1. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 9-1

2. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 9-2 Chapter 9

3. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 9-3

4. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 1.What is the goal of your marketing efforts? 2.What target market are you trying to reach with your message? 3.What do you offer that is unique? 4.What is the specific need that the market? Specifically how are you addressing that need? 5.How does your business stand out from the competitors? What are you known for? 6.What are the strategies and specific steps you will use to implement your marketing plan? 7.What budget will you need to sell and promote your business? 9-4

5. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  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  Bootstrap marketing strategies: unconventional, low-cost, creative techniques  Maximize “bang” from marketing bucks  Also known as guerilla marketing 9-5

6. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  A bootstrap marketing plan should: 1.Pinpoint the target markets the small company will serve 2.Determine customers needs, wants, and characteristics through market research  Find the “pain points” in the market 3.Analyze a company’s competitive advantages and build a marketing strategy around them 4.Help create a marketing mix that meets customer needs and wants 9-6

7. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  First step in building a marketing plan:  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”  Technology is replacing the power of mass marketing  Use the long tail of marketing 9-7

8. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 9-8 The Long Tail of Marketing

9. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Three driving forces when marketing to niches in the long tail: 1.Tools of production 2.Internet aggregators 3.Filtering software connects supply and demand 9-9

10. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Market research: the vehicle for gathering the information that serves as the foundation for the marketing plan  Spot important demographic, social, and cultural trends and adjust strategies to fit  Do research before investing in a business! 9-10

11. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  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  Primary research  Secondary research 9-11

12. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Primary research techniques:  Customer surveys and questionnaires  Social media  Focus groups  Daily transactions  Other ideas 9-12

13. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. Data mining: 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  Three types of information: 1.Geographic 2.Demographic 3.Psychographic 9-13

14. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 9-14 How to Become an Effective One-to-One Marketer

15. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. Relationship marketing (or customer relationship marketing): 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 9-15

16. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Use the following principles to build a competitive edge:  Find a niche and fill it  Retain existing customers 9-16

17. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 9-17 The High (Annual) Cost of Lost Customers

18. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Use the following principles to build a competitive edge:  Find a niche and fill it  Retain existing customers  Concentration on innovation  Make innovation a strategic priority  Set goals and objectives for innovation  Encourage new product and service ideas  Always be on the lookout for new ideas  Keep a steady stream of new products and services flowing 9-18

19. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 9-19 Testing the Viability of New Product Ideas

20. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Product  Place  Price  Promotion 9-20

21. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Product  Products travel through various stages of development  Product life cycle: measures the stages of growth  Introductory  Growth and acceptance  Maturity and competition  Market saturation  Product decline 9-21

22. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 9-22 The Product Life Cycle

23. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Enhance their product offering through:  Focus on the customer  Dedication to service and customer satisfaction 9-23

24. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Dedication to service and customer satisfaction  Hire the right employees  Train employees to deliver superior customer service  Listen to the customer  Define superior service  Set standards and measure performance  Examine your company’s service cycle  Empower employees to offer superior service  Use technology to provide improved service  Ensure top management’s support  Give customers an unexpected surprise 9-24

25. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Enhance their product offering through:  Focus on the customer  Dedication to service and customer satisfaction  Devotion to quality  Total quality management: quality in every aspect of the business and its relationship with the customer and in continuous improvement in the quality delivered to customers  Define, measure, analyze, improve, and control (DMAIC) 9-25

26. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 9-26 The Quality DMAIC Process

27. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Enhance their product offering through:  Focus on the customer  Dedication to service and customer satisfaction  Devotion to quality  Attention to convenience  Easy to do business with (ETDBW) index  Emphasis on speed  Time compression management: 1.Speeding new products to market 2.Shortening customer response time 3.Reducing administrative time 9-27

28. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Promotion  Use the power of publicity  Publicity: any commercial news covered by the media that boosts sales bit for which a small company does not pay  Don’t just sell – entertain  Entertailing  Connect with customers on an emotional level  Build a consistent branding strategy  Embrace social media  Facebook and Twitter 9-28

29. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 9-29 Percentage of Companies That Have Acquired At Least One Customer From Social Networking Sites or a Blog

30. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Promotion  Use the power of publicity  Publicity: any commercial news covered by the media that boosts sales bit for which a small company does not pay  Don’t just sell – entertain  Entertailing  Connect with customers on an emotional level  Build a consistent branding strategy  Embrace social media  Facebook and Twitter  Blogging  Online videos 9-30

31. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Online videos  To market successfully on YouTube, companies should:  Develop a well-defined channel  Use the right key words  Think “edutainment”  Be funny  Post videos on multiple social media sites  Use other social media tools to promote new videos 9-31

32. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 9-32 Percentage of Small Business Owners Who Sat They…

33. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Price  The right price for a product or service depends on: 1.A small company’s cost structure, 2.An assessment of what the market will bear 3.The desired image the company wants to create in its customers’ minds.  Non-price competition can be more effective for many small companies 9-33

34. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Place  Four common channels of distribution for consumer goods: 1.Manufacturer to consumer 2.Manufacturer to retailer to consumer 3.Manufacturer to wholesaler to retailer to consumer 4.Manufacturer to wholesaler to wholesaler to retailer to consumer 9-34

35. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Two common channels of distribution for industrial goods: 1.Manufacturer to industrial user 2.Manufacturer to wholesaler to industrial user 9-35

36. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 9-36