copyright © 2014 pearson education, inc. publishing as prentice hall ch. 8: building a powerful...


Building a Guerrilla Marketing Plan

Marketing The process of creating and delivering desired

goods and services to customers. Involves all of the activities associated with

winning and retaining loyal customers. A solid business plan needs to contain both a

financial plan and a marketing plan.


Building a Guerrilla Marketing Plan

Guerrilla marketing strategies:►Are unconventional, low-cost, and

creative marketing techniques that allow a small company to realize a greater return from its marketing investment than do larger rivals.

►Do not require large amounts of money to be effective – just creativity.


A Guerrilla Marketing Plan

1. Pinpoints the specific target markets the company will serve.

2. Determines customer needs and wants through market research.

3. Analyzes a firm’s competitive advantages and creates a marketing strategy to build a competitive edge.

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


Pinpointing the Target Market

One objective of market research: Pinpoint the company's target market, the specific group of customers at whom the company aims its products or services.

Marketing strategy must be built on a clear definition of a company’s target customers.

Example: Hot Mama


Pinpointing the Target Market

Target customer must permeate the entire business – merchandise sold, background music, layout, décor, and other features.

Without a clear image of its target market, a small company tries to reach almost everyone and ends up appealing to few.


Market Research Determining customer needs.

Demographics Market research is the vehicle for gathering the

information that serves as the foundation for the marketing plan. Never assume that a market exists for your

company’s product or service; prove it! Market research does not have to be time

consuming, complex, or expensive to be useful. Web-based market research – online surveys Trend-tracking


Tracking Trends

Read many diverse current publications Watch the top 10 TV shows See the top 10 movies Talk to at least 150 customers a year Talk with the 10 smartest people you know Listen to your children and their friends


Market Research

How to Conduct Market Research:

1. Define the objective.

2. Collect the data. Individualized (one-to-one) marketing

Primary researchSecondary research


Market Research

How to Conduct Market Research:

1. Define the problem.

2. Collect the data. Individualized (one-to-one) marketing Data mining

3. Analyze and interpret the data.

4. Draw conclusions and act.

(continued)


Relationship Marketing(Customer Relationship Management)

Involves developing and maintaining long-term relationships with customers so that they will keep coming back to make repeat purchases.

In addition to the text


Relationship Marketing(Customer Relationship Management)

Steps: Collect meaningful customer information and

compile it in a database. Mine the database to identify “best” customers. Use the information to develop lasting

relationships with “best” customers. Attract more customers who fit the “best”

customer profile.



The Relationship Marketing Process

Conduct detailed customer Conduct detailed customer intelligence to pinpoint most valuable intelligence to pinpoint most valuable customers and to learn all you can customers and to learn all you can about them, including their lifetime about them, including their lifetime value (LTV) to the company.value (LTV) to the company.

AnalyzeAnalyze

BuildBuildRelationshipsRelationships

Based on what you have Based on what you have learned, contact learned, contact customers with an offer customers with an offer designed for them. designed for them. Make customers feel Make customers feel special and valued. special and valued.

LearnLearn

Learn from your customers by Learn from your customers by encouraging feedback from them; encouraging feedback from them; develop a thorough customer profile and develop a thorough customer profile and constantly refine it. constantly refine it.

Connect Connect &&

CollectCollect

Make contact with most valuable Make contact with most valuable customers and begin building a customers and begin building a customer database using data mining customer database using data mining and data warehousing techniques. and data warehousing techniques.

If you have done If you have done everything else everything else correctly, this step is correctly, this step is relatively easy. Superb relatively easy. Superb customer service is thecustomer service is thebest way to retain best way to retain your most valuable your most valuable customers.customers.

Sell, Sell, Service, Service, & Satisfy& Satisfy



Steps in CRM

Collect meaningful information on existing customers and compile it in a database.

Mine the database to identify the company’s best and most profitable customers and their buying habits.

Use the information to establish lasting relationships with these customers.

Attract more customers who fit the profile of the company’s best customers.



Four Levels of Customer Sensitivity

Level 1: Customer Awareness

Level 2: Customer Sensitivity

Level 3: Customer Alignment

Level 4: Customer Partnership



Guerrilla Marketing Principles

Find a niche and fill it.

Use the power of publicity

Don’t just sell; entertain!

“Entertailing”

Strive to be unique.



Connect with customers on an emotional level.

Build trust

Define a unique selling proposition (USP)

(continued)


Unique Selling Proposition

A key customer benefit of a product or service that sets it apart from its competition.

Answers key customer question: “What’s in it for me?”

Consider intangible or psychological benefits as well as tangible ones.

Communicate your USP to your

customers often.

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Branding and a USP

Ch. 8: Building a Powerful Marketing Plan 8 - 19


Create an identity for your business through branding.

Guerrilla Marketing Principles(continued)


Building a BrandHighHigh

LowLow

LowLow HighHighDifferentiationDifferentiation

Rel

evan

ceR

elev

ance

““Antes”Antes”Features that are important Features that are important to customers but all to customers but all competitors provide themcompetitors provide them

Every company in the Every company in the market must “ante up” on market must “ante up” on these features.these features.

““Drivers”Drivers”Features that are both Features that are both important to customers and are important to customers and are highly differentiated from those highly differentiated from those of competitorsof competitors

These are the attributes on These are the attributes on which a company must focus to which a company must focus to build its brand.1build its brand.1

““Fool’s Gold”Fool’s Gold”Features that are unique to Features that are unique to your company but do not drive your company but do not drive customers’ loyalty to your customers’ loyalty to your product and servicesproduct and services

Don’t make the mistake of Don’t make the mistake of trying to build a brand on trying to build a brand on these features!these features!

““Neutrals”Neutrals”Features that are irrelevant to Features that are irrelevant to customerscustomers

These features are useless These features are useless when it comes to branding.when it comes to branding.

Source: Adapted from “What Really Matters in Building a Brand,” The McKinsey Quarterly, May 2004, www.mckinseyquarterly.com/newsletters/chartfocus/2004_05.htm





Embrace social marketing.

(continued)


Social Media Used as Marketing Tools



Social networks sites, such as Facebook, LinkedIn, and Twitter, allow entrepreneurs to connect with potential and existing customers at little or no cost.

44% of entrepreneurs use social media to connect with existing and potential customers.

Embrace Social Marketing


Benefits of Social Media Marketing





Embrace social networking. Start a blog.

(continued)


Nearly 134 million people in the U.S. read blogs and 39% of companies use blogs as part of their marketing strategies. Economical and effective online

communication. Blog Guidelines:

► Be honest, balanced, and interesting.► Post blog entries consistently so that

readers have a reason to return.► Ask customers for feedback.

Blogging


►Strive to cultivate the image of an expert or a trusted friend on a topic that is important.

►Use services such as Google Alerts that scan the Web for a company’s name and send e-mail alerts when they find posts.

►Promote the blog via e-mail and promotional Web Sites.

Blogging(continued)




Embrace social networking. Start a blog. Create online videos.

(continued)


YouTube reports that visitors view 3 billion videos per day.

Online video guidelines: ► Think “edutainment.”► Be funny.► Post videos on multiple social media sites.► Involve customers. ► Keep it short.

Online Videos




Embrace social networking. Start a blog. Create online videos. Host a special event. Focus on customer satisfaction.

(continued)


Surveys show 79% of unhappy customers tell others about their experiences.48% of shoppers say they won’t patronize stores where they know others have had negative experiences.For every complaint a company receives, 17 other complaints go unspoken. Disgruntled customers often post their experiences online.80% of shoppers have changed their minds about a purchase after reading negative information online.

Focus on Customer Satisfaction



To achieve stellar customer service and customer satisfaction:►Examine your company’s service cycle►Set standards and measure performance►See customer complaints as a mechanism for improving customer service►Listen to customers►Define superior service




► When you create a negative customer experience, apologize and fix it – fast

► Empower employees to offer superior service

► Train employees to deliver superior service

► Hire the right employees► Get top managers’ support




► Treat employees with respect and show them how valuable they are

► Use technology to provide improved experience

► View customer service as an investment, not an expense

► Reward superior service► Give customers an unexpected surprise



Principles of Customer Experience Management (CEM)

• Intimate

• Personal

• Consistent, courteous, and professional

• Responsive

• Helpful information and advice

• Involvement of caring, well-trained people

• Long-term relationship view

• Emphasis on sustaining an ongoing relationship

• Nurturing the company/customer relationship

• Intimate

• Personal

• Consistent, courteous, and professional

• Responsive

• Helpful information and advice

• Involvement of caring, well-trained people

• Long-term relationship view

• Emphasis on sustaining an ongoing relationship

• Nurturing the company/customer relationship

Every customer interaction should be:

Satisfied,loyal, repeat

(and profitable) customers

Satisfied,loyal, repeat

(and profitable) customers

Source: Adapted from “Wake-Up Call: To Fix CRM, Fix the Customer Experience Now!, BearingPoint White Paper (www.bearingpoint.com, Fall 2005, p. 5.





Embrace social networking. Start a blog. Create online videos. Host a special event. Focus on customer satisfaction. Retain existing customers.

(continued)


Retain Existing Customers

A company must land 12 to 20 new customers to offset the impact of one lost loyal customer!

Research shows that repeat customers spend 67% more than new customers.

Attracting new customers costs the typical business seven to nine times as much as keeping existing customers.

Practice customer experience management.


Retain Existing Customers

Companies that are successful at retaining their customers constantly ask themselves (and their customers) four questions:

1. What are we doing right?

2. How can we do that even better?

3. What have we done wrong?

4. What can we do in the future?

(continued)




Embrace social networking. Start a blog. Create online videos. Host a special event. Focus on customer satisfaction. Retain existing customers. Be devoted to quality.

(continued)


Devotion to Quality World-class companies treat quality as a

strategic objective, an integral part of company culture.

The philosophy of Total Quality Management (TQM):►Quality in the product or service itself. ►Quality in every aspect of the business and its

relationship with the customer.►Continuous improvement in quality.


How Do Americans Define Quality in a Product?

Reliability (average time between breakdowns)

Durability (how long an item lasts) Ease of use Known or trusted brand name Low price


How Do Americans Define Quality in a Service?

Tangibles - equipment, facilities, people Reliability - doing what you say you will do Responsiveness - promptness

in helping customers Assurance and empathy -

conveying a caring attitude




Embrace social networking. Start a blog. Create online videos. Host a special event. Focus on customer satisfaction. Retain existing customers Be devoted to quality. Pay attention to convenience.

(continued)


Attention to ConvenienceSuccessful companies go out of their way to make sure it’s easy for customers to do business with them.

Questions to ask: ►Is your business conveniently located near customers?►Are your business hours suitable to your customers?►Would customers appreciate pickup and delivery services?►Do you make it easy for customers to buy on credit or with credit cards?►Do your employees treat customers with courtesy?


Attention to Convenience► Are your employees trained to handle business

transactions quickly, efficiently, and politely?► Does your company offer “extras” that would

make customers’ lives easier?► Can you bundle existing products to make it

easier for customers to use them?► Can you adapt existing products to make them

more convenient for customers? ► Does your company handle telephone calls

quickly and efficiently?

(continued)


Concentrate on innovation.

Guerrilla Marketing Principles(continued)


Concentration on Innovation Innovation

The key to future success. One of the greatest strengths of

entrepreneurs. It shows up in the new products, techniques, and unusual approaches they introduce.

Entrepreneurs often create new products and services by focusing their efforts on one area and by using their size and flexibility to their advantage.


Concentrate on innovation. Emphasize speed.

Guerrilla Marketing Principles((continuedcontinued))


Emphasis on Speed

Use principles of time compression management (TCM):► Speed new products to market► Shorten customer response time in

manufacturing and delivery► Reduce the administrative time required to fill

an order. Study: Most businesses waste

85 to 99% of the time required to produce products or services!


Emphasis on Speed

Re-engineer the process rather than try to do the same thing - only faster.

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

Set aggressive goals for production and stick to the schedule.

((continuedcontinued))


Emphasis on Speed

Rethink the supply chain. Instill speed in the company culture. Use technology to find shortcuts wherever

possible. Put the Internet to work for you.

((continuedcontinued))

copyright © 2014 pearson education, inc. publishing as prentice hall ch. 8: building a powerful...

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