1. HOW TO MARKET YOUR BUSINESS Lecture 8

2. LOOK INSIDE – CORE SKILLS AND KNOWLEDGE 1. What do I know/do well? –How can I build my skills and knowledge 2. What do I do well that others have trouble doing well? 3. What can I apply to a wide variety of markets 4. What do customers value?

3. CREATING VALUE What makes the customer want to pay? Two typical ways –Differentiation – Providing something special –Low cost – Providing something acceptable for a lower price

4. USE THE CUSTOMER’S POINT OF VIEW Customer asks “What’s in it for me?” Customer asks “Why is this product/service better than other options?” Features create benefits which satisfy needs Who pays/who uses? Check insights with customers

5. Focus! On your best markets On your best products and services Lack of focus will kill a Startup Business

6. CUSTOMERS Consumers Businesses Manufacturers Institutions Government

7. MEASURING STICK Good product or service Can be sold at a profit Enough potential buyers Timing is just right Can tell a story that will make people buy Is worth effort/money to get profits

8. TARGET MARKET Definable – What do potential customers have in common? Meaningful – How do common factors make customers want to purchase? Sizable –Are there enough customers with enough money to keep you in business? Reachable – Are there affordable and effective ways to market to your prospects?

9. KNOW YOUR CUSTOMERS Who are they? How many? Where are they? What do they buy? Why do they buy? When do they buy? How do they buy? Who has the greatest need? Are they really that unsatisfied? Why do they buy from you — or from someone else?

10. Many Ways to Divide (Segment) The Market How is product used? Where is product used? Who uses product? Why does customer like the product? What benefits does customer get from the product?

11. Market Trends That Might Affect Demand Number of sellers Regulations and standards Demographic: it’s easier to sell to people with money than to those that don’t have any Buyer behavior Technology

12. INDUSTRY ANALYSIS Major players Size of the market Major trends Environment –Technological Developments –Economic Developments –Regulatory Developments –Demographic Developments

13. Know your Competitors Knowing what your competitors are doing or how competitive products are designed, marketed and packaged from day-one is essential to determining product positioning and market potential.

14. Study your Competitors Search directories, databases, buyers guides, and other resources by product type Use NAICS or SIC codes to search by company type Do a patent search to assess new technology. Interview those in the know Identify, know, and assess the 5 P’s of marketing for each competitor.

15. Five Ps - Product –Most important –What products or services exist that provide similar benefits? How do they do it? –Establish your differences from competitors’ product features, benefits, shape, colors, sizes, technology, packaging, etc. –Identify substitute products/services.

16. Five Ps - Price How are the products or services priced? Does pricing vary significantly? Establish a pricing scheme by reviewing competitors’ prices—retail and wholesale. Can you produce your product/service within these pricing constraints?

17. Pricing Factors Price = Image +Service +Product +Overhead +Profit +Risk

18. Five Ps - Promotion The means by which a customer gets information to make a decision about whether or not to buy your product.

19. Promotion How do competitors communicate with their customers? Determine competitors’ sales techniques, promotional methods and advertising strategies used.

20. PROMOTION PYRAMID Buys Convinced Comprehends Aware of your company Unaware of your company

21. PROMOTION RULES 1. Don’t promise more than you can deliver consistently. 2.Deliver more than you promise.

22. Five Ps - Place Determine your competitors’ distribution strategies— how and where? Are they selling direct or through a certain channel, and what are your capabilities of competing in this (these) channel(s)?

23. Five Ps - People  Who are the critical employees?  Are skilled professionals needed?  Can you recruit the needed employees? Are there barriers to hiring them?

24. MARKETING CHECKLIST Pick your target markets. Analyze your competition. Position your products and/or services. Set goals. Sell, sell, sell. Measure results against goals; revise plan as necessary.

25. CONSULT RESOURCES! Online databases, such as Lexis-Nexis, ABI Inform/ ProQuest, FIND/SVP, EBSCOhost, TableBase, Stat- USA, Wilson Web, etc. – Search for articles, company profiles, or market information – Require subscriptions, but usually available at local library Yellow pages – Business-to-Business Yellow Pages – Online Yellow Pages Manufacturers’ directories – Thomas Register (www.thomasregister.com) – Dun & Bradstreet (www.dnb.com; hard copy at local library)www.dnb.com – Hoover’s Online database (www.hooversonline.com)www.hooversonline.com

26. CONSULT RESOURCES! Retailers, catalogs, manufacturers reps, wholesalers – Manufacturers Agents National Association (www.manaonline.org)www.manaonline.org – Catalog of Catalogs – www.cataloglink.com www.cataloglink.com You Are Where You Live (claritasexpress.com) Consumer Reports journals (www.consumerreports.com)www.consumerreports.com

27. CONSULT RESOURCES! US Patent Office ( www.uspto.gov) www.uspto.gov Patent Depository Libraries in Wisconsin: Kurt Wendt Library in Madison and the Milwaukee Public Library Some competitive patents offer good information on market. US CENSUS BUREAU (www.census.gov) – Population information – Information on numbers/types of firms – By state/zipcode/country/city or by industry

28. CONSULT RESOURCES! Trade associations: –Current and archived newsletters, articles –Associations Unlimited (was Encyclopedia of Associations)--found at local/public library Universities –Whitepapers, reports, studies, ongoing research Providers of Market information –American Demographics –Standard & Poor’s Surveys Company literature

29. CONSULT RESOURCES! Interviews and surveys to obtain and gauge opinions about potential need or demand (require non-disclosure if needed) Can provide not only technical feedback on invention, but also market potential. Gets less biased perspective (instead of friends and family) Examples: –Company representatives (i.e., sales managers) –University or trade school professors –Purchasing agents of distributor companies –Trade association reps –Writers/columnists of trade magazines –Federal lab professionals

30. CONSULT RESOURCES! Others to approach with interviews and surveys (get nondisclosure if necessary) –Industry experts or professional consultants –Trade show participants –Distributors, purchasing agents, store personnel, sales people) AND target market Possible themes –Customer opinions/complaints about problem –Perceived advantages/disadvantages (or likes and dislikes) of your concept –Potential changes in industry/market –Intentions to purchase –Appropriate price points –Competitive products

31. CONSULT RESOURCES! Consultants Small Business Administration (SBA; www.sba.gov)www.sba.gov –Small Business Development Centers (www.sba.gov/sbdc) –WISC (http://academics.uww.edu/business/innovate/innovate.htm)http://academics.uww.edu/business/innovate/innovate.htm Online inventor forums: –Inventnet (www.inventnet.com)www.inventnet.com –Inventors’ Alliance (www.inventorsalliance.org)www.inventorsalliance.org –National Inventor Fraud Center (www.inventorfraud.com)www.inventorfraud.com –Patent Café (www.patentcafe.com)www.patentcafe.com –United Inventors’ Association (www.uiausa.com)www.uiausa.com