdvertisingCollect customers’ and potential
customers’ e-mail addressesMake subject line short, meaningful, and
to-the-pointMake the e-mail’s look and feel consistent
with your company’s imageSend e-mails when customers are most
likely to make purchasesWrite copy that produces resultsUse value-added items to increase
response rates
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 75
Advertising Media OptionsOut-of-home adsTransit advertisingDirect mailWorld Wide Web
Word-of-mouthWord-of-mouth NewspapersNewspapers RadioRadio TelevisionTelevision MagazinesMagazines Specialty Specialty
advertisingadvertising Point-of-purchase Point-of-purchase
adsads
DirectoriesDirectories Trade showsTrade shows
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Preparing an Advertising Budget
What is affordableMatching competitor's advertising
expendituresPercentage of Sales
Past SalesForecasted Sales
Objective-and-Task
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 77
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 78
How to Advertise "Big"on a Small Budget
Hire freelance copywriters and artistsUse cooperative advertisingParticipate in shared advertisingUse stealth advertising Maximize publicity with techniques such
as cause marketing
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 79
How to Advertise "Big"on a Small Budget
Repeat ads that have been successfulUse identical ads in different media Hire independent copywriters, graphic
designers, photographers, and other media specialists
Concentrate advertising when customers are most likely to buy
Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 80
(Continued)