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Building A Powerful Marketing Plan
Building A Powerful Marketing Plan
Building a Powerful
Marketing Plan
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-3
A Guerrilla Marketing Plan
1. Pinpoints the specific target markets the
company will serve.
2. Determines customer needs and wants
through market research.
3. Analyzes a firm’s competitive advantages
and creates a marketing strategy to build
a competitive edge.
4. Helps to create a marketing mix that
meets customer needs and wants.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-4
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 clear
definition of a company’s target
customers.
Examples: Great Call and Lexus
of Palm Beach
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-5
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 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-6
Market Research
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 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-7
Tracking Trends
Read many diverse current publications
Monitor blogs and newsgroups
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 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-8
Market Research
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-9
How to Become an Effective One-to-One Marketer
Enhance your products and
Identify your best customers,
services by giving customers
never passing up the
information about them and how
opportunity to get their names.
to use them.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 11
Relationship Marketing
(Customer Relationship Management)
In addition to the text
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 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 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 13
The Relationship Marketing Process
If you have done everything
else correctly, this step is
relatively easy. Superb
Analyze
customer service is the
best way to retain Sell,
your most valuable
customers. Service, Conduct detailed customer intelligence to
& Satisfy pinpoint most valuable customers and to
learn all you can about them, including
their lifetime value (LTV) to the company.
Build
Connect
Relationships
&
Collect
Based on what you have
learned, contact customers
Make contact with most valuable customers
with an offer designed for
them. Make customers feel
Learn and begin building a customer database
special and valued. using data mining and data warehousing
techniques.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 15
Four Levels of Customer Sensitivity
In addition to the text
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 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 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 17
Guerrilla Marketing Principles (continued)
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 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.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 19
FIGURE 8.1 The Connection between Branding and a USP
Source: Based on Brandsavvy, Highlands Ranch, Colorado
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 20
Guerrilla Marketing Principles
(continued)
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 21
Building a Brand In addition to the text
High
“Antes” “Drivers”
Features that are important Features that are both
to customers but all important to customers and are
competitors provide them highly differentiated from those
of competitors
Every company in the
market must “ante up” on These are the attributes on
Relevance
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 23
Social Networking
Social networks sites, such as Facebook
and MySpace, allow entrepreneurs to
connect with potential and existing
customers at little or no cost.
More than half of Facebook users are
over the age of 25.
These sites now offer business survey
tools and advertising functions
for promotional purposes.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 24
Guerrilla Marketing Principles (continued)
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 25
Blogging
An estimated 113 million blogs exist
with 5,000 of them from businesses.
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 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 26
Blogging
(continued)
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 27
Guerrilla Marketing Principles (continued)
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 28
Online Videos
Study: 19% of Internet users watch
online videos every day.
Online video guidelines:
Think “edutainment.”
Be funny.
Connect with current events.
Involve customers.
Keep it short.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 29
Guerrilla Marketing Principles (continued)
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 30
Focus on the Customer
Only 6% of customers who experience a
problem contact the company to complain.
31% tell family members, friends, and colleagues
about their negative experience.
6% of those people tell their “horror stories” to
six or more people.
For every 100% of customers who have negative
experiences with a business,
the company stands to lose
32 to 36 current customers
or potential customers.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 31
Focus on the Customer (continued)
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 32
Principles of Customer Experience Management (CEM)
In addition to the text
Every customer interaction should be:
• Intimate
• Personal
• Consistent, courteous, and professional
• Responsive
Satisfied,
loyal,
• Helpful information and advice
repeat
• Involvement of caring, well-trained people
(and profitable)
• Long-term relationship view customers
• Emphasis on sustaining an ongoing
relationship
• Nurturing the company/customer relationship
Source: Adapted from “Wake-Up Call: To Fix CRM, Fix
the Customer Experience Now!, BearingPoint White
Paper (www.bearingpoint.com, Fall 2005, p. 5.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 33
Focus on the Customer
(continued)
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 34
Guerrilla Marketing Principles (continued)
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 35
Devotion to Quality
Study: 60% of customers who change suppliers
do so because of problems with a company’s
products or services.
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 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 36
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 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 37
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 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 38
Guerrilla Marketing Principles (continued)
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 39
Attention to Convenience
The average U.S. work week is 42.5 hours,
an increase from 37.5 hours in 2003.
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?
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 40
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’ 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 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 41
Guerrilla Marketing Principles (continued)
Concentrate on innovation.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 42
Concentration on Innovation
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 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 43
Guerrilla Marketing Principles (continued)
Concentrate on innovation.
Be dedicated to service and customer
satisfaction.
Survey: 25% of customers have walked
out of a store within the past year
because of poor service.
Survey: 80% say they will never return to
a business after a negative customer
service experience.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 44
Dedication to Service
Goal: To achieve customer astonishment!
Listen to customers.
Define “superior service.”
Set standards and measure performance.
Examine your company’s service cycle.
Hire the right employees.
Train employees to deliver superior
service.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 45
Dedication to Service (continued)
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 46
Dedication to Service (continued)
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 47
Guerrilla Marketing Principles
(continued)
Concentrate on innovation.
Be dedicated to service and
customer satisfaction.
Emphasize speed.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 48
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 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 49
Emphasis on Speed
(continued)
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 50
Emphasis on Speed
(continued)
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 51
The Marketing Mix
Product
Place
Price
Promotion
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 52
FIGURE 8.2 Five Characteristics of a Great Product
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 53
The Product Life Cycle
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 54
Stages in the Product Life Cycle
Introductory stage
High
Costs
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 55
Stages in the Product Life Cycle (continued)
Introductory stage
Growth and acceptance stage
High High
Sales
Costs Costs
Climb
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 56
Stages in the Product Life Cycle (continued)
Introductory stage
Growth and acceptance stage
Maturity and competition stage
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 57
Stages in the Product Life Cycle (continued)
Introductory stage
Growth and acceptance stage
Maturity and competition stage
Market saturation stage
High
High Sales
Sales Profits Sales
Costs Profits Sales
Costs Climb
Climb Peak
Peak Peak
Peak
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 58
Stages in the Product Life Cycle (continued)
Introductory stage
Growth and acceptance stage
Maturity and competition stage
Market saturation stage
Product decline stage
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 59
FIGURE 8.4 Time between Introduction of Products
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 60
Place: Channels of Distribution
Consumer Goods
Manufacturer
Consumer
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 61
Place: Channels of Distribution
Industrial Goods
Manufacturer
Industrial User
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 62
Price
A key factor in the decision to buy
Focus attention on non-price
competition
Free trial offers
Free delivery
Lengthy warranties
Money back guarantees
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 63
Promotion
Goal: To inform and persuade.
Through advertising and other
communication techniques.
Create an image.
“Marketing is not a battle of products;
it is a battle of perceptions.”
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 64
Conclusion
A guerrilla marketing plan offers the
entrepreneur significant benefits.
Target marketing is key.
Create a competitive and edge
through customer focus, quality,
convenience, innovation,
service and speed.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 65
All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted, in any
form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of
the publisher. Printed in the United States of America.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8 - 66