BCEN 2900Entrepreneurship

Building a Marketing PlanChapter 8

Creating and delivering desired goods and services to customers◦ Winning the customers’ hearts◦ Pairing needs or wants with satisfaction

Guerilla marketing◦ Nothing to do with the animal!◦ Low cost, unique, creative

What is Marketing?

1. Pinpoint target markets2. Determine markets’ needs and wants3. Build strategy around sources of C.A.4. Satisfy needs and wants through

marketing mix.

What Should Great Guerilla Marketing Plan Do?

Annual Men’s Night at Borsheims

Kenny Chesney (my favorite marketer!)

Had local photographer go around in each tour stop and take pictures of landmarks near and dear to concert-goers

Played “Back Where I Come From” while slide show of photo montage plays on giant screen◦ Nashville version

A Great Guerilla Marketing Example

Important Characteristics of Ideas:◦ Simple◦ Unexpected◦ Concrete◦ Credible◦ Emotion-Invoking◦ Story-telling

Understand your core and hammer it in.

Some Pointers from Made to Stick, by Chip and Dan Heath

What is a target market?

Why do you waste money by NOT pinpointing a market?

Ability to provide superior customer service

How to Select a Target Market

Helps you to identify trends◦ Demographics

Systematically gathering and analyzing data

Do NOT assume a market exists for your product just because you like it!!!

How Does Market Research Help?

Ch. 8: Building a Powerful Marketing Plan

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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 company’s 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

Who are my customers?

What are they looking for?

What kind of people are they?

How old are they? What gender are they? What’s their income

and occupation?

Great Questions to Answer Using Research

How often do they buy my product?

What goes into their decision to buy?

What do they prefer in my product?

When do they shop? What advertising do

they listen to? What do they think of

me?

Product, place, price, and promotion

PRODUCT Using the product life cycle

◦ Introduction, growth, maturity, decline What is your unique selling point? Understanding where the gap is… what do

your customers want that they can’t get?◦ Gary Busey on white hair dye for bears

Prototyping and test marketing

The Marketing Mix

PLACE How can you best get the product to the customer? The role of the middle man – the distributor

Possible distribution channels◦ The Internet◦ Retail◦ Direct

Place utility◦ The value of having a product conveniently near the

customer.

The Marketing Mix

Ch. 8: Building a Powerful Marketing Plan

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Place: Channels of DistributionConsumer Goods

Manufacturer

Manufacturer

Consumer

Retailer Consumer

Manufacturer Retailer ConsumerWholesaler Wholesaler

Manufacturer Retailer ConsumerWholesaler

PRICE Affects sales volume and profits Depends on cost structure, market, and value Nonprice competition is best for entrepreneurs.

PROMOTION Advertising and personal sales Emphasis on the benefits of the product

Is SERVICE a 5th “P?” What could a business do to increase its retention rate, or number of customers who return?

The Marketing Mix

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.

Social Networking

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.

Example video

Online Videos