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We teach new dogs old tricks.

Marketing on a

Shoestring Budget

AKRON SCORE®

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MARKETING

The right product, in the right place,

at the right time, at the right price

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MARKETING

The right product, in the right place, at

the right time, at the right price

The 4 P’s:

Product (or Service)

Price

Place

Promotion

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MARKET RESEARCH

Customer Surveys Focus Groups Need to know:

• Universe Gender/Age Education Level• Industry Job Function Income Level• How they spend • Attitudes/Preferences for today’s choices• Attitudes/Preferences for OUR choice

UNDERSTAND YOUR CUSTOMERS

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MARKET RESEARCH

• Public Libraries• Universities – Professors, Interns• Business Groups• Trade Associations • Non-profit Groups

• Surveys • Find someone else in the same business • Focus Groups• Establish & Manage An Advisory Board

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MARKET RESEARCH

MARKET ANALYSIS TOOLS

Quantitative Analysis – e.g. Regression Analysis

Qualitative Analysis – e.g. Surveys of Attitudes & Preferences

Market Segmentation – Target Market

Branding & Identity

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MARKET SEGMENTATION

Analyze competitors’ strengths/weaknesses/prices Identify and enter market niches Create a consistent psychological perception of your

Value Proposition Review costs and expected profits Build more competitive advantages - Real Value Avoid low price strategy – No Loyalty Target best customers

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MARKET SEGMENTATIONCOMPETITIVE MATRIX

Competitors A B C YOUProducts & servicesFeaturesSales approachPricingImageLocationSizeMarket shareYrs in businessOwnershipFinancial strengthImportance of businessAdvertising & promotionDistributionCustomer profileMfg process & costPatents & copyrights

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MARKETING STRATEGY

Build a distinct comparative advantage Regularly review, update and modify your marketing Visualize your business in 3 – 5 years Share your vision with all your stakeholders Listen to your core customers – remove any obstacles Offer more Use all distribution channels Small personalized efforts are more important than big gimmicks

- builds customer loyalty Create high switching costs

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MARKET STRATEGYPROMOTION

BRANDING• Powerful brand is key

• Complex – involves customer total experience

• Taps emotions and appeals to a person’s natural

need for involvement

• Ask customers what they need from you the most

• Vital today – “good” or “quality” is not enough

• Look beyond today’s fads

• Keep it simple to avoid confusion

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MARKET STRATEGYPROMOTION

BRANDING• Color: Nexium (purple pill), Yellow Pages, Brown (UPS)

• Shape: Coke bottle, Goodyear winged foot, Nike Swoosh

• Customer’s dominant perception of a company:o What you doo How you do ito What you sayo How you say ito How you looko The quality/value of your product or service

• Create a market; don’t share one

• Do it for your vendors

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MARKET STRATEGYPROMOTION

IDENTITY – Little to No Cost• Logo, business cards, signage• Professional stationery• Company & Product brochures• Public Relations• Prospect Data Base / Direct Mail Programs• Networking groups & customer referrals• Local community newspapers• Local chamber of commerce• Direct Mail programs• Advertising

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MARKET STRATEGYPROMOTION

FOCUS MARKETING PROGRAMS …Toward Best Prospects

The challenge of advertising -

AIDAAwareness Interest Desire Action

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MARKET STRATEGYPROMOTION

Newspapers, magazines, directories, on-line search engine ads, Web site banners, radio spots, TV, billboards, fliers, direct mail, and more

Grass Roots Advertising:

Advertising is expensive:

Community ParticipationArticles in local weekly newspapersSponsor events in local community (little league)Speakers BureauOutreach ActivitiesJoin Networking Groups

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MARKET STRATEGY PROMOTION

Sell existing products to new customers first

Train employees to stress advantages

Develop customer referral system

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MARKETINGPRICE

For a 10% price reduction how many new customers do you need to maintain your gross profit dollars?

– If gross profit is 30% - 50% new customers or volume

– If gross profit is 50% - 25% new customers or volume

Price Reduction Impact – Know your Costs!

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2% Price Increase

Sales $20,000 $20,400

Less Cost of Product Sold 12,000 12,000

Gross Profit 8,000 8,400

Less Operating Expenses 7,600 7,600

Net Income before Taxes 400 800

PROFITS DOUBLE

MARKETINGPRICE

Pricing Increase Impact

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MARKETING

Evaluate Your Expectations

Internet

PLACE - CHANNELS

1. Internet & e-commerce

o Customer’s view of Web Site usability is vitalo E-Z to maneuver, Contact Us a click awayo Layer infoo Bulk e-mail marketingo E-commerce, keep forms simple and bite-sizeo Photos and graphics must be compellingo Test your site with different browserso Test download timeo Checkout fast and simpleo Plan on Technology and Design Maintenance

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MARKETING

Owners and Employees Must ---

PLACE -- SELLING

o Every staff member is a salesperson!

o Ask customers about needs, desires, and expectations

o Become a valued resource by good listening

o Train all to smile and what to say

o Follow-up after the sale!

o Send reminders

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Thank You for Attending

ALL OF US AT SCORE

WISH YOU SUCCESS IN YOUR

NEW VENTURE.

Akron SCOREAkron SCOREOne Cascade PlazaOne Cascade PlazaAkron, OH 44308Akron, OH 44308

www.akronscore.orgwww.akronscore.org330-379-3163330-379-3163

877-AKSCORE877-AKSCOREAkronscore81@aol.com

We teach new dogs old tricks.