Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 9-1.

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 9-2

Chapter 9

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.

1. What is the goal of your marketing efforts?2. What target market are you trying to reach with your

message?3. What do you offer that is unique?4. What is the specific need that the market? Specifically how

are you addressing that need?5. How does your business stand out from the competitors?

What are you known for?6. What are the strategies and specific steps you will use to

implement your marketing plan?7. What budget will you need to sell and promote your

business?

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Marketing: the process of creating and delivering desired goods and services to customers and involves all of the activities associated with winning and retaining loyal customers

Bootstrap marketing strategies: unconventional, low-cost, creative techniquesMaximize “bang” from marketing bucksAlso known as guerilla marketing

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A bootstrap marketing plan should:1. Pinpoint the target markets the small company will

serve2. Determine customers needs, wants, and

characteristics through market researchFind the “pain points” in the market

3. Analyze a company’s competitive advantages and build a marketing strategy around them

4. Help create a marketing mix that meets customer needs and wants

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First step in building a marketing plan: Identify the company's target market: the group of

customers at whom the company aims its products or servicesAn effective marketing program depends on a

clear, concise definition of the firm's targeted customers, not a “one-size-fits-all approach”

Technology is replacing the power of mass marketingUse the long tail of marketing

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The Long Tail of Marketing


Three driving forces when marketing to niches in the long tail:1. Tools of production2. Internet aggregators3. Filtering software connects supply and

demand

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Market research: the vehicle for gathering the information that serves as the foundation for the marketing planSpot important demographic, social, and

cultural trends and adjust strategies to fitDo research before investing in a

business!

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Individualized (one-to-one) marketing: a system of gathering data on individual customers and then developing a marketing plan designed specifically to appeal to their needs, tastes, and preferences Primary researchSecondary research

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Primary research techniques: Customer surveys and questionnairesSocial mediaFocus groupsDaily transactionsOther ideas

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Data mining: process in which computer software that uses statistical analysis, database technology, and artificial intelligence finds hidden patterns, trends, and connections in data so business owners can make better marketing decisions and predictions about customers’ behaviorThree types of information:1.Geographic2.Demographic3.Psychographic

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How to Become an Effective One-to-One Marketer


Relationship marketing (or customer relationship marketing): developing, maintaining, and managing long-term relationships with customers so that they will keep coming back to make repeat purchasesSteps:

Build database of customer informationIdentify best and most profitable customersDevelop lasting relationships with these

customersAttract more customers like them

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Use the following principles to build a competitive edge:Find a niche and fill itRetain existing customers

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The High (Annual) Cost of Lost Customers


Use the following principles to build a competitive edge:Find a niche and fill itRetain existing customersConcentration on innovation

Make innovation a strategic prioritySet goals and objectives for innovationEncourage new product and service ideas Always be on the lookout for new ideasKeep a steady stream of new products and

services flowing

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Testing the Viability of New Product Ideas


Product PlacePricePromotion

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ProductProducts travel through various stages of

developmentProduct life cycle: measures the stages of

growthIntroductoryGrowth and acceptanceMaturity and competitionMarket saturationProduct decline

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The Product Life Cycle


Enhance their product offering through:Focus on the customerDedication to service and customer satisfaction

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Dedication to service and customer satisfactionHire the right employeesTrain employees to deliver superior customer

serviceListen to the customerDefine superior serviceSet standards and measure performanceExamine your company’s service cycleEmpower employees to offer superior serviceUse technology to provide improved serviceEnsure top management’s supportGive customers an unexpected surprise

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Enhance their product offering through:Focus on the customerDedication to service and customer satisfactionDevotion to quality

Total quality management: quality in every aspect of the business and its relationship with the customer and in continuous improvement in the quality delivered to customers Define, measure, analyze, improve, and control (DMAIC)

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The Quality DMAIC Process


Enhance their product offering through:Focus on the customerDedication to service and customer satisfactionDevotion to qualityAttention to convenience

Easy to do business with (ETDBW) indexEmphasis on speed

Time compression management:1. Speeding new products to market2. Shortening customer response time 3. Reducing administrative time

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PromotionUse the power of publicity

Publicity: any commercial news covered by the media that boosts sales bit for which a small company does not payDon’t just sell – entertain

Entertailing Connect with customers on an emotional levelBuild a consistent branding strategy

Embrace social mediaFacebook and Twitter

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Percentage of Companies That Have Acquired At Least One Customer From Social Networking Sites or a Blog


PromotionUse the power of publicity

Publicity: any commercial news covered by the media that boosts sales bit for which a small company does not payDon’t just sell – entertain

Entertailing Connect with customers on an emotional levelBuild a consistent branding strategy

Embrace social mediaFacebook and TwitterBloggingOnline videos

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Online videosTo market successfully on YouTube, companies

should:Develop a well-defined channelUse the right key wordsThink “edutainment”Be funnyPost videos on multiple social media sitesUse other social media tools to promote new

videos

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Percentage of Small Business Owners Who Sat They…


PriceThe right price for a product or service depends on:

1. A small company’s cost structure,2. An assessment of what the market will bear3. The desired image the company wants to create

in its customers’ minds.Non-price competition can be more effective for

many small companies

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PlaceFour common channels of distribution for consumer

goods:1. Manufacturer to consumer2. Manufacturer to retailer to consumer3. Manufacturer to wholesaler to retailer to

consumer4. Manufacturer to wholesaler to wholesaler to

retailer to consumer

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Two common channels of distribution for industrial goods:1. Manufacturer to industrial user2. Manufacturer to wholesaler to industrial user

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Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 9-1.

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