Marketing your business · Marketing makes the customer the aim of your business. Marketing starts...

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Marketing your business

A guide for business operators in South Australia

http://www.statedevelopment.sa.gov.au/smallbusiness

Marketing your business of 28

Table of Contents

01 Overview ....................................................................................................... 3

02 What is marketing? ...................................................................................... 4

03 Defining and developing your competitive edge ....................................... 5

04 What is market planning? ............................................................................ 7

05 The Marketing Checklist – Preparing your marketing plan ....................... 8

06 Making your promotions effective ............................................................ 22

07 Media Release Checklist ............................................................................ 24

08 Summary ..................................................................................................... 26

09 Notes ........................................................................................................... 27


01 Overview Irrespective of the product or service, consumers today want choice. Unless your business provides what they want, at prices they can afford and are willing to pay, your future in business could be bleak. Marketing in a small business means attracting and retaining customers - matching what people want with what you can profitably supply. This guide examines what’s involved in marketing, explains how to develop a competitive edge, outlines the ingredients for a marketing plan, offers tips on how to make your advertising effective and a Checklist for effective media releases. Readers are advised:

• The purpose of this guide is to provide general introductory information.

• The guide does not purport to contain all the information that would be relevant to any particular business opportunity.

• The guide is provided to interested persons on the basis that they will be responsible for making their own assessment of that opportunity with the assistance of the information provided.

• All figures contained in the guide should be regarded as estimates only based on general samples and may be subject to error.

• The information in the guide should not be relied upon in substitution for professional advice and individual investigation.

• Persons interested in pursuing any particular business opportunity are strongly advised to fully inform themselves by taking professional advice as to the extent of their rights and obligations—particularly in relation to any proposed investment.

• The guide is provided subject to the terms of the formal disclaimer, which appears on the last page.


02 What is marketing? Many people think that marketing is the same thing as selling. However, marketing is a much broader concept and is best thought of as the groundwork for successful selling. The Australian Marketing Institute refers to Peter Doyle’s definition of marketing—‘the management process that seeks to maximise returns to shareholders by developing and implementing strategies to build relationships with high-value customers and to create a sustainable differentiable advantage.’ Your understanding of marketing will be enhanced if you reflect on a number of key aspects arising from this definition:

Marketing involves management. It has to be worked at; it does not just happen automatically.

It is a process. It follows logical steps which can be planned.

It identifies customer needs. It researches the market to determine who your customers are, how many there are and which products they want.

This last element is particularly important—many businesses make the mistake of giving customers what they think they want, rather than what customers want.

It anticipates customer requirements. This involves further research into what potential customers want.

It satisfies the customer. Customers will not be satisfied until they have used the product or service and either returned to purchase more or expressed contentment with the buying decisions made. A lesser result means you have more work to do.

The word customer is vital. If your business exists only to make a big profit, you could well find yourself in trouble. Successful businesses have a strong customer service ethic.

Marketing makes the customer the aim of your business. Marketing starts with the customer— what does the customer want and how can your business provide it? Marketing also ends with the customer—your business has supplied the product and must ensure that the customer is satisfied and happy to transact further business in the future.

Requirements are also important. Ongoing research needs to be undertaken of customer requirements and their changing needs and tastes so that your business is able to deliver what customers want in the future.

Profitability is a key word. No one expects your business to satisfy total customer requirements. For example, at one dollar each, your business may readily be able to sell all the widgets it can produce, but it may not necessarily make a profit. This would mean that you could not stay in business and would not therefore be able to meet future customers’ needs.


03 Defining and developing your competitive edge In the business world, you can be a ‘me too’ business and follow the mob or move ahead of the competition by developing points of difference. What makes you different is called your unique selling proposition (USP) and is why people purchase your products or services. It is the starting point in the development of your marketing strategy. The USP for your business will arise from activities which provide high value to your customers and a strong ability to beat competitors. The aim is to identify the primary factor that will make your business stand out from everyone else. Here’s an action checklist to help you define and develop the USP for your business: CHECKPOINT Develop an understanding of your market through careful observation and listening to what consumers of your product or service are saying.

Identify what the major frustrations of your market segment are e.g. reliability, back-up service, faulty equipment, careless service, dangerous environment etc. Can you solve them?

Study what your competitors are doing. Can you do it better? Whatever they neglect to do, can you do it and do it in a way which will impress your customers?

Ask yourself—why should a customer buy from me?

Identify if there are any unique benefits you offer that could be described as extraordinary.

Make the invisible, visible—what would that be for you? Are there benefits that you perhaps overlook telling your customers about?

Consider offering samples to get people excited about the superiority of your product or service.

Offer more than anyone expects—what would this be?

Identify what aspect of your product or service you could guarantee (make sure you can deliver). Explore ways to remove or lessen risk.

Explore ways to remove or lessen the risk.


03 Defining and developing your competitive edge Once you have identified your USP, convey this message to the marketplace in everything you do. Print it on the back of your business card, put it on the wall of your waiting room, include it in marketing proposals and sales letters and incorporate it into brochures. Finally, remember that if what makes you special is really to work, your staff must understand and be committed to it as well. It is then that your USP will become the powerful tool needed to move you ahead of the competition.


04 What is market planning? You can approach the market in an ad-hoc manner to find customers and sell to them or you can improve your effectiveness with a plan. A marketing plan brings together all the relevant market factors and identifies the strategies and actions required to achieve your sales goals. The link between the marketing plan and your overall business plan is a crucial one. Marketing is what attracts and retains customers, so your marketing plan is a key driver of the performance of your business. Marketing plans should be used in product oriented as well as service oriented businesses. A marketing plan is not simply an index of advertising or other promotional activities. A good marketing plan should begin with an evaluation of the entire potential of the market for each product/service category and include an analysis of consumer behaviour, the competition and their offerings, and the strengths and weaknesses of the company as a competitor. It should also outline the positioning of your product or service within the market, based on product attributes, features and their related benefits. Planned sales and promotional activity also need to be addressed. In addition, consider the potential competitor and consumer reactions to your activities in the marketplace. Sales and profit forecasts for each product category should be developed to give an overall picture of the money to be spent and the profits to be gained. Finally, the plan should make a prediction at least three to five years ahead as to the future directions for each product category. A final step in the marketing planning process is to constantly evaluate and monitor the performance of your marketing activities to ensure that you are on the right track.


05 The Marketing Checklist – Preparing your marketing plan The Marketing Checklist is designed to assist you in servicing the needs of your target market efficiently, effectively and profitably. It can be applied to your business, whether you are marketing a product or service. It provides headings and text to prompt your thinking around issues to consider when designing a marketing strategy or developing a marketing plan, about improving marketing activities you may already be doing and identifying additional marketing opportunities to help you to grow your business. Each section provides questions for you to answer about your business, and background information on the concepts involved. MARKETING CHECKLIST Instructions Read through the Marketing Strategy Development Procedure in the following pages and then use the checklist to identify items you need to work on. Proceed through each item of the checklist and its corresponding links, ticking off each box as you progress.

KEY INTELLECTUAL PROPERTY ISSUE / TASK ✓ N/A

1.

Market analysis Conduct an analysis of the size and growth of your market: • Ascertain the trends in your industry and how they affect your activities. • Identify the types of customer groups within your market. • Analyse and determine which groups it is most profitable for you to target.

2.

The Marketing Environment Analyse the following aspects of the environment in which you operate and determine their current and future effects on your business: • Social/cultural trends. • Economic trends. • Demographic trends. • Political/legal/institutional trends. • Ecological trends. • Technological trends.

3. Consumer Analysis Analyse the needs and wants of your customers and consumers and how your product/service can satisfy those needs.


05 The Marketing Checklist – Preparing your marketing plan MARKETING CHECKLIST…CONTINUED

KEY INTELLECTUAL PROPERTY ISSUE / TASK ✓ N/A

4.

Current Situation Analysis Consider the current strengths and weaknesses in your business, as well as the opportunities and threats in the market place (this should have been outlined in 1 & 2 above). • Strengths • Weaknesses • Opportunities • Threats

5. Competitor Analysis Analyse the activities and characteristics of the competitors in your market (both direct competitors and those who offer substitute products/services to your customers).

6. Establish the growth, profit and sales objectives for your business.

7. Select which of the strategic alternatives will meet your objectives.

8. Determine your strategy for growing your business.

8. Determine what factors will differentiate you from your competitors in the eyes of your customers and how will you compete?

10. Determine where you would like to be positioned in the eyes of your customers relative to your competitors.

11.

Determine what your offering will be • Product • Price • Place • Promotion


05 The Marketing Checklist – Preparing your marketing plan Summary of the Marketing Strategy Development Procedure: 1. Market Analysis 2. The Marketing Environment 3. Consumer Analysis 4. Current Situation Analysis 5. Competitor Analysis 6. Marketing Objectives 7. Marketing Strategy 8. Sustainable Competitive Advantage 9. Product/Brand Positioning 10. The Marketing Mix 1. Market Analysis The first questions that a business must ask itself are “Who is the market?” and “What business are we in?” This is an attempt to evaluate the entire market potential and should be reviewed for each individual product category. This initial stage does not target any individual market segment but reviews the market as a whole including the domestic and export markets. Market Size Questions that need to be answered are:

• “What is the current market size?” or “How large is the potential market?” This should be estimated in the relevant terms for the industry e.g., dollars, litres, kg’s, units, etc.

• “Is the market growing, stable, or declining?” Where is the market heading and how will this affect the products in the market?

• How many prospects are potential customers of the product?

• How many companies are currently competing in the market? Answers to these questions can be sourced in many ways with direct (primary) research being the most accurate. However, primary research is expensive, and thus not always appropriate, while sources of secondary research such as trade publications, census statistics, published surveys and the Internet are a very good way to discover information about the size of a market. Industry Trends Significant industry trends that affect the purchasing habits of customers and consumers should be noted and monitored. This could incorporate alterations to pack sizes, types of variants, and services included with the product, promotional methods, technological changes and the like. Market Segmentation Market segmentation refers to the ability to categorise different groups of consumers in a market, due to their particular buying behaviour. Almost all markets have some major distinctive segments. By focusing on particular segments of a market small businesses can effectively compete in large markets.


05 The Marketing Checklist – Preparing your marketing plan Segmentation can come about in many ways. Often several types of segmentation are utilised. Almost all markets can be categorised by price and quality points. However, price and quality issues do not form the clearest and precise definition of segmentation within a marketplace, because this is not useful for categorising consumers. Reasons for strong segmentation are most often found through an examination of product use and the benefits consumers derive from product use. Categorising consumers based on the following leads to the identification of market segments:

• Demographic—Measurable statistics such as age, income, occupation.

• Psychographic—Lifestyle preferences, attitudes, behavioural characteristics.

• Use Based—Frequency, rapidity, quantity used of a product.

• Geographic—Location of home, business, individual.

• Benefits sought—Specific outcomes derived from the product such as luxury comfort, value etc.

Different elements may be combined to form the segment (e.g. women aged 25 to 35 who shop four to five times per month and purchase the product for its luxurious qualities.) It is important to note that segments may change over time. The way the market was segmented three years ago may not be the way the market is segmented today. Target Market Once the market is segmented, a business should determine which of these it can best serve with its product/service offering. Any marketing effort is more likely to be successful if focused and tailored to the most appropriate segment of the market. The business can then concentrate on satisfying the needs of this segment in the design and delivery of the product as a total package. It is almost impossible for one product or service to successfully compete in all segments of the market. Choosing a target market helps to reduce the number of direct competitors because the product it is not competing in the market as a whole but only in the one segment. Thus, choosing a target market for the product (or recognising the segment within which the product competes) becomes extremely important. Indeed, this is the primary aim of segmenting the market. 2. The Marketing Environment Any trends that affect the entire society and the way the product or service is marketed are part of the marketing environment. These issues effect the way in which the market will perceive your product. They include: Social/Cultural Trends e.g. Increasing numbers of women in the workforce, increasing hours of work, decreasing leisure time etc.


05 The Marketing Checklist – Preparing your marketing plan Economic Trends e.g. Increasing interest rates leading to increased mortgage costs and decreasing disposable income. Demographic Trends e.g. Major trends including increasing average age of residents, movement of baby boomers, number of births etc. Political/Legal/Institutional Trends e.g. Increasing regulation of business, restrictive trade practices, public interest groups. Ecological Trends e.g. Raw materials supply, cost of energy, levels of pollution. Technological Trends e.g. Accelerating pace of technological change, causing changes in distribution (e.g. Internet), creation of new products, competitors gaining an edge through patents etc. Not all trends will be important to all businesses but you must be careful to identify and consider those that do affect your product in your market. 3. Consumer Analysis Note that there are two types of individuals that may be involved in the purchase of your product. These are customers and consumers. For the purposes of this document we will consider the customer as a person or entity (such as a wholesaler, retailer, or distributor) who buys your product but does not actually use it. They may ‘on-sell’ it to consumers or may simply be purchasing the product/service on behalf of another entity. The consumer is the person or entity who actually puts your product to use. Both customers and consumers will have very different buying characteristics and motivations and both types of market will be segmental in their own right. (Of course there are numerous occasions where the customer is the consumer of the purchased product/service.) This section will look at consumers only. Customers will need a similar approach. Close evaluation of typical consumers in the market segments being targeted is paramount to good marketing practice. In effect you must know who your customers (or potential customers) are, geography, demographics and psychographics (personality, lifestyle etc.) and the buying behavior of your consumers better than they themselves would know their own behaviour. There are countless possible behaviour patterns to consider. Try to focus on the patterns that are most likely to determine the viability of the product in the market place. Questions that should be answered are:

• What type of product features most appeal to these consumers?

• What are the benefits that these features provide to the consumer?

• How important are these features?


05 The Marketing Checklist – Preparing your marketing plan

• How are choices made between competing products?

• How much disposable income do the target consumers have to spend on this product?

• How do these consumers reach decisions to purchase a particular product?

• How important is the brand in the buying decision?

• Which promotional mediums does the consumer most often view?

• What activities are these consumers most likely to engage in during their leisure time?

Importantly, what you think motivates your consumer to purchase and what actually motivates them to purchase may be very different. Thus, it is important to gain information from the consumer and from objective observations on how the consumer behaves. 4. Current Situation Analysis This is an analysis of your current position and growth level—the “where are we now?” If you don’t know where you are it is impossible to know how to get where you want to be. A good method for analysing your current situation is a SWOT analysis (Strengths, Weakness, Opportunities and Threats) of the product and the company as a whole. Strengths What does your business/product do better than (or at least equivalent to) the competition? (e.g. specific product attribute, perceived brand value, customer service provided etc.). If you do not have any entries in this section then your product/service is likely to need major changes. Weaknesses What does your business/product do that is not as good as the competition? Thought then needs to be given to if and how this should be compensated for or overcome. Opportunities What area of the market could you enter (albeit with some modifications to the product or business)? (e.g. increase pack size, additional service, new packaging, move into other markets etc.). Threats What actions could threaten the product or standing in the market (e.g. new competitor entry, major product failure, reduced promotional budget etc.). 5. Competitor Analysis If your marketing plans focus on efforts to take market-share from your competitors, then you need to be prepared for their reaction. For example, if you introduce a new product or service with great fanfare at a lower price than offered



by competitors, a price war may commence. This may culminate in the elimination of all but the strongest, most competitive, and best-financed firms. To avoid a competitive reaction that might backfire on you, don’t compete on price. Instead, try targeting a small niche within the market place that is not directly targeted by your competition. Try to think like the competition before implementing any marketing strategies. How would you react if you were an existing business and a competitor came out with a new, improved, or lower-priced product that had the potential to chip away at your consumer base and, ultimately, your profitability? Decide whether or not it would be beneficial to the success of the business to alter the product, pricing, or unique selling proposition. Completing a SWOT analysis on each of your competitors is an advisable step to forming the marketing strategy. 6. Marketing Objectives Stating the objectives before beginning the strategy will guide the type of strategy that you formulate. Marketing objectives must be SMART:

• Specific

• Measurable

• Achievable

• Realistic

• Time-bound Marketing objectives are not simply sales objectives. They must describe the market share objectives for each product and the segments within which each product will achieve this market share. The more specific they are, the better they can be utilised for measuring your progress. e.g. Increase market share in the consumer hand-held mixer market from 10% to 15% through the launch of a new product and consolidation of the existing product. 7. Marketing Strategy Once you have a clear idea of the market that you are in, the competitors in that market, the segments within the market, a thorough analysis of the current situation, a true understanding of consumers and a set of realistic objectives, a strategy can be devised. This becomes the plan for achieving the objectives. Selecting Strategic Alternatives There are many different types of strategy that can be used in each market, and for different product categories. Whether to invest time and resources and where to invest them are key decisions to be made.



Strategies for Growth Growth in Existing Product Markets involves increasing existing product sales in the existing market. To grow you could:

• Increase market share through continuing promotional and sales support.

• Increase product usage.

• Increasing the frequency of usage.

• Increasing the quantity used.

• Developing a new application for current users. Product Development Providing new or modified products for the existing market. This could be achieved by:

• Adding product features or making product refinements.

• Expanding the product line - opportunities for introducing better or exclusive products in the future.

• Updating the product to provide a new model.

• Develop new products for the same market.

• Updating/enhancing labelling and packaging, branding.

• Raising the standard of customer service.

• Extending warranties or guarantees to your customers. Market Development Using the existing product and developing its use in new markets. For example:

• Target new segments of the market.

• Expand geographically. Non-Growth Strategies Withdraw A decision to withdraw from a market could be made for many reasons including:

• Insufficient resources to compete.

• Business resources spread too thinly and to be focused in other areas (or on other product categories).

• The competition in the market is too intense meaning restricting the business from gaining reasonable volumes and market share.

• Price competition in the market is too intense resulting in little to no profit being made on the product.



Milk A milking strategy is designed to gain the greatest profit out of a product line with the least investment possible. This means, the resources spent on the product category will be the minimum needed to maintain the current status. The greatest profit margin will be drawn from the brand with minimum price activity. The business focus will be in other areas. Milking strategies are particularly appropriate for well-established products with little growth prospects. They provide a steady cash flow for the organisation. Hold When the cost of achieving growth is considered too high it is often appropriate to invest only to hold the current market share. This strategy aims to keep existing consumers loyal to your product and not concentrate on gaining new customers. 8. SUSTAINABLE COMPETITIVE ADVANTAGE What makes your business better, special or different? A Sustainable Competitive Advantage (SCA) is a means of competing that provides a leverage or edge that is difficult for competitors to copy and is seen as advantageous by consumers. A SCA is a key to successfully competing in any market. Characteristics of successful SCAs are:

• They are substantial enough to make a difference in the market.

• Are sustainable with regard to environmental changes.

• Are difficult for competitors to replicate.

• Are leveraged into visible attributes that influence consumer decisions.

• Means by which to gain a sustainable competitive advantage include differentiation, low cost, concentrated, or niche.

Differentiation Differentiation refers to making the product novel through a feature or benefit that is relevant to the market or market segment. A thorough analysis of the competitors and your product advantages is required. The following are some examples of the means by which differentiation can occur. Several of these strategies could be used at once:

• Product quality.

• Service quality.

• Brand name.

• Product features.

• Technical superiority.



• Distribution channels

• Breadth of product line. Many more strategies are possible using differentiation. The options are limited only by what the customer perceives to be different and the importance placed on the points of difference. Low-Cost Strategy A low-cost strategy relies on the ability to have the lowest cost in the industry at all times and therefore allow the lowest price to be offered to customers. Anyone employing a low cost and low price strategy must have the ability to match and beat its competitors should a price war eventuate. Methods of achieving a low cost strategy:

• No-frills product.

• Product design.

• Raw material source.

• Low-cost distribution.

• Labour cost advantage.

• Location advantage.

• Automation advantage.

• Reduced overheads.

• Experience in producing the product. A point to note about a low cost strategy is that a low cost culture must exist in the organisation. Everything that is done in the organisation must exist around this one premise. Note that all companies will try to reduce their costs but this does not mean that they are employing a low cost strategy. A low cost strategy is extremely difficult to sustain long-term. Concentrated The concentrated thrust focuses on one part of the market or one product line only. Focusing on one area allows the business to become expert in that area (usually a small segment of the market) and therefore gain a competitive advantage over generally much larger competitors. Methods of concentration:

• Focusing on a product line.

• Targeting a segment.

• Geographic area.

• Focusing against low-share competitors.



Niche Niche strategies focus on one particular, usually small, segment of the market. The segment is generally too small or difficult for major competitors to enter and hence the niche competitor is left to hold the segment substantially alone. Niche strategies require that customers see a significant difference in the competitor and see real value in the position that the competitor owns in the market. 9. Product/Brand Positioning Out of the strategy should come a unique positioning for the product. There should be a clearly developed product/brand positioning within the market. Positioning is the way in which consumers perceive the product/service with respect to the rest of the market, and is a valid form of competitive advantage. It should be noted that product positioning could take years to create in a market, is difficult to change and is often the factor that most determines the success of the product. Once a position is decided it requires uniformity over a long period of time to reinforce the message to the target market. There must be consistency in the positioning through all elements of the marketing mix. Positioning can be based around such factors as:

• A product attribute.

• A consumer benefit.

• A use or application of the product.

• A product class.

• The place of origin.

• The type of consumer.

• Competitive position in the market. 10. The Marketing Mix Once a strategy for competing has been formulated it must be developed through the elements of the marketing mix. The crux of any marketing strategy involves four elements known as the marketing mix (or the 4 Ps). They are Product, Price, Promotion and Place (also known as distribution). These elements are the core ingredients to satisfying consumer needs and wants. All four elements come together to provide the offering to the consumer. Product Key product features and their appropriate benefits are paramount. Take into account the buying behaviour of the target market, competitive products and their features and benefits. Also consider the product range with possible line extensions or range rationalisation. What brand should be adopted for the product and what will this mean to the consumer? Packaging is a consideration as it communicates what your product is to the consumer. Service and back up service all form part of the product offering. Thus, key decisions about the product include:



• Features.

• Range.

• Branding.

• Packaging.

• Additional accessories. For service-oriented products, all of the aspects of presentation of the people providing the service are important parts of the offering. This includes anything that is visible (and important) to the customer, (e.g. does the customer expect (and product positioning determine) that you be dressed in formal business attire or should you be in branded sports shirts? If the customer sees your offices, what messages do they convey and are they messages that are complimentary to your product positioning?). Price The price must correspond with the product positioning and also consider what pricing position you want to hold in the market. How important is price to the target market? In most markets, price is an indicator of quality—the higher the price the higher the perceived quality. It is tempting to fall into the trap of using a cost-based pricing system. In reality the price of your product should be “what the market will bear”. It is also tempting to fall into the trap of trying to offer “a high quality product at a price that everyone can afford”. In most cases this is again flawed because your product will not be perceived as a high quality product due alone to the price that it bears. In effect the price of the product will override the benefits of the product. It is wrong to assume that offering people a better price gives them better value for money. Value for money is a perception of the price compared with the benefits derived from the product. In most markets and to most people the price is far less important than the benefits that they will receive from the product. All types of pricing decisions should be considered and planned, including:

• Standard price.

• Price specials.

• Discounts to trade and distributors.

• Payment terms.

• Payment methods.



Promotion The promotional element in the marketing mix determines how you communicate with customers and what promotional tools or tactics are used to achieve the marketing objectives. Again, knowing the buying behaviour of the target market is very important. What media do they view, how frequently and what is their reason for using it? The promotional mix must comply with the product positioning and, in fact, it should not contradict in any way the prescribed positioning. Look at emerging trends and changing patterns. For example, many businesses use social media as a way of engaging customers and to promote them. Promotional activities may include:

• Advertising.

• Sales promotions.

• Publicity.

• Personal selling.

• Events.

• Sponsorships.

• Public relations.

• Promotional materials such as brochures or gifts.

• Direct marketing / selling.

• Public relations.

• Communication methods with customers and potential customers e.g. the Internet, Social media etc.

• Appearance of premises and staff. Communication Plan Developing a communications plan is an important part of deciding on the promotional elements that should be used. Most often a combination of elements will be involved. Keeping the target market and the strategy for the product in mind are the keys to developing a good plan. If the objective is to enter new markets then this will produce a different plan to one aimed at increasing market share by getting current consumers to purchase more. The former strategy will produce a plan that concentrates on finding new customers and could therefore involve broader advertising and cold call selling, whereas the latter strategy could produce a plan that involves more intensive selling to existing customers with volume-related sales promotions. Developing a communications plan is a skill in itself and is likely to require experts in the field of marketing, together with specific advertising and promotions experts.



Distribution In most industries the distribution channels tend to be fairly well established. This does not mean that this part of the marketing mix should not be reviewed. In fact changes to the distribution channel or changes to the way in which you sell to the channel can provide great opportunities. Questions you should address include:

• How and where will the product be placed so that consumers have access to it and how will the sale be made?

• Will you be using wholesalers, distributors, retailers, sales staff / agents or going direct to the consumer?

• Is a combination of distribution points appropriate and, if so, how will you balance the flow of product, discounts given, and territories covered by each distribution point?

In effect the distribution points are also your customers and require as much consideration regarding buying habits as you give end users. Specific communication campaigns can address the distribution channel and have as great or greater success as those that address the consumer. This therefore suggests that a strategy for dealing with the distribution points needs to be developed and enacted in the same way that a strategy is developed for consumers. Putting it all together Once you have determined the initial strategy you may find that new issues arise in previous steps of the process. These should be worked and reworked into the entire marketing strategy. If there are key elements of the process that are missing, it is very likely that the strategy devised will be flawed. Working through the whole process (if necessary with the help of marketing professionals) is important to getting the strategy right. A good marketing strategy, correctly implemented, will give your company the edge over the competition and help guarantee business success.


06 Making your promotions effective Advertising is a form of communication that helps to get customers to come to you. It works on the principle of A-I-D-A: Attention—potential customers must know your product or service exists.

Interest—they must be interested in the product or service.

Desire—they must be encouraged to want the product or service.

Action—they must be encouraged to buy. Before you race off to prepare your advertising copy, first establish a clear objective of what you are seeking to achieve with your advertisement. Next, identify your target market, that is, the people who are likely to make the decision on whether or not to buy your product or service. Remember that customers will focus on the benefits you offer. Advertising can be delivered through a variety of media, including billboards, brochures, cinema, internet, letterbox drops, magazines, mail, newsletters, newspapers, posters, radio, signage on buses and taxis and television. Which medium should you choose? This is best answered by considering where your audience is and which medium will reach them most successfully for the least cost. While each form of advertising needs a different writing style and presentation structure, the messages you send out should be consistent and reinforce one another. Two other vital questions need to be addressed—how much you are prepared to spend? and how you will measure the success of your investment? To increase the effectiveness of your advertisements, follow these practical tips:

Flag down your prospective customers in the headline. Aim your appeal at such basic human needs as making money, saving time and effort, impressing others, gaining more leisure, self-improvement, the need to belong etc.

In your headline or first paragraph, promise a benefit (implied or real) that is important to readers in your niche market so that it draws them into the copy.

Build rapport by showing your readers that you understand their frustrations with your industry, their problems and their concerns.

Elaborate on your most important benefit in the opening copy.

Include a graphic, where appropriate, that reiterates the main benefit.

Tell the reader exactly what is on offer.

Use sub-headings that summarise the benefits for easy scanning.


06 Making your promotions effective CONTINUED… To increase the effectiveness of your advertisements, follow these practical tips:

Back up your statements with proof and endorsements, to demonstrate low level risk. Tell your readers what they may lose if they fail to act.

Make an offer.

Give clear and straightforward directions on how to act.

Use an easily readable typeface.

Make the advertisement clear and uncluttered. A final word—none of this will matter if you have not developed a strong USP. You will always under-perform without a clear message that differentiates your product or service and demonstrates exciting and believable benefits to your customers.


07 Media Release Checklist A media release is a written communication for targeted news media about a newsworthy event, aimed at generating some positive editorial coverage for your business. Essentially it is the bare facts of a story about your business, whether it is a paragraph announcing a new appointment or a one-page summary of a complicated report. WHY WRITE MEDIA RELEASES? Media releases are written to encourage journalists to write a positive story about your business.

• Media releases give you the chance to offer a selection of facts and views and you get to decide what information you want to provide.

• Media releases, and the possible publicity generated, can help to establish your business as innovative, informed, and a responsible citizen, and can be a powerful part of your marketing strategy.

• Positive publicity helps to build awareness of your brand.

• Audience members tend to place more reliance on editorial coverage than on advertising as it is generally thought to be unbiased, objective information.

TIPS FOR A GOOD RELEASE

• Make sure there is an angle for the media release—put an interesting slant on the subject that will have particular relevance to the reader of the publication. Read some of the stories in recent issues to get a feel of what is wanted.

• Make sure your lead paragraph is strong in content and demands attention (you only have around 30 seconds to grab the attention of the recipient of your release).

• Check your spelling and grammar!

• Avoid jargon—ask someone outside your business to check that your media release is easy to understand.

• Use everyday language and don’t indulge in obscure and inflated expression.

• Use simple sentences and switch to a new paragraph after each sentence. Limit sentences to 25-30 words.

• Consider media training for any of your staff who may appear on radio or television.

EXAMPLES OF TOPICS FOR MEDIA RELEASES (from Public Relations Institute of Australia: www.pria.com.au / Tel: (02) 8935 7709 )

• New product releases.

• Major installations completed.

• Background information relevant to your business on a current issue in the media.

• New senior appointments.

http://www.pria.com.au/


07 Media Release Checklist • New technological advances.

• Major contracts won.

• Important quality approvals and/or awards.

• Upcoming announcements or events. MEDIA RELEASE CHECKLIST Instructions Proceed through each item of the checklist and its corresponding links, ticking off each box as you progress. KEY MEDIA RELEASE ISSUE / TASK ✓ N/A

1.

Ask your customers what media they use (print media, broadcast, electronic). Suggestions for how to go about this include conducting surveys, contacting a few key customers by phone or e-mail, observing your competitors etc.

2. Develop a database of key media contacts (editors and key reporters of publications read by your target audience).

3. Alert your team to any possible topics for media releases (i.e. include ‘Topics for Media Releases’ as an agenda item in your regular team meetings).

4. Ensure topics are newsworthy Just because it is interesting to you does not mean it is interesting to the media or to your target audience. It also needs to be relevant and timely.

5.

Writing the release Generally, a media release should contain the following: • The date of issue to the media. • Whether it is for immediate release or to be embargoed to a particular date. • A headline (to generate interest and summarises what the release is about). • An introductory paragraph (provides some brief background and summarises the topic of the release). • One to two paragraphs covering the fundamentals of the news—WHO, WHAT, WHERE, WHEN, HOW, WHY. • A quotation from a key individual. • Contact details of an informed individual for the press to contact if required. • Photograph(s), graphs, diagrams if appropriate Include double line spacing and large margins.

6. Once you are satisfied with the release, send it (via fax or email) to the appropriate target media. Have your key contact person alerted to the release and have them ready and available for possible calls by the media.


08 Summary

1 Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements.

2

The marketing plan of a small business should be developed in the form of a marketing mix in which advertising, promotion, selling, pricing, distribution and other marketing activities are blended into combinations that are likely to produce the highest returns at the lowest cost.

3 Market segmentation is the division of the total market into separate and identifiable groups.

4 Target marketing is the selection of a particular market segment and the development of a marketing mix strategy for that segment.

5 Successful marketing means relating the product, price, place, promotion and service to the customer.

6 Your unique selling proposition (USP) is the unique benefit or promise that you hold out to your prospective customer; it’s what separates your business from the rest of the market.

7 Advertising works on the principle of attention, interest, desire and action.


09 Notes


Department of State Development GPO Box 320 Adelaide SA 5001 T: +61 8 8226 3821 E: [email protected] W: www.statedevelopment.sa.gov.au/smallbusiness DISCLAIMER The Government of South Australia gives no warranty and makes no representation, whether express or implied, as to the accuracy of information contained within this guide or the suitability of the information for any purpose. Any use of the information contained in this guide (whether authorised or not) is at the users’ sole risk and the Government of South Australia disclaims responsibility for any loss or damage incurred as a result of such use. The information is provided solely on the basis that users of the information will make their own assessment of the accuracy of the information and users are advised to verify all information contained within this document. Any information about the law in Australia or South Australia is provided as general information only and is not legal advice. This guide is a starting point only and is not a substitute for legal or professional advice. While the Department has attempted to ensure the information is accurate at the time of publishing, no responsibility will be accepted for any errors or omissions and the Government of South Australia will not be liable for any loss or damage incurred by any person as a consequence of any use, reference or reliance on this information. Any such use, reference or reliance shall be at the sole risk of that person who should seek their own legal and/or professional advice if required. COPYRIGHT Produced by the South Australian Government © March 2015

Marketing your business · Marketing makes the customer the aim of your business. Marketing starts...

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