Understanding the Market and Your Place in It

1. Understanding the Market and Your Place in It 4755 Kingsway Drive, Suite 314Indianapolis, IN 46205Phone: 317.917.3266 | Fax: 317.916.8921Email: information@businessownership.org www.businessownership.org

2. Understanding the Market and Your Place in It Presented by:Kim J. Brand President, Computer Experts, Inc. CEO/Founder, FileEnginePhone: 317.833-3000Email: Kim@FileEngine.com “Computer Repair Indianapolis” or “FileEngine” or “Kim Brand” + Indianapolis

3. Agenda  The market is like a rock  (Just some of) The Problems What is your Marketing Objective? - Key Questions The Marketing Mix – Four Ps of Marketing Product – Place – Price – Promotion Marketing facts (you need to know) Homework / Next Steps Resources

4. The ‘Market’ is like a rock

5. A big rock

6. But much harder to move ;(

7. Your objective is to move the rock

8. (Just some of) The Problems • You have a wonderful product or service but nobody knows • Buying habits of your customers don't include you • You have no reputation • You have no money • You've never 'marketed' a product or service like this before (You may have sold them before, but marketing is different) • Competitors • Most of what you know is wrong (which leads to mistakes & wasted time & money - but adds to experience ;) • The rules, once you figure them out, change - and usually not in your favor

9. What is your marketing objective? • Create Awareness • Communicate Outrageous Value • Create Urgency

10. What is your marketing objective? • Create Awareness • Communicate Outrageous Value • Create Urgency …but wait, there’s more !!

11. Key Questions • What are you selling? • Who are your competition? • Why should your customers buy from you instead of them?

12. Key Questions • What are you selling? • Who are your competition? • Why should your customers buy from you instead of them?  Your competition includes: Doing nothing

13. Key Questions • What are you selling? • Who are your competition? • Why should your customers buy from you instead of them?  Your competition includes: Doing nothing, Buying habits

14. Key Questions • What are you selling? • Who are your competition? • Why should your customers buy from you instead of them?  Your competition includes: Doing nothing, Buying habits, Bad experiences

15. Key Questions • What are you selling? • Who are your competition? • Why should your customers buy from you instead of them?  Your competition includes: Doing nothing, Buying habits, Bad experiences, “Good enough”

16. The Marketing Mix The Four ‘P’s of Marketing What you sell, the Product Where/How you sell it, the Place The Price you sell it for How you get attention: Promotion Source: http://www.netmba.com/marketing/mix/

17. The Four Ps of Marketing

18. What is your Product or Service? – Really!! • Your BRAND – your promise to deliver • Your MESSAGE – how you describe it . . . • You only have 13 words • Your POSITION – How do your customers view your product or service in the field of all other products and services? • How will you be compared and described? • What is the PAIN your product or service relieves?

19. Where is your ‘Place’? • Locality: • Lemonade stand, Neighborhood? • Side of town, City, Region? • State, Country, Planet? • Distribution system: • Direct, Indirect, Multi-Level • Retail, Wholesale, Discount • Storefront, Web-store, corner bar, catalog

20. What is your ‘Place’?Who is your ‘Ideal Customer’? • Demographic: men, women, owners of a product, age, family status, income, taste, race, etc.

21. What is your ‘Place’?Who is your ‘Ideal Customer’? • Demographic: men, women, owners of a product, age, family status, income, taste, race, etc. Surprisingly:The narrower the better!

22. What is your ‘Place’?Who is your ‘Ideal Customer’? • Demographic: men, women, owners of a product, age, family status, income, taste, race, etc. The narrower the better! • Size

23. What is your ‘Place’?Who is your ‘Ideal Customer’? • Demographic: men, women, owners of a product, age, family status, income, taste, race, etc. The narrower the better! • Size Can you scale or must you enter large?

24. What is your ‘Place’?Who is your ‘Ideal Customer’? • Demographic: men, women, owners of a product, age, family status, income, taste, race, etc. The narrower the better! • Size Can you scale or must you enter large? • Current buying behaviors

25. What is your ‘Place’?Who is your ‘Ideal Customer’? • Demographic: men, women, owners of a product, age, family status, income, taste, race, etc. The narrower the better! • Size Can you scale or must you enter large? • Current buying behaviors • Existing competitors & weaknesses

26. What is your ‘Place’?Who is your ‘Ideal Customer’? • Demographic: men, women, owners of a product, age, family status, income, taste, race, etc. The narrower the better! • Size Can you scale or must you enter large? • Current buying behaviors • Existing competitors & weaknesses • Communication channels (current – new)

27. What is your ‘Place’?Who is your ‘Ideal Customer’? • Demographic: men, women, owners of a product, age, family status, income, taste, race, etc. The narrower the better! • Size Can you scale or must you enter large? • Current buying behaviors • Existing competitors & weaknesses • Communication channels (current – new) • What is the potential–share you want/need?

28. Pricing & Terms • Are you better? (Can you charge more?)

29. Pricing & Terms • Are you better? (Can you charge more?) • Is it easy to buy from you?

30. Pricing & Terms • Are you better? (Can you charge more?) • Is it easy to buy from you? • Guarantees create trust (but create liability)

31. Pricing & Terms • Are you better? (Can you charge more?) • Is it easy to buy from you? • Guarantees create trust (but create liability) • Can you create demand with a lower price? • Price elasticity

32. Pricing & Terms • Are you better? (Can you charge more?) • Is it easy to buy from you? • Guarantees create trust (but create liability) • Can you create demand with a lower price? • Price elasticity • Can you afford discounts? • Salesmen, specials, combinations, spiffs/referrals

33. Pricing & Terms • Are you better? (Can you charge more?) • Is it easy to buy from you? • Guarantees create trust (but create liability) • Can you create demand with a lower price? • Price elasticity • Can you afford less? • Salesmen, specials, combinations, spiffs/referrals • Can you value price upgrades?

34. Promotion • Superbowl advertising = $3M for 30 seconds

35. Promotion • Superbowl advertising = $3M for 30 seconds PROBABLY NOT IN YOUR BUDGET – YET!

36. Promotion • What is your promotion Budget?

37. Promotion • What is your promotion Budget? • Where/How do your customers find it - now? • Web, Yellow-Pages, Directories, Flyers, Mailbox • Consumer: Billboards, TV/Radio, Car wraps • Trade shows, Endorsements, Tie-ins, Cold-Calling

38. Promotion • What is your promotion Budget? • Where/How do your customers find it - now? • Web, Yellow-Pages, Directories, Flyers, Mailbox • Consumer: Billboards, TV/Radio, Car Wraps • Trade shows, Endorsements, Tie-ins, Cold-Calling • Where do your competitors advertise?

39. Promotion • What is your promotion Budget? • Where/How do your customers find it - now? • Web, Yellow-Pages, Directories, Flyers, Mailbox • Consumer: Billboards, TV/Radio, Car Wraps • Trade shows, Endorsements, Tie-ins, Cold-Calling • Where do your competitors advertise? • Advertising Specialties: Pens, Shirts, SWAG

40. Promotion • What is your promotion Budget? • Where/How do your customers find it - now? • Web, Yellow-Pages, Directories, Flyers, Mailbox • Consumer: Billboards, TV/Radio, Car Wraps • Trade shows, Endorsements, Tie-ins, Cold-Calling • Where do your competitors advertise? • Advertising Specialties: Pens, Shirts, SWAG • Networking, Referrals, Rewarding customers for sending you leads

41. Marketing ‘facts’ • Your prospects are exposed to hundreds of thousands of marketing messages a day

42. Marketing ‘facts’ • Your prospects are exposed to hundreds of thousands of marketing messages a day – How will yours stand out in the ‘Message Frenzy’??

43. Marketing ‘facts’ • Your prospects are exposed to hundreds of thousands of marketing messages a day – How will yours stand out in the ‘Message Frenzy’?? • It may take 8+ impressions before they even know you exist – leverage multiple media.

44. Marketing ‘facts’ • Your prospects are exposed to hundreds of thousands of marketing messages a day – How will yours stand out in the ‘Message Frenzy’?? • It may take 8+ impressions before they even know you exist – leverage multiple media. • Interruption marketing is out; referrals, viral communication and entertainment is in.

45. Marketing ‘facts’ • Your prospects are exposed to hundreds of thousands of marketing messages a day – How will yours stand out in the ‘Message Frenzy’?? • It may take 8+ impressions before they even know you exist – leverage multiple media. • Interruption marketing is out; referrals, viral communication and entertainment is in. • ‘Free’ talks directly to the cerebral cortex – can you give something away to get them to give you a try?

46. Homework / Next Steps • Practice the answer to the question: “What Do You Do?” • Define your brand (promise to deliver) • Establish the size of the market you’re going after and a goal for your share and a timeline. • Get a simple brochure, terms & price list designed/ printed – ask 10 friends and 10 strangers for feedback; fix what’s broken.

47. Homework / Next Steps • Collect information about your competition and be prepared to differentiate yourself. • Create a Customer Relationship Management (CRM) system and start refining your sales process. • Ask new customers “Why did you pick me?” & “How did you find me?” Add their testimonials to your next brochure. • Constantly test every assumption you make about the market.

48. Resources HeWhoEnters.PBWiki.com - my Wiki for Entrepreneurs SBA.GOV – Federal Government IndianaEntrepreneurship.com – State Government GoRainmakers.com, BNI-Indiana.com, OneDegreeConnected, SmallerIndiana.com – local networking organizations ActumGroup.com – free sales book chapter: “Captivate Attention in One Sentence” Anything by Ries & Trout – 22 Immutable Laws, etc. Google.com – everything else