Key to Marketing

2. Key to Marketing • Knowing the needs & wants of customers • Building a strategy to serve customers Know the niche market you are uniquely qualified to serve External Opportunities& Threats Niche Internal Strengths & Weaknesses

3. Marketing and the Purchase Decision Target market Marketing ProgramsField Sales PeopleMass MarketingPublic RelationsWord-of-Mouth Awareness Perceived NeedReferral EvaluationPromotionsTrials Consideration Purchase Real need or wantEmotional “Hook”Impulse

4. Marketing Strategy • Marketing strategy and actions must promote the company’s core values and “Brand” to be aligned with the company strategy. • Marketing initiatives and sales activity shape a company and brand strategy by getting market feedback • Marketing strategy is important because it ties the company to its customers in a logical way • Sales activity/”feet on the street” closes the loop

5. Marketing Plan • Detailed plan of who you are targeting to purchase your product or service, at what price, through which channels, and with the support of what kinds of sales and advertising. • Includes a strategy, a communications mix, methods for measuring success, attention to staffing/resources, and costs. • Included in the marketing functional strategy section of the business plan.

6. What is a Brand? • A brand is the sandbox that your company “plays” in • It is a company’s “Personality” and its “Reputation”

7. A Brand Creates Value • Harley Davidson • Coca Cola • Nike • Designer Brands

8. Why Managing Your Brand Matters Branding, by its very nature is not optional. If you do not position yourself in people’s minds, they will do it for you. … Peter Drucker

9. Why Your Brand is Important for Sales • People need to be aware of who you are • People need to willing to consider buying from you • You need the tools to “close” the sale • You brand addresses all three of these phases of the sales process.

10. Who Defines Your Brand? • Your Brand is defined by how well you deliver against customer expectations and perceptions, ie. “THE PROMISE”

11. Who Influences Your Brand? • Customers • Sales • Marketing • Customer Service • Delivery People and Distributors • Workers • Receptionist • Product Performance • Competitors

12. Two Views of UPS Jean’s • They’re great! • No problems with service. • Donna English. • She tracks me down. • I love them! Rhonda’s • They’re terrible! • Left stuff in the rain. • They’ve lost deliveries. • Different driver every day. • I hate them! Brand Loyalty is created or lost based on Personal Experience

13. The ABC’s of Good Branding A Is for Appropriate

14. Know Your Audience

15. How OTHERS perceivewhat you say,what you do,and howyou do it. Based on THEIR Values, Customs, Frame Of Reference, Assumed Rules Cultural Communication Issues What you say ContentInformation explicitly stated: Details, data, words, images What you doHow you do it ContextInformation implied bylocation, manner, behavior

16. Two Definitions Of Image • The Visual Image:The visual components of your Brand Identity: logo, web site, signage, marketing materials, product design • The Contextual Image:An impression created by your behavior and appearance; your reputation

17. Visual Image is NOT Just the Logo • Everything that is used around the logo also contributes to your “image” • Mailers, Printed Brochures • Web layout, components, interface • Color schemes, Fonts • Graphics • Flow charts • Are all of these consistent with your brand vision?

18. Think the Intangibles Don’t Matter? • At the drive-in teller at the bank, the sign has withdrawal spelled incorrectly. The customer thinks, “If they are that careless with their signs, how will the treat my money?”

19. Low-Cost Strategy • Problem of even lower-cost competitors • Difficult to keep costs down – especially for small firms • Reduced flexibility • Finding markets where there is space for a low-cost competitor • Establishes your brand as “low-cost” = “low quality”

20. Product/service differentiation • Differentiate what is sold • Branding, quality, innovation, style and image • Two common patterns: • High margins/low share (Mercedes): focus on status, production efficiencies less important • Slightly lower margins but high share (many branded items like Coca-Cola, Nike) • Works by reducing rivalry, substitutes & buyer power • Main objective of differentiation: make the short list

21. Market segmentation/focus • Serve a small segment • Focus refers to following the trends of an audience • Oshkosh emergency trucks • Specialty steel • Micro breweries • Focused low-cost/low-price • Works by reducing rivalry, reducing substitutes • Main objective: redefine the market served

22. Product Positioning QUALITY PRICE

23. Exercise: Choose and defend a marketing strategy • Low Cost/Low Price • Product Differentiation • Market Segmentation (Focus) • Your own…why?

24. Marketing Mix • The right mix of marketing and sales support elements that... • Supports your strategy. • Fits your capabilities. • Doesn’t break your budget. • Shared advertising • Public relations • Networking • Training • Etc.

25. Promotion “Any form of persuasive communication designed to inform consumers about a product or service and influence them to purchase these goods or services.” • Direct selling -- mail, internet, sales representatives • Promotions -- try it, you’ll like it • Advertising -- direct response, targeted, blanket • Public relations -- word of mouth (events), media coverage, editorial content • Marketing communications • Networking

26. Marketing Communications • Web Sites • Blogs • Newsletters • Brochures • Catalogs • White papers • Press Releases “Brand Package” • Business cards • Business plans • Annual report • Logos

27. What’s Happening in the Market? • Customers can hardly hear you • >1,500 marketing messages a day • Customers are skeptical • Everybody is claiming “the best ____” • Customers are connected • Electronic communication • Professional meetings • Buyer are more educated • And have more choices

28. Value proposition • Clear statement of benefits to the customer • Need to understand your target market • Needs • Wants • Includes: • Unique selling points • Quantification of the value to the customer of those points

29. Price setting: A make or break decision • Assess demand • How sensitive will customers be to price changes? • Analyze competition • What’s the going price? • Will competitors respond to a price cut? • Set pricing objectives • Target return, market share, long-term profits, quick investment recovery, etc • What will the dogs eat?

30. The ABC’s of Good Marketing U Is for Unique

31. Cows, after you’ve seen them for a while, are boring. They may be perfect cows, attractive cows, cows with great personalities, cows lit by beautiful light, but they’re still boring. A Purple Cow, though. Now that would be interesting. (For a while.) – Seth Godin, 2002

32. Networking Traditional • Chambers of commerce • Business associations • Trade associations • Customer groups • Volunteer work On-line Social Networking/Media • Facebook • Twitter • Linked In

33. What is Social Media? Social Media is a conversation supported by online tools that leverage human relationships to carry messages

34. Who uses social media? The share of American adult internet users who have a profile on an online social network site has more than quadrupled in the past four years -- from 8% in 2005 to over 35% now. -Pew Internet & American Life Project 2009

35. Facebook • Founded in 2003, originally called “Facemash” • Largest SMS - over 550M active users • 50% login daily • Over 2.5B photos uploaded each month • Users spend over 500 billion minutes per month on the site • Over 160 million objects • 100 million users via mobile devices

36. LinkedIn • A business-oriented network founded in 2002 • Currently has 70M+ members in 170 countries • “Gated Access Approach” and multi-tiered connections • LinkedIn Groups feature allows users to establish new business relationships by joining alumni, industry, or professional and other relevant groups.

37. Twitter • Founded in 2006 • Text posts of 140 characters or less called “tweets” • Tweets can contain links and pictures • Over 90M tweets per day • Over 190M users • Largest age group is 35-49

38. Social Media Applications Create brand awareness Build or manage online reputation Research competitive intelligence New customer service tool Recruiting initiatives Business development tool

39. Social Media Etiquette • Build trust-based relationships • Talk about/comment on your sector, don’t just sell, sell, sell • Read others’ opinions and blogs, comment • Listen more than you speak • Don’t say anything you wouldn’t say in public

40. Let People In! • Use photos, video, commentary and text to show people all angles of your business. • Keep the content on a blog. • Tag photos and videos on YouTube and Flickr • Regular communications can keep people coming back for more, give potential clients an inside peek at your process and document your project's lifecycle.

41. Sales promotions • Coupons & Discounts • Trade Shows • Samples • Contests • Free giveaways • Key chains, mugs, calendars etc.

42. Advertising • Newspapers, magazines, radio, internet, television, yellow pages, direct mail • Analyze the strengths & weaknessesof the medium • Which medium will target your customers? • What is your advertising budget? • What is the cost per million (CPM)?

43. Publicity • Articles in newspaper • Interview on radio or television • Coverable events • Newsletters • White papers • Speaking engagements & white papers • Volunteer (boards & local committees) FREE, powerful, hard to control

44. Guerilla Marketing • Used by entrepreneurs and small business • Targeted, low-cost strategies that change the rules of the game • Focus on relationships • Examples: • Product: Midwifery, punk music – both embedded in movements • Price: Free web services (to drive advertising) • Promotion: message in a fortune cookie • Place (distribution):with Donald Trump, celebrity endorcements, sports figures

45. The ABC’s of Good Branding B Is for Believable

46. It’s All About Expectations Promise less … Deliver more

47. Make Your Message Memorable • Make it easy for your customers to become your best Sales People • Develop a Story that is easy for people to remember and repeat • Find an “emotional connection” • Pay attention to the “implicit” message – the context, the body language

48. Blowing the Branding: • Bad names • Alu-Fanny foil wrap (France) • Atum Bom tuna (Portugal) • Happy End toilet paper (Germany) • Pschitt lemonade (France) • Zit lemonade (Germany) • Clairol, a hair products company, introduced the "Mist Stick", a curling iron, into Germany only to find out that, in German, “mist” is slang for manure.

49. Lost in Translation • Electrolux, a Scandinavian vacuum manufacturer, used this ad in the U.S.: "Nothing sucks like an Electrolux." • The Dairy Association's huge success with the campaign "Got Milk?" prompted them to expand advertising to Mexico. Their Spanish translation read: "Are you lactating?" • In Italy, a campaign for "Schweppes Tonic Water" translated the name into the much less thirst quenching "Schweppes Toilet Water."

50. The name Coca-Cola in China was first rendered as Ke-ke-ken-la. • Unfortunately, the Coke company did not discover until after thousands of signs had been printed that the phrase means "bite the wax tadpole" or "female horse stuffed with wax" depending on the dialect. Ke-ke-ken-la • Coke then researched 40,000 Chinese characters and found a close phonetic equivalent, ko-kou-ko-le, which can be loosely translated as "happiness in the mouth." ko-kou-ko-le Lost in Translation