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The
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teps in 5
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Hour Aevels of 5ustomerHour Aevels of 5ustomerensitivity ensitivity
evel 67 Customer Awareness. 8revailing attitude7 $/here#s a customer out there.&!anagers and employees know little about their customers and view them only in themost general terms. 9o one really understands the benefit of close customer
relationships.
evel :7 Customer Sensitivity. 3 wall stands between the company and its customers.mployees know a little about their customers but don#t share this information with
others in the company. /he company does not solicit feedback from customers.
evel ;7 Customer Alignment. !anagers and employees understand the customer#scentral role in the business. /hey spend considerable time talking about and with
customers, and they seek feedback through surveys, focus groups, customer visits, andother techni'ues.
evel
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17/51Copyright 2008 Prentice Hall Publishing 1"Chapter 8: Guerrilla Marketing Plan
Guerrilla MarketingGuerrilla Marketingtrategiestrategies
Hind a niche and 0ll it.Hind a niche and 0ll it.Don t 7ust sell> entertain.Don t 7ust sell> entertain.
FF,ntertailing,ntertailingtrive to +e uni*ue.trive to +e uni*ue.
5onnect with customers5onnect with customerson an emotional level.on an emotional level.
Build trustBuild trustDe0ne a uni*ue sellingDe0ne a uni*ue sellingproposition C( Pproposition C( P
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(ni*ue elling(ni*ue ellingPropositionProposition
/ key customer +ene0t of a / key customer +ene0t of aproduct that sets it apart from itsproduct that sets it apart from itscompetition.competition.
/nswers key customer *uestion$ /nswers key customer *uestion$F%hat s in it for meF%hat s in it for me5onsider intangi+le or5onsider intangi+le or
psychological +ene0ts as well aspsychological +ene0ts as well astangi+le ones.tangi+le ones.5ommunicate your ( P to your5ommunicate your ( P to yourcustomers often.customers often.
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19/51Copyright 2008 Prentice Hall Publishing 1!Chapter 8: Guerrilla Marketing Plan
5reate an identity for5reate an identity for your +usiness through your +usiness through+randing.+randing.
Guerrilla MarketingGuerrilla Marketingtrategiestrategies
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Building a BrandBuilding a Brand
HighHigh
LoLoww
LoLoww
HighHighDifferentiationDifferentiation
R e
l e v a n c e
R e
l e v a n c e
““ Antes”Antes”
Features that are importantFeatures that are importantto customers but allto customers but allcompetitors provide themcompetitors provide them
Every company in the mar etEvery company in the mar etmust “ante up” on thesemust “ante up” on thesefeatures!features!
““Drivers”Drivers”
Features that are bothFeatures that are bothimportant to customers andimportant to customers andare highly differentiatedare highly differentiatedfrom those of competitorsfrom those of competitors
"hese are the attributes on"hese are the attributes onwhich a company mustwhich a company mustfocus to build its brand!focus to build its brand!
““Fool#s $old”Fool#s $old”
Features that are uni%ue toFeatures that are uni%ue toyour company but do notyour company but do not
drive customers# loyalty todrive customers# loyalty toyour product and servicesyour product and services
Don#t ma e the mista e ofDon#t ma e the mista e oftrying to build a brand ontrying to build a brand onthese features&these features&
““ 'eutrals”'eutrals”
Features that are irrelevantFeatures that are irrelevantto customersto customers
"hese features are useless"hese features are uselesswhen it comes to branding!when it comes to branding!
#ource: $%apte% &ro' ()hat *eally Matters in +uil%ing a +ran%,- The McKinsey Quarterly , May 2004, .../'ckinsey uarterly/co' ne.sletters chart&ocus 2004 05/ht'
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21/51Copyright 2008 Prentice Hall Publishing 21Chapter 8: Guerrilla Marketing Plan
tart a +log.tart a +log.Hocus on theHocus on thecustomer.customer.
Guerrilla MarketingGuerrilla Marketingtrategiestrategies
5reate an identity for your5reate an identity for your+usiness through +randing.+usiness through +randing.
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JK percent of customers who stopJK percent of customers who stoppatroni3ing a +usiness do so +ecause anpatroni3ing a +usiness do so +ecause anindi'erent employee treated them poorly.indi'erent employee treated them poorly.LJ percent of dissatis0ed customersLJ percent of dissatis0ed customersnever complainnever complain a+out rude ora+out rude ordiscourteous service) +ut...discourteous service) +ut...
L" percent willL" percent will notnot +uy from that+uy from that+usiness again.+usiness again."?? percent will tell their Fhorror"?? percent will tell their Fhorror
stories to atstories to at leastleast nine othernine otherpeoplepeople .."2 percent of those unhappy customers"2 percent of those unhappy customers
will tell their stories to at least will tell their stories to at least 20 20other peopleother people ..
Hocus on theHocus on the5ustomer 5ustomer
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Hocus on theHocus on the5ustomer 5ustomer
Treating customers indi'erently or poorlyTreating customers indi'erently or poorlycosts the average company fromcosts the average company from 15%15%percent to 30 percent of gross salespercent to 30 percent of gross sales ;; it itcostscosts seven to nine timesseven to nine times as much to attractas much to attract
a new customer as it does to sell to ana new customer as it does to sell to ane-isting one;e-isting one; /+out K? percent of a company s sales come /+out K? percent of a company s sales comefrom e-isting customers.from e-isting customers.Because 1? percent of a typical company sBecause 1? percent of a typical company scustomers account for a+out ? percent ofcustomers account for a+out ? percent ofits sales) no +usiness can a'ord to alienateits sales) no +usiness can a'ord to alienateits +est and most pro0ta+le customers andits +est and most pro0ta+le customers andsurvive;survive;
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Principles of 5ustomer ,-perience ManagementPrinciples of 5ustomer ,-perience ManagementC5,MC5,M
% &ntimate understanding of each customer's
needs, (ants, preferences, and pecu)iarities% *ersona), customi+ed messages in marketing,sa)es, ser ice, and ad ertising
% onsistent, courteous, and professiona)treatment b. e er.one in the compan.
% Responsi e, rapid hand)ing of re/uests,
/uestions, prob)ems, and comp)aints% 0e)pfu) information and ad ice de)i ered
proacti e)., (here appropriate
% &n o) ement of caring, (e))-trained peop)erather than strict re)iance on techno)og. forser ice de)i er.
% 1ong-term ie( of the compan.2customerre)ationship rather than a focus on “making asa)e”
% 3mphasis on sustaining an ongoing re)ationship bui)t on trust and respect
% 4re/uent and isib)e demonstrations ofcommitment to nurturing the compan.2customerre)ationship
% &ntimate understanding of each customer'sneeds, (ants, preferences, and pecu)iarities
% *ersona), customi+ed messages in marketing,sa)es, ser ice, and ad ertising
% onsistent, courteous, and professiona)treatment b. e er.one in the compan.
% Responsi e, rapid hand)ing of re/uests,/uestions, prob)ems, and comp)aints
% 0e)pfu) information and ad ice de)i ered proacti e)., (here appropriate
% &n o) ement of caring, (e))-trained peop)erather than strict re)iance on techno)og. forser ice de)i er.
% 1ong-term ie( of the compan.2customerre)ationship rather than a focus on “making asa)e”
% 3mphasis on sustaining an ongoing re)ationship bui)t on trust and respect
% 4re/uent and isib)e demonstrations ofcommitment to nurturing the compan.2customer
re)ationship
In every customer interaction
Satisfied, )o.a),repeat 5and profitab)e6customers
Satisfied, )o.a),repeat 5and profitab)e6customers
Source: Adapted from “7ake-8p a)): To 4i9 RM, 4i9 the ustomer 39perience o(;,>", p# "#
http://www.bearingpoint.com/http://www.bearingpoint.com/
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Copyright 2008 Prentice Hall Publishing 25Chapter 8: Guerrilla Marketing Plan
Hocus on theHocus on the5ustomer 5ustomer
5ompanies that are successful at5ompanies that are successful atretaining their customersretaining their customersconstantly ask themselves Candconstantly ask themselves Candtheir customers four *uestions$their customers four *uestions$". %hat are we doing right". %hat are we doing right1. ow can we do that even +etter1. ow can we do that even +etter2. %hat have we done wrong2. %hat have we done wrong4. %hat can we do in the future4. %hat can we do in the future
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Copyright 2008 Prentice Hall Publishing 2Chapter 8: Guerrilla Marketing Plan
Be devoted to *uality.Be devoted to *uality.
Guerrilla MarketingGuerrilla Marketingtrategiestrategies
5reate an identity for your +usiness through +randing.5reate an identity for your +usiness through +randing.tart a +log.tart a +log.
Hocus on the customer.Hocus on the customer.
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Copyright 2008 Prentice Hall Publishing 2"Chapter 8: Guerrilla Marketing Plan
Devotion toDevotion toNuality Nuality
tudy$ J? percent of customers whotudy$ J? percent of customers whochange suppliers do so +ecause ofchange suppliers do so +ecause ofpro+lems with a company s products orpro+lems with a company s products orservices.services.
%orld class companies treat *uality as %orld class companies treat *uality asa strategic o+7ective) an integral part ofa strategic o+7ective) an integral part ofthe company culture.the company culture.The philosophy of Total NualityThe philosophy of Total Nuality
Management CTNM $Management CTNM $Nuality in the product or service itself.Nuality in the product or service itself.Nuality in every aspect of the +usiness andNuality in every aspect of the +usiness andits relationship with the customer.its relationship with the customer.5ontinuous improvement in *uality.5ontinuous improvement in *uality.
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Copyright 2008 Prentice Hall Publishing 28Chapter 8: Guerrilla Marketing Plan
ow Do /mericansow Do /mericansDe0ne Nuality in aDe0ne Nuality in a
Product Product
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Copyright 2008 Prentice Hall Publishing 2!Chapter 8: Guerrilla Marketing Plan
ow Do /mericansow Do /mericansDe0ne Nuality in aDe0ne Nuality in a
ServiceServiceTangi+les Ce*uipment)Tangi+les Ce*uipment)facilities) peoplefacilities) people
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Pay attention toPay attention toconvenience.convenience.
Guerrilla MarketingGuerrilla Marketingtrategiestrategies
5reate an identity for your +usiness through +randing.5reate an identity for your +usiness through +randing.tart a +log.tart a +log.
Hocus on the customer.Hocus on the customer.Be devoted to *uality.Be devoted to *uality.
/ i
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/ttention to /ttention to5onvenience5onvenience
Is your +usiness convenientlyIs your +usiness convenientlylocated near customerslocated near customers
/re your +usiness hours suita+le /re your +usiness hours suita+leto your customersto your customers
%ould customers appreciate %ould customers appreciatepickup and delivery servicespickup and delivery servicesDo you make it easy forDo you make it easy forcustomers to +uy on credit orcustomers to +uy on credit or
with credit cards with credit cards
/ i
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/ttention to /ttention to5onvenience5onvenience
/re your employees trained to handle /re your employees trained to handle+usiness transactions *uickly) e'iciently)+usiness transactions *uickly) e'iciently)and politelyand politelyDoes your company o'er Fe-tras thatDoes your company o'er Fe-tras that
would make customers lives easier would make customers lives easier5an you +undle e-isting products to make5an you +undle e-isting products to makeit easier for customers to use themit easier for customers to use them5an you adapt e-isting products to make5an you adapt e-isting products to makethem more convenient for customersthem more convenient for customersDoes your company handle telephone callsDoes your company handle telephone calls*uickly and e'iciently*uickly and e'iciently
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Copyright 2008 Prentice Hall Publishing 33Chapter 8: Guerrilla Marketing Plan
5oncentrate on5oncentrate oninnovation.innovation.
Guerrilla MarketingGuerrilla Marketingtrategiestrategies
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Copyright 2008 Prentice Hall Publishing 34Chapter 8: Guerrilla Marketing Plan
5oncentration on5oncentration onInnovationInnovation
InnovationInnovationThe key to future success.The key to future success.6ne of the greatest strengths of6ne of the greatest strengths ofentrepreneurs. It shows up in theentrepreneurs. It shows up in the
new products) techni*ues) andnew products) techni*ues) andunusual approaches they introduce.unusual approaches they introduce.
,ntrepreneurs often create new,ntrepreneurs often create newproducts and services +yproducts and services +y
focusing their e'orts on onefocusing their e'orts on onearea and +y using their si3e andarea and +y using their si3e and
e-i+ility to their advantage.e-i+ility to their advantage.
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Copyright 2008 Prentice Hall Publishing 35Chapter 8: Guerrilla Marketing Plan
5oncentrate on innovation.5oncentrate on innovation.
Guerrilla MarketingGuerrilla Marketingtrategiestrategies
Be dedicated to service andBe dedicated to service andcustomer satisfaction.customer satisfaction.
urvey$ 4J percent ofurvey$ 4J percent ofcustomers had walked out ofcustomers had walked out ofa store within the past yeara store within the past year+ecause of poor service.+ecause of poor service.
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Copyright 2008 Prentice Hall Publishing 3Chapter 8: Guerrilla Marketing Plan
Dedication toDedication toerviceervice
Aisten to customers.Aisten to customers.De0ne Fsuperior service.De0ne Fsuperior service.
et standards and measureet standards and measureperformance.performance.,-amine your company s,-amine your company sservice cycle.service cycle.
ire the right employees.ire the right employees.Train employees to deliverTrain employees to deliversuperior service.superior service.
>oal>oal 7 to achieve7 to achieve customer astonishment customer astonishment **
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Dedication toDedication toerviceervice
,mpower employees to o'er,mpower employees to o'ersuperior service.superior service.Treat employees with respect andTreat employees with respect andshow them how valua+le they are.show them how valua+le they are.(se technology to provide(se technology to provideimproved service.improved service.oal 7 to achieve7 to achieve customer astonishment customer astonishment **
5continued65continued6
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Copyright 2008 Prentice Hall Publishing 38Chapter 8: Guerrilla Marketing Plan
5oncentrate on innovation.5oncentrate on innovation.Be dedicated to service andBe dedicated to service andcustomer satisfaction.customer satisfaction.
Guerrilla MarketingGuerrilla Marketingtrategiestrategies
,mphasi3e speed.,mphasi3e speed.
mphasis onmphasis on
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Copyright 2008 Prentice Hall Publishing 3!Chapter 8: Guerrilla Marketing Plan
,mphasis on,mphasis onpeedpeed
(se principles of time compression(se principles of time compressionmanagement CT5M $management CT5M $peed new products to marketpeed new products to markethorten customer response time inhorten customer response time in
manufacturing and delivery manufacturing and delivery
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,mphasis on,mphasis onpeedpeed
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Copyright 2008 Prentice Hall Publishing 41Chapter 8: Guerrilla Marketing Plan
,mphasis on,mphasis onpeedpeed
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Copyright 2008 Prentice Hall Publishing 42Chapter 8: Guerrilla Marketing Plan
Marketing on theMarketing on the %orld %ide %e+ %orld %ide %e+
/n /n essentialessential +usiness tool+usiness tool ,ven the smallest ,ven the smallest
companies can marketcompanies can markettheir products andtheir products andservices around the glo+e.services around the glo+e.The %e+ can +e theThe %e+ can +e the
FGreat ,*uali3er in aFGreat ,*uali3er in asmall company ssmall company smarketing program.marketing program.
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Marketing on theMarketing on the %orld %ide %e+ %orld %ide %e+
/+out K? percent of /+out K? percent ofsmall companies have asmall companies have a
%e+site) dou+le the %e+site) dou+le thenum+er in 1??1.num+er in 1??1. %e+ marketing strategy %e+ marketing strategy
must emphasi3e smallmust emphasi3e smallcompany s strengthscompany s strengthsand core competencies.and core competencies.
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Copyright 2008 Prentice Hall Publishing 44Chapter 8: Guerrilla Marketing Plan
The Marketing Mi- The Marketing Mi-
PP roductroductPP lacelace
PP ricericePP romotionromotion
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tages in the Product Aifetages in the Product Aife5ycle5ycle
Introductory stageIntroductory stage
ighCosts
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Copyright 2008 Prentice Hall Publishing 4Chapter 8: Guerrilla Marketing Plan
tages in the Product Aifetages in the Product Aife5ycle5ycle
Introductory stageIntroductory stageGrowth and acceptance stageGrowth and acceptance stage
ighCosts
ighCosts
ighCosts
SalesClimb
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Copyright 2008 Prentice Hall Publishing 4"Chapter 8: Guerrilla Marketing Plan
tages in the Product Aifetages in the Product Aife5ycle5ycle
Introductory stageIntroductory stageGrowth and acceptance stageGrowth and acceptance stageMaturity and competition stageMaturity and competition stage
ighCosts
SalesClimb
8rofits8eak
ighCosts
SalesClimb
8rofits8eak
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tages in the Product Aifetages in the Product Aife5ycle5ycle
Introductory stageIntroductory stageGrowth and acceptance stageGrowth and acceptance stageMaturity and competition stageMaturity and competition stageMarket saturation stageMarket saturation stage
ighCosts
SalesClimb
8rofits8eak
Sales8eak
ighCosts
SalesClimb
8rofits8eak
Sales8eak
f
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Copyright 2008 Prentice Hall Publishing 4!Chapter 8: Guerrilla Marketing Plan
tages in the Product Aifetages in the Product Aife5ycle5ycle
Introductory stageIntroductory stageGrowth and acceptance stageGrowth and acceptance stageMaturity and competition stageMaturity and competition stageMarket saturation stageMarket saturation stageProduct decline stageProduct decline stage
ighCosts
8rofits8eak
Sales8eak
Sales ?8rofits@all
ighCosts
SalesClimb
8rofits8eak
Sales8eak
ighCosts
SalesClimb
8rofits8eak
Sales8eak
5hannels of Distri+ution5hannels of Distri+ution
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5hannels of Distri+ution5hannels of Distri+ution5onsumer Goods5onsumer Goods
Manufacturer
Manufactur
er
Consumer
Retailer Consumer
Manufacturer
Retailer
ConsumerWholesale
rWholesale
r
Manufacturer
Retailer
ConsumerWholesale
r
5hannels of Distri+ution5hannels of Distri+ution
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5hannels of Distri+ution5hannels of Distri+utionIndustrial GoodsIndustrial Goods
Manufacturer Industrial User
Manufacturer
Wholesaler
Industrial User
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