want ca$h? the keys to building more value into your business (esb presentation version—no...

Want CA$H?The Keys to Building More Value

into Your Business(ESB Presentation Version—No Animation)

Presented by:

Edward S. Balian, Ph.D.

© 2003

Gemological Institute of America

and

Edward S. Balian, Ph.D.

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For your notes….(optional pull out)

(c)2003 GIA and E.S. Balian,Ph.D.

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For your notes….(optional pull out)


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Dr. Ed Balian….

• Q-Stat started 1977 • Owned numerous companies; corporations• Started, maintained, bought & sold businesses• School of Business professor since 1976• Authored: textbooks and software• Consulted with over 60 companies to date; large & small• Former Dean of GIA School of Business• Over 500 instructional seminars presented, including

Harvard Business School


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I Welcome Three Groups that are Before Me Today:

Those wanting (or praying?) to BECOME millionaires

Those who ALREADY ARE millionaires, now wanting to become MULTI-millionaires

Those who already are multi-millionaires

(Let’s do LUNCH!)


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I Promise You…..

BIG MONEY—TODAY!

No tricks—it takes: Hard work, YES, but

also: Spending your time

efficiently, on the “RIGHT STUFF!”


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Keep It Simple, Stupid

YES---we all know this catchy and cute saying, but when it comes to today’s complex business challenges, it is, UNFORTUNATELY, just not so “simple” anymore.


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Questions that “DRIVE” the Creation of Your Success: (1)

WHAT are you driving? WHERE are you

going? HOW and WHEN are

you moving forward? How FAST will you go? When will you know to

SLOW DOWN?

Note that the size, style or cost of “car,”(i.e., your business) does NOT matter---You still need knowledge and controlof your MARKETING PLAN tomove it where you want to go.


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Questions that “DRIVE” the Creation of Your Success: (2)

How will you measure your business’ EFFICIENCY?

If inefficient, will you blow your cool?

Will you be glancing back or moving forward? Both?

Can you avoid panic-stops?

Note that the size, style or cost of “car,” (i.e., your business) does NOT matter---You still need knowledge and control of your MARKETING PLAN to move it where you want to go.


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Major Points Today:

Ways to Operate Your Business The Power of Marketing Working for You How Market Research Will Help You The 4-P’s of Marketing SWOT Analysis A Marketing Plan Branding and its Ultimate Power to You


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There Are Two Basic Ways to Operate Your Business…. SO, CHOOSE:


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Think OUTSIDE the Box:

The guy who invented the wheel….

Be creative and courageous---but not crazy!


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Need Proof-Positive?Fair Enough!

When MARKETING is applied CORRECTLY: SUCCESS HAPPENS: SUCCESS HAPPENS: A senior-citizen, fictional rodent now owns

ABC Broadcasting, Touchstone Movies, and countless mega-resorts, worldwide.

A “Diamond is Forever” is recognized by 99% of those within the company’s industry; 78% of those not in the industry.


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Diamonds or Football?The “Game” is the Same: BRANDING!

DeBeers DaBears

BOTH “BRANDING” Identities are Quickly Recognized!


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In over 60 Years of Marketing & Branding, He Has Done Quite Well!


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No More “Mr. Nice Guy:”Mickey Mouse STRIKES:

Disney challenges town library's new mouse logo:Story Posted by Blake on Saturday June 22 2002, @ 11:39AM -- Read 1927 Times.from the Corporate-Greed dept.

A Sad Story from FL says Walt Disney Co. officials have until July 30 to decide whether to challenge the Genesee District Library's mascot for an alleged similarity to Mickey Mouse. Last summer, the library submitted a trademark registry request with the U.S. Patent and Trademark office for "Book Mouse," a blue, large-eared rodent wearing red-rimmed glasses and a backpack. Book Mouse appears on bumper stickers and in coloring books, and even marches in local parades. Library attorney Pxxx Pxxxx said "I don't think we cut into their movie profits this last year." Disney owns FL. They will win this one. Similar case in FL with a daycare center-they were trounced by the Mouse Machine.


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Need Proof-Negative? Fair Enough!

When MARKETING is applied incorrectly or not applied at all, DISASTER HAPPENS:

1972 Chevrolet Vega vs. Honda Civic 1959 Edsel (Ford) vs. Anything Beta-format video tape (Sony) vs. VHS “New” formula Coca-Cola vs. Classic Coke (Notice that ALL the above were large, multi-national

corporations---so what? They can error, too!)


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So, At This Point, We Just Need to….

…and CONSIDER:


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Critical Steps…..

1. Use Sound Business Practices

2. Learn & Understand Your Target Market, then:

3. Refine Your 4-P’s, thus Leading to:

4. Creation a Marketing Plan

5. Branding of Your Business Name


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TARKET MARKETING:You MUST KNOW YOUR CUSTOMER BEFORE You Can Effectively Promote Your Business

COSTLY ERRORS if you “just guess,” no matter how confident you are in being correct.

Your current “success” is a poor measure---how much better still COULD it be?

In today’s new, highly competitive global environment, no one can afford to GUESS WRONG. The “expense” of doing research is a myth. The cost of not doing it could result in Chapter 7.


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Market Research POWER

Always learn more about HOW YOUR PRODUCT/BUSINESS is perceived by potential customers. Don’t just guess!

WHO are your customers? WHERE are they? HOW do they behave? (Travel? Read? Do? Internet?) HOW will they know about and/or care about your

products or services? THE ANSWERS TO THESE QUESTIONS WILL

DEFINE YOUR TARGET MARKET


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Product (by DeBeers):3-Stone Anniversary Ring

A PRODUCT target marketed to Baby Boomers, but obviously NOT Boomer-newlyweds.

DeBeers “BRANDING” adds the “trust” dimension.

(Courtesy: DeBeers)


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Can You Suggest the TARGET MARKET(S) for This PRODUCT?

3 Emeralds in Platinum Mount

(Courtesy: DeBeers)

• Suggest the TARGET MARKET(s) for this Product.

• (Narrower or wider target than 3-DIAMOND target market?)


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First-Hand Data?

First-hand (Primary) Data:

Surveys, POP/receipts data PRO: Customized for you and your

business CON: Can be slower and sometimes,

expensive.


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Second-Hand Data

Second-Hand (Secondary) Data: gov’t data, published industry trend data

PRO: Fast, less costly CON: Not specific to your products or

services, questionable quality, not under your control


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The 4-P’s of Marketing….

Product Price Placement Promotion

This is NOT “mumbo-jumbo,”

they lead directly to higher profits through greater efficiency of your business.


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The Building Blocks:The 4-P’s of Marketing

PRICE: Wal-Mart, Dollar General Stores, Cartier, Tiffany

PRODUCT & PROMOTION: Ford T-Bird went from 2-seater to 4-seater, DeBeers

PRODUCT, PROMOTION & PLACEMENT:

Tiffany, Pet Rocks, Cabbage-Patch Dolls PROMOTION: AVIS Car Rental, Zales


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P1: PRODUCT

ESSENTIAL: Is your Product or Service in demand by a particular (targeted) market? MARKET RESEARCH may help.

NOT ESSENTIAL: Unique? Necessity or Discretionary? Alluring? Fun? Packaged “Correctly?” Has Potential to Expand into Larger Product Line

(Variety & Assortment)? You DON’T NEED all (or ANY) of these, necessarily!


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DeBeers and Product Expansion

DeBeers print ad (October, 2003) promoting “RIGHT HAND RINGS” to women for women.


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Who Started with Only THIS, then EXPANDED their PRODUCT Line?


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Follow-up “Product,” Customer Service, Nearing Extinction?

USA TODAY, September 30, 2003, Headline: Drop in Traditional “CUSTOMER SERVICE”


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P2: PRICE (aka, “The Goldilocks Syndrome”)

Is the PRICE reasonable vs. competitors? Tangible vs. Intangible “value” to customer vs.

selling “price.”– (TIFFANY SILVER HARMONICA vs. WAL-MART Earrings)

Is “low price” (or customer PERCEPTION of low price) a selling point? (Wal-Mart)

Is high price a selling point? (Tiffany)

MARKET RESEARCH to price it “just right”


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PRICING from Tiffany & Co.

Diamond Engagement Rings: $1,000 to

$1,000,000

(As per website information)

(Courtesy: Tiffany & Co.)


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P3: PLACEMENT (aka, “Distribution”)

How hard do customers need to look to find you—including .com sites. (Travel the world? Tiring!)

How badly do customers think they NEED to find you?

What are your costs regarding placement: store location(s), internet, etc.?

MARKET RESEARCH will help answer these questions.


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P4: PROMOTION

“Promotion” potentially may include many elements:

Press Releases Print Ads Radio, TV Ads Community Sponsorship Word of Mouth “On Sale” Clearance Campaigns Training for In-Store Sales Associates And more….


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Let’s Look at Each of the 4-P’s, One at a Time, Using a Few Real-World Examples….


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The 4-P’s at ZALES

Let’s Discuss: PRODUCT PRICE ($299) PLACEMENT PROMOTION

(Courtesy: Zales)


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The 4-P’s at Wal-Mart:

Let’s Discuss: PRODUCT PRICE ($299) PLACEMENT PROMOTION

(Courtesy: Wal-Mart)


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The 4-P’s at J.C. Penny

Let’s Discuss: PRODUCTS PRICE ($499) PLACEMENT PROMOTION

(Courtesy: J.C.Penny)


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The 4-P’s at Starbucks:

Let’s Discuss:PRODUCTPRICE PLACEMENTPROMOTION

(Courtesy: Starbucks)


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Let’s Go Back and Study Types of P4: PROMOTION in More Detail


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Press Releases

PROS: Relatively low cost mailings Can reach wide audiences

with your informational message

Can word articles the way you want

Can help build future PR contacts for later re-use

CONS: Publications only run your

press release if they want to No fine “targeting” of your

audience in most cases You have no control over

editing You have no control over

dates of publication Must be “newsworthy”


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Print Ads

PROS You personally create

your message and image

No edits or alterations Can be highly targeted

CONS Lead-time is

considerable Gen X & Y are already

“turned off” by typical print ad messages

Production cost can be very high

Ad placement costs can be very high


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Community Sponsorships

PROS: Demonstrates your

involvement in community, by name and spirit

Local audience targeted

CONS: Very limited “eyeballs”

on your name and product/service

Potentially high cost relative to small audience

Could be perceived as “small time” business


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Radio & TV/Cable Ads

PROS: More “human”

approach with voices and/or images

Allows excitement and energy not found in other approaches

Potentially huge audiences

CONS: Gen X & Y just not

interested in typical ad messages

“Bathroom Break” queue Potentially very high cost Audience may be too wide;

results in an inefficient approach to target

Poor ad can result in disaster—risk is high


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“Positive” Word of Mouth

No direct cost! Personal testimonials

between friends are powerful and credible

Pyramiding


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“Negative” Word of Mouth

Pyramiding Danger: Just one bad

experience by ONE “crying” customer can be disproportionately harmful to your business

Whether the complaint is actually valid or not is immaterial


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Training for Sales Associates

MOST COMMON comments from my students entering a retail operation on assignment:

“I wasn’t treated well…”

“I was ignored”

“May I help you/No, I’m just looking, thanks.”


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SWOT Analysis

Existing In the Present: S= STRENGTH (how will you maximize it?) W=WEAKNESS (how will you attack it?)

Potential In the Future: O=OPPORTUNITIES (how and when to

capitalize on it?) T= THREATS (how will you defend against it?)


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Houston---- WE HAVE A

PROBLEM: With all these

marketing issues and without millions of dollars behind us, how do we find our DIRECTION?


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Until You Have A Marketing Plan….


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We MUST HAVE a “MAP” orMARKETING PLAN to Move Forward Intelligently

WOULD YOU TAKE A MAJORROAD TRIP WITHOUT A MAP? THE “MAP” IS CALLED A “MARKETING PLAN.”


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The MARKETING PLANTakes into Account:

WHO we are trying to reach (Target Market) HOW we want to reach them WHERE the product will be available WHAT the MESSAGE needs to be (ad copy, images) HOW MUCH $$$ is in our MARKETING BUDGET (per

Pro Forma P&L, Cash Flow, Balance Sheet) SWOT Analysis AND WHEN will the action happen, per a TIMELINE


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Marketing Plan Quick-Tips:

Concentrate on a “do-able” population and scale. Be realistic in expectations. Do an accurate SWOT, not “Pie in the Sky” Stay the course; use your “map,” do not

unnecessarily “change direction” or make adjustments to name or logo without quality research behind it.

The Marketing Plan we follow MUST be thought out and researched FIRST, not last.


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Back to Where We Started in Today’s Presentation: Branding!

MARKETING = POWER The sum of your marketing 4-P’s and

Marketing Plan will ultimately build your “BRAND” (either one way or the other!)

Solid and positive BRANDING will ultimately provide huge added value to your name, your business and your products or services= ADDED NET WORTH.


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In Review…..we discussed:

Your Choices in How to Operate a Business The Power of Marketing Target Marketing through Market Research The 4-P’s of Marketing SWOT Analysis Your Marketing Plan, Ultimately Leading to: Branding and its Long-Term Value


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Adding Net Worth to Your Business

The Balance Sheet:AssetsLiabilities“Balance:” Assets=Liabilities


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Ingredients of the Balance Sheet (Simplified):

ASSETS Cash on Hand $100,000 Accounts Receivables

$200,000 Hard assets $400,000 Other assets $100,000 Branding, Logo,

Trademarks, “Goodwill” $200,000

Adds up to: $1,000,000

LIABILITIES Accounts Payables $200,000 Other liabilities $100,000 Net Worth $700,000

Adds up to: $1,000,000


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Branding and “Goodwill” to Build Your Net Worth

Branding Trademark Logo Name Recognition


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How Might I Further Assist YOU?

[email protected]

It was my pleasure to meet you today!Best of luck in all your futureendeavors!

Stay in touch!


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Contact Me….

For a set of my presentation notes (in PowerPoint only):

Email:

[email protected]

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NOTES…………..

want ca$h? the keys to building more value into your business (esb presentation version—no...

Documents

c2003 gia

ed balian

harvard business school

dean of gia school of

business efficiency

power of marketing

marketing plan branding

ps of marketing swot