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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
We teach new dogs old tricks.
