unit 5 marketing_plan

7/27/2019 Unit 5 Marketing_plan

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Chapter 6: Marketing Plan 1Copyright 2002 Prentice Hall Publishing Company

Creating aPowerful

Marketing Plan


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Market Research

Market research is the vehicle for gathering the

information that serves as the foundation for

the marketing plan.

Never assumethat a market exists for yourcompanys product or service.

Market research does nothave to be time

consuming, complex, or expensive to be useful.


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Market Research

How to Conduct Market Research:

Define the problem

Collect the data

Individualized (one-to-one) marketing


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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 valueof 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 coincidewith itjust-in-time marketing.

Make sure your companysproduct and service quality

will astonish your customers.

See customer complaints

for what they area

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.


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Market Research (continued)

How to Conduct Market Research:

Define the problem

Collect the data

Individualized (one-to-one) marketing

Data mining

Analyze the data and interpret the

results

Draw conclusions and act


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Marketing Strategies forEntrepreneurial Ventures

Target Market Selection Strategies:

Market specialization

Selective segment concentration

Selective specialization

Product specialization

Full market coverage


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Pinpointing the Target Market

One objective of market researchis to pinpoint the companys target

market, the specific group of

customers at whom the company

aims its products or services. Without a clear image of its target

market, a small company tries to

reach almost everyone and ends up

appealing to almost no one!



Positioning

Choose the position you want your

company to take in the marketplace

Evaluate the competition and decidewhere they have position themselves

Consider the consequences of the various

choices of positioning available to yourcompany




Target Market Selection Strategies:

Market specialization

Selective segment concentration

Selective specialization

Product specialization

Full market coverage




Segmentation Strategies:

Geographic

Demographic

Psychographic

Behavioral


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Differentiation Strategies:

Product itself

Services

Personnel

Image


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Marketing Mix Strategies:

New product development

Product line

BrandPackaging and labeling

Product life cycle decisions


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Channel choice

Market logistics

Inventory Transportation modes / carriers


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Types of Product Purchasers

Innovators: The adventurous ones

Purchase early because it is exciting.

Early Adopters: The opinion leaders Purchase after analysis but willing to take a

reasonable risk.

Early Majority: The deliberate masses Try it after respected people have tried it.

Needs to be infected with the idea.

Later Majority: The skeptical masses

Try it after respected people have proven it. Need contagion

Laggards: The most traditional of all No urgent reason to change.


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A Guerrilla

Marketing Plan Determines customer needs and wants

through market research.

Pinpoints the specific target markets thecompany will serve.

Analyzes a firms competitive advantages andbuilds a marketing strategy around them.

Creates a marketing mix that meets customerneeds and wants.


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Guerrilla Marketing Strategies

Find a niche and fill it.

Dont just sell; entertain.

Strive to be unique.

Create an identity for your

business.

Connect with customers on an

emotional level.


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Relationship Marketing

Involves developing and maintaining long-termrelationshipswith customers so that they will

keep coming back to make repeat purchases.

Small companies have an advantage over theirlarger rivals at relationship marketing.

Requires a company to make customer service

an all-encompassing part of its culture.

Customers are part ofallmajor issues the

company faces.


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The Relationship Marketing Process

Connect&

Collect

Conduct detailed customer intelligence to

pinpoint most valuable customers and to learn

all you can about them, including their lifetime

value (LTV) to the company.

Make contact with most valuable customersand begin building a customer database using

data mining and data warehousing techniques.

Learn from your customers by encouraging

feedback from them; develop a thorough

customer profile and constantly refine it.

Based on what you have

learned, contact customers

with an offer designed for

them. Make customers feel

special and valued.

If you have done

everything else correctly,

this step is relatively easy.

Superb customer service isthe best way to retain your

most valuable customers.

Learn

Analyze

BuildRelationships

Sell,Service,

and Satisfy


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Plotting a Marketing Strategy:

Building a Competitive Edge

Focus on the customer

Devotion to quality

Attention to convenience

Concentration on innovation

Dedication to service and customer

satisfaction

Emphasis on speed


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Focus on the Customer

67% of customers who stop patronizing abusiness do so because an indifferent employee

treated them poorly.

96% of dissatisfied customers never complain

about rude or discourteous service to the

company, but...

91% will notbuy from that business again.

100% will tell their horror stories to atleast nine other people.

13% of those unhappy customers will tell

their stories to at least 20 other people.


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Treating customers indifferently or poorly costs theaverage company 15% to 30% of gross sales!

Replacing lost customers is expensive; it costs fivetimesas much to attract a new customer as it doesto sell to an existing one!

About 70% of a companys sales come fromexisting customers.

Because 20% of a typical companys customersaccount for about 80% of its sales, no business can

afford to alienate its best and most profitablecustomers and survive!


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Companies that are successful at retainingtheir customers constantly ask themselves

(and their customers) four questions:

1. What are we doing right?2. How can we do that even better?

3. What have we done wrong?

4. What can we do in the future?


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Devotion to Quality

Qualitymore than just a slogan on thecompany bulletin board

World-class companies treat quality as astrategic objective, an integral part of the

company culture. This is the philosophy of Total Quality

Management (TQM).

Quality in the product or service itself

Quality in every aspect of the business and itsrelationship with the customer

Continuous improvement in quality


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How Do Customers 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

Quality


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How Do Customers Define Quality

in a Service? Tangibles (equipment, facilities,

people)

Reliability (doing what you say youwill do)

Responsiveness (promptness in

helping customers)

Assurance and empathy (conveying

a caring attitude)

Quality


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Attention to Convenience

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 oncredit or with credit cards?

Are your employees trained to handle businesstransactions quickly, efficiently, and politely?

Does your company handle telephone calls well?


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Concentration on Innovation

Innovationthe key to future success Innovationone 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 andflexibility to their advantage.


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Dedication to Service

Listen to customers.

Define superior service.

Set standards and measureperformance.

Examine your companys servicecycle.

Hire the right employees.

Train employees to deliver superiorservice.

Goal: to achieve customer astonishment!


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Dedication to Service

Empower employees to offersuperior service.

Use technology to provide improvedservice.

Reward superior service.

Get top managers support.

View customer service as aninvestment, not an expense.

Goal: to achieve customer astonishment!

(continued)


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Emphasis on Speed

Re-engineer the process rather than tryto do the same thingonly faster.

Create cross-functional teams of workers

and empower them to attack and solveproblems.

Set aggressive goals for production and

stick to the schedule.


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Emphasis on Speed(continued)

Rethink the supply chain. Instill speed in the company culture.

Use technology to find shortcuts

wherever possible. Put the Internet to work for you.


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Benefits of Marketing on the

World Wide Web

Even the smallest companies can

market their products and services

around the globe.

The Web is growing rapidly. The Web can be the Great

Equalizer in a small companys

marketing program.

Web customers are demographically

attractive: They are young,

educated, and wealthy.


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Small Businesses and the Web

Only 1/4 of small companies have Web

sites. Why?

Security concerns Site may not draw customers

Although small companies make about

50% of U.S. retail sales, they account forjust 9% of online sales.


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The Marketing Mix

Product

Place

Price

Promotion

$


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Stages in the Product Life Cycle

Introductory stage

Growth and acceptance stage

Maturity and competition stage

Market saturation stage

Product decline stage

High

CostsSales

Climb

Profits

Peak

Sales

Peak

Sales &

Profits

Fall


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Product Life Cycle

Introduction Growth Maturity Decline

2001 by Prentice Hall, Inc.

Time

Volume


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Value-Added Concepts

Modern Methods of Selling


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Value-Added Strategy

(a direction)

Value-Added Leadership

(a behavior)

Value-Added Planning

(a discipline)

Value-Added Selling

(a process)


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Value-Added Strategy

Focuses the total business and its people on satisfyingthe customer

Brands (positions) the company as a producer andprovider of premium values whose worth exceeds theprice asked

Makes satisfying the customer the #1 priority of thecompany

Creates an organization of customer advocates andactivists

Establishes team performance and cross-functionalbehavior

Improves the companys revenue, margin, costefficiency and profit performance


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Value-Added Planning

Created by the implementers

Protects limited resources

Applicable at all organizational levels

Easy and simple to usenot complex

Measurable and rewardable


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Value-Added Leadership

Differentiates between management andleadership

Bonds leadership talk with leadershipwalk

Establishes that all can be leaders

Produces a peer-based leadership climate

Improves individual and teamproductivity


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Value-Added Selling

Increases sales revenue

Increases sales force productivity

Creates customer focus and customerdrive

Motivates a partnership relationship

Enhances value-added branding

Strengthens competitive differentiation


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Develop Sales Skills

Platforming (positioning)

Questioning

Listening

Communicating

Concentrating Interacting

Using Aids

Reading and Reacting Managing Resistance

Closing


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Strategic Options

Competitive Advantage

TargetMarket

Industry

Niche

Uniqueness Perceivedby the Customer

Low CostPosition

Differentiation Low Cost

DifferentiationFocus

CostFocus

Marketing Strategies for


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Marketing Mix Strategies: Markup pricing

Target return pricing

Perceived-value pricing

Value pricing Going-rate pricing

Sealed-bid pricing

Geographical pricing

Price discounts and allowances Promotional pricing

Discriminatory pricing

Product mix pricing

Marketing Strategies for


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Advertising

Billboards

Point-of-purchase displays Symbols and logos

Packaging inserts

Sales promotion

Public relations

Personal selling

Direct marketing

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