Marketing Concepts Every Business Needs to Know
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Transcript of Marketing Concepts Every Business Needs to Know
Essential Marketing Concepts
Management
FinanceOperations
Marketingcus
tomers
capa
city revenue
budget
Marketing’s Role
...advertising or sales alone
Marketing is NOT...
Business Model
Growth Strategies
Go-to-Market thru exit
Value Proposition
“USP”
Customer problem/solution; value as customer sees it
Market Segments
Lowest Hanging fruit
Value Chain
Finding your niche; network opportunities
Revenue Model
Follow the money/Volume/Margin
Competitive Strategy
Sustainability; barriers to entry
Marketing is:
A
BInefficiency:More time
More moneyLost opportunity
Strategy...
...and Creativity
Customers Competition
Price
PlacePromotion
Product
Marketing PlanThe 4 P’s & 2 C’s
Distribution
Your Business in Marketing Terms
Objectives
Market (customers, competition, lifecycle, trends)
SWOT Analysis
Niche: What need do you fill?
Competencies: What are the 1-2-3 great things you offer or do really well?
Differentiation: What makes you unique?
Positioning: How your customer thinks about your product, service and/or business
Brand: Your promise based on core competencies
Visual Identity: The presentation of your brand
Biz Plan
USP*: M&M’s
Niche Need? Premium chocolate, healthy snacks
Competencies
Differentiation
Positioning
Branding
Unique capabilities History, technology, shelf, financial
Uniqueness Shape, flavor
In your customers mind?
Melts in your mouth, not in your hand
Promise Established, consistent
*Unique Selling Proposition
Leverage
Strengths
Thwart
Weaknesses
Opportunities Threats
SWOT & Marketing
Product/Industry Lifecycle
Maintain PossiblyReduce
Add featuresHarvest: nicheLiquidate or sell
Intro Growth Maturity Decline
Build product awareness and
develop a market for the product.
Competition heats up. Build brand preference and increase market
share. Differentiation becomes critical.
Strong sales growth diminishes;
competition steps up. Defend market share
while maximizing profit.
• Rejuvenate product with new features and finding new uses.
• Harvest: reduce costs and continue sell to loyal niche segments.
• Discontinue: liquidate inventory or sell to another firm.
When the product is right, you don’t have to be a great marketer
Lee Iacoccapromoter
Features ExerciseWhat are some key features of your product or service?
Value Add
Physical Product
Customer Support
Services
Guarantees/Warrantees
Service Agreements
Attachments
Extras
Customers:Target Profile
Geography Demographics Psychographics Behaviors
Consumers (B2C)
AgeIncome
EducationFamily Size
Home OwnerEthnicity
ValuesLifestyle
Personality
Use OccasionPrice Sensitivity
Status (1st time?)Loyalty
Readiness
NeighborhoodLocalState
RegionalNational
International
Geography Bizographics Psychographics Behaviors
Businesses (B2B)
Industry (NCIS)Revenue
SeatsEmployeesSm/Lg Biz
Title/RoleResponsibilities
Company/Personal
DecisionmakingSeasonalityInventory
Physiological
Maslow’s Hierarchy of Needs
Safety
Self-Actualization
Social
Esteem
Consumer Motivation
What benefits does your product or service deliver to satisfy these needs?
PrioritizeSegment by clusters
(i.e., Yuppies)Lowest hanging fruit
Zen marketing
Take Aim: Who is Your Target?
Lowest Hanging Fruit Evaluate Costs & Benefits
Measurable
Accessible
Substantial
Actionable
Size & purchasing power
Effectively/efficientlyreached & served
Large and/or profitable
Effective/efficient marketing programs
Saves timeSaves moneyOffers convenienceEnables peace of mindProvides better profit opportunitiesHelps them focus on their businessPreserves/enhances a particular lifestyle
Features
Benefits
Benefits Exercise
PriceWhat the market will bear
Costs
$Differentiation & Added Value
Competition
Other Influences:
Supply and demand
Customer motivation
Industry trends
Look for “reference points” as a starting point to determining your price; in other words, prices of similar products or services in your industry.
Now or Later?
Cheaper?
Substitute?
Worth it? Can I afford it?
Value is in the Customer’s Mind
Brand?
Not Yours
Your Price
Reference pointsBusiness model (i.e., volume) & strategyWhat drives your ability to charge more or less?PackagingPromotional pricing allowances
Distribution
Distributor RetailSupplier Manufacturer Wholesaler Consumer
Opportunities:
• Research Resource• Click and Mortar• Communication• Negotiation• Partnering• Promotion
Direct Substitutes DifferentiationSimilar products
or servicesWhat prospects might do or
purchase instead Why you?
Competition
Seattle Wedding Photographers
•No pictures at all
•Have a family member act as photographer
•Ask guests to take pictures
Likely or Unlikely?Why?
•Awareness
•Specialty
•Portfolio/Website
•Credibility: Experience, Education, Awards, Press
•Referral (live/social)
•Packages & Price
•Added Value Services
More exclusive = fewer competitors
Desire?
SocializingExercising
Eating
Eat?
ChipsCandy
Soft drink
Candy?
ChocolateLicoriceGummy Bears
Brand?
DilletanteHershey
TheoGodiva
Toblerone
Competition is in the Eye of the Customer
ResearchMake Better Decisions with Data
Essential DataConsumer insights
Where customers go for information
Market sizing
Size of market overall
Market share (guesstimate)
Price reference points
Forecast: Price x Units
Number of competitors/impact
Sales trends
Untapped market opportunities
Types of InformationQuantitative Qualitative
Average priceUnits sold
Number of competitorsNumber of buyers
Market share
Political/Economic climateSocial trends
Industry standardsConsumer behaviorTypical Distribution
Info Sources• Internal: Credit card receipts, transaction
records, foot and Web traffic, inbound calls, etc.
• Determine current margins, best selling products, highest margin products
• Ask: Colleagues, management, salespeople, channel partners, customers, prospects
• Trade organizations offer data
• Industry and trade magazines: FindArticles.com
• Consumer magazine media kits
• Purchase information when needed and practical
• Information you need, but can't buy: observation, surveys, focus groups
Useful Tools
CustomersCustomersCustomersCustomersCompetition
Geography Demographics Psychographics BehaviorsCompetition
freemaptools.com
Google Maps
freeDemographics.com
My Best Segments:
claritas.com/MyBestSegments/
Default.jsp
Social sites
Media kits
PEW/Internet
Google Places
Yelp & other social sites
Competitor websites
Ideas
If you can’t find exact data, look at companies and industries closest to yours.
“Steal” -- Don’t reinvent the wheel.
Don’t get lost in the sauce. Define the information you need before you start.
You’ll never have complete information. At some point, you’ll have to make assumptions. Test them and continually update.
Promotional MixGetting the Word Out
Personal Selling Advertising Public Relations Sales Promotion
Paid “Free” CouponsSamplingDiscounts
The Plan
ResourcesBudgetSchedule
Goals Strategies Tactics Actions Measurement
Increase revenue
Increase number of customers
Capture market share
Improve brand image
SmartsTimeContactsRelationshipsPartnersMoney: top down vs. bottom up budgetingAssets
ResourcesUse all for the greatest impact and results
Average SMB marketing spend: $475/month 21% spend more than $1,000/month
Source: Search Engine Land, “Health & Medical SMBs Spend More on Marketing Than Other Industries,” Jan 15, 2014, Myles Anderson
Build Awareness, Get Attention: PR/Advertising
Website visit(s) Sign up
Email(s)/Postcard(s) The “Need”
First Contact
TheClose
A
I
D
AThe “Pitch”
Interest:WIIFM
Desire: why you?:“Proof”
Action
PromotionalStrategy
MessagingNail your position in your customers’ mind
Talk about your business in ways that your prospect understands and cares about
Help them understand why you’re better and what’s in it for them
Educate them about what you do so they value it
Simplify the Message
NeedUSP
Point of the Arrow
CompetenciesDifferentiation
BenefitsWIIFM
Your Business
Collateral
PR
PersonalSelling
Advertising
Environ-ment
Direct
Traditional Media
Blogs
Social Networks
Widgets
Web 2.0
RSS
Podcasts
Mobile
Wikis
Digital Signage
Review Sites
Bookmarking
Web
New Media
Links
Search
Social
Use the Right Media
Process of Elimination
no budgetX
no list Xno tim
e
X
How to Choose?
Will it reach my target audience?
Is it a good fit with my plans? Is the timing right?
Is it the best way to allocate my resources?
Is there a cheaper alternative? Can I negotiate?
Consider production costs.
What are the expected short- and long-term results?
Marketing Calendar
Q4Q3Q2Q1
Internal milestones, operations, resources...
External seasonality, trade shows, business cycles, editorial calendars, holidays, school calendars...
Marketing campaigns, PR, media, sales, events...
Actions work backwards, deadlines
Smart timing will help a small budget go farther and have more impact
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