This fishing lure manufacturer I know had all these flashy green and purple lures. I asked, ‘Do fish take these?’ ‘Charlie,’ he said, ‘I don’t sell these

lures to fish!’…Charles Munger

Pinpoint the specific target markets Determine customer needs and

wants Analyze firm’s competitive

advantage and build marketing strategy around that

Create marketing mix that meets customers’ needs and wants

The process of creating and delivering desired goods and services to customers; involves all of the activities associated with winning and retaining loyal customers.

Guerilla marketing: unconventional, low-cost, creative marketing designed to give small businesses an edge over their larger, richer, more powerful rivals.

Target market: the specific group of customers at whom a company aims to sell its goods and services

Demographic Growth Rate to 2050Asians: 212.9%Hispanic: 187.9%Black: 71.3%White: 7.4%

The vehicle for gathering the information that serves as the foundation for the marketing plan; it involves systematically collecting, analyzing, and interpreting data pertaining to a company’s market, customers, and competitors.

Step 1: Define the ObjectiveStep 2: Collect the DataStep 3: Analyze and Interpret

the DataStep 4: Draw conclusions and

act!

Customer surveys and questionnaires

Focus groups Daily transactions Other ideas

Business directories Direct mail lists Demographic data Census data Forecasts Market research Articles Local data World Wide Web

Read as many current publications as possible

Watch the top 10 TV shows See the top 10 movies Talk to at least 150 customers a year

about what they are buying and why (make that 365)

Talk with 10 of the smartest people you know

Listen to children

Individualized (one-to-one) marketing: a system based on gathering data on individual customers and developing a marketing program designed to appeal specifically to their needs, tastes and preferences

Data Mining: Geographic Demographic psychographic

See Figure 8.2, p. 274

Customer Relationship Customer Relationship ManagementManagement

Connect and Connect and collectcollect

LearnLearn Build Build

relationshipsrelationships Sell, Service, Sell, Service,

DelightDelight Analyze Analyze

4 Levels of Customer 4 Levels of Customer SensitivitySensitivity

Customer Customer AwarenessAwareness

Customer Customer SensitivitySensitivity

Customer Customer AlignmentAlignment

Customer Customer PartnershipPartnership

Guerilla Marketing Guerilla Marketing PrinciplesPrinciples

Find a niche and fill it Find a niche and fill it – guerilla tactics– guerilla tactics Don’t just sell, entertain Don’t just sell, entertain - entertailing- entertailing Strive to be uniqueStrive to be unique Connect on an emotional level Connect on an emotional level - USP- USP Create an identity through brandingCreate an identity through branding Start a blogStart a blog Focus on the customer Focus on the customer - CEM- CEM Devotion to quality Devotion to quality - TQM- TQM Attention to convenienceAttention to convenience Concentration on innovationConcentration on innovation Dedication to service and customer satisfaction Dedication to service and customer satisfaction – –

Customer DelightCustomer Delight Emphasis on Speed Emphasis on Speed - TCM- TCM

Guerilla Marketing Guerilla Marketing TacticsTactics Organize community-Organize community-

oriented projectoriented project Sponsor memorable Sponsor memorable

eventsevents Look out for new nichesLook out for new niches Speak at many occasionsSpeak at many occasions Ask for referralsAsk for referrals Sell at every opportunitySell at every opportunity Develop sales script Develop sales script

(elevator speech)(elevator speech) Offer gift certificatesOffer gift certificates Create samplesCreate samples Offer 100% money-back Offer 100% money-back

guarantyguaranty Create ‘Frequent Buyer’ Create ‘Frequent Buyer’

programprogram Clip articles and send Clip articles and send

reprintsreprints Code coupons on adsCode coupons on ads

Create tip sheetsCreate tip sheets Create an awardCreate an award Conduct a contestConduct a contest Collect testimonialsCollect testimonials Get a journalist to write Get a journalist to write

about youabout you Find unique ways to thank Find unique ways to thank

customerscustomers Show an interest in Show an interest in

customer needscustomer needs Give a freebie occasionallyGive a freebie occasionally Create a newsletterCreate a newsletter Cooperate with other Cooperate with other

businessesbusinesses Use competitor’s coupons Use competitor’s coupons

against themagainst them Market uniquenessMarket uniqueness

Unique Selling Proposition

A unique customer benefit of a product/service that sets it apart from competition; answers the critical question every customer asks: ‘What’s in it for me?’

Intangible or psychological benefit – save them time or money, improve their self-esteem, make their lives better, make them feel better

while at the same time protecting the environment

Hire for attitude, train for skills Train employees to provide excellent customer

service Treat employees the way you want them to treat

customers Empower employees to take care of your

customers “Wow” your customers with service Listen…and learn from your customers Pay attention to the details Instill a service attitude into the company culture Use technology (where appropriate) to improve

customer service

BrandingBranding Antes Features that

are important but all competitors have them

Neutrals Features that

are irrelevant to customers

Drivers Features that

are both important to customers and are highly differentiated

Fool’s GoldFeatures that

are unique but do not drive customer loyalty

RELEVANCE

DIFFERENTIATION

Focus on the Customer

67% stop buying because of poor treatment

96% never complain about poor service 91% will not buy again 100% of unhappy customers will tell 9

others 13% of unhappy customers will tell 20

others

Principles of Customer Experience Management

Intimate understanding of each customer’s needs and wants

Personal, customized messages in marketing, sales, service, and advertising

Consistent, courteous, and professional treatment by everyone in the company

Responsive, rapid handling of requests, questions, problems and complaints

Helpful information and advice delivered proactively, where appropriate

Involvement of caring, well-trained people rather than strict reliance on technology for service delivery

Long-term view of the company/customer relationship rather than on ‘making a sale’

Emphasis on sustaining an ongoing relationship built on trust and respect

Frequent and visible demonstrations of commitment to nurturing the company/customer relationship

Strategies for Developing and Retaining Customers Identify best customers and make them return When you have a dissatisfied customer, fix the problem fast Make sure your systems make it easy to buy from you Encourage customer complaints Contact lost customers-find out why they left Ask employees for feedback Get total commitment from employees Allow managers to wait on customers Carefully select and train everyone Develop a service theme that communicates your attitude Reward employees ‘caught’ providing excellent service Call customers by name

Remember: the customer pays the bills. Special treatment wins customers and keeps them coming back.

Total Quality Management

Build quality into processes Foster teamwork Establish long-term ties with suppliers Train mangers and employees Empower workers at all levels Get managers to commit to total quality Rethink processes Be willing to make changes Reward employees for quality work Develop company-wide strategy for continuous

improvement

ConvenienceConvenience Is your business located near your customers?Is your business located near your customers? Are your business hours suitable to them?Are your business hours suitable to them? Would customers appreciate pickup and Would customers appreciate pickup and

delivery service?delivery service? Is it easy to pay with credit cards?Is it easy to pay with credit cards? Are you handling transactions quickly, Are you handling transactions quickly,

efficiently and politely?efficiently and politely? Do you offer extras to make their lives easier?Do you offer extras to make their lives easier? Can you bundle services to make it easier?Can you bundle services to make it easier? Can you adapt products to make them Can you adapt products to make them

convenient? convenient? Do you handle telephone calls quickly and Do you handle telephone calls quickly and

efficiently?efficiently?

Customer Service-Delight Customer Service-Delight ThemThem

Listen to customersListen to customers Define superior serviceDefine superior service Set standards and measure performanceSet standards and measure performance Examine your company’s service cycleExamine your company’s service cycle Hire the right employeesHire the right employees Train the employees Train the employees Empower the employees Empower the employees Treat employees as you would customersTreat employees as you would customers Use technologyUse technology Reward superior serviceReward superior service Get top manager’s supportGet top manager’s support View customer service as an investmentView customer service as an investment

Time Compression Management

Speeding new products to market

Shortening customer response time in manufacturing and delivery

Reducing the administrative time to fill an order

The Marketing MixThe Marketing Mix

PP roductroduct lacelace ricerice romotionromotion

Product Life CycleProduct Life Cycle

PlacePlace

PromotionPromotionmarketingmarketing

sales

Sales Forecasting Now that you have described your products,

services, customers, markets, and marketing plans in detail, it’s time to attach some numbers to your plan. Use a sales forecast spreadsheet to prepare a month-by-month projection. The forecast should be based on your historical sales, the marketing strategies that you have just described, your market research, and industry data, if available.

You may want to do two forecasts: 1) a "best guess", which is what you really expect, and 2) a "worst case" low estimate that you are confident you can reach no matter what happens.

Remember to keep notes on your research and your assumptions as you build this sales forecast and all subsequent spreadsheets in the plan. This is critical if you are going to present it to funding sources.

Sales Forecast (12 Months)

Enter your Company Name here

Fiscal Year Begins Jun-05

  Jun-05 Jul-05 Aug-05 Sep-05 Oct-05

Cat 1 units sold          

Sale price @ unit          

Cat 1 TOTAL 0 0 0 0 0

 

Cat 2 units sold          

Sale price @ unit          

Cat 2 TOTAL 0 0 0 0 0

 

Cat 3 units sold          

Sale price @ unit          

Cat 3 TOTAL 0 0 0 0 0

I.Marketing PlanMarket research - Why? How?.

EconomicsProduct

CustomersCompetition

NicheStrategy

PromotionPromotional Budget

PricingSales Forecast

Marketing Expense Budget