Building a Guerrilla Marketing Plan Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

CONTENTS Components of a guerrilla marketing plan How small companies can pinpoint their target market Market research Guerrilla marketing strategies Online marketing The marketing mix Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Components of a guerrilla marketing plan 3 vital resources: People Information Technology 4 objectives: Pinpoint the target market Understand the target market Build marketing strategies Create marketing mix

Marketing The process of creating and delivering desired goods and services to customers and involves all of the activities associated with winning and retaining loyal customers “Secrets” Understand target customers’ needs, demands, and wants before competitors can Offer them products and services to satisfy those needs, demands, and wants Provide customers with quality, service, convenience, and value so they will keep coming back Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

A Winning Marketing Strategy Three vital resources: People - the most important ingredient in a successful marketing strategy Information - the fuel that feeds the marketing engine; without it, the marketing engine sputters and stops Technology - a powerful marketing weapon, but what matters most is how a company integrates technology into its overall marketing strategy

A Guerrilla Marketing Plan Unconventional, low-cost, creative techniques that allow a company to wring a big “bang” from its marketing bucks Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Four Objectives of a Guerrilla Marketing Plan Pinpoint the target markets a company will serve Determine customer needs, wants, and characteristics through market research Analyze a company’s competitive advantages and build a marketing strategy around them Create a marketing mix that meets customer needs and wants Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Pinpointing the target market

Pinpointing the Target Market First step: Identify the company's target market, the group of customers at whom the company aims its products or services An effective marketing program depends on a clear, concise definition of the firm's targeted customers, not a “one-size-fits-all approach” Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Pinpointing the Target Market Key: Understanding target customers’ unique needs, wants, and preferences Opportunity: Increasing populations of multicultural customers Target customer must permeate the entire business Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Market research Determining customers’ needs and wants

Market Research Market research - the vehicle for gathering the information that serves as the foundation for the marketing plan How to Conduct Market Research: Define the objective Collect the data Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Collect the Data Individualized (one-to-one) marketing – a system of gathering data on individual customers and then developing a marketing plan designed specifically to appeal to their needs, tastes, and preferences Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

How to Become an Effective One-to-One Marketer Identify your best customers, never passing up the opportunity to get their names. Enhance your products and services by giving customers information about them and how to use them. See customer complaints for what they are - a chance to improve your service and quality. Encourage complaints and then fix them! Collect information on these customers, linking their identities to their transactions. Successful One-to-One Marketing Make sure your company’s product and service quality will astonish your customers. Calculate the long-term value of customers so you know which ones are most desirable (and most profitable). Know what your customers’ buying cycle is and time your marketing efforts to coincide with it - “just-in-time marketing.” Source: Adapted from Susan Greco, “The Road to One- to-One Marketing,” Inc., October 1995, pp. 56-66.

Collect the Data - continued Much valuable information about customers is already hidden inside companies; the key is mining it! Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Data Mining A process in which computer software that uses statistical analysis, database technology, and artificial intelligence finds hidden patterns, trends, and connections in data so business owners can make better marketing decisions and predictions about customers’ behavior Example: Henry Singer Fashion Group Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Market Research Market research is the vehicle for gathering the information that serves as the foundation for the marketing plan How to Conduct Market Research: Define the objective Collect the data Analyze and interpret the data Put the information to work Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Guerrilla marketing strategies FISH principles Guerrilla marketing principles: Find niche a fill it Entertailing Connect with customers on an emotional level Build a consistent branding strategy Start a blog Use social network Retain existing customers Devotion to quality Attention to convenience Concentration on innovation Dedication to service & customer satisfaction Emphasis on speed

Relationship Marketing Involves developing, maintaining, and managing long-term relationships with customers so that they will keep coming back to make repeat purchases Steps: Build database of customer information Identify best and most profitable customers Develop lasting relationships with these customers Attract more customers like them Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

FISH! Principles FISH Principle 1. Choose your attitude FISH Principle 2. Play FISH Principle 3. Make their day FISH Principle 4. Be present Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Guerrilla Marketing Principles Find a niche and fill it Don’t just sell; entertain – “entertailing” Connect with customers on an emotional level Build a consistent branding strategy Strive to be unique Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Guerrilla Marketing Principles (continued) Focus on the Customer Average American companies lose about 50% of its customer base every five years 94% of dissatisfied customers never complain about rude or discourteous service, but... Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Focus on the Customer (continued) 91% will not buy from that business again 31% will tell others about their negative experience 48% have avoided a store because of someone else’s negative experience with it Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Focus on the Customer (continued) Customers are 5x more likely to leave because of poor service than for quality or price The typical business loses 1/3 of its customers each year A retention of just 5% more customers would raise profits 25% Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Guerrilla Marketing Principles (continued) Retain Existing Customers Because 20% of a typical company’s customers account for about 80% of its sales, no business can afford to alienate its best and most profitable customers and survive! Replacing lost customers is expensive; it costs 7 to 9 times as much to attract a new customer as it does to sell to an existing one! Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Retain Existing Customers (continued) About 70% of a company’s sales come from existing customers Allowing shoppers to customize their products has the power to increase customer retention, satisfaction, and profits Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

How to Focus on the Customer When you create a dissatisfied customer, fix the problem fast Encourage customer complaints Ask employees for feedback on improving customer service Get total commitment to superior customer service from top managers - and allocate resources appropriately Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

How to Focus on the Customer (Continued) Allow managers to wait on customers occasionally Develop a service theme that communicates your attitude toward customers Reward employees “caught” providing exceptional service to customers Carefully select and train everyone who will deal with customers Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Guerrilla Marketing Principles (continued) Start a blog Use social networks Devotion to quality Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Devotion to Quality World-class companies treat quality as a strategic objective, an integral part of the company culture Total Quality Management (TQM) - quality not just in the product or service itself, but in every aspect of the business and its relationship with the customer and continuous improvement in the quality delivered to customers Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

The Quality DMAIC Process Control Sustain quality improvements. Improve Make changes to the process and measure improvements. Analyze Use statistical tools to find causes of quality problems. Increased Return on Quality Investment Measure Measure important outcomes. Define Define the problem. Adapted from: Walter H. Ettinger, MD, “Six Sigma,” Trustee, September 2001. P. 14.

How Do Americans Define “Quality?” Reliability (average time between breakdowns) Durability (how long an item lasts) Ease of use Known or trusted brand name Low price Quality Quality Quality is the degree to which a set of inherent characteristic fulfills requirements (ISO 9000:2005) Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Guerrilla Marketing Principles (continued) Attention to convenience Concentration on Innovation Dedication to Service and Customer Satisfaction Emphasis on Speed Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Attention to Convenience Is your business conveniently located near customers? Are your business hours suitable to your customers? Would customers appreciate pickup and delivery services? Does your company make it easy for customers to buy on credit or with credit cards? Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Attention to Convenience Are you using technology to enhance customer convenience? Are your employees trained to handle business transactions quickly, efficiently, and politely? Do your employees use common courtesy when dealing with customers? Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Attention to Convenience Does your company offer “extras” to make customers’ lives easier? Can you adapt existing products to make them more convenient for customers? Does your company handle telephone calls well? Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Concentration on Innovation Innovation - the key to future success Innovation - one of the greatest strengths of the entrepreneur, showing up in the new products, techniques, and unusual approaches they introduce Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Concentration on Innovation Product Development and Management Association Study of top performing companies across 400 industries: New products accounted for 49% of profits, more than twice as much as their less innovative competitors Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Stimulating Innovation Make innovation a priority in the company Measure the company’s innovative ability Set goals and objectives for innovation Encourage new product or service ideas among employees Listen to customers Always be on the lookout for new product and service ideas Keep a steady stream of new products and services coming Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Guerrilla Marketing Principles Attention to convenience Concentration on innovation Dedication to service and customer satisfaction Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Dedication to Service Goal: to achieve customer astonishment! How can you improve your service? Listen to customers Define “superior service” Set standards and measure performance Examine your company’s service cycle Hire the right employees Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Dedication to Service Train employees to deliver superior service Empower employees to offer superior service Use technology to provide improved service Reward superior service Get top managers' support Give customers an unexpected surprise Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Guerrilla Marketing Principles Attention to convenience Concentration on innovation Dedication to service and customer satisfaction Emphasis on speed Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Emphasis on Speed Three aspects of TCM - Time Compression Management: 1. Speeding new products to market 2. Shortening customer response time in manufacturing and delivery 3. Reducing the administrative time required to fill an order Companies using TCM have discovered that manufacturing takes only 5% - 10% of total lead time Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Emphasis on Speed Re-engineer the process rather than try to do the same things - only faster Study every phase of the business process, looking for ways to shorten it Create cross-functional teams of workers and empower them to attack and solve problems Share information and ideas across the company Set aggressive goals for production and stick to the schedule Instill speed in the company culture Use technology to find shortcuts wherever possible Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Marketing on the www Google AdSense Pay per click

The Marketing mix

Creative Use of Advertising and Promotion This "Deco" border was drawn on the Slide master using PowerPoint's Rectangle and Line tools. A smaller version was placed on the Notes Master by selecting all of the elements (using Select All from the Edit menu), deselecting the unwanted elements such as the Title (holding down the Shift key and clicking on the unwanted elements), and then using Paste as Picture from the Edit menu to place the border on the Notes Master. After pasting as a picture, we used the resize handles (with Shift to maintain the proportions) to reduce it to the size you see. Be sure to delete this word processing box before using this template for your own presentation. Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Developing a Unique Selling Proposition (USP) USP - A key customer benefit of a product or service that answers the critical question that every customer asks: "What's in it for me?" Identify your product or service's USP by describing the primary benefit it offers customers and then list other secondary benefits it provides Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Developing A Unique Selling Proposition (USP) Briefly list a few facts that support your product’s USP Then focus your ads to stress these top benefits and the facts supporting them! Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

A Six-Sentence Advertising Strategy What is the purpose of this ad? What USP can you offer customers? What other key benefits support your USP? At whom are you aiming the ad? What response do you want from your target audience? What image do you want to convey in your ads? Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Creating a Promotional Strategy Publicity - any commercial news covered by the media that boosts sales but for which the small business does not pay Personal selling - the personal contact between sales personnel and potential customers resulting from sales efforts Advertising - any sales presentation that is non-personal in nature and is paid for by an identified sponsor Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Tips for Stimulating Publicity Write an article of interest to customers Sponsor an offbeat event to attract attention Involve celebrities “on the cheap” Offer to be interviewed on TV and radio stations Publish a newsletter Speak to local organizations Sponsor a seminar Write news releases and fax them to the media Serve on community and industry boards and committees Sponsor a community project or support a nonprofit organization Promote a cause Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Top Salespeople… Are enthusiastic and alert to opportunities. Are experts in the products or services they sell and understand how their products and services can help their customers. Concentrate on select accounts with the greatest sales potential. Plan thoroughly. Use a direct approach with their customers. Work from their customer’s perspective. Use past success stories and testimonial. Leave sales material with potential customers. See themselves as problem solvers, not just vendors. Measure success by customer satisfaction as well as by sales volume. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Successful Personal Selling Requires a Selling System Prepare Approach Interview Demonstrate, explain, and show Validate Negotiate Close the sale Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

FUNDAMENTALS OF A SUCCESSFUL AD Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Selecting Advertising Media: Key Questions How large is my firm's trading area? Who are my customers and what are their characteristics? Which media are most likely to reach those customers? What budget limitations do I face? Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Selecting Advertising Media: Key Questions (Continued) Which media do my competitors use? How important are repetition and continuity of my advertising message? How does each medium compare with others in audience, reach, and frequency? Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Comparing Media Audience – the number of paid subscribers a particular medium attracts Reach – the total number of people exposed to an ad at least once in a period of time, usually 4 weeks Frequency - the average number of times a person is exposed to an ad in that same time period Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Selecting Advertising Media: Key Questions (Continued) Which media do my competitors use? How important are repetition and continuity of my advertising message? How does each medium compare with others in audience, reach, and frequency? What does the advertising medium cost? Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Advertising Media Options Word-of-mouth Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Word-of-Mouth Advertising Make your business buzz-worthy Promote your company to “influencers” Make it easy for satisfied customers to spread the word Use the Web to amplify your company’s word-of-mouth advertising Tap into the power of YouTube Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Advertising Media Options Word-of-mouth Sponsorships and Special Events Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Sponsoring Special Events Don’t count on sponsorships for your entire advertising campaign Find an event that is appropriate for your company and its products and services Research the event and the organization hosting it before agreeing to become a sponsor Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Sponsoring Special Events (Continued) Try to become the dominant (or, better yet, the only) sponsor of the event Clarify the costs and the level of participation required for the sponsorship up front Get involved in the event Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Advertising Media Options Word-of-mouth Sponsorships and Special Events Newspapers Radio Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Snappy Radio Copy Should... Mention the business often Stress benefits to the listener Use attention-grabbers Zero in on a particular audience Be simple and to the point Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Snappy Radio Copy Should... Sell early and often Be written for the ear Be rehearsed before presentation Use positive action words Put the listener in the picture Focus on getting a response Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Advertising Media Options Word-of-mouth Newspapers Radio Television Magazines Specialty advertising Point-of-purchase ads Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Advertising Media Options Word-of-mouth Newspapers Radio Television Magazines Specialty advertising Point-of-purchase ads Out-of-home ads Transit advertising Direct mail World Wide Web Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Advertising on the Web 2011: U.S. companies spend $36.5 billion on Web advertising Types of ads: Banner Display Pop-up Interstitial Contextual Pay-per-click Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

E-Mail Advertising Permission e-mail vs. spam Radicati Group study: 171 billion e-mails sent per day 71 percent of those are spam Stick to marketing basics Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

E-Mail Advertising Collect customers’ and potential customers’ e-mail addresses Make subject line short, meaningful, and to-the-point Make the e-mail’s look and feel consistent with your company’s image Send e-mails when customers are most likely to make purchases Write copy that produces results Use value-added items to increase response rates Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Advertising Media Options Word-of-mouth Newspapers Radio Television Magazines Specialty advertising Point-of-purchase ads Out-of-home ads Transit advertising Direct mail World Wide Web Directories Trade shows Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

Preparing an Advertising Budget What is affordable Matching competitor's advertising expenditures Percentage of Sales Past Sales Forecasted Sales Objective-and-Task Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

How to Advertise "Big" on a Small Budget Hire freelance copywriters and artists Use cooperative advertising Participate in shared advertising Use stealth advertising Maximize publicity with techniques such as cause marketing Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall

How to Advertise "Big" on a Small Budget (Continued) Repeat ads that have been successful Use identical ads in different media Hire independent copywriters, graphic designers, photographers, and other media specialists Concentrate advertising when customers are most likely to buy Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall