building a guerrilla marketing plan copyright ©2009 pearson education, inc. publishing as prentice...

Building a Guerrilla Marketing Plan

Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1

CONTENTSComponents of a guerrilla marketing plan

How small companies can pinpoint their target

market

Market research

Guerrilla marketing strategies

Online marketing

The marketing mix Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 2

Components of a guerrilla marketing plan3 vital resources:•People•Information•Technology 4 objectives: •Pinpoint the target market•Understand the target market •Build marketing strategies•Create marketing mix

3

MarketingThe process of creating and delivering desired

goods and services to customers and involves all of the activities associated with winning and retaining loyal customers

“Secrets” Understand target customers’ needs, demands, and

wants before competitors canOffer them products and services to satisfy those

needs, demands, and wantsProvide customers with quality, service, convenience,

and value so they will keep coming back


A Winning Marketing StrategyThree vital resources:

People - the most important ingredient in a successful marketing strategy

Information - the fuel that feeds the marketing engine; without it, the marketing engine sputters and stops

Technology - a powerful marketing weapon, but what matters most is how a company integrates technology into its overall marketing strategy

A Guerrilla Marketing PlanUnconventional, low-cost, creative

techniques that allow a company to wring a big “bang” from its marketing bucks


Four Objectives of a Guerrilla Marketing PlanPinpoint the target markets a company

will serveDetermine customer needs, wants, and

characteristics through market researchAnalyze a company’s competitive

advantages and build a marketing strategy around them

Create a marketing mix that meets customer needs and wants


Pinpointing the target market

8

Pinpointing the Target MarketFirst step: Identify the company's

target market, the group of customers at whom the company aims its products or services

An effective marketing program depends on a clear, concise definition of the firm's targeted customers, not a “one-size-fits-all approach”


Pinpointing the Target MarketKey: Understanding target

customers’ unique needs, wants, and preferences

Opportunity: Increasing populations of multicultural customers

Target customer must permeate the entire business


Market research

11

Determining customers’ needs and wants

Market ResearchMarket research - the vehicle for

gathering the information that serves as the foundation for the marketing plan

How to Conduct Market Research:Define the objectiveCollect the data


Collect the DataIndividualized (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


Identify your best customers, never passing up the

opportunity to get their names.

Collect information on thesecustomers, linking their

identities to their transactions.

Calculate the long-term valueof customers so you know

which ones are most desirable(and most profitable).

SuccessfulOne-to-OneMarketing

Know what your customers’buying cycle is and time yourmarketing efforts to coincide

with it - “just-in-time marketing.”

Make sure your company’sproduct and service quality

will astonish your customers.

See customer complaints for what they are - a chance to improve your service and

quality. Encourage complaints and then

fix them!

Enhance your products andservices by giving customers

information about them and howto use them.

Source: Adapted from Susan Greco, “The Road to One-to-One Marketing,” Inc., October 1995, pp. 56-66.

Collect the Data - continued


Much valuable information about Much valuable information about customers is already hidden inside customers is already hidden inside companies; the key is mining it!companies; the key is mining it!

Data MiningA 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’ behavior

Example: Henry Singer Fashion Group


Market Research

Analyze and interpret the dataPut the information to work


Market research is the vehicle for Market research is the vehicle for gathering the information that serves gathering the information that serves as the foundation for the marketing as the foundation for the marketing planplan

How to Conduct Market Research:How to Conduct Market Research: Define the objectiveDefine the objective Collect the dataCollect the data

Guerrilla marketing strategies

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FISH principlesGuerrilla marketing principles:•Find niche a fill it•Entertailing •Connect with customers on an emotional level •Build a consistent branding strategy •Start a blog•Use social network •Retain existing customers •Devotion to quality •Attention to convenience •Concentration on innovation•Dedication to service & customer satisfaction •Emphasis on speed

Relationship MarketingInvolves developing, maintaining, and

managing long-term relationships with customers so that they will keep coming back to make repeat purchases

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

customersAttract more customers like them


FISH! Principles1. FISH Principle 1. Choose your attitude2. FISH Principle 2. Play3. FISH Principle 3. Make their day4. FISH Principle 4. Be present


Guerrilla Marketing PrinciplesFind a niche and fill it Don’t just sell; entertain –

“entertailing” Connect with customers on an

emotional levelBuild a consistent branding strategyStrive to be unique


Guerrilla Marketing Principles (continued)

Focus on the CustomerAverage American companies lose about

50% of its customer base every five years94% of dissatisfied customers never

complain about rude or discourteous service, but...


Focus on the Customer (continued)91% will not buy from that business again31% will tell others about their negative

experience48% have avoided a store because of someone

else’s negative experience with it


Focus on the Customer (continued)Customers are 5x more likely to leave

because of poor service than for quality or price

The typical business loses 1/3 of its customers each year

A retention of just 5% more customers would raise profits 25%


Guerrilla Marketing Principles (continued)Retain Existing CustomersBecause 20% of a typical company’s

customers account for about 80% of its sales, no business can afford to alienate its best and most profitable customers and survive!

Replacing lost customers is expensive; it costs 7 to 9 times as much to attract a new customer as it does to sell to an existing one!


Retain Existing Customers (continued)

About 70% of a company’s sales come from existing customers

Allowing shoppers to customize their products has the power to increase customer retention, satisfaction, and profits


How to Focus on the CustomerWhen you create a dissatisfied

customer, fix the problem fast Encourage customer complaints Ask employees for feedback on

improving customer serviceGet total commitment to superior

customer service from top managers - and allocate resources appropriately


How to Focus on the CustomerAllow managers to wait on customers

occasionallyDevelop a service theme that

communicates your attitude toward customers

Reward employees “caught” providing exceptional service to customers

Carefully select and train everyone who will deal with customers


(Continued)


Start a blogUse social networksDevotion to quality


Devotion to QualityWorld-class companies treat quality as

a strategic objective, an integral part of the company culture

Total Quality Management (TQM) - quality not just in the product or service itself, but in every aspect of the business and its relationship with the customer and continuous improvement in the quality delivered to customers


Incr

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ity

Inve

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Define

Define the problem.Define the problem.

Mea

sure

Measure importantMeasure importantoutcomes. outcomes.

Analyze

Use statistical tools Use statistical tools to find causes of qualityto find causes of qualityproblems. problems.

Improve

Make changes toMake changes tothe process and measurethe process and measureimprovements. improvements.

Control

Sustain Sustain quality quality improvements.improvements.

Adapted from: Walter H. Ettinger, MD, “Six Sigma,” Trustee, September 2001. P. 14.

How Do Americans Define “Quality?”

Reliability (average time between breakdowns)

Durability (how long an item lasts)Ease of useKnown or trusted brand nameLow price


Quality

QualityQuality is the degree to which a set of inherent

characteristic fulfills requirements (ISO 9000:2005)



Attention to convenienceAttention to convenience Concentration on InnovationConcentration on Innovation Dedication to Service and Dedication to Service and

Customer SatisfactionCustomer Satisfaction Emphasis on SpeedEmphasis on Speed

Attention to ConvenienceIs your business conveniently located

near customers?Are your business hours suitable to

your customers?Would customers appreciate pickup

and delivery services?Does your company make it easy for

customers to buy on credit or with credit cards?


Attention to ConvenienceAre you using technology to enhance

customer convenience?Are your employees trained to handle

business transactions quickly, efficiently, and politely?

Do your employees use common courtesy when dealing with customers?


Attention to ConvenienceDoes your company offer “extras” to

make customers’ lives easier?Can you adapt existing products to

make them more convenient for customers?

Does your company handle telephone calls well?


Concentration on InnovationInnovation - the key to future successInnovation - one of the greatest

strengths of the entrepreneur, showing up in the new products, techniques, and unusual approaches they introduce


Concentration on InnovationProduct Development and Management

Association Study of top performing companies across 400 industries: New products accounted for 49% of profits, more than twice as much as their less innovative competitors


Stimulating InnovationMake innovation a priority in the company Measure the company’s innovative abilitySet goals and objectives for innovationEncourage new product or service ideas

among employeesListen to customers Always be on the lookout for new product

and service ideasKeep a steady stream of new products and

services coming


Guerrilla Marketing Principles


Attention to convenienceAttention to convenience Concentration on innovationConcentration on innovation Dedication to service and Dedication to service and

customer satisfactioncustomer satisfaction

Dedication to ServiceGoal: to achieve customer astonishment!How can you improve your service?

Listen to customersDefine “superior service”Set standards and measure performanceExamine your company’s service cycleHire the right employees


Dedication to ServiceTrain employees to deliver superior

serviceEmpower employees to offer superior

serviceUse technology to provide improved

serviceReward superior serviceGet top managers' supportGive customers an unexpected surprise


Guerrilla Marketing Principles


Attention to convenienceAttention to convenience Concentration on innovationConcentration on innovation Dedication to service and Dedication to service and

customer satisfactioncustomer satisfaction Emphasis on speedEmphasis on speed

Emphasis on SpeedThree aspects of TCM - Time

Compression Management:1. Speeding new products to market2. Shortening customer response time

in manufacturing and delivery3. Reducing the administrative time

required to fill an orderCompanies using TCM have discovered that manufacturing takes only 5% - 10% of total lead time


Emphasis on SpeedRe-engineer the process rather than try to do

the same things - only fasterStudy every phase of the business process,

looking for ways to shorten itCreate cross-functional teams of workers and

empower them to attack and solve problemsShare information and ideas across the

companySet aggressive goals for production and stick

to the scheduleInstill speed in the company cultureUse technology to find shortcuts wherever

possibleCopyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 45

Marketing on the www

46

Google AdSensePay per click

The Marketing mix

47

Creative Use of Advertising and Promotion


Developing a UniqueSelling Proposition (USP)

USP - A key customer benefit of a product or service that answers the critical question that every customer asks: "What's in it for me?"

Identify your product or service's USP by describing the primary benefit it offers customers and then list other secondary benefits it provides


Developing A UniqueSelling Proposition (USP)

Briefly list a few facts that support your product’s USP

Then focus your ads to stress these top benefits and the facts supporting them!


A Six-Sentence Advertising Strategy

1. What is the purpose of this ad?2. What USP can you offer customers?3. What other key benefits support your

USP?4. At whom are you aiming the ad?5. What response do you want from your

target audience?6. What image do you want to convey in

your ads?


Creating a Promotional Strategy

Publicity - any commercial news covered by the media that boosts sales but for which the small business does not pay

Personal selling - the personal contact between sales personnel and potential customers resulting from sales efforts

Advertising - any sales presentation that is non-personal in nature and is paid for by an identified sponsor


Tips for Stimulating PublicityWrite an article of

interest to customersSponsor an offbeat

event to attract attention

Involve celebrities “on the cheap”

Offer to be interviewed on TV and radio stations

Publish a newsletter Speak to local

organizations

Sponsor a seminarSponsor a seminar

Write news releases Write news releases and fax them to the and fax them to the mediamedia

Serve on community Serve on community and industry boards and industry boards and committeesand committees

Sponsor a community Sponsor a community project or support a project or support a nonprofit nonprofit organizationorganization

Promote a causePromote a causeCopyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Top Salespeople…Are enthusiastic and

alert to opportunities.Are experts in the

products or services they sell and understand how their products and services can help their customers.

Concentrate on select accounts with the greatest sales potential.

Plan thoroughly.Use a direct approach

with their customers.

Work from their Work from their customer’s customer’s perspective. perspective.

Use past success Use past success stories and testimonial. stories and testimonial.

Leave sales material Leave sales material with potential with potential customers.customers.

See themselves as See themselves as problem solvers, not problem solvers, not just vendors. just vendors.

Measure success by Measure success by customer satisfaction customer satisfaction as well as by sales as well as by sales volume. volume.

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Successful Personal Selling Requires a Selling System

1. Prepare 2. Approach 3. Interview 4. Demonstrate, explain, and show5. Validate 6. Negotiate7. Close the sale


Selecting Advertising Media: Key Questions

How large is my firm's trading area?

Who are my customers and what are their characteristics?

Which media are most likely to reach those customers?

What budget limitations do I face?



Which media do my competitors use?

How important are repetition and continuity of my advertising message?

How does each medium compare with others in audience, reach, and frequency?


(Continued)

Comparing MediaAudience – the number of paid

subscribers a particular medium attracts

Reach – the total number of people exposed to an ad at least once in a period of time, usually 4 weeks

Frequency - the average number of times a person is exposed to an ad in that same time period



Which media do my competitors use?How important are repetition and

continuity of my advertising message?How does each medium compare with

others in audience, reach, and frequency?


(Continued)

What does the advertising What does the advertising medium cost?medium cost?

Advertising Media OptionsWord-of-mouth


Word-of-Mouth Advertising

Make your business buzz-worthyPromote your company to “influencers”Make it easy for satisfied customers to

spread the wordUse the Web to amplify your company’s

word-of-mouth advertisingTap into the power of YouTube


Advertising Media OptionsWord-of-mouth

Sponsorships and Sponsorships and Special EventsSpecial Events


Sponsoring Special EventsDon’t count on sponsorships for your entire

advertising campaignFind an event that is appropriate for your

company and its products and services Research the event and the organization

hosting it before agreeing to become a sponsor


Sponsoring Special EventsTry to become the dominant (or, better yet,

the only) sponsor of the event Clarify the costs and the level of participation

required for the sponsorship up frontGet involved in the event


(Continued)

Advertising Media OptionsWord-of-mouth Sponsorships and

Special EventsNewspapers

RadioRadio


Snappy Radio Copy Should...

Mention the business often

Stress benefits to the listener

Use attention-grabbersZero in on a particular

audienceBe simple and to the

pointCopyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 69

Snappy Radio Copy Should...

Sell early and oftenBe written for the earBe rehearsed before

presentationUse positive action

wordsPut the listener in the

pictureFocus on getting a

responseCopyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 70

Advertising Media Options

TelevisionMagazinesSpecialty advertisingPoint-of-purchase ads

Word-of-mouthWord-of-mouth NewspapersNewspapers RadioRadio


Advertising Media OptionsOut-of-home adsTransit advertisingDirect mailWorld Wide Web

Word-of-mouthWord-of-mouth NewspapersNewspapers RadioRadio TelevisionTelevision MagazinesMagazines Specialty Specialty

advertisingadvertising Point-of-purchase Point-of-purchase

adsads Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Advertising on the Web2011: U.S. companies spend $36.5

billion on Web advertising Types of ads:

BannerDisplayPop-upInterstitialContextualPay-per-click


E-Mail AdvertisingPermission e-mail vs. spam

Radicati Group study: 171 billion e-mails sent per day

71 percent of those are spamStick to marketing basics


E-Mail AdvertisingCollect customers’ and potential

customers’ e-mail addressesMake subject line short, meaningful, and

to-the-pointMake the e-mail’s look and feel consistent

with your company’s imageSend e-mails when customers are most

likely to make purchasesWrite copy that produces resultsUse value-added items to increase

response rates


Advertising Media OptionsOut-of-home adsTransit advertisingDirect mailWorld Wide Web

Word-of-mouthWord-of-mouth NewspapersNewspapers RadioRadio TelevisionTelevision MagazinesMagazines Specialty Specialty

advertisingadvertising Point-of-purchase Point-of-purchase

adsads

DirectoriesDirectories Trade showsTrade shows


Preparing an Advertising Budget

What is affordableMatching competitor's advertising

expendituresPercentage of Sales

Past SalesForecasted Sales

Objective-and-Task


How to Advertise "Big"on a Small Budget

Hire freelance copywriters and artistsUse cooperative advertisingParticipate in shared advertisingUse stealth advertising Maximize publicity with techniques such

as cause marketing


How to Advertise "Big"on a Small Budget

Repeat ads that have been successfulUse identical ads in different media Hire independent copywriters, graphic

designers, photographers, and other media specialists

Concentrate advertising when customers are most likely to buy


(Continued)

building a guerrilla marketing plan copyright ©2009 pearson education, inc. publishing as prentice...

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