BA 346
Working as an EntrepreneurWeek 7
Agenda Marketing for Entrepreneurs
The story so far…
Ideas Screening Plan Costs Now we need…
Marketing is Critical to Success
Why? How do we create value through
marketing activities? Selling Sales planning Advertising Marketing
Marketing Basics
Competition Dialog Goods vs Services 4 Ps of Marketing (“Marketing Mix”)
Product Price Placement Promotion
What is the Competition Doing?
What matters? What will we do the same? What will we change?
Best, Test, Invest
Creating Value from Customer Dialog
Outbound communication Inbound communication Social networks Online reputation
Product Development
Idea Generation Screening Concept Development Iterative Concept Tests Business Analysis Market Testing Implementation Commercialization
Product Adoption Rate of New Technology
INNOVATORS EARLY ADOPTERS EARLY MAJORITY LATE MAJORITY LAGGARDS
Innovative products get adopted gradually, and the adopters fall into five groups
3% 14% 33% 33% 17%
Market Penetration of New Technology
Innovators Early Adopters Early Majority Late Majority Laggards
<3%
17%
50%
83%
100%
Innovation: Who adopts, and when
“Leave me alone. I like it the way it is.”
“That’s Cool!”
“How does this get me
ahead?”
“This is supposed to solve my
problem. It better work right…”
“Everyone’s doing this. Um… can I get some
support, please?”
Pricing Strategies
Cost-plus pricing Contribution margin-based pricing Competition-based pricing Premium pricing Skimming Penetration pricing Loss leader
Placement
Distribution channels Choosing Optimizing Managing
Visibility Physical placement Online placement Advertising Publicity…
Promotion
Below the line (product-driven) Publicity, endorsement, sponsorship PR, Sales promotion, merchandising Direct mail, personal selling Trade shows
Above the line (media-driven) TV, Radio Newspapers, magazines, trade pubs Internet, mobile media
Closing the loop with dialog
Marketing Cube
SU
ITA
BIL
ITY
PREDICTABILITY
RISK (uncertainty)
DEMOGRAPHICS(for appeal)
Market Segments
Customer Behavior
What might they do? Why?
Test in, Test out
What are we trying to achieve? Iterative testing Planning for results Escalating costs Interpreting results
Sales Management Sales process Sales quotas
Financial plans Operational limits
Adjusting based on results
The Sales Process
There are nine key steps in the selling process: Prospecting - Who is a likely customer? Qualifying - Is the sale feasible? Preapproach - What useful things can we learn
about the customer? Handling Objections - What resistance do we
encounter, and how do we overcome that? Getting the Interview - How do we get the
salesperson together with the prospect under favorable conditions?
Establishing the Problem - What need does the prospect recognize which our product can fill?
Solving the Problem - How does our product solve the prospect's problem?
Closing the Sale - How do we officially get the transaction?
Followthrough - How do we keep this customer and get more business from the relationship?
Case Study
Case study: Gretchen Schaufler Crowded market, filled with big competitors How to compete?
Niche market Unique product Small samples of wet paint Original names
“Woven tattle & spun tales” “Espresso blends”
Custom consultation via digital photos 10 years, 3 employees, $6MM revenue Acquired by Valspar
Workshop
Marketing Plan Communication in 2 directions
Messages going out Messages coming in Closing the loop of customer dialog
Sales Plan Hitting the sales goals
What are the numbers? What actions will be taken to reach goals?
Advertising Plan Communication in 1 direction
How will you measure results?
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