BA 346

Working as an EntrepreneurWeek 7

Agenda Marketing for Entrepreneurs

The story so far…

Ideas Screening Plan Costs Now we need…

Marketing is Critical to Success

Why? How do we create value through

marketing activities? Selling Sales planning Advertising Marketing

Marketing Basics

Competition Dialog Goods vs Services 4 Ps of Marketing (“Marketing Mix”)

Product Price Placement Promotion

What is the Competition Doing?

What matters? What will we do the same? What will we change?

Best, Test, Invest

Creating Value from Customer Dialog

Outbound communication Inbound communication Social networks Online reputation

Product Development

Idea Generation Screening Concept Development Iterative Concept Tests Business Analysis Market Testing Implementation Commercialization

Product Adoption Rate of New Technology

INNOVATORS EARLY ADOPTERS EARLY MAJORITY LATE MAJORITY LAGGARDS

Innovative products get adopted gradually, and the adopters fall into five groups

3% 14% 33% 33% 17%

Market Penetration of New Technology

Innovators Early Adopters Early Majority Late Majority Laggards

<3%

17%

50%

83%

100%

Innovation: Who adopts, and when

“Leave me alone. I like it the way it is.”

“That’s Cool!”

“How does this get me

ahead?”

“This is supposed to solve my

problem. It better work right…”

“Everyone’s doing this. Um… can I get some

support, please?”

Pricing Strategies

Cost-plus pricing Contribution margin-based pricing Competition-based pricing Premium pricing Skimming Penetration pricing Loss leader

Placement

Distribution channels Choosing Optimizing Managing

Visibility Physical placement Online placement Advertising Publicity…

Promotion

Below the line (product-driven) Publicity, endorsement, sponsorship PR, Sales promotion, merchandising Direct mail, personal selling Trade shows

Above the line (media-driven) TV, Radio Newspapers, magazines, trade pubs Internet, mobile media

Closing the loop with dialog

Marketing Cube

SU

ITA

BIL

ITY

PREDICTABILITY

RISK (uncertainty)

DEMOGRAPHICS(for appeal)

Market Segments

Customer Behavior

What might they do? Why?

Test in, Test out

What are we trying to achieve? Iterative testing Planning for results Escalating costs Interpreting results

Sales Management Sales process Sales quotas

Financial plans Operational limits

Adjusting based on results

The Sales Process

There are nine key steps in the selling process: Prospecting - Who is a likely customer? Qualifying - Is the sale feasible? Preapproach - What useful things can we learn

about the customer? Handling Objections - What resistance do we

encounter, and how do we overcome that? Getting the Interview - How do we get the

salesperson together with the prospect under favorable conditions?

Establishing the Problem - What need does the prospect recognize which our product can fill?

Solving the Problem - How does our product solve the prospect's problem?

Closing the Sale - How do we officially get the transaction?

Followthrough - How do we keep this customer and get more business from the relationship?

Case Study

Case study: Gretchen Schaufler Crowded market, filled with big competitors How to compete?

Niche market Unique product Small samples of wet paint Original names

“Woven tattle & spun tales” “Espresso blends”

Custom consultation via digital photos 10 years, 3 employees, $6MM revenue Acquired by Valspar

Workshop

Marketing Plan Communication in 2 directions

Messages going out Messages coming in Closing the loop of customer dialog

Sales Plan Hitting the sales goals

What are the numbers? What actions will be taken to reach goals?

Advertising Plan Communication in 1 direction

How will you measure results?