1. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Building a Powerful Marketing Plan CHAPTER 8

2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 2 Building a Guerrilla Marketing Plan Marketing Marketing The process of creating and delivering desired goods and services to customers. The process of creating and delivering desired goods and services to customers. Involves all of the activities associated with winning and retaining loyal customers. Involves all of the activities associated with winning and retaining loyal customers. National Federation of Independent Business Study National Federation of Independent Business Study 55% of small business owners say they do not need marketing because their products and services “sell themselves.” 55% of small business owners say they do not need marketing because their products and services “sell themselves.”

3. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 3 Building a Guerrilla Marketing Plan Guerrilla marketing strategies: Are unconventional, low-cost, and creative marketing techniques that allow a small company to realize a greater return from its marketing investment than do larger rivals. Are unconventional, low-cost, and creative marketing techniques that allow a small company to realize a greater return from its marketing investment than do larger rivals. Do not require large amounts of money to be effective – just creativity. Do not require large amounts of money to be effective – just creativity.

4. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 4 A Guerrilla Marketing Plan 1.Pinpoints the specific target markets the company will serve. 2.Determines customer needs and wants through market research. 3.Analyzes a firm’s competitive advantages and creates a marketing strategy to build a competitive edge. 4.Helps to create a marketing mix that meets customer needs and wants.

5. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 5 Pinpointing the Target Market One objective of market research: Pinpoint the company's target market, the specific group of customers at whom the company aims its products or services. One objective of market research: Pinpoint the company's target market, the specific group of customers at whom the company aims its products or services. Marketing strategy must be built on clear definition of a company’s target customers. Marketing strategy must be built on clear definition of a company’s target customers. Examples: Great Call and Lexus of Palm Beach Examples: Great Call and Lexus of Palm Beach

6. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 6 Pinpointing the Target Market Target customer must permeate the entire business – merchandise sold, background music, layout, décor, and other features. Target customer must permeate the entire business – merchandise sold, background music, layout, décor, and other features. Without a clear image of its target market, a small company tries to reach almost everyone and ends up appealing to few. Without a clear image of its target market, a small company tries to reach almost everyone and ends up appealing to few.

7. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 7 Market Research Market research is the vehicle for gathering the information that serves as the foundation for the marketing plan. Market research is the vehicle for gathering the information that serves as the foundation for the marketing plan. Never assume that a market exists for your company’s product or service; prove it! Never assume that a market exists for your company’s product or service; prove it! Market research does not have to be time consuming, complex, or expensive to be useful. Market research does not have to be time consuming, complex, or expensive to be useful. Web-based market research – online surveys Web-based market research – online surveys Trend-tracking Trend-tracking

8. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 8 Tracking Trends Read many diverse current publications Read many diverse current publications Monitor blogs and newsgroups Monitor blogs and newsgroups Watch the top 10 TV shows Watch the top 10 TV shows See the top 10 movies See the top 10 movies Talk to at least 150 customers a year Talk to at least 150 customers a year Talk with the 10 smartest people you know Talk with the 10 smartest people you know Listen to your children and their friends Listen to your children and their friends

9. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 9 Market Research How to Conduct Market Research: 1. Define the objective. 2. Collect the data. Individualized (one-to-one) marketing Individualized (one-to-one) marketing

10. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 10 How to Become an Effective One-to-One Marketer Identify your best customers, never passing up the opportunity to get their names. Collect information on these customers, linking their identities to their transactions. Calculate the long-term value of customers so you know which ones are most desirable (and most profitable). Successful One-to-One Marketing Know what your customers ’ buying cycle is and time your marketing efforts to coincide with it - “ just-in-time marketing. ” Make sure your company ’ s product and service quality will astonish your customers. See customer complaints for what they are - a chance to improve your service and quality. Encourage complaints and then fix them! Enhance your products and services by giving customers information about them and how to use them. Source: Adapted from Susan Greco, “ The Road to One-to-One Marketing, ” Inc., October 1995, pp. 56-66.

11. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 11 Market Research How to Conduct Market Research: 1. Define the problem. 2. Collect the data. Individualized (one-to-one) marketing Individualized (one-to-one) marketing Data mining Data mining 3. Analyze and interpret the data. 4. Draw conclusions and act. (continued)

12. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 12 Relationship Marketing (Customer Relationship Management) Involves developing and maintaining long-term relationships with customers so that they will keep coming back to make repeat purchases. In addition to the text

13. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 13 Relationship Marketing (Customer Relationship Management) Steps: Collect meaningful customer information and compile it in a database. Collect meaningful customer information and compile it in a database. Mine the database to identify “best” customers. Mine the database to identify “best” customers. Use the information to develop lasting relationships with “best” customers. Use the information to develop lasting relationships with “best” customers. Attract more customers who fit the “best” customer profile. Attract more customers who fit the “best” customer profile. In addition to the text

14. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 14 The Relationship Marketing Process Conduct detailed customer intelligence to pinpoint most valuable customers and to learn all you can about them, including their lifetime value (LTV) to the company. Analyze BuildRelationships Based on what you have learned, contact customers with an offer designed for them. Make customers feel special and valued. Learn Learn from your customers by encouraging feedback from them; develop a thorough customer profile and constantly refine it. Connect&Collect Make contact with most valuable customers and begin building a customer database using data mining and data warehousing techniques. If you have done everything else correctly, this step is relatively easy. Superb customer service is the best way to retain your most valuable customers. Sell,Service, & Satisfy In addition to the text

15. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 15 Steps in CRM Collect meaningful information on existing customers and compile it in a database. Collect meaningful information on existing customers and compile it in a database. Mine the database to identify the company’s best and most profitable customers and their buying habits. Mine the database to identify the company’s best and most profitable customers and their buying habits. Use the information to establish lasting relationships with these customers. Use the information to establish lasting relationships with these customers. Attract more customers who fit the profile of the company’s best customers. Attract more customers who fit the profile of the company’s best customers. In addition to the text

16. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 16 Four Levels of Customer Sensitivity Level 1: Customer Awareness Level 2: Customer Sensitivity Level 3: Customer Alignment Level 4: Customer Partnership In addition to the text

17. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 17 Guerrilla Marketing Principles Find a niche and fill it. Find a niche and fill it. Use the power of publicity Use the power of publicity Don’t just sell; entertain! Don’t just sell; entertain! “Entertailing” “Entertailing” Strive to be unique. Strive to be unique.

18. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 18 Guerrilla Marketing Principles Connect with customers on an emotional level. Connect with customers on an emotional level. Build trust Build trust Define a unique selling proposition (USP) Define a unique selling proposition (USP) (continued)

19. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 19 Unique Selling Proposition A key customer benefit of a product or service that sets it apart from its competition. A key customer benefit of a product or service that sets it apart from its competition. Answers key customer question: “What’s in it for me?” Answers key customer question: “What’s in it for me?” Consider intangible or psychological benefits as well as tangible ones. Consider intangible or psychological benefits as well as tangible ones. Communicate your USP to your customers often. Communicate your USP to your customers often.

20. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 20 FIGURE 8.1 The Connection between Branding and a USP Source: Based on Brandsavvy, Highlands Ranch, Colorado

21. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 21 Create an identity for your business through branding. Create an identity for your business through branding. Guerrilla Marketing Principles (continued)

22. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 22 Building a Brand High Low LowHigh Differentiation Relevance “Antes” Features that are important to customers but all competitors provide them Every company in the market must “ante up” on these features. “Drivers” Features that are both important to customers and are highly differentiated from those of competitors These are the attributes on which a company must focus to build its brand.1 “Fool’s Gold” Features that are unique to your company but do not drive customers’ loyalty to your product and services Don’t make the mistake of trying to build a brand on these features! “Neutrals” Features that are irrelevant to customers These features are useless when it comes to branding. Source: Adapted from “What Really Matters in Building a Brand,” The McKinsey Quarterly, May 2004, www.mckinseyquarterly.com/newsletters/chartfocus/2004_05.htm In addition to the text

23. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 23 Guerrilla Marketing Principles Create an identity for your business through branding. Create an identity for your business through branding. Embrace social networking. Embrace social networking. (continued)

24. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 24 Social networks sites, such as Facebook and MySpace, allow entrepreneurs to connect with potential and existing customers at little or no cost. Social networks sites, such as Facebook and MySpace, allow entrepreneurs to connect with potential and existing customers at little or no cost. More than half of Facebook users are over the age of 25. More than half of Facebook users are over the age of 25. These sites now offer business survey tools and advertising functions for promotional purposes. These sites now offer business survey tools and advertising functions for promotional purposes. Social Networking

25. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 25 Guerrilla Marketing Principles Create an identity for your business through branding. Create an identity for your business through branding. Embrace social networking. Embrace social networking. Start a blog. Start a blog. (continued)

26. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 26 An estimated 113 million blogs exist with 5,000 of them from businesses. An estimated 113 million blogs exist with 5,000 of them from businesses. Economical and effective online communication. Economical and effective online communication. Blog Guidelines: Blog Guidelines: Be honest, balanced, and interesting. Be honest, balanced, and interesting. Post blog entries consistently so that readers have a reason to return. Post blog entries consistently so that readers have a reason to return. Ask customers for feedback. Ask customers for feedback. Blogging

27. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 27 Strive to cultivate the image of an expert or a trusted friend on a topic that is important. Strive to cultivate the image of an expert or a trusted friend on a topic that is important. Use services such as Google Alerts that scan the Web for a company’s name and send e-mail alerts when they find posts. Use services such as Google Alerts that scan the Web for a company’s name and send e-mail alerts when they find posts. Promote the blog via e-mail and promotional Web Sites. Promote the blog via e-mail and promotional Web Sites. Blogging (continued)

28. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 28 Guerrilla Marketing Principles Create an identity for your business through branding. Create an identity for your business through branding. Embrace social networking. Embrace social networking. Start a blog. Start a blog. Create online videos. Create online videos. (continued)

29. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 29 Study: 19% of Internet users watch online videos every day. Study: 19% of Internet users watch online videos every day. Online video guidelines: Online video guidelines: Think “edutainment.” Think “edutainment.” Be funny. Be funny. Connect with current events. Connect with current events. Involve customers. Involve customers. Keep it short. Keep it short. Online Videos

30. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 30 Guerrilla Marketing Principles Create an identity for your business through branding. Create an identity for your business through branding. Embrace social networking. Embrace social networking. Start a blog. Start a blog. Create online videos. Create online videos. Focus on the customer. Focus on the customer. (continued)

31. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 31 Only 6% of customers who experience a problem contact the company to complain. 31% tell family members, friends, and colleagues about their negative experience. 31% tell family members, friends, and colleagues about their negative experience. 6% of those people tell their “horror stories” to six or more people. 6% of those people tell their “horror stories” to six or more people. For every 100% of customers who have negative experiences with a business, the company stands to lose 32 to 36 current customers or potential customers. For every 100% of customers who have negative experiences with a business, the company stands to lose 32 to 36 current customers or potential customers. Focus on the Customer

32. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 32 Focus on the Customer 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! 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! Research shows that repeat customers spend 67% more than new customers. Research shows that repeat customers spend 67% more than new customers. Attracting new customers costs the typical business seven to nine times as much as keeping existing customers. Attracting new customers costs the typical business seven to nine times as much as keeping existing customers. (continued)

33. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 33 Principles of Customer Experience Management (CEM) Intimate Personal Consistent, courteous, and professional Responsive Helpful information and advice Involvement of caring, well-trained people Long-term relationship view Emphasis on sustaining an ongoing relationship Nurturing the company/customer relationship Intimate Personal Consistent, courteous, and professional Responsive Helpful information and advice Involvement of caring, well-trained people Long-term relationship view Emphasis on sustaining an ongoing relationship Nurturing the company/customer relationship Every customer interaction should be: Satisfied, loyal, repeat (and profitable) customers Source: Adapted from “Wake-Up Call: To Fix CRM, Fix the Customer Experience Now!, BearingPoint White Paper (www.bearingpoint.com, Fall 2005, p. 5.www.bearingpoint.com In addition to the text

34. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 34 Focus on the Customer Companies that are successful at retaining their customers constantly ask themselves (and their customers) four questions: 1. What are we doing right? 2. How can we do that even better? 3. What have we done wrong? 4. What can we do in the future? (continued)

35. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 35 Guerrilla Marketing Principles Create an identity for your business through branding. Create an identity for your business through branding. Embrace social networking. Embrace social networking. Start a blog. Start a blog. Create online videos. Create online videos. Focus on the customer. Focus on the customer. Be devoted to quality. Be devoted to quality. (continued)

36. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 36 Devotion to Quality Study: 60% of customers who change suppliers do so because of problems with a company’s products or services. Study: 60% of customers who change suppliers do so because of problems with a company’s products or services. World-class companies treat quality as a strategic objective, an integral part of company culture. World-class companies treat quality as a strategic objective, an integral part of company culture. The philosophy of Total Quality Management (TQM): The philosophy of Total Quality Management (TQM): Quality in the product or service itself. Quality in the product or service itself. Quality in every aspect of the business and its relationship with the customer. Quality in every aspect of the business and its relationship with the customer. Continuous improvement in quality. Continuous improvement in quality.

37. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 37 How Do Americans Define Quality in a Product? Reliability (average time between breakdowns) Reliability (average time between breakdowns) Durability (how long an item lasts) Durability (how long an item lasts) Ease of use Ease of use Known or trusted brand name Known or trusted brand name Low price Low price

38. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 38 How Do Americans Define Quality in a Service? Tangibles - equipment, facilities, people Tangibles - equipment, facilities, people Reliability - doing what you say you will do Reliability - doing what you say you will do Responsiveness - promptness in helping customers Responsiveness - promptness in helping customers Assurance and empathy - conveying a caring attitude Assurance and empathy - conveying a caring attitude

39. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 39 Guerrilla Marketing Principles Create an identity for your business through branding. Create an identity for your business through branding. Embrace social networking. Embrace social networking. Start a blog. Start a blog. Create online videos. Create online videos. Focus on the customer. Focus on the customer. Be devoted to quality. Be devoted to quality. Pay attention to convenience. Pay attention to convenience. (continued)

40. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 40 Attention to Convenience The average U.S. work week is 42.5 hours, an increase from 37.5 hours in 2003. Is your business conveniently located near customers? Is your business conveniently located near customers? Are your business hours suitable to your customers? Are your business hours suitable to your customers? Would customers appreciate pickup and delivery services? Would customers appreciate pickup and delivery services? Do you make it easy for customers to buy on credit or with credit cards? Do you make it easy for customers to buy on credit or with credit cards?

41. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 41 Attention to Convenience Are your employees trained to handle business transactions quickly, efficiently, and politely? Are your employees trained to handle business transactions quickly, efficiently, and politely? Does your company offer “extras” that would make customers’ easier? Does your company offer “extras” that would make customers’ easier? Can you bundle existing products to make it easier for customers to use them? Can you bundle existing products to make it easier for customers to use them? Can you adapt existing products to make them more convenient for customers? Can you adapt existing products to make them more convenient for customers? Does your company handle telephone calls quickly and efficiently? Does your company handle telephone calls quickly and efficiently? (continued)

42. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 42 Concentrate on innovation. Concentrate on innovation. Guerrilla Marketing Principles (continued)

43. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 43 Concentration on Innovation Innovation Innovation The key to future success. The key to future success. One of the greatest strengths of entrepreneurs. It shows up in the new products, techniques, and unusual approaches they introduce. One of the greatest strengths of entrepreneurs. It shows up in the new products, techniques, and unusual approaches they introduce. Entrepreneurs often create new products and services by focusing their efforts on one area and by using their size and flexibility to their advantage. Entrepreneurs often create new products and services by focusing their efforts on one area and by using their size and flexibility to their advantage.

44. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 44 Guerrilla Marketing Principles Concentrate on innovation. Concentrate on innovation. Be dedicated to service and customer satisfaction. Be dedicated to service and customer satisfaction. Survey: 25% of customers have walked out of a store within the past year because of poor service. Survey: 25% of customers have walked out of a store within the past year because of poor service. Survey: 80% say they will never return to a business after a negative customer service experience. Survey: 80% say they will never return to a business after a negative customer service experience. ( continued )

45. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 45 Dedication to Service Listen to customers. Listen to customers. Define “superior service.” Define “superior service.” Set standards and measure performance. Set standards and measure performance. Examine your company’s service cycle. Examine your company’s service cycle. Hire the right employees. Hire the right employees. Train employees to deliver superior service. Train employees to deliver superior service. Goal: To achieve customer astonishment!

46. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 46 Dedication to Service Empower employees to offer superior service. Empower employees to offer superior service. Treat employees with respect and show them how valuable they are. Treat employees with respect and show them how valuable they are. Use technology to provide improved service. Use technology to provide improved service. ( continued ) Goal: To achieve customer astonishment!

47. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 47 Dedication to Service Use mystery shoppers to measure customer service Use mystery shoppers to measure customer service Reward superior service. Reward superior service. Get top managers’ support. Get top managers’ support. View customer service as an investment, not an expense. View customer service as an investment, not an expense. ( continued ) Goal: To achieve customer astonishment!

48. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 48 Concentrate on innovation. Concentrate on innovation. Be dedicated to service and customer satisfaction. Be dedicated to service and customer satisfaction. Emphasize speed. Emphasize speed. Guerrilla Marketing Principles ( continued )

49. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 49 Emphasis on Speed Use principles of time compression management (TCM): Use principles of time compression management (TCM): Speed new products to market Speed new products to market Shorten customer response time in manufacturing and delivery Shorten customer response time in manufacturing and delivery Reduce the administrative time required to fill an order. Reduce the administrative time required to fill an order. Study: Most businesses waste 85 to 99% of the time required to produce products or services! Study: Most businesses waste 85 to 99% of the time required to produce products or services!

50. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 50 Emphasis on Speed Re-engineer the process rather than try to do the same thing - only faster. Re-engineer the process rather than try to do the same thing - only faster. Create cross-functional teams of workers and empower them to attack and solve problems. Create cross-functional teams of workers and empower them to attack and solve problems. Set aggressive goals for production and stick to the schedule. Set aggressive goals for production and stick to the schedule. ( continued )

51. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 51 Emphasis on Speed Rethink the supply chain. Rethink the supply chain. Instill speed in the company culture. Instill speed in the company culture. Use technology to find shortcuts wherever possible. Use technology to find shortcuts wherever possible. Put the Internet to work for you. Put the Internet to work for you. ( continued )

52. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 52 The Marketing Mix P roduct P lace P rice P romotion

53. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall FIGURE 8.2 Five Characteristics of a Great Product 8 - 53 Ch. 8: Building a Powerful Marketing Plan

54. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 54 FIGURE 8.3 The Product Life Cycle The Product Life Cycle

55. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 55 Stages in the Product Life Cycle Introductory stage Introductory stage High Costs

56. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 56 Stages in the Product Life Cycle Introductory stage Introductory stage Growth and acceptance stage Growth and acceptance stage High Costs High Costs High Costs Sales Climb ( continued )

57. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 57 Stages in the Product Life Cycle Introductory stage Introductory stage Growth and acceptance stage Growth and acceptance stage Maturity and competition stage Maturity and competition stage High Costs Sales Climb Profits Peak High Costs Sales Climb Profits Peak ( continued )

58. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 58 Stages in the Product Life Cycle Introductory stage Introductory stage Growth and acceptance stage Growth and acceptance stage Maturity and competition stage Maturity and competition stage Market saturation stage Market saturation stage High Costs Sales Climb Profits Peak Sales Peak High Costs Sales Climb Profits Peak Sales Peak ( continued )

59. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 59 Stages in the Product Life Cycle Introductory stage Introductory stage Growth and acceptance stage Growth and acceptance stage Maturity and competition stage Maturity and competition stage Market saturation stage Market saturation stage Product decline stage Product decline stage High Costs High Costs Profits Peak Profits Peak Sale s Peak Sale s Peak Sales & Profits Fall Sales & Profits Fall High Costs Sales Climb Profits Peak Sales Peak High Costs Sales Climb Profits Peak Sales Peak ( continued )

60. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall FIGURE 8.4 Time between Introduction of Products 8 - 60 Ch. 8: Building a Powerful Marketing Plan

61. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 61 Place: Channels of Distribution Consumer Goods Manufacturer Consumer Retailer Consumer Manufacturer Retailer Consumer Wholesaler Manufacturer Retailer Consumer Wholesaler

62. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 62 Place: Channels of Distribution Industrial Goods Manufacturer Industrial User Manufacturer Wholesaler Industrial User

63. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 63 Price A key factor in the decision to buy A key factor in the decision to buy Focus attention on non-price competition Focus attention on non-price competition Free trial offers Free trial offers Free delivery Free delivery Lengthy warranties Lengthy warranties Money back guarantees Money back guarantees

64. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 64 Promotion Goal: To inform and persuade. Goal: To inform and persuade. Through advertising and other communication techniques. Through advertising and other communication techniques. Create an image. Create an image. “Marketing is not a battle of products; it is a battle of perceptions.” “Marketing is not a battle of products; it is a battle of perceptions.”

65. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 65 Conclusion A guerrilla marketing plan offers the entrepreneur significant benefits. A guerrilla marketing plan offers the entrepreneur significant benefits. Target marketing is key. Target marketing is key. Create a competitive and edge through customer focus, quality, convenience, innovation, service and speed. Create a competitive and edge through customer focus, quality, convenience, innovation, service and speed.

66. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Ch. 8: Building a Powerful Marketing Plan 8 - 66 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.