marketing concepts every business needs to know

Essential Marketing Concepts

Management

FinanceOperations

Marketingcus

tomers

capa

city revenue

budget

Marketing’s Role

...advertising or sales alone

Marketing is NOT...

Business Model

Growth Strategies

Go-to-Market thru exit

Value Proposition

“USP”

Customer problem/solution; value as customer sees it

Market Segments

Lowest Hanging fruit

Value Chain

Finding your niche; network opportunities

Revenue Model

Follow the money/Volume/Margin

Competitive Strategy

Sustainability; barriers to entry

Marketing is:

A

BInefficiency:More time

More moneyLost opportunity

Strategy...

...and Creativity

Customers Competition

Price

PlacePromotion

Product

Marketing PlanThe 4 P’s & 2 C’s

Distribution

Your Business in Marketing Terms

Objectives

Market (customers, competition, lifecycle, trends)

SWOT Analysis

Niche: What need do you fill?

Competencies: What are the 1-2-3 great things you offer or do really well?

Differentiation: What makes you unique?

Positioning: How your customer thinks about your product, service and/or business

Brand: Your promise based on core competencies

Visual Identity: The presentation of your brand

Biz Plan

USP*: M&M’s

Niche Need? Premium chocolate, healthy snacks

Competencies

Differentiation

Positioning

Branding

Unique capabilities History, technology, shelf, financial

Uniqueness Shape, flavor

In your customers mind?

Melts in your mouth, not in your hand

Promise Established, consistent

*Unique Selling Proposition

Leverage

Strengths

Thwart

Weaknesses

Opportunities Threats

SWOT & Marketing

Product/Industry Lifecycle

Maintain PossiblyReduce

Add featuresHarvest: nicheLiquidate or sell

Intro Growth Maturity Decline

Build product awareness and

develop a market for the product.

Competition heats up. Build brand preference and increase market

share. Differentiation becomes critical.

Strong sales growth diminishes;

competition steps up. Defend market share

while maximizing profit.

• Rejuvenate product with new features and finding new uses.

• Harvest: reduce costs and continue sell to loyal niche segments.

• Discontinue: liquidate inventory or sell to another firm.

When the product is right, you don’t have to be a great marketer

Lee Iacoccapromoter

Features ExerciseWhat are some key features of your product or service?

Value Add

Physical Product

Customer Support

Services

Guarantees/Warrantees

Service Agreements

Attachments

Extras

Customers:Target Profile

Geography Demographics Psychographics Behaviors

Consumers (B2C)

AgeIncome

EducationFamily Size

Home OwnerEthnicity

ValuesLifestyle

Personality

Use OccasionPrice Sensitivity

Status (1st time?)Loyalty

Readiness

NeighborhoodLocalState

RegionalNational

International

Geography Bizographics Psychographics Behaviors

Businesses (B2B)

Industry (NCIS)Revenue

SeatsEmployeesSm/Lg Biz

Title/RoleResponsibilities

Company/Personal

DecisionmakingSeasonalityInventory

Physiological

Maslow’s Hierarchy of Needs

Safety

Self-Actualization

Social

Esteem

Consumer Motivation

What benefits does your product or service deliver to satisfy these needs?

PrioritizeSegment by clusters

(i.e., Yuppies)Lowest hanging fruit

Zen marketing

Take Aim: Who is Your Target?

Lowest Hanging Fruit Evaluate Costs & Benefits

Measurable

Accessible

Substantial

Actionable

Size & purchasing power

Effectively/efficientlyreached & served

Large and/or profitable

Effective/efficient marketing programs

Saves timeSaves moneyOffers convenienceEnables peace of mindProvides better profit opportunitiesHelps them focus on their businessPreserves/enhances a particular lifestyle

Features

Benefits

Benefits Exercise

PriceWhat the market will bear

Costs

$Differentiation & Added Value

Competition

Other Influences:

Supply and demand

Customer motivation

Industry trends

Look for “reference points” as a starting point to determining your price; in other words, prices of similar products or services in your industry.

Now or Later?

Cheaper?

Substitute?

Worth it? Can I afford it?

Value is in the Customer’s Mind

Brand?

Not Yours

Your Price

Reference pointsBusiness model (i.e., volume) & strategyWhat drives your ability to charge more or less?PackagingPromotional pricing allowances

Distribution

Distributor RetailSupplier Manufacturer Wholesaler Consumer

Opportunities:

• Research Resource• Click and Mortar• Communication• Negotiation• Partnering• Promotion

Direct Substitutes DifferentiationSimilar products

or servicesWhat prospects might do or

purchase instead Why you?

Competition

Seattle Wedding Photographers

•No pictures at all

•Have a family member act as photographer

•Ask guests to take pictures

Likely or Unlikely?Why?

•Awareness

•Specialty

•Portfolio/Website

•Credibility: Experience, Education, Awards, Press

•Referral (live/social)

•Packages & Price

•Added Value Services

More exclusive = fewer competitors

Desire?

SocializingExercising

Eating

Eat?

ChipsCandy

Soft drink

Candy?

ChocolateLicoriceGummy Bears

Brand?

DilletanteHershey

TheoGodiva

Toblerone

Competition is in the Eye of the Customer

ResearchMake Better Decisions with Data

Essential DataConsumer insights

Where customers go for information

Market sizing

Size of market overall

Market share (guesstimate)

Price reference points

Forecast: Price x Units

Number of competitors/impact

Sales trends

Untapped market opportunities

Types of InformationQuantitative Qualitative

Average priceUnits sold

Number of competitorsNumber of buyers

Market share

Political/Economic climateSocial trends

Industry standardsConsumer behaviorTypical Distribution

Info Sources• Internal: Credit card receipts, transaction

records, foot and Web traffic, inbound calls, etc.

• Determine current margins, best selling products, highest margin products

• Ask: Colleagues, management, salespeople, channel partners, customers, prospects

• Trade organizations offer data

• Industry and trade magazines: FindArticles.com

• Consumer magazine media kits

• Purchase information when needed and practical

• Information you need, but can't buy: observation, surveys, focus groups

Useful Tools

CustomersCustomersCustomersCustomersCompetition

Geography Demographics Psychographics BehaviorsCompetition

freemaptools.com

Google Maps

freeDemographics.com

My Best Segments:

claritas.com/MyBestSegments/

Default.jsp

Social sites

Media kits

PEW/Internet

Google Places

Yelp & other social sites

Competitor websites

Ideas

If you can’t find exact data, look at companies and industries closest to yours.

“Steal” -- Don’t reinvent the wheel.

Don’t get lost in the sauce. Define the information you need before you start.

You’ll never have complete information. At some point, you’ll have to make assumptions. Test them and continually update.

Promotional MixGetting the Word Out

Personal Selling Advertising Public Relations Sales Promotion

Paid “Free” CouponsSamplingDiscounts

The Plan

ResourcesBudgetSchedule

Goals Strategies Tactics Actions Measurement

Increase revenue

Increase number of customers

Capture market share

Improve brand image

SmartsTimeContactsRelationshipsPartnersMoney: top down vs. bottom up budgetingAssets

ResourcesUse all for the greatest impact and results

Average SMB marketing spend: $475/month  21% spend more than $1,000/month

Source: Search Engine Land, “Health & Medical SMBs Spend More on Marketing Than Other Industries,” Jan 15, 2014, Myles Anderson

Build Awareness, Get Attention: PR/Advertising

Website visit(s) Sign up

Email(s)/Postcard(s) The “Need”

First Contact

TheClose

A

I

D

AThe “Pitch”

Interest:WIIFM

Desire: why you?:“Proof”

Action

PromotionalStrategy

MessagingNail your position in your customers’ mind

Talk about your business in ways that your prospect understands and cares about

Help them understand why you’re better and what’s in it for them

Educate them about what you do so they value it

Simplify the Message

NeedUSP

Point of the Arrow

CompetenciesDifferentiation

BenefitsWIIFM

Your Business

Collateral

PR

PersonalSelling

Advertising

Environ-ment

Direct

Traditional Media

Blogs

Social Networks

Widgets

Web 2.0

RSS

Podcasts

Mobile

Wikis

Digital Signage

Review Sites

Bookmarking

Web

New Media

Links

Search

Email

Social

Use the Right Media

Process of Elimination

no budgetX

no list Xno tim

e

X

How to Choose?

Will it reach my target audience?

Is it a good fit with my plans? Is the timing right?

Is it the best way to allocate my resources?

Is there a cheaper alternative? Can I negotiate?

Consider production costs.

What are the expected short- and long-term results?

Marketing Calendar

Q4Q3Q2Q1

Internal milestones, operations, resources...

External seasonality, trade shows, business cycles, editorial calendars, holidays, school calendars...

Marketing campaigns, PR, media, sales, events...

Actions work backwards, deadlines

Smart timing will help a small budget go farther and have more impact

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