1 Ref:KSUMarketingon ShoestringBud byFontana FINAL for Ref:KSUMarketingon ShoestringBud byFontana FINAL for We teach new dogs old tricks. Marketing on a Shoestring Budget AKRON SCORE®

2 MARKETING The right product, in the right place, at the right time, at the right price

3 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

4 MARKET RESEARCH n Customer Surveys n Focus Groups n 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

5 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

6 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

7 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

8 MARKET SEGMENTATION COMPETITIVE MATRIX Competitors A B C YOU Products & services Features Sales approach Pricing Image Location Size Market share Yrs in business Ownership Financial strength Importance of business Advertising & promotion Distribution Customer profile Mfg process & cost Patents & copyrights

9 MARKETING STRATEGY Build a distinct comparative advantage n Regularly review, update and modify your marketing n Visualize your business in 3 – 5 years n Share your vision with all your stakeholders n Listen to your core customers – remove any obstacles n Offer more n Use all distribution channels n Small personalized efforts are more important than big gimmicks - builds customer loyalty n Create high switching costs

10 MARKET STRATEGY PROMOTION 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

11 MARKET STRATEGY PROMOTION 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 do o How you do it o What you say o How you say it o How you look o The quality/value of your product or service Create a market; don’t share one Do it for your vendors

12 MARKET STRATEGY PROMOTION 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

13 MARKET STRATEGY PROMOTION FOCUS MARKETING PROGRAMS …Toward Best Prospects The challenge of advertising - AIDA Awareness Interest Desire Action

14 MARKET STRATEGY PROMOTION 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 Participation Articles in local weekly newspapers Sponsor events in local community (little league) Speakers Bureau Outreach Activities Join Networking Groups

15 MARKET STRATEGY PROMOTION n Sell existing products to new customers first n Train employees to stress advantages n Develop customer referral system

16 MARKETING PRICE n 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!

17 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 PROFITS DOUBLE MARKETING PRICE Pricing Increase Impact

18 MARKETING  Evaluate Your Expectations  Internet PLACE - CHANNELS 1. Internet & e-commerce o Customer’s view of Web Site usability is vital o E-Z to maneuver, Contact Us a click away o Layer info o Bulk marketing o E-commerce, keep forms simple and bite-size o Photos and graphics must be compelling o Test your site with different browsers o Test download time o Checkout fast and simple o Plan on Technology and Design Maintenance

19 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

20 Thank You for Attending ALL OF US AT SCORE WISH YOU SUCCESS IN YOUR NEW VENTURE. Akron SCORE One Cascade Plaza Akron, OH We teach new dogs old tricks.