Chap 07 Market Plan.

8/9/2019 Chap 07 Market Plan.

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Chapter 7: Marketing Plan 1Copyright 2003 Prentice Hall Publishing Company

Building a Guerrilla

Marketing Plan


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A Winning Marketing PlanA Winning Marketing Plan

Three vital resources:Three vital resources:

PeoplePeople -- the most important ingredient in athe most important ingredient in asuccessful marketing strategy.successful marketing strategy.

InformationInformation -- the fuel that feeds the marketingthe fuel that feeds the marketing

engine; without it, the marketing engine sputtersengine; without it, the marketing engine sputtersand stops.and stops.

TechnologyTechnology -- a powerful marketing weapon, buta powerful marketing weapon, butwhat matters most is how a company integrateswhat matters most is how a company integrates

technology into its overall marketing strategy.technology into its overall marketing strategy.


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Guerrilla Marketing PlanGuerrilla Marketing Plan

Example: Jones SodaExample: Jones Soda

http://www.jonessoda.com/http://www.jonessoda.com/


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Four Objectives of a GuerrillaFour Objectives of a Guerrilla

Marketing PlanMarketing Plan Pinpoint the target markets a company willPinpoint the target markets a company will

serveserve

Determine customer needs, wants, andDetermine customer needs, wants, andcharacteristics through market researchcharacteristics through market research

Analyze a companys competitive advantagesAnalyze a companys competitive advantages

and build a marketing strategy around themand build a marketing strategy around them

Create a marketing mix that meets customerCreate a marketing mix that meets customerneeds and wantsneeds and wants


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Pinpointing the Target MarketPinpointing the Target Market

First step: Identify the company'sFirst step: Identify the company's

target markettarget market-- the group of customersthe group of customers

at whom the company aims itsat whom the company aims its

products or services.products or services.

An effective marketing programAn effective marketing program

depends on a clear, concise definitiondepends on a clear, concise definition

of the firm's targeted customers, not aof the firm's targeted customers, not aoneone--sizesize--fitsfits--all approach.all approach.


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Pinpointing the Target MarketPinpointing the Target Market

Key: Understanding targetKey: Understanding target

customers unique needs, wants, andcustomers unique needs, wants, and

preferences.preferences.

Opportunity: Increasing populationsOpportunity: Increasing populations

of multicultural customers.of multicultural customers.

Target customer must permeate theTarget customer must permeate the

entire business.entire business.


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Market ResearchMarket Research

Market researchMarket research -- the vehicle for gathering thethe vehicle for gathering the

information that serves as the foundation for theinformation that serves as the foundation for the

marketing plan.marketing plan.

How to Conduct Market Research:How to Conduct Market Research:

Define the objective.Define the objective.

Collect the data.Collect the data.


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Collect the DataCollect the Data

Individualized (oneIndividualized (one--toto--one) marketingone) marketing

a system of gathering data on individuala system of gathering data on individual

customers and then developing acustomers and then developing amarketing plan designed specifically tomarketing plan designed specifically to

appeal to their needs, tastes, andappeal to their needs, tastes, and



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How to Become an Effective OneHow to Become an Effective One--toto--One Marketer.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.

Calculate the long-term valueof customers so you know

which ones are most desirable

(and most profitable).

Successful

One-to-One

Marketing

Know what your customers

buying cycle is and time your

marketing efforts to coincide

with it - just-in-time marketing.

Make sure your companysproduct and service quality

will astonish your customers.

See customer complaints

for what they are - a

chance to improve

your service andquality. Encourage

complaints and then

fix them!

Enhance your products and

services by giving customersinformation about them and how

to use them.

Source: Adapted from Susan Greco, The Road to One-

to-One Marketing,Inc.

, October 1995, pp. 56-66.


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Collect the DataCollect the Data

Individualized (oneIndividualized (one--toto--one) marketingone) marketing

a system of gathering data on individuala system of gathering data on individual

customers and then developing acustomers and then developing amarketing plan designed specifically tomarketing plan designed specifically to

appeal to their needs, tastes, andappeal to their needs, tastes, and


Much valuable information aboutMuch valuable information aboutcustomers is already hiddencustomers is already hidden insideinsidecompanies; the key is mining it!companies; the key is mining it!


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Data MiningData Mining

A process in which computer software that usesA process in which computer software that uses

statistical analysis, database technology, andstatistical analysis, database technology, and

artificial intelligence finds hidden patterns, trends,artificial intelligence finds hidden patterns, trends,

and connections in data so business owners canand connections in data so business owners canmake better marketing decisions and predictionsmake better marketing decisions and predictions

about customers behavior.about customers behavior.

Example: Harrahs EntertainmentExample: Harrahs Entertainment

http://www.harrahs.com/index2.htmlhttp://www.harrahs.com/index2.html


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Market ResearchMarket Research

Analyze the data and interpret the results.Analyze the data and interpret the results.

Draw conclusions and act.Draw conclusions and act.

Market research is the vehicle for gathering theMarket research is the vehicle for gathering the

information that serves as the foundation for theinformation that serves as the foundation for the

marketing plan.marketing plan.

How to Conduct Market Research:How to Conduct Market Research:

Define the objective.Define the objective.

Collect the data.Collect the data.


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Relationship MarketingRelationship Marketing

Involves developing and maintainingInvolves developing and maintaining longlong--term relationshipsterm relationshipswith customers so thatwith customers so thatthey will keep coming back to make repeatthey will keep coming back to make repeatpurchases.purchases.

Steps:Steps:

Build database of customer informationBuild database of customer information

Identify best and most profitable customersIdentify best and most profitable customers

Develop lasting relationships with theseDevelop lasting relationships with these

customerscustomers Attract more customers like themAttract more customers like them


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Guerrilla Marketing PrinciplesGuerrilla Marketing Principles

Find a niche and fill itFind a niche and fill it

Dont just sell; entertainDont just sell; entertain

entertailingentertailing

Strive to be uniqueStrive to be unique

Connect with customers on anConnect with customers on an

emotional levelemotional level


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Guerrilla Marketing PrinciplesGuerrilla Marketing Principles

Focus on the customerFocus on the customer

Devotion to qualityDevotion to quality Attention to convenienceAttention to convenience

Concentration on innovationConcentration on innovation

Dedication to serviceDedication to service Emphasis on speedEmphasis on speed


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Focus on the CustomerFocus on the Customer

67% of customers who stop patronizing a67% of customers who stop patronizing abusiness do so because an indifferentbusiness do so because an indifferentemployee treated them poorly.employee treated them poorly.

96%

of dissatisfied customers96%

of dissatisfied customers nevernevercomplaincomplainabout rude or discourteousabout rude or discourteousservice, but...service, but...

91% will91% will notnotbuy from that business again.buy from that business again.

100% will tell their horror stories to at100% will tell their horror stories to at

leastleast nine otherpeoplenine otherpeople..

13% of those unhappy customers will tell13% of those unhappy customers will telltheir stories to at leasttheir stories to at least 20otherpeople20otherpeople..


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Treating customers indifferently or poorlyTreating customers indifferently or poorly

costs the average company fromcosts the average company from 15% to 30%15% to 30%

ofgrosssalesofgrosssales!!

Replacing lost customers is expensive; itReplacing lost customers is expensive; it

costscosts five timesfive times as much to attract a newas much to attract a new

customer as it does to sell to an existing one!customer as it does to sell to an existing one!


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About 70% of a companys sales come fromAbout 70% of a companys sales come from

existing customers.existing customers.

Because 20% of a typical companysBecause 20% of a typical companys

customers account for about 80% of itscustomers account for about 80% of its

sales, no business can afford to alienate itssales, no business can afford to alienate its

best and most profitable customers andbest and most profitable customers and

survive!survive!


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How to Focus on the CustomerHow to Focus on the Customer

When you create a dissatisfied customer,When you create a dissatisfied customer,

fix the problemfix the problem fastfast..

EncourageEncourage customer complaints.customer complaints. Ask employees for feedback on improvingAsk employees for feedback on improving

customer service.customer service.

Get total commitment to superior customerGet total commitment to superior customerservice from top managersservice from top managers -- and allocateand allocate

resources appropriately.resources appropriately.


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How to Focus on the CustomerHow to Focus on the Customer

Allow managers to wait on customersAllow managers to wait on customers

occasionally.occasionally.

Develop a service theme that communicatesDevelop a service theme that communicatesyour attitude toward customers.your attitude toward customers.

Reward employees caught providingReward employees caught providing

exceptional service to customers.exceptional service to customers.

Carefully select and trainCarefully select and train everyoneeveryone whowho

will deal with customers.will deal with customers.


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Devotion to QualityDevotion to Quality

WorldWorld--class companies treat quality as aclass companies treat quality as astrategic objective, an integral part of thestrategic objective, an integral part of thecompany culture.company culture.

Total Quality Management (TQM)Total Quality Management (TQM) -- qualityqualitynot just in the product or service itself, but innot just in the product or service itself, but ineveryevery aspect of the business and itsaspect of the business and itsrelationship with the customer and continuousrelationship with the customer and continuousimprovement in the quality delivered toimprovement in the quality delivered to

customers.customers.


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The Quality DMAIC ProcessThe Quality DMAIC Process

Define the problem.Define the problem.

Measure importantMeasure important

outcomes.outcomes.

Use statistical toolsUse statistical tools

to find causes of qualityto find causes of quality

problems.problems.

Make changes toMake changes to

the process and measurethe process and measure

improvements.improvements.

SustainSustain

qualityquality

improvements.improvements.

Adapted from: Walter H. Ettinger, MD, Six Sigma, Trustee, September 2001. P. 14.


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How Do Americans DefineHow Do Americans Define

Quality?Quality?

Reliability (average time betweenReliability (average time betweenbreakdowns)breakdowns)

Durability (how long an item lasts)Durability (how long an item lasts)

Ease of useEase of use

Known or trusted brand nameKnown or trusted brand name

Low priceLow price

Quality


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Quality GuidelinesQuality Guidelines

Build quality into the process; dont rely onBuild quality into the process; dont rely oninspection to obtain quality.inspection to obtain quality.

Emphasize simplicity in design.Emphasize simplicity in design.

Foster teamwork.Foster teamwork.

Establish longEstablish long--term ties with select suppliers.term ties with select suppliers.

Provide managers and employees with theProvide managers and employees with the

training needed to produce quality.training needed to produce quality. Empower workers at all levels of theEmpower workers at all levels of the

organization.organization.


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Quality GuidelinesQuality Guidelines

Get managers commitment to theGet managers commitment to thequality philosophy.quality philosophy.

Rethink the processes the company usesRethink the processes the company uses

now. Is there a better way?now. Is there a better way?

Reward employees for quality work.Reward employees for quality work.

Develop a companyDevelop a company--wide strategy forwide strategy for

continuous improvement of product andcontinuous improvement of product andservice quality.service quality.


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Attention to ConvenienceAttention to Convenience

Is your business conveniently located nearIs your business conveniently located nearcustomers?customers?

Are your business hours suitable to yourAre your business hours suitable to yourcustomers?customers?

Would customers appreciate pickup and deliveryWould customers appreciate pickup and deliveryservices?services?

Do you make it easy for customers to buy onDo you make it easy for customers to buy oncredit or with credit cards?credit or with credit cards?

Are your employees trained to handle businessAre your employees trained to handle businesstransactions quickly, efficiently, and politely?transactions quickly, efficiently, and politely?

Does your company handle telephone calls well?Does your company handle telephone calls well?


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Concentration on InnovationConcentration on Innovation

Innovation is the key to future success.Innovation is the key to future success.

InnovationInnovation -- one of the greatest strengthsone of the greatest strengths

of the entrepreneur. It shows up in theof the entrepreneur. It shows up in the

new products, techniques, and unusualnew products, techniques, and unusualapproaches they introduce.approaches they introduce.

Entrepreneurs often create new productsEntrepreneurs often create new products

and services by focusing their efforts onand services by focusing their efforts on

one area and by using their size andone area and by using their size andflexibility to their advantage.flexibility to their advantage.


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Dedication to ServiceDedication to Service

GoalGoal: to achieve: to achieve customer astonishmentcustomer astonishment!!

How can you improve your service?How can you improve your service?

Listen to customers.Listen to customers. Define superior service.Define superior service.

Set standards and measure performance.Set standards and measure performance.

Examine your companys service cycle.Examine your companys service cycle.

Hire the right employees.Hire the right employees.


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Dedication to ServiceDedication to Service

Train employees to deliver superior service.Train employees to deliver superior service.

Empower employees to offer superiorEmpower employees to offer superior

service.service.

Use technology to provide improved service.Use technology to provide improved service.

Reward superior service.Reward superior service.

Get top managers' support.Get top managers' support.


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Emphasis on SpeedEmphasis on Speed

Three aspects of TCMThree aspects of TCM -- Time CompressionTime CompressionManagement:Management:

1. Speeding new products to market.1. Speeding new products to market.

2. Shortening customer response time in2. Shortening customer response time inmanufacturing and delivery.manufacturing and delivery.

3. Reducing the administrative time required to3. Reducing the administrative time required tofill an order.fill an order.

Companies using TCM have discovered thatCompanies using TCM have discovered that

manufacturing takes only 5%manufacturing takes only 5% -- 10% of total10% of totallead time.lead time.


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Emphasis on SpeedEmphasis on Speed

ReRe--engineer the process rather than try to doengineer the process rather than try to dothe same thingthe same thing -- only faster.only faster.

Create crossCreate cross--functional teams of workers andfunctional teams of workers andempower them to attack and solve problems.empower them to attack and solve problems.

Set aggressive goals for production and stick toSet aggressive goals for production and stick tothe schedule.the schedule.

Instill speed in the company culture.Instill speed in the company culture.

Use technology to find shortcuts whereverUse technology to find shortcuts wherever

possible.possible.


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Marketing on theMarketing on the

World Wide WebWorld Wide Web With an attractive Web site (anWith an attractive Web site (an

electronic storefront), even the smallestelectronic storefront), even the smallest

companies can market their products andcompanies can market their products andservices around the globe.services around the globe.

The Web can be the Great Equalizer inThe Web can be the Great Equalizer in

a small companys marketing program.a small companys marketing program.


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Marketing on theMarketing on the

World Wide WebWorld Wide Web 43% of small companies are not online at all!43% of small companies are not online at all!

Only about 35% of small companies have WebOnly about 35% of small companies have Web

sites.sites.

Result: Small businesses make nearly 50Result: Small businesses make nearly 50

percent of all retail sales in the U.S., but theypercent of all retail sales in the U.S., but they

account for just 6% ofaccount for just 6% ofonlineonline sales.sales.

Best selling items on the Web: computers (andBest selling items on the Web: computers (and

related products), books, travel services,related products), books, travel services,

clothing, and recorded music.clothing, and recorded music.


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The Marketing MixThe Marketing Mix

PProductroduct

PPlacelace

PPricerice

PPromotionromotion


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Stages in the Product Life CycleStages in the Product Life Cycle

Introductory stageIntroductory stage

High

Costs


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Growth and acceptance stageGrowth and acceptance stage

High

Costs

High

Costs

High

CostsSales

Climb


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Maturity and competition stageMaturity and competition stage

High

CostsSales

Climb

Profits

Peak

High

CostsSales

Climb

Profits

Peak


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Market saturation stageMarket saturation stage

High

CostsSales

Climb

Profits

Peak

Sales

Peak

High

Costs

Sales

Clim

b

Profits

Peak

Sales

Peak


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Market saturation stageMarket saturation stage

Product decline stageProduct decline stage

High

Costs

Sales

Climb

Profits

Peak

Sales

Peak

Sales &

Profits

Fall


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Channels of DistributionChannels of Distribution

Consumer GoodsConsumer Goods

Manufacturer

Manufacturer

Consumer

Retailer Consumer

Manufacturer Retailer ConsumerWholesaler Wholesaler

Manufacturer Retailer ConsumerWholesaler


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Channels of DistributionChannels of Distribution

Industrial GoodsIndustrial Goods

ManufacturerIndustrial User

Manufacturer Wholesaler Industrial User

Chap 07 Market Plan.

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Transcript of Chap 07 Market Plan.