‘marketing’. welcome business start-up programme workshop 2 to the ‘marketing’
TRANSCRIPT
‘Marketing’
Welcome
Business Start-Up Programme
Workshop 2
to the
‘Marketing’
Workshop Links
Business Planning Front Page
Executive Summary
The Business
Market
Operations
Finance
SWOT Analysis
Action Plan
The Essentials
Why start a business?
Viability assessment
Marketing
Management control
Legal issues
Funding Marketing
Product & service
Place
Price
Promotion
Finance
Profit & Loss
Cash flow
Balance sheet
Marketing – The 4 Ps
MarketingStart-up
WorkshopsBusiness Plan Action Plan On-going Support
Product
Place
Promotion
Price
• Be clear about what you’re selling
• Know your customers.
• Sell at a profit.
• Make promotion work.
Product & Services
Have a clear idea about your product & service offer.Think about what the customer is buying, not what you’re selling.Ensure you have the skills to provide both product and service.Look for unique selling points to differentiate from your competitorsProtect something Unique.
Feed into your
Promotional Message!!
Product & Services
Place
Promotion
Price
MarketingStart-up
WorkshopsBusiness Plan Action Plan On-going Support
Product & Services Competitor Analysis
My Company Competitor 1 Competitor 2 Competitor 3
Strengths
- Qualified- Market Knowledge- Data base
- Established- Market knowledge- Contract customers
Weaknesses
- Job costing- Financial Mgt.- Not known- Selling- Capacity
- Complacent- Customer service- Bad reputation- Dissatisfied workers
Price 0 + 10%
Product & Services
Product Offer Skills Needed
- Design- Building/paving- Installation of electrical power- Horticulture- Garden maintenance
- Design software- Planning Legislation- Legislation, approvals- Planning (Listed Trees etc)- Knowledge of plants etc
Service Offer Customer Requirements
- Responsive- Accessible- Reliable- Flexible- Value for money- Warranty
- Quote request followed within 24hrs- 24/7- Turn up & deliver as promised- Exceed their expectations- Quality- Peace of mind
Example: Landscape Gardener
Place
Confirm that there is sufficient demand to
reach your sales targets
• Profile the characteristics of your customers• Understand your customer’s expectations• Locate and quantify the number of your potential customers and competitors • Know your market share• Confirm how your customers will access your product
Product & Services
Place
Promotion
Price
MarketingStart-up
WorkshopsBusiness Plan Action Plan On-going Support
Place – Customer Profile (B2B)
Customer Characteristics Research Areas- Type/Sector- Annual Sales- Profitability/credit rating- Number of employees- Premises- Standard Industry Classification (SIC code)
- Schools/Councils/Businesses- Profitable/Busy- Capable of paying bills- N/A- Premises with grounds- N/A
Customer Expectations Research Areas
- Accreditations- Contracts- Licences- Standards- Buying behaviour- Legislation- Electronic trading
- Horticultural/ building qualifications- Terms & conditions of trade- N/A- Professional (presentation/image)- Frequency of purchase- Health and safety/insurance- On-line orders/invoices/direct banking
Example: Landscape Gardener
Place – Customer Profile (B2C)
Scope of Product Offer Research Areas
- Type/Sector- Disposable income-Premises-Geography
- General public- Ability to pay-Property with gardens-North West
Scope of Service Offer Research Areas
- Accreditations- Contracts- Licences- Standards- Buying behaviour- Legislation- Electronic trading
- Qualified- Terms & conditions of trade- N/A- Professional (presentation/image)- Frequency of purchase- Health and safety/insurance- N/A
Example: Landscape Gardener
Place – Locate & Quantify Customer Numbers
Telephone directories/yellow pages/Thomson directories Government Council Economic Development Units/Office of National statistics Trade organisations Libraries/Press Market research organisations List brokers
Information research sources:
Research results Business to Business (B2B)
Location Source No. of Customers No. of Competitors
Local (St Helens)Regional (Lancs.)National
InternetInternet?
50 (www.sthelens.gov.uk)607 (www.lancashire.gov.uk)?
13 (www.yell.com)100 (www.yell.com)?
Location Source No. of Customers No. of Competitors
Local (St Helens)Regional (Merseyside.)National
InternetInternet?
15K (www.sthelens.gov.uk)462K (www.lancashire.gov)?
13 (yell.com)100 (yell.com)?
Research results Business to Consumer (B2C)
Place Customer Access to Product
• Mail order (Catalogue/call centres)
• Store/your premises
• Internet (e-bay)
• Their premises.
• Sales representative
• Image/perception
Cost Implications?
Price
Optimise profitability keeping abreast of market conditions and
being flexible in pricing.
Understand market conditions in relation to supply and demand.
Check what your customer is prepared to pay.
Check competitor pricing.
Know your break even and cover your costs
Add premium for added value.
Monitor conversion rates from quotes to orders.
Product & Services
Place
Promotion
Price
MarketingStart-up
WorkshopsBusiness Plan Action Plan On-going Support
Price – Break Even & Cost Plus
Calculating Break Even:By Value :
Total Overhead (Fixed Costs) ÷ Gross Profit %
£25000 ÷ 45%
Break even sales = £55,556
By Number of Orders:
Break even sales - £55,556
Average order value £10
Break even unit sales = 5555 units
Calculating Cost Plus:Labour cost +Material Cost +Overhead Charge=Total cost+Profit=Selling Price
Promotion
Use promotions to achieve sales targets
Use a clear message, emphasise product and service features and benefits
Use unique selling points in promotional materials
Use logos and branding to give a professional image
Check competitor promotional methods
Work within budgets
Monitor the impact and return on investment
Product & Services
Place
Promotion
Price
MarketingStart-up
WorkshopsBusiness Plan Action Plan On-going Support
Promotion – Features & Benefits
Features Benefits
Service Offer
Promotion – ImpactRemote Personal
Sales Conversion Rate (%)
Remote(<1%)
10% 20%
30%
0%
Target Marketing(4-7%)
Sales Rep(25-30%)
Cost (£)
Customer Contact
Tele-sales(10-15%)
WOM(>30%)
Internet(1-3%)
• Yellow pages• Mail shot• Press ad
• SEO• PPC
• Journal• Direct Mail
Promotion – Work With Budgets
Campaign Details Costs CirculationConversion
EnquiryCost / enquiry
Remote
Local Press
4 line £100 25K < 1% 0 - 25 £0.40 - £100
Target
Direct Mail Target £870 1K 4% - 7% 40 - 70 £12 - £21
Tele-sales
Cold Calling
List £58 / day 50 / day 10% - 15% 5 - 7 £4 - £6
Sales
Sales Rep. Appt. £135 / day 6 / day 25% - 30% 2 – 3 £46 - £67
Promotion – Measure ImpactPromotion Request for
quotationBuild estimate & send quotation
Customer order decision
Plan & deliver promotion campaign:
• Decide on budget.
• Calculate no. of contacts to achieve sales targets
• Identify target customers
• Decide on promotional method
• Set up data base to monitor response.
Record customer response:
• Record date,
•Customer,
•Contact details,
•Nature of request
Record your response:
• Record date quote sent, product information and
cost
Record customer response:
•Record date of order decision.
Use Impact Reports: Time taken for each stage of the process.
Number and value of request for quotations
Number, value and frequency of orders.
Conversion rates for contact to request for quote and placement of order
Average value of quotes and orders/£1 of promotional cost
Keep Your Customers
Customer Service: Be responsive
Understand their requirements and working methods
Do what you promise and exceed their expectations
Look after them and solve their problems
The answer is yes- now what was the problem
Getting one new customer costs
much more than the cost of
keeping an existing one.
Moving on?
How often should you do it ?
1. Routine
2. Budget
3. Measure
Customers and competitors are ever changing.
Make sure you’re always up to date.
Marketing is not just advertising and selling!
Keep in touch!
Keep in touch with each other, chat and network on Linked in.
www.linkedin.com
Join the ‘Business Start Up Group’ and then join ‘The
Workshop Group’ subgroup to keep in touch!