1. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-1 Building a Guerrilla Marketing Plan

2. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-2 Marketing The process of creating and delivering desired goods and services to customers; involves all of the activities associated with winning and retaining loyal 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 “Secrets” “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

3. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-3 Four Objectives of a Guerrilla Marketing Plan Pinpoint the target markets a company will serve Pinpoint the target markets a company will serve Determine customer needs, wants, and characteristics through market research Determine customer needs, wants, and characteristics through market research Analyze a company’s competitive advantages and build a marketing strategy around them Analyze a company’s competitive advantages and build a marketing strategy around them Create a marketing mix that meets customer needs and wants Create a marketing mix that meets customer needs and wants

4. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-4 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 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” An effective marketing program depends on a clear, concise definition of the firm's targeted customers, not a “one-size-fits-all approach”

5. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-5 Pinpointing the Target Market Key: Understanding target customers’ unique needs, wants, and preferences Key: Understanding target customers’ unique needs, wants, and preferences Opportunity: Increasing populations of multicultural customers Opportunity: Increasing populations of multicultural customers Target customer must permeate the entire business Target customer must permeate the entire business

6. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-6 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 Define the objective Collect the data Collect the data

7. 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. Copyright ©2012 Pearson Education, Inc. publishing as Prentice HallChapter 9: Guerilla Marketing Plan9-9

8. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-8 Market Research Analyze and interpret the data Analyze and interpret the data Put the information to work Put the information to work 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 Define the objective Collect the data Collect the data

9. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-9 Relationship Marketing Involves developing, maintaining, and managing long-term relationships with customers so that they will keep coming back to make repeat purchases Involves developing, maintaining, and managing long-term relationships with customers so that they will keep coming back to make repeat purchases Steps: Steps:  Build database of customer information  Identify best and most profitable customers  Develop lasting relationships with these customers  Attract more customers like them

10. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-10 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 – “entertailing” Don’t just sell; entertain – “entertailing” Connect with customers on an emotional level Connect with customers on an emotional level Build a consistent branding strategy Build a consistent branding strategy Embrace social networking Embrace social networking

11. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-11 Acquiring Customers via Social Media Source: The State of Inbound Marketing, 2010, HubSpot.

12. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-12 Embrace Social Networking Companies that are highly engaged in social media significantly outperform in both revenues and profits those companies that are less engaged Companies that are highly engaged in social media significantly outperform in both revenues and profits those companies that are less engaged Companies that use Twitter generate 2x as many sales leads as companies that do not Companies that use Twitter generate 2x as many sales leads as companies that do not But, only 24% of small businesses use social media to attract new customers or connect with existing ones But, only 24% of small businesses use social media to attract new customers or connect with existing ones

13. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-13 Create Online Videos Internet users watch 31 billion videos online each month! Internet users watch 31 billion videos online each month!  Think “edutainment”  Be funny  Post videos on multiple social media sites  Focus on a point of differentiation  Keep it short

14. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-14 Guerrilla Marketing Principles (continued) Focus on the Customer American companies lose $83 billion in sales each year because of poor customer service American companies lose $83 billion in sales each year because of poor customer service For every complaint a company receives, 17 other complaints exist, but the company never hears about them For every complaint a company receives, 17 other complaints exist, but the company never hears about them

15. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-15 Focus on the Customer (continued)  71% will not buy from that business again  31% will tell others about their negative experience  Negative word of mouth has exponential power – many people avoid a store just because of someone else’s negative experience with it

16. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-16 About 70% of a company’s sales come from existing customers 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 Allowing shoppers to customize their products has the power to increase customer retention, satisfaction, and profits Retain Existing Customers (continued)

17. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-17 Quality Guidelines Build quality into the process; don’t rely on inspection to obtain quality Build quality into the process; don’t rely on inspection to obtain quality Emphasize simplicity in design Emphasize simplicity in design Foster teamwork Foster teamwork Establish long-term ties with select suppliers Establish long-term ties with select suppliers Provide managers and employees with the training needed to produce quality Provide managers and employees with the training needed to produce quality Empower workers at all levels of the organization Empower workers at all levels of the organization

18. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-18 Quality Guidelines Get managers’ commitment to the quality philosophy Get managers’ commitment to the quality philosophy Rethink the processes the company uses now. Is there a better way? Rethink the processes the company uses now. Is there a better way? Reward employees for quality work Reward employees for quality work Develop a company-wide strategy for continuous improvement of product and service quality Develop a company-wide strategy for continuous improvement of product and service quality (Continued)

19. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-19 Guerrilla Marketing Principles (continued) Attention to convenience Attention to convenience Concentration on Innovation Concentration on Innovation Dedication to Service and Customer Satisfaction Dedication to Service and Customer Satisfaction Emphasis on Speed Emphasis on Speed

20. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-20 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? Does your company make it easy for customers to buy on credit or with credit cards? Does your company make it easy for customers to buy on credit or with credit cards? Attention to Convenience

21. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-21 Attention to Convenience Are you using technology to enhance customer convenience? Are you using technology to enhance customer 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? Do your employees use common courtesy when dealing with customers? Do your employees use common courtesy when dealing with customers?

22. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-22 Attention to Convenience Does your company offer “extras” to make customers’ lives easier? Does your company offer “extras” to make customers’ lives easier? 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 well? Does your company handle telephone calls well?

23. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-23 Concentration on Innovation Innovation - the key to future success 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 Innovation - one of the greatest strengths of the entrepreneur, showing up in the new products, techniques, and unusual approaches they introduce

24. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-24 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 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

25. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-25 Stimulating Innovation Make innovation a priority in the company Make innovation a priority in the company Measure the company’s innovative ability Measure the company’s innovative ability Set goals and objectives for innovation Set goals and objectives for innovation Encourage new product or service ideas among employees Encourage new product or service ideas among employees Listen to customers Listen to customers Always be on the lookout for new product and service ideas Always be on the lookout for new product and service ideas Keep a steady stream of new products and services coming Keep a steady stream of new products and services coming

26. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-26 Guerrilla Marketing Principles Attention to convenience Attention to convenience Concentration on innovation Concentration on innovation Dedication to service and customer satisfaction Dedication to service and customer satisfaction

27. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-27 Goal: to achieve customer astonishment! How can you improve your 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 Dedication to Service

28. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-28 Dedication to Service Train employees to deliver superior service Train employees to deliver superior service Empower employees to offer superior service Empower employees to offer superior service Use technology to provide improved service Use technology to provide improved service Reward superior service Reward superior service Get top managers' support Get top managers' support Give customers an unexpected surprise Give customers an unexpected surprise

29. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-29 Guerrilla Marketing Principles Attention to convenience Attention to convenience Concentration on innovation Concentration on innovation Dedication to service and customer satisfaction Dedication to service and customer satisfaction Emphasis on speed Emphasis on speed

30. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-30 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

31. Chapter 9: Guerrilla Marketing Plan Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall 9-31 Re-engineer the process rather than try to do the same things - only faster 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 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 Create cross-functional teams of workers and empower them to attack and solve problems Share information and ideas across the company Share information and ideas across the company Set aggressive goals for production and stick to the schedule Set aggressive goals for production and stick to the schedule 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 Emphasis on Speed

32. The Marketing Mix Product Place Price Promotion Copyright ©2012 Pearson Education, Inc. publishing as Prentice HallChapter 9: Guerilla Marketing Plan9-41

33. Stages in the Product Life Cycle Introductory stage Introductory stage High Costs Copyright ©2012 Pearson Education, Inc. publishing as Prentice HallChapter 9: Guerilla Marketing Plan9-42

34. 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 Copyright ©2012 Pearson Education, Inc. publishing as Prentice HallChapter 9: Guerilla Marketing Plan9-43

35. 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 Copyright ©2012 Pearson Education, Inc. publishing as Prentice HallChapter 9: Guerilla Marketing Plan9-44

36. 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 Clim b Profits Peak Sales Peak Copyright ©2012 Pearson Education, Inc. publishing as Prentice HallChapter 9: Guerilla Marketing Plan9-45

37. 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 Sales Peak Sales Peak Sales & Profits Fall Sales & Profits Fall High Costs Sales Climb Profits Peak Sales Peak High Costs Sales Clim b Profits Peak Sales Peak Copyright ©2012 Pearson Education, Inc. publishing as Prentice HallChapter 9: Guerilla Marketing Plan9-46

38. Channels of Distribution Consumer Goods Manufacturer Consumer RetailerConsumer Manufacturer RetailerConsumer Wholesaler Manufacturer RetailerConsumer Wholesaler Copyright ©2012 Pearson Education, Inc. publishing as Prentice HallChapter 9: Guerilla Marketing Plan9-47

39. Channels of Distribution Industrial Goods Manufacturer Industrial User Manufacturer Wholesaler Industrial User Copyright ©2012 Pearson Education, Inc. publishing as Prentice HallChapter 9: Guerilla Marketing Plan9-48