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
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
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
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
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!
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
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
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
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
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
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
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)
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
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
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
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
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
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