1 Marketing Part 1: Adapted by John Bell from presentation by Jan Zimmerman Author, Web Marketing for Dummies Watermelon Mountain Web Marketing Introduction - Unit 16 IGCSE Business Studies You must make your own notes from the text book to supplement this presentation and discussion. “Getting the World to Beat a Path to Your Door” June 2007 & March 2009 Santa Fe Small Business Development Center & Cambridge College

© 2011 JCB & Watermelon Mountain Web Marketing 2

3

4 What We’ll Consider Types of Market To be a “Product” or “Market” lead business How to Create or Improve Your Marketing Slogans or Tags How to Apply the 4Ps of Marketing How to Identify Your Target Audience What You Can Learn from Competition Defining the Marketing Mix for Business What It Will Cost to Market What It Will Cost Not to Market

5 Marketing is Not Rocket Science If it works, keep doing it. If it doesn’t, change!

© 2011 JCB & Watermelon Mountain Web Marketing 6 A Word About Words Marketing everything you do to build awareness of your company and products Sales everything you do to convert marketing interest to a purchase Advertising one technique used for marketing and sales promotion

© 2011 JCB & Watermelon Mountain Web Marketing 7 Why You Need to Market To Survive –Against competitors To Grow –Access new markets –Access resources To Thrive –Increase profits –Develop new products

© 2011 JCB & Watermelon Mountain Web Marketing 8 What Is Marketing? Marketing is only part of a business, but all of business is marketing.

Some other definitions © 2011 JCB & Watermelon Mountain Web Marketing 9

10 Some Marketing Principles Customers are valuable – establish and keep good relationships Define Mass or narrow, niche, markets Go after 1 market at a time Know your audience and forget the rest Fish where the fish are

11 The Marketing Process Analyze Your Situation (SWOT) Set Marketing Goals & Objectives Develop Marketing Strategies –Define target markets –Tailor strategies to each market Implement Strategies Monitor Results

12 SWOT Strengths (internal) –what sets your company apart Weaknesses (internal) –areas that may affect ability to perform Opportunities (external) –outside factors you can take advantage of Threats (external) –risks you face (e.g. lack of sources of capital)

see text book 13

Remember USP = Unique Selling Point i.e. what makes your product different and unique 14 Marketing Statements or Tags Have a clear Mission Statement 5-7 words that describe your business May be descriptive or a slogan May include a value proposition - what sets your company apart i.e. U S P’s Appears on marketing materials

A few Mission Statements 15

Product or Market Lead Product Can win a large market, lead your competitors and make big profits More risky as customers may not want it!! 16 Market Follow, copy or steal other peoples successful ideas Will not be able to lead Market Less risky but more competition

© 2011 JCB & Watermelon Mountain Web Marketing 17 The 4 P’s of Marketing Product or Service Price Place or Position (distribution) Promotion

© 2011 JCB & Watermelon Mountain Web Marketing 18 Product or Service Physical product(s) or service(s) being sold Includes packaging, associated services, e.g., tech support

© 2011 JCB & Watermelon Mountain Web Marketing 19 Price Price point for product or service Includes discounts, special offers, warranties Compare to competitors

20 Position or Place Where distributed When distributed How distributed B usiness 2 B usiness vs. B usiness 2 C ustomer How customers buy –Where –When –How (catalog, phone, online, in-store)

21 Promotion Advertising Promotion Publicity Public Relations

22 Targeting Your Audience Who buys your product or service? Who does not buy it? What need or function does it serve? What else do your customers buy to satisfy that need or function? What price do they pay? When do they buy? Where do they buy? Why do they buy ?

23 Segmenting Your Audience Demographics Maslow’s Hierarchy Adoption Cycle Life Cycle Psychographics

© 2011 JCB & Watermelon Mountain Web Marketing 24 Demographics Age distribution Gender Income Ethnicity Education Occupation Geography Watch for trends: fewer married couples, smaller family size, changing roles of women, higher incomes, etc.

25 Who Buys and why? Physiological Safety Social External/Internal Esteem Self-actualization Maslow’s Hierarchy of Needs Some Factors effecting choice and ability to buy

Do not confuse with organisational hierarchy Shows a typical medium to large organisation – remember a Sole Trader has to do everything!! 26

© 2011 JCB & Watermelon Mountain Web Marketing 27 Product Adoption Cycle

© 2011 JCB & Watermelon Mountain Web Marketing 28 Product Life Cycle – Another view © 2011 JCB & Watermelon Mountain Web Marketing 28

29 Segmentation by age and life status

30 Psychographics – Lifestyle Attitudes or characteristics Grouping people according to attitudes, values, or lifestyles Porsche example i.e. who buys: –Top Guns (27%): Ambition, power, control –Elitists (24%): Old money, car is just a car –Proud Patrons (23%): Car is reward for hard work –Bon Vivants (17%): Car is for excitement, adventure –Fantasists (9%): Car is form of escape

An Example of Segments & how they can change 31

© 2011 JCB & Watermelon Mountain Web Marketing 32 Learn from Your Competitors Decide what information you need Identify what companies already serve this market with similar product For potential markets, identify companies that sell an alternative solution to estimate demand

33 Collecting Data Watch other advertising Survey existing or prospective customers Consumer rating panels Observation usage Focus groups

© 2011 JCB & Watermelon Mountain Web Marketing 34 Choosing a Marketing Mix Purpose of the marketing campaign –Branding vs. Selling Target Market - Segmentation Timing –When will marketing take place Budget

35 Make Marketing Mix Fit Establish Marketing Goals & Objectives Develop Marketing Strategies Select marketing mix (tactics) for each strategy Implement Tactics Monitor Results & Revise

36 Key Factors Affecting the Marketing Mix Purpose of your marketing campaign Timing - when marketing will take place Budget - how much do you have to spend? Where are your fish? What tactics are used by or appeal to your audience?

37

© 2011 JCB & Watermelon Mountain Web Marketing 38 What It Will Cost to Market – a guidline Needs to fit with your business plan Estimate costs at 20-25% of projected revenues for new business, product or market After established, estimate costs at 10% of projected revenues

© 2011 JCB & Watermelon Mountain Web Marketing 39 What It Will Cost NOT to Market some thoughts Missed opportunity You can only make a first impression once Reduced revenues Longer to profitability If sales sag, increase marketing

40 Review What idea most stuck in your mind? Which concept is the most confusing for you? What would you like to see covered next week? What will you try to learn during the coming week?

Mmmmhhhh “the End” …. or at least “the end of the beginning © 2011 JCB & Watermelon Mountain Web Marketing 41