key to marketing knowing the needs & wants of customers building a strategy to serve customers...
TRANSCRIPT
Key to Marketing
• Knowing the needs & wants of customers• Building a strategy to serve customers
External Opportunities& Threats
Niche
Internal Strengths & Weaknesses
Know the niche market you are uniquely qualified to serve
Marketing and the Purchase Decision
Target market
Perceived NeedReferral EvaluationPromotionsTrials
Marketing ProgramsField Sales PeopleMass MarketingPublic RelationsWord-of-Mouth
Purchase
Consideration
Awareness
Real need or wantEmotional “Hook”
Impulse
Marketing Strategy
• Marketing strategy and actions must promote the company’s core values and “Brand” to be aligned with the company strategy.
• Marketing initiatives and sales activity shape a company and brand strategy by getting market feedback– Marketing strategy is important because it ties
the company to its customers in a logical way– Sales activity/”feet on the street” closes the
loop
Marketing Plan
• Detailed plan of who you are targeting to purchase your product or service, at what price, through which channels, and with the support of what kinds of sales and advertising.
• Includes a strategy, a communications mix, methods for measuring success, attention to staffing/resources, and costs.
• Included in the marketing functional strategy section of the business plan.
What is a Brand?
• A brand is the sandbox that your company “plays” in
• It is a company’s “Personality” and its “Reputation”
A Brand Creates Value
• Harley Davidson• Coca Cola• Nike• Designer Brands
Why Managing Your Brand Matters
Branding, by its very nature is not optional. If you do not position yourself in people’s minds, they will do it for you. …
Peter Drucker
Why Your Brand is Important for Sales
• People need to be aware of who you are• People need to willing to consider buying
from you• You need the tools to “close” the sale• You brand addresses all three of these
phases of the sales process.
Who Defines Your Brand?
• Your Brand is defined by how well you deliver against customer expectations and perceptions, ie. “THE PROMISE”
Who Influences Your Brand?
• Customers• Sales• Marketing• Customer Service• Delivery People and Distributors• Workers• Receptionist• Product Performance• Competitors
Two Views of UPS
Jean’s• They’re great!• No problems with
service.• Donna English. • She tracks me down.• I love them!
Rhonda’s• They’re terrible! • Left stuff in the rain.• They’ve lost
deliveries.• Different driver every
day.• I hate them!Brand Loyalty is created or lost
based on Personal Experience
The ABC’s of Good Branding
AIs for Appropriate
Know Your Audience
What you do
How you do it
ContextInformation implied by
location, manner, behavior
Cultural Communication Issues
ContentInformation explicitly stated: Details, data,
words, images
What you say
How OTHERS perceive
what you say,what you do,
and howyou do it. Based on
THEIR Values, Customs, Frame Of
Reference, Assumed Rules
Two Definitions Of Image
• The Visual Image:The visual components of your Brand Identity: logo, web site, signage, marketing materials, product design
• The Contextual Image:An impression created by your behavior and appearance; your reputation
Visual Image is NOT Just the Logo
• Everything that is used around the logo also contributes to your “image”– Mailers, Printed Brochures– Web layout, components, interface– Color schemes, Fonts– Graphics– Flow charts
• Are all of these consistent with your brand vision?
Think the Intangibles Don’t Matter?
• At the drive-in teller at the bank, the sign has withdrawal spelled incorrectly. The customer thinks, “If they are that careless with their signs, how will the treat my money?”
Low-Cost Strategy
• Problem of even lower-cost competitors• Difficult to keep costs down – especially for small
firms• Reduced flexibility• Finding markets where there is space for a low-
cost competitor• Establishes your brand as “low-cost” = “low
quality”
Product/service differentiation
• Differentiate what is sold– Branding, quality, innovation, style and image
• Two common patterns:– High margins/low share (Mercedes): focus on status,
production efficiencies less important– Slightly lower margins but high share (many branded
items like Coca-Cola, Nike)• Works by reducing rivalry, substitutes & buyer power• Main objective of differentiation: make the short list
Market segmentation/focus
• Serve a small segment • Focus refers to following the trends of an audience
– Oshkosh emergency trucks– Specialty steel– Micro breweries– Focused low-cost/low-price
• Works by reducing rivalry, reducing substitutes• Main objective: redefine the market served
Product Positioning
High Nordstrom
Medium
Macy’s
Low WalmartLow Medium High
QU
A
L
ITY PRICE
Exercise: Choose and defend a marketing strategy
• Low Cost/Low Price • Product Differentiation• Market Segmentation (Focus)• Your own…why?
Marketing Mix
• The right mix of marketing and sales support elements that... – Supports your strategy.– Fits your capabilities.– Doesn’t break your budget.
• Shared advertising• Public relations• Networking• Training• Etc.
Promotion
“Any form of persuasive communication designed to inform consumers about a product or service and influence them to purchase these goods or services.”
• Direct selling -- mail, internet, sales representatives• Promotions -- try it, you’ll like it• Advertising -- direct response, targeted, blanket• Public relations -- word of mouth (events), media coverage,
editorial content• Marketing communications• Networking
Marketing Communications
• Web Sites• Blogs• Newsletters• Brochures• Catalogs• White papers• Press Releases
“Brand Package”• Business cards• Business plans• Annual report• Logos
What’s Happening in the Market?
• Customers can hardly hear you• >1,500 marketing messages a day• Customers are skeptical• Everybody is claiming “the best ____”• Customers are connected• Electronic communication• Professional meetings• Buyer are more educated• And have more choices
Value proposition
• Clear statement of benefits to the customer • Need to understand your target market• Needs• Wants• Includes:• Unique selling points• Quantification of the value to the customer of
those points
Price setting: A make or break decision
• Assess demand– How sensitive will customers be to price changes?
• Analyze competition– What’s the going price?– Will competitors respond to a price cut?
• Set pricing objectives– Target return, market share, long-term profits, quick
investment recovery, etc• What will the dogs eat?
The ABC’s of Good Marketing
UIs for Unique
Cows, after you’ve seen them for a while, are boring. They may be perfect cows, attractive cows, cows with great personalities, cows lit by beautiful light, but they’re still boring. A Purple Cow, though. Now that would be interesting. (For a while.) – Seth Godin, 2002
Networking
Traditional– Chambers of commerce– Business associations– Trade associations– Customer groups– Volunteer work
On-line Social Networking/Media– Facebook– Twitter– Linked In
What is Social Media?
Social Media is a conversation supported by online tools that leverage human relationships to carry messages
Who uses social media?
The share of American adult internet users who have a profile on an online social network site has more than quadrupled in the past four years -- from 8% in 2005 to over 35% now.
-Pew Internet & American Life Project 2009
• Founded in 2003, originally called “Facemash” • Largest SMS - over 550M active users • 50% login daily• Over 2.5B photos uploaded each month• Users spend over 500 billion minutes per month on
the site• Over 160 million objects• 100 million users via mobile devices
• A business-oriented network founded in 2002• Currently has 70M+ members in 170 countries• “Gated Access Approach” and multi-tiered
connections• LinkedIn Groups feature allows users to
establish new business relationships by joining alumni, industry, or professional and other relevant groups.
• Founded in 2006 • Text posts of 140 characters or less called
“tweets”• Tweets can contain links and pictures• Over 90M tweets per day• Over 190M users• Largest age group is 35-49
Create brand awareness
Build or manage online reputation
Research competitive intelligence
New customer service tool
Recruiting initiatives
Business development tool
Social Media Applications
Social Media Etiquette
• Build trust-based relationships
• Talk about/comment on your sector, don’t just sell, sell, sell
• Read others’ opinions and blogs, comment
• Listen more than you speak
• Don’t say anything you wouldn’t say in public
Let People In!
• Use photos, video, commentary and text to show people all angles of your business.
• Keep the content on a blog.
• Tag photos and videos on YouTube and Flickr
• Regular communications can keep people coming back for more, give potential clients an inside peek at your process and document your project's lifecycle.
Sales promotions
• Coupons & Discounts• Trade Shows• Samples• Contests• Free giveaways
– Key chains, mugs, calendars etc.
Advertising
• Newspapers, magazines, radio, internet, television, yellow pages, direct mail
• Analyze the strengths & weaknessesof the medium – Which medium will target your
customers?– What is your advertising budget?– What is the cost per million (CPM)?
Publicity
• Articles in newspaper• Interview on radio or television• Coverable events• Newsletters• White papers• Speaking engagements & white papers• Volunteer (boards & local committees)
FREE, powerful, hard to control
Guerilla Marketing
• Used by entrepreneurs and small business• Targeted, low-cost strategies that change the rules of the
game• Focus on relationships• Examples:
– Product: Midwifery, punk music – both embedded in movements
– Price: Free web services (to drive advertising)– Promotion: message in a fortune cookie– Place (distribution):with Donald Trump, celebrity
endorcements, sports figures
The ABC’s of Good Branding
BIs for Believable
It’s All About Expectations
Promise less … Deliver more
Make Your Message Memorable
• Make it easy for your customers to become your best Sales People
• Develop a Story that is easy for people to remember and repeat
• Find an “emotional connection” • Pay attention to the “implicit” message –
the context, the body language
Blowing the Branding:
• Bad names– Alu-Fanny foil wrap (France)– Atum Bom tuna (Portugal)– Happy End toilet paper (Germany)– Pschitt lemonade (France)– Zit lemonade (Germany)
• Clairol, a hair products company, introduced the "Mist Stick", a curling iron, into Germany only to find out that, in German, “mist” is slang for manure.
Lost in Translation
• Electrolux, a Scandinavian vacuum manufacturer, used this ad in the U.S.:
"Nothing sucks like an Electrolux."
• The Dairy Association's huge success with the campaign "Got Milk?" prompted them to expand advertising to Mexico. Their Spanish translation read:
"Are you lactating?"
• In Italy, a campaign for "Schweppes Tonic Water" translated the name into the much less thirst quenching
"Schweppes Toilet Water."
Lost in Translation
Ke-ke-ken-la
• The name Coca-Cola in China was first rendered as Ke-ke-ken-la.
• Unfortunately, the Coke company did not discover until after thousands of signs had been printed that the phrase means "bite the wax tadpole" or "female horse stuffed with wax" depending on the dialect.
ko-kou-ko-le
• Coke then researched 40,000 Chinese characters and found a close phonetic equivalent, ko-kou-ko-le, which can be loosely translated as "happiness in the mouth."
The ABC’s of Good Branding
CIs for Consistency
Keep monitoring your marketing to make sure
that your images, messages, and value stay
consistent!
Monitoring
Messages…
• Can you hear me now?• How do you spell relief?• The Nightime Sniffling Sneezing Coughing Aching
Stuffyhead Fever So You Can Rest Medicine.• We bring good things to life.• You’re in good hands with …• You’re fired!
Building the “Buzz”
• Fundamentals have to be in place:• The right product and service• You need an interesting story that other people
can remember and repeat• You need to be visible and recognizable in
whatever you do• Keep your customers involved
Placement/Distribution
• The “bridge” to reaching customers• Sales Channels
– Distributors, retailers, value added resellers• Issues/norms:
– Sales cycle (time of year, length)– Expected materials, order forms, support, etc.– Sales force implications– Inside vs. outside sales people– Quotas and territories– Compensation and commissions– Coverage
Effective Distribution– Complementary, strategic channels– Clear objectives for each channel that facilitate
measures of success– “Increase number of stores carrying our product by
25%”– “Keep 90% of our current customers this year”– “Increase sales volume to 100 largest accounts by
20%”– Budget & timeline– Detailed outline of required logistics – Sensitive measures of success, and methods for
absorbing and adjusting to data
Sales Team• People
– Experience, reach– Team structure
• Support structure– Sales plan– Marketing intelligence– Incentives– Materials– Logistics– Training– Leadership
Values-Led Marketing Mix
“ Values-led marketing…promotes products and brands by integrating social benefits into many different aspects of a business enterprise.”
- Ben & Jerry’s
– Product: Organic ingredients purchased from alternative suppliers; creative, recyclable packaging
– Pricing: Premium with lots of giveaways & donations– Placement: Regional, country stores, youth scoop shops– Promotion: Music festivals, free samples, advocacy, public
relations
QUESTIONS?
Contact Info:[email protected]
REMEMBER ~ BYOBB plans are due by March 28 at 5PM. Email submissions only! No exceptions.