1. Ch. 8: Building a Powerful Marketing Plan

2. Building a Guerrilla Marketing Plan
The process of creating and delivering desired goods and services to customers.
Involves all of the activities associated with winning and retaining loyal customers.
A solid business plan needs to contain both a financial plan and a marketing plan.
Ch. 8: Building a Powerful Marketing Plan

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.
Do not require large amounts of money to be effective – just creativity.
Ch. 8: Building a Powerful Marketing Plan

4. A Guerrilla Marketing Plan
Pinpoints the specific target markets the company will serve.
Determines customer needs and wants through market research.
Analyzes a firm’s competitive advantages and creates a marketing strategy to build a competitive edge.
Helps to create a marketing mix that meets customer needs and wants.
Ch. 8: Building a Powerful Marketing Plan

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.
Marketing strategy must be built on a clear definition of a company’s target customers.
Example: Hot Mama
Ch. 8: Building a Powerful Marketing Plan

6. Pinpointing the Target Market
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.
Ch. 8: Building a Powerful Marketing Plan

7. Market Research Determining customer needs.
Demographics
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!
Market research does not have to be time consuming, complex, or expensive to be useful.
Web-based market research – online surveys
Trend-tracking
Ch. 8: Building a Powerful Marketing Plan

8. Tracking Trends Read many diverse current publications
Watch the top 10 TV shows
See the top 10 movies
Talk to at least 150 customers a year
Talk with the 10 smartest people you know
Listen to your children and their friends
Ch. 8: Building a Powerful Marketing Plan

9. Market Research How to Conduct Market Research: Define the objective.
Collect the data.
Individualized (one-to-one) marketing
Primary research
Secondary research
Ch. 8: Building a Powerful Marketing Plan

10. Market Research How to Conduct Market Research: Define the problem.
(continued)
How to Conduct Market Research:
Define the problem.
Collect the data.
Individualized (one-to-one) marketing
Data mining
Analyze and interpret the data.
Draw conclusions and act.
Ch. 8: Building a Powerful Marketing Plan

11. Relationship Marketing (Customer Relationship Management)
In addition to the text
Involves developing and maintaining long-term relationships with customers so that they will keep coming back to make repeat purchases.
Ch. 8: Building a Powerful Marketing Plan

12. Relationship Marketing (Customer Relationship Management)
In addition to the text
Steps:
Collect meaningful customer information and compile it in a database.
Mine the database to identify “best” customers.
Use the information to develop lasting relationships with “best” customers.
Attract more customers who fit the “best” customer profile.
Ch. 8: Building a Powerful Marketing Plan

13. 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
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
Build
Relationships
Based on what you have learned, contact customers with an offer designed for them. Make customers feel special and valued.
Connect
&
Collect
Make contact with most valuable customers and begin building a customer database using data mining and data warehousing techniques.
Learn
Learn from your customers by encouraging feedback from them; develop a thorough customer profile and constantly refine it.
In addition to the text
Ch. 8: Building a Powerful Marketing Plan

14. Steps in CRM
In addition to the text
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.
Use the information to establish lasting relationships with these customers.
Attract more customers who fit the profile of the company’s best customers.
Ch. 8: Building a Powerful Marketing Plan

15. Four Levels of Customer Sensitivity
In addition to the text
Level 4: Customer Partnership
Level 3: Customer Alignment
Level 2: Customer Sensitivity
Level 1: Customer Awareness
Ch. 8: Building a Powerful Marketing Plan

16. Guerrilla Marketing Principles
Find a niche and fill it.
Use the power of publicity
Don’t just sell; entertain!
“Entertailing”
Strive to be unique.
Ch. 8: Building a Powerful Marketing Plan

17. Guerrilla Marketing Principles
(continued)
Connect with customers on an emotional level.
Build trust
Define a unique selling proposition (USP)
Ch. 8: Building a Powerful Marketing Plan

18. Unique Selling Proposition
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?”
Consider intangible or psychological benefits as well as tangible ones.
Communicate your USP to your
customers often.
USP
Ch. 8: Building a Powerful Marketing Plan

19. Branding and a USP
Ch. 8: Building a Powerful Marketing Plan

20. Guerrilla Marketing Principles
(continued)
Create an identity for your business through branding.
Ch. 8: Building a Powerful Marketing Plan

21. Building a Brand “Drivers” “Antes” “Fool’s Gold” “Neutrals”
In addition to the text
High
“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
“Antes”
Features that are important to customers but all competitors provide them
Every company in the market must “ante up” on these features.
Relevance
“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.
Low
Low
High
Differentiation
Ch. 8: Building a Powerful Marketing Plan
Source: Adapted from “What Really Matters in Building a Brand,” The McKinsey Quarterly, May 2004,

22. Guerrilla Marketing Principles
(continued)
Create an identity for your business through branding.
Embrace social marketing.
Ch. 8: Building a Powerful Marketing Plan

23. Social Media Used as Marketing Tools
Ch. 8: Building a Powerful Marketing Plan

24. Embrace Social Marketing
Social networks sites, such as Facebook, LinkedIn, and Twitter, allow entrepreneurs to connect with potential and existing customers at little or no cost.
44% of entrepreneurs use social media to connect with existing and potential customers.
Ch. 8: Building a Powerful Marketing Plan

25. Benefits of Social Media Marketing
Ch. 8: Building a Powerful Marketing Plan

26. Guerrilla Marketing Principles
(continued)
Create an identity for your business through branding.
Embrace social networking.
Start a blog.
Ch. 8: Building a Powerful Marketing Plan

27. Blogging
Nearly 134 million people in the U.S. read blogs and 39% of companies use blogs as part of their marketing strategies.
Economical and effective online communication.
Blog Guidelines:
Be honest, balanced, and interesting.
Post blog entries consistently so that readers have a reason to return.
Ask customers for feedback.
Ch. 8: Building a Powerful Marketing Plan

28. Blogging
(continued)
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 alerts when they find posts.
Promote the blog via and promotional Web Sites.
Ch. 8: Building a Powerful Marketing Plan

29. Guerrilla Marketing Principles
(continued)
Create an identity for your business through branding.
Embrace social networking.
Start a blog.
Create online videos.
Ch. 8: Building a Powerful Marketing Plan

30. Online Videos
YouTube reports that visitors view 3 billion videos per day.
Online video guidelines:
Think “edutainment.”
Be funny.
Post videos on multiple social media sites.
Involve customers.
Keep it short.
Ch. 8: Building a Powerful Marketing Plan

31. Guerrilla Marketing Principles
(continued)
Create an identity for your business through branding.
Embrace social networking.
Start a blog.
Create online videos.
Host a special event.
Focus on customer satisfaction.
Ch. 8: Building a Powerful Marketing Plan

32. Focus on Customer Satisfaction
Surveys show 79% of unhappy customers tell others about their experiences.
48% of shoppers say they won’t patronize stores where they know others have had negative experiences.
For every complaint a company receives, 17 other complaints go unspoken.
Disgruntled customers often post their experiences online.
80% of shoppers have changed their
minds about a purchase after reading
negative information online.
Ch. 8: Building a Powerful Marketing Plan

33. Focus on Customer Satisfaction
To achieve stellar customer service and customer satisfaction:
Examine your company’s service cycle
Set standards and measure performance
See customer complaints as a mechanism for improving customer service
Listen to customers
Define superior service
Ch. 8: Building a Powerful Marketing Plan

34. Focus on Customer Satisfaction
When you create a negative customer experience, apologize and fix it – fast
Empower employees to offer superior service
Train employees to deliver superior service
Hire the right employees
Get top managers’ support
Ch. 8: Building a Powerful Marketing Plan

35. Focus on Customer Satisfaction
Treat employees with respect and show them how valuable they are
Use technology to provide improved experience
View customer service as an investment, not an expense
Reward superior service
Give customers an unexpected
surprise
Ch. 8: Building a Powerful Marketing Plan

36. Principles of Customer Experience Management (CEM)
In addition to the text
Every customer interaction should be:
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
Satisfied, loyal, repeat (and profitable) customers
Source: Adapted from “Wake-Up Call: To Fix CRM, Fix the Customer Experience Now!, BearingPoint White Paper ( Fall 2005, p. 5.
Ch. 8: Building a Powerful Marketing Plan

37. Guerrilla Marketing Principles
(continued)
Create an identity for your business through branding.
Embrace social networking.
Start a blog.
Create online videos.
Host a special event.
Focus on customer satisfaction.
Retain existing customers.
Ch. 8: Building a Powerful Marketing Plan

38. Retain Existing Customers
A company must land 12 to 20 new customers to offset the impact of one lost loyal customer!
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.
Practice customer experience management.
Ch. 8: Building a Powerful Marketing Plan

39. Retain Existing Customers
(continued)
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?
Ch. 8: Building a Powerful Marketing Plan

40. Guerrilla Marketing Principles
(continued)
Create an identity for your business through branding.
Embrace social networking.
Start a blog.
Create online videos.
Host a special event.
Focus on customer satisfaction.
Retain existing customers.
Be devoted to quality.
Ch. 8: Building a Powerful Marketing Plan

41. Devotion to Quality
World-class companies treat quality as a strategic objective, an integral part of company culture.
The philosophy of Total Quality Management (TQM):
Quality in the product or service itself.
Quality in every aspect of the business and its relationship with the customer.
Continuous improvement in quality.
Ch. 8: Building a Powerful Marketing Plan

42. How Do Americans Define Quality in a Product?
Reliability (average time between breakdowns)
Durability (how long an item lasts)
Ease of use
Known or trusted brand name
Low price
Ch. 8: Building a Powerful Marketing Plan

43. How Do Americans Define Quality in a Service?
Tangibles - equipment, facilities, people
Reliability - doing what you say you will do
Responsiveness - promptness in helping customers
Assurance and empathy - conveying a caring attitude
Ch. 8: Building a Powerful Marketing Plan

44. Guerrilla Marketing Principles
(continued)
Create an identity for your business through branding.
Embrace social networking.
Start a blog.
Create online videos.
Host a special event.
Focus on customer satisfaction.
Retain existing customers
Be devoted to quality.
Pay attention to convenience.
Ch. 8: Building a Powerful Marketing Plan

45. Attention to Convenience
Successful companies go out of their way to make sure it’s easy for customers to do business with them.
Questions to ask:
Is your business conveniently located near customers?
Are your business hours suitable to your customers?
Would customers appreciate pickup and delivery services?
Do you make it easy for customers to buy on credit or with credit cards?
Do your employees treat customers with courtesy?
Ch. 8: Building a Powerful Marketing Plan

46. Attention to Convenience
(continued)
Are your employees trained to handle business transactions quickly, efficiently, and politely?
Does your company offer “extras” that would make customers’ lives easier?
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?
Does your company handle telephone calls quickly and efficiently?
Ch. 8: Building a Powerful Marketing Plan

47. Guerrilla Marketing Principles
(continued)
Concentrate on innovation.
Ch. 8: Building a Powerful Marketing Plan

48. Concentration on Innovation
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.
Entrepreneurs often create new products and services by focusing their efforts on one area and by using their size and flexibility to their advantage.
Ch. 8: Building a Powerful Marketing Plan

49. Guerrilla Marketing Principles
(continued)
Concentrate on innovation.
Emphasize speed.
Ch. 8: Building a Powerful Marketing Plan

50. Emphasis on Speed Use principles of time compression management (TCM):
Speed new products to market
Shorten customer response time in manufacturing and delivery
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!
Ch. 8: Building a Powerful Marketing Plan

51. Emphasis on Speed
(continued)
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.
Set aggressive goals for production and stick to the schedule.
Ch. 8: Building a Powerful Marketing Plan

52. Emphasis on Speed Rethink the supply chain.
(continued)
Rethink the supply chain.
Instill speed in the company culture.
Use technology to find shortcuts wherever possible.
Put the Internet to work for you.
Ch. 8: Building a Powerful Marketing Plan

53. Ch. 8: Building a Powerful Marketing Plan