chapter 9: guerrilla marketing plan copyright ©2012 pearson education, inc. publishing as prentice...

Chapter 9: Guerrilla Marketing PlanChapter 9: Guerrilla Marketing Plan Copyright Copyright ©©2012 Pearson Education, Inc. publishing as Prentice Hall2012 Pearson Education, Inc. publishing as Prentice Hall 9-9-11

Building a Guerrilla

Marketing Plan


MarketingMarketing

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

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

wants before competitors canwants before competitors can Offer them products and services to satisfy those Offer them products and services to satisfy those

needs, demands, and wantsneeds, demands, and wants Provide customers with quality, service, convenience, Provide customers with quality, service, convenience,

and value so they will keep coming backand value so they will keep coming back


A Guerrilla Marketing A Guerrilla Marketing PlanPlan

Unconventional, low-cost, creative Unconventional, low-cost, creative techniques that allow a company to techniques that allow a company to wring a big “bang” from its marketing wring a big “bang” from its marketing bucks bucks

Example: Jones SodaExample: Jones Sodahttp://www.jonessoda.com/

http://www.jonessoda.com/


Four Objectives of a Four Objectives of a Guerrilla Marketing Guerrilla Marketing PlanPlan Pinpoint the target markets a company Pinpoint the target markets a company

will servewill serve Determine customer needs, wants, and Determine customer needs, wants, and

characteristics through market researchcharacteristics through market research Analyze a company’s competitive Analyze a company’s competitive

advantages and build a marketing advantages and build a marketing strategy around themstrategy around them

Create a marketing mix that meets Create a marketing mix that meets customer needs and wantscustomer needs and wants


Pinpointing the Target Pinpointing the Target MarketMarket First step: Identify the company's First step: Identify the company's

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

An effective marketing program An effective marketing program depends on a clear, concise depends on a clear, concise definition of the firm's targeted definition of the firm's targeted customers, customers, notnot a “one-size-fits-all a “one-size-fits-all approach”approach”


Pinpointing the Target Pinpointing the Target MarketMarket Key: Understanding target Key: Understanding target

customers’ unique needs, wants, customers’ unique needs, wants, and preferences and preferences

Opportunity: Increasing Opportunity: Increasing populations of multicultural populations of multicultural customerscustomers

Target customer must permeate Target customer must permeate the entire businessthe entire business


Market ResearchMarket ResearchMarket research - the vehicle for gathering Market research - the vehicle for gathering

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

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


Collect the DataCollect the Data Individualized (one-to-one) Individualized (one-to-one)

marketingmarketing – a system of gathering – a system of gathering data on individual customers and data on individual customers and then developing a marketing plan then developing a marketing plan designed specifically to appeal to designed specifically to appeal to their needs, tastes, and their needs, tastes, and preferences preferences

How to Become an Effective One-to-One How to Become an Effective One-to-One MarketerMarketer

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.

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

Chapter 9: Guerilla Marketing Plan 9-9


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!

Collect the Data - Collect the Data - continuedcontinued


Data MiningData Mining A process in which computer software A process in which computer software

that uses statistical analysis, database that uses statistical analysis, database technology, and artificial intelligence technology, and artificial intelligence finds hidden patterns, trends, and finds hidden patterns, trends, and connections in data so business owners connections in data so business owners can make better marketing decisions can make better marketing decisions and predictions about customers’ and predictions about customers’ behaviorbehavior

Example: Ritz-CarltonExample: Ritz-Carlton


Market ResearchMarket Research

Analyze and interpret the dataAnalyze and interpret the data Put the information to workPut 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


Relationship MarketingRelationship Marketing Involves developing, maintaining, and Involves developing, maintaining, and

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

Steps:Steps: Build database of customer informationBuild database of customer information Identify best and most profitable customersIdentify best and most profitable customers Develop lasting relationships with these Develop lasting relationships with these

customerscustomers Attract more customers like themAttract more customers like them


Guerrilla Marketing Guerrilla Marketing PrinciplesPrinciples Find a niche and fill it Find a niche and fill it Use the power of publicityUse the power of publicity Don’t just sell; entertain – Don’t just sell; entertain –

“entertailing” “entertailing” Connect with customers on an Connect with customers on an

emotional levelemotional level Build a consistent branding Build a consistent branding

strategy strategy Embrace social networkingEmbrace social networking


Acquiring Customers via Social Acquiring Customers via Social MediaMedia

Source: The State of Inbound Marketing, 2010, HubSpot.


Embrace Social Embrace Social NetworkingNetworking

Companies that are highly engaged in Companies that are highly engaged in social media significantly outperform in social media significantly outperform in both revenues and profits those companies both revenues and profits those companies that are less engagedthat are less engaged

Companies that use Twitter generate 2x as Companies that use Twitter generate 2x as many sales leads as companies that do not many sales leads as companies that do not

But, only 24% of small businesses use But, only 24% of small businesses use social media to attract new customers or social media to attract new customers or connect with existing onesconnect with existing ones


Guerrilla Marketing Guerrilla Marketing PrinciplesPrinciples Start a blog Start a blog Create online videosCreate online videos


Small Business and Social Media Small Business and Social Media UsageUsage

Source: Constant Contact Small Business Attitudes Outlook Survey, June 18, 2009.


Create Online Create Online VideosVideos

Internet users watch 31 billion videos Internet users watch 31 billion videos online each month!online each month! Think “edutainment”Think “edutainment” Be funnyBe funny Post videos on multiple social media Post videos on multiple social media

sitessites Focus on a point of differentiationFocus on a point of differentiation Keep it shortKeep it short


Guerrilla Marketing Guerrilla Marketing Principles (continued)Principles (continued)

Focus on the CustomerFocus on the Customer American companies lose $83 American companies lose $83

billion in sales each year because billion in sales each year because of poor customer serviceof poor customer service

For every complaint a company For every complaint a company receives, 17 other complaints exist, receives, 17 other complaints exist, but the company never hears but the company never hears about themabout them


Focus on the Customer Focus on the Customer (continued)(continued)

71% will 71% will notnot buy from that business buy from that business againagain

31% will tell others about their 31% will tell others about their negative experiencenegative experience

Negative word of mouth has Negative word of mouth has exponential power – many people exponential power – many people avoid a store just because of avoid a store just because of someone else’s negative experience someone else’s negative experience with itwith it


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

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

Replacing lost customers is expensive; Replacing lost customers is expensive; it costs it costs 7 to 9 times7 to 9 times as much to attract as much to attract a new customer as it does to sell to an a new customer as it does to sell to an existing one!existing one!


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

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

Retain Existing Customers Retain Existing Customers (continued)(continued)


Devotion to QualityDevotion to Quality World-class companies treat quality as World-class companies treat quality as

a strategic objective, an integral part of a strategic objective, an integral part of the company culturethe company culture

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

The Quality DMAIC The Quality DMAIC ProcessProcess

Incr

eas e

d R

etu

rn o

n Q

ual

ity

Inve

stm

ent

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.

Copyright ©2012 Pearson Education, Inc. publishing as Prentice HallChapter 9: Guerilla Marketing Plan 9-25


Quality GuidelinesQuality Guidelines

Build quality into the process; don’t rely Build quality into the process; don’t rely on inspection to obtain qualityon inspection to obtain quality

Emphasize simplicity in designEmphasize simplicity in design Foster teamworkFoster teamwork Establish long-term ties with select Establish long-term ties with select

supplierssuppliers Provide managers and employees with Provide managers and employees with

the training needed to produce qualitythe training needed to produce quality Empower workers at all levels of the Empower workers at all levels of the

organization organization


Quality GuidelinesQuality Guidelines Get managers’ commitment to the Get managers’ commitment to the

quality philosophyquality philosophy Rethink the processes the company Rethink the processes the company

uses now. Is there a better way?uses now. Is there a better way? Reward employees for quality work Reward employees for quality work Develop a company-wide strategy Develop a company-wide strategy

for continuous improvement of for continuous improvement of product and service quality product and service quality

(Continued)


Guerrilla Marketing Guerrilla Marketing Principles (continued)Principles (continued)

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


Is your business conveniently located Is your business conveniently located near customers?near customers?

Are your business hours suitable to your Are your business hours suitable to your customers?customers?

Would customers appreciate pickup and Would customers appreciate pickup and delivery services?delivery services?

Does your company make it easy for Does your company make it easy for customers to buy on credit or with customers to buy on credit or with credit cards?credit cards?

Attention to Attention to ConvenienceConvenience


Attention to Attention to ConvenienceConvenience Are you using technology to enhance Are you using technology to enhance

customer convenience?customer convenience? Are your employees trained to handle Are your employees trained to handle

business transactions quickly, business transactions quickly, efficiently, and politely?efficiently, and politely?

Do your employees use common Do your employees use common courtesy when dealing with customers?courtesy when dealing with customers?


Attention to Attention to ConvenienceConvenience Does your company offer “extras” to Does your company offer “extras” to

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

make them more convenient for make them more convenient for customers? customers?

Does your company handle telephone Does your company handle telephone calls well?calls well?


Concentration on Concentration on InnovationInnovation Innovation - the key to future Innovation - the key to future

successsuccess Innovation - one of the greatest Innovation - one of the greatest

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


Concentration on Concentration on InnovationInnovation Product Development and Product Development and

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


Stimulating InnovationStimulating Innovation Make innovation a priority in the company Make innovation a priority in the company Measure the company’s innovative abilityMeasure the company’s innovative ability Set goals and objectives for innovationSet goals and objectives for innovation Encourage new product or service ideas Encourage new product or service ideas

among employeesamong employees Listen to customers Listen to customers Always be on the lookout for new product Always be on the lookout for new product

and service ideasand service ideas Keep a steady stream of new products and Keep a steady stream of new products and

services coming services coming


Guerrilla Marketing Guerrilla Marketing PrinciplesPrinciples

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

customer satisfactioncustomer satisfaction


GoalGoal: to achieve : to achieve customer customer astonishmentastonishment!!

How can you improve your service?How can you improve your service? Listen to customersListen to customers Define “superior service”Define “superior service” Set standards and measure Set standards and measure

performanceperformance Examine your company’s service cycleExamine your company’s service cycle Hire the right employeesHire the right employees

Dedication to Dedication to ServiceService


Dedication to Dedication to ServiceService Train employees to deliver superior Train employees to deliver superior

serviceservice Empower employees to offer superior Empower employees to offer superior

serviceservice Use technology to provide improved Use technology to provide improved

serviceservice Reward superior serviceReward superior service Get top managers' supportGet top managers' support Give customers an unexpected surpriseGive customers an unexpected surprise


Guerrilla Marketing Guerrilla Marketing PrinciplesPrinciples

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 Emphasis on SpeedSpeedThree aspects of TCM - Time Three aspects of TCM - Time

Compression Management:Compression Management:1. Speeding new products to market1. Speeding new products to market2. Shortening customer response time in 2. Shortening customer response time in

manufacturing and delivery manufacturing and delivery3. Reducing the administrative time 3. Reducing the administrative time

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


Re-engineer the process rather than try to do Re-engineer the process rather than try to do the same things - only fasterthe same things - only faster

Study every phase of the business process, Study every phase of the business process, looking for ways to shorten itlooking for ways to shorten it

Create cross-functional teams of workers and Create cross-functional teams of workers and empower them to attack and solve problemsempower them to attack and solve problems

Share information and ideas across the Share information and ideas across the companycompany

Set aggressive goals for production and stick Set aggressive goals for production and stick to the scheduleto the schedule

Instill speed in the company cultureInstill speed in the company culture Use technology to find shortcuts wherever Use technology to find shortcuts wherever

possiblepossible

Emphasis on Emphasis on SpeedSpeed

The Marketing The Marketing MixMix

PProductroduct

PPlacelace

PPricerice

PPromotionromotion


Stages in the Product Life Stages in the Product Life CycleCycle

Introductory stageIntroductory stage

HighCosts



Introductory stageIntroductory stage Growth and acceptance stageGrowth and acceptance stage

HighCosts

HighCosts

HighCosts

SalesClimb



Introductory stageIntroductory stage Growth and acceptance stageGrowth and acceptance stage Maturity and competition stageMaturity and competition stage

HighCosts

SalesClimb

ProfitsPeak

HighCosts

SalesClimb

ProfitsPeak



Introductory stageIntroductory stage Growth and acceptance stageGrowth and acceptance stage Maturity and competition stageMaturity and competition stage Market saturation stageMarket saturation stage

HighCosts

SalesClimb

ProfitsPeak

SalesPeak

HighCosts

SalesClimb

ProfitsPeak

SalesPeak



Introductory stageIntroductory stage Growth and acceptance stageGrowth and acceptance stage Maturity and competition stageMaturity and competition stage Market saturation stageMarket saturation stage Product decline stageProduct decline stage

HighCosts

HighCosts

ProfitsPeak

ProfitsPeak

SalesPeak

SalesPeak

Sales &ProfitsFall

Sales &ProfitsFall

HighCosts

SalesClimb

ProfitsPeak

SalesPeak

HighCosts

SalesClimb

ProfitsPeak

SalesPeak

Copyright ©2012 Pearson Education, Inc. publishing as Prentice HallChapter 9: Guerilla Marketing Plan

9-46

Channels of DistributionChannels of DistributionConsumer GoodsConsumer Goods

Manufacturer

Manufacturer

Consumer

Retailer

Consumer

Manufacturer

Retailer

ConsumerWholesale

rWholesale

r

Manufacturer

Retailer

ConsumerWholesale

r

Copyright ©2012 Pearson Education, Inc. publishing as Prentice HallChapter 9: Guerilla Marketing Plan

9-47

Channels of DistributionChannels of DistributionIndustrial GoodsIndustrial Goods

Manufacturer Industrial User

Manufacturer

Wholesaler

Industrial User



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Copyright ©2012 Pearson Education, Copyright ©2012 Pearson Education, Inc. Publishing as Prentice HallInc. Publishing as Prentice Hall

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