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

2. 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

3. 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

4. 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
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5. 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

6. A Guerrilla Marketing Plan
Unconventional, low-cost, creative techniques that allow a company to wring a big “bang” from its marketing bucks
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7. 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
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8. Pinpointing the target market

9. 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”
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10. 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
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11. Market research
Determining customers’ needs and wants

12. 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
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13. 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
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14. 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

15. Collect the Data - continued
Much valuable information about customers is already hidden inside companies; the key is mining it!
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16. 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
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17. 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
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18. 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

19. 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
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20. FISH! Principles FISH Principle 1. Choose your attitude
FISH Principle 2. Play
FISH Principle 3. Make their day
FISH Principle 4. Be present
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21. 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
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22. 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...
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23. 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
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24. 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%
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25. 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!
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26. 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
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27. 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
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28. 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
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29. Guerrilla Marketing Principles (continued)
Start a blog
Use social networks
Devotion to quality
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30. 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
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31. 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 P. 14.

32. 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)
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33. Guerrilla Marketing Principles (continued)
Attention to convenience
Concentration on Innovation
Dedication to Service and Customer Satisfaction
Emphasis on Speed
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34. 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?
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35. 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?
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36. 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?
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37. 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
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38. 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
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39. 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
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40. Guerrilla Marketing Principles
Attention to convenience
Concentration on innovation
Dedication to service and customer satisfaction
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41. 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
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42. 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
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43. Guerrilla Marketing Principles
Attention to convenience
Concentration on innovation
Dedication to service and customer satisfaction
Emphasis on speed
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44. 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
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45. 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
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46. Marketing on the www
Google AdSense
Pay per click

47. The Marketing mix

48. Creative Use of Advertising and Promotion
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49. 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
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50. 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!
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51. 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?
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52. 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
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53. 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
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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.
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56. Successful Personal Selling Requires a Selling System
Prepare
Approach
Interview
Demonstrate, explain, and show
Validate
Negotiate
Close the sale
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57. FUNDAMENTALS OF A SUCCESSFUL AD
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58. 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?
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59. 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?
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60. 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
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61. 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?
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63. Advertising Media Options
Word-of-mouth
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64. 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
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65. Advertising Media Options
Word-of-mouth
Sponsorships and Special Events
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66. 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
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67. 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
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68. Advertising Media Options
Word-of-mouth
Sponsorships and Special Events
Newspapers
Radio
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69. 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
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70. 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
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71. Advertising Media Options
Word-of-mouth
Newspapers
Radio
Television
Magazines
Specialty advertising
Point-of-purchase ads
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72. 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
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73. 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
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74. E-Mail Advertising Permission e-mail vs. spam
Radicati Group study: 171 billion s sent per day
71 percent of those are spam
Stick to marketing basics
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75. Advertising
Collect customers’ and potential customers’ addresses
Make subject line short, meaningful, and to-the-point
Make the ’s look and feel consistent with your company’s image
Send s when customers are most likely to make purchases
Write copy that produces results
Use value-added items to increase response rates
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76. 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
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77. Preparing an Advertising Budget
What is affordable
Matching competitor's advertising expenditures
Percentage of Sales
Past Sales
Forecasted Sales
Objective-and-Task
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79. 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
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80. 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
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