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Southern Entrepreneurship Program

Southern Entrepreneurship Program. Master Teacher of Entrepreneurship (MTEnt) Program James B. Wilcox Center for Economic and Entrepreneurship Education The University of Southern Mississippi. Overview of the Training Program. Day 3 – Marketing and the Business Plan Working with Mentors

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Southern Entrepreneurship Program

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  1. Southern Entrepreneurship Program Master Teacher of Entrepreneurship (MTEnt) Program James B. Wilcox Center for Economic and Entrepreneurship Education The University of Southern Mississippi

  2. Overview of the Training Program • Day 3 – Marketing and the Business Plan • Working with Mentors • Understanding Effective Marketing • Advertising and Publicity • Successful Selling • International Opportunities • The Exit Strategy • Business Plan Review • Engaging Entrepreneurs in the Classroom • Assessment

  3. Creating A Pool of Experts/Mentors Identifying Community Entrepreneurial Champions and Resources for Success

  4. Purpose • The purpose of this exercise is to develop a list of contacts and potential experts/mentors to participate in the SEP program.

  5. Justification • In order to assist teachers to teach the concepts of small business development, it may be required for additional experts to be brought into the classroom to assist in instruction and provide additional resources to participants. • Similarly, each participant is encouraged to identify a mentor(s) to assist in their business development.

  6. Justification • These individuals provide assistance to participants on the basis of their interaction and feedback on business plans, business development, and business operation. • To this end, identifying potential experts/mentors may satisfy these needs. • It is reasonable to expect that many of these potential experts/mentors will emerge from the Community Coalition.

  7. The Exercise • Split the group into smaller groups of 3-5 individuals • Ask each team to write a list of all individuals with skills that may be used in guiding instructors and participants in business development. • Encourage the participants to be as specific as possible in identifying the skill set(s) that each potential expert/mentor brings to the process.

  8. The Exercise • Ask the teams to get as specific as possible. • If individuals represent different locales, group the teams according to the locales. • Provide 10-15 minutes to conduct this exercise. • Bring the group back together and encourage a representative from each group to share their list.

  9. The Exercise • Compare listings across groups to compile a master list. • Note the duplications listed.

  10. Constructing Action Plans • Once the list is completed, the group must complete action plans as to how the expert/mentor pool will be constructed. Specifically, the group should identify the following:

  11. Constructing Action Plans • What is the best course of action for contacting and inviting list members to participate in the expert/mentor pool? • When will the contacts be made? • Where will the interactions take place?

  12. Constructing Action Plans • Who will contact the list members? • How will the experts/mentors interact with the teachers and/or participants? • Why has this strategy been chosen over others?

  13. Issues to Consider • Safety • Working with participants • Ownership • Expectations of participants and mentors • Utilization in lectures and classes • Panel discussions

  14. Issues to Consider • Assistance with business plans • Key experts • Areas of interest • Utilization of resources • Sources of funding • Others?

  15. Synopsis • The construction of this pool of resources will enable teachers to provide a wider variety of learning experiences for the participants. • These individuals may also provide leadership and mentorship to the participants’ fledgling business efforts. • This will increase the likelihood of sustainability of the initiative.

  16. Overview of the Training Program • Day 3 – Marketing and the Business Plan • Working with Mentors • Understanding Effective Marketing • Advertising and Publicity • Successful Selling • International Opportunities • The Exit Strategy • Business Plan Review • Engaging Entrepreneurs in the Classroom • Assessment

  17. What is Marketing?

  18. Marketing • Identifying and responding to customer needs • Marketing – satisfying the customer at a profit – the art of getting the customer to come to the product • Meet your customer’s needs to gain their loyalty • Marketing explains the benefits of a product • The marketing vision drives all business decisions • Marketing establishes your brand

  19. Branding in Marketing • Focus your brand • Ford’s examples • Costly failure – the Edsel • Marketing success – the Mustang

  20. How to Build Your Brand • Choose a business/product name that is easy to remember, describes your business, and establishes mind share (the degree your business comes to mind when a customer needs something) • Create a logo that symbolizes your business to the customer • Develop a good reputation • Create a brand personality • Communicate your brand personality to your target market

  21. Side Notes • Represent your brand • Mind share vs. market share

  22. What Went Wrong? • Name Ideas • Market research in key areas • Recommendations from poets, etc. • Generated Interest • Secrecy • Promotion • The Edsel Show • Bing Crosby & Frank Sinatra • Bob Hope • Louis Armstrong

  23. Ford’s Lesson – Edsel Mustang “Whereas the Edsel had been a car in search of a market it never found, here was a market in search of a car. The normal procedure in Detroit was to build a car and then try to identify its buyers. But we were in a position to move in the opposite direction – and tailor a new product for a hungry new market.” - Lee Iacocca (Ford president during Mustang creation)

  24. The 4 “P”s • Product - should meet or create a consumer need • “The top 10 in-demand jobs in 2010” • Place - where customers who need it do their shopping • Feature areas: end caps, promotional area, freestanding fixtures, windows, walls, POS • Price - low enough so the public will buy it yet high enough for the business to make a profit • Promotion - consist of advertising, publicity, and promotional items

  25. Success • The Basics of Business Success • How can you tell if your promotions are working? • Philanthropy can bring positive publicity • Cause-related marketing – social, environmental, or political cause

  26. Market Research

  27. Performing Research • Listen to the consumer • Tangible market demographics • Types of market research • Surveys • General research • Statistical research • Industry research • Your research method is important

  28. Performing Research • Market research questions • Research your market before you open your business • Do you know ten people who love your product? You may have a winner • Make market research ongoing • Who is in your market segment? • Market research avoids costly mistakes

  29. Developing Your Marketing Mix

  30. Purpose of Marketing • Marketing communicates with customers • Price – what it says about your product • Lexus • BMW • Honda • Ford • Hyundai

  31. 3 Steps of Developing a Marketing Plan • Consumer analysis • Market analysis • The marketing mix The next few slides describe each step in more detail

  32. Step 1 – Consumer Analysis • Market segments – made up of consumers • Successful segmenting – The Body Shop • Anita Roddick • “Masstige”

  33. Step 2 – Market Analysis • 5 ways to analyze a market • Location – where you live (five miles) • Population – demographics • Personality – conservative/liberal, lifestyle, etc. • Behavior – brand loyalty, responsiveness to price, etc. • Income – $30,000-$60,000 range vs. $10,000-$30,000

  34. Step 3 – The Marketing Mix • Value pricing – not just price cutting – balance between quality and price • Retailers’ rule of thumb – Keystoning – doubling resale price • Other pricing strategies • Cost-plus – figure in all costs and add desired profit margin • Penetration strategy – based on initial low price to gain market share • Skimming strategy – seeks to charge a high price during a products’ introductory phase when it has no competitors • Meet or beat the competition – common strategy in service businesses (airlines do it all of the time)

  35. Break-Even Analysis: Can You Afford Your Marketing Plan?

  36. The Break-Even Point • When sales (revenues) and costs are equal, there is no profit or loss

  37. Break-Even Analysis • It will help you know when your business will sell enough units to cover its costs • Break-even units formula: Fixed Operating Costs Gross Profit Per Unit = Break-Even Units Ex: $1000 Fixed, $70 Price, $50 Variable

  38. Overview of the Training Program • Day 3 – Marketing and the Business Plan • Working with Mentors • Understanding Effective Marketing • Advertising and Publicity • Successful Selling • International Opportunities • The Exit Strategy • Business Plan Review • Engaging Entrepreneurs in the Classroom • Assessment

  39. Advertising and Publicity

  40. Advertisements vs. Publicity • Ads cost money; publicity is free • Advertisement – paid announcement that a product or service is for sale • Publicity – attention paid to a business by the media • Together, advertisements and publicity are called promotion

  41. Publicity • Publicity provides credibility for your business • Publicity is valuable because customers are more likely to believe it than advertising • How to get publicity • Pitch letters • Press releases (follow up by phone) • Special events (invite media) • Working with the chamber of commerce or economic development agency

  42. What’s Your Story? • Get stories written about your business • What has happened to you? • Did you have to overcome any obstacles? • Is your product/service unique? • Is your product/service something the community needs? • How has your business changed/helped your community?

  43. The Double Bottom Line • The bottom line refers to the last line on the income statement (net profits) • Another set of issues related to community improvement include: • Protect the environment • Help the community • Treat employees with respect • Double bottom line is making a profit and improving society

  44. The Media • Print – newspapers, magazines, and newsletters • Television • Radio • Banner ads • Billboards • Brochures • Business cards • Direct mail • Catalogs • Discount coupons • Flyers • Free gifts • Business partnerships • Promotional clothing • Samples • Demonstrations • Special events • Special offers • Team sponsorships • Web sites • 1-800 numbers

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