Key to Marketing
• Knowing the needs & wants of customers
• Building a strategy to serve customers
External Opportunities
& Threats
Know the niche market you
are uniquely qualified to
serve
Niche
Internal Strengths & Weaknesses
Marketing and the Purchase Decision
Target market
Awareness
Marketing Programs
Field Sales People
Mass Marketing
Public Relations
Word-of-Mouth
Consideration
Perceived Need
Referral Evaluation
Promotions
Trials
Purchase
Real need or want
Emotional “Hook”
Impulse
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
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.
What is a Brand?
• A brand is the sandbox that your
company “plays” in
• It is a company’s “Personality” and its
“Reputation”
A Brand Creates Value
•
•
•
•
Harley Davidson
Coca Cola
Nike
Designer Brands
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
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.
Who Defines Your Brand?
• Your Brand is defined by how well you
deliver against customer expectations and
perceptions, ie. “THE PROMISE”
Who Influences Your Brand?
•
•
•
•
•
•
•
•
•
Customers
Sales
Marketing
Customer Service
Delivery People and Distributors
Workers
Receptionist
Product Performance
Competitors
Two Views of UPS
Jean’s
Rhonda’s
• They’re great!
• They’re terrible!
• No problems with
• Left stuff in the rain.
service.
• They’ve lost deliveries.
• Donna English.
• Different driver every
• She tracks me down.
day.
• I love them!
• I hate them!
Brand Loyalty is created or lost based on
Personal Experience
The ABC’s of Good Branding
A
Is for Appropriate
Know Your Audience
Cultural Communication Issues
What
you say
Content
Information explicitly
stated: Details, data,
words, images
What you do
How you do it
Context
Information implied by
location, manner, behavior
How OTHERS
perceive
what you say,
what you do,
and how
you do it.
Based on
THEIR Values,
Customs,
Frame Of
Reference,
Assumed Rules
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
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?
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?”
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”
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
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
Product Positioning
High
Q
U
A
L
I
T
Y
Nordstrom
Macy’s
Medium
Low
Walmart
Low
Medium
PRICE
High
Exercise:
Choose and defend a marketing strategy
•
•
•
•
Low Cost/Low Price
Product Differentiation
Market Segmentation (Focus)
Your own…why?
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.
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
Marketing Communications
•
•
•
•
•
•
•
Web Sites
Blogs
Newsletters
Brochures
Catalogs
White papers
Press Releases
“Brand Package”
• Business cards
• Business plans
• Annual report
• Logos
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
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
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?
The ABC’s of Good Marketing
U
Is for Unique
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
Networking
Traditional
– Chambers of commerce
– Business associations
– Trade associations
– Customer groups
– Volunteer work
On-line Social Networking/Media
– Facebook
– Twitter
– Linked In
What is Social Media?
Social Media is a conversation supported by online
tools that leverage human relationships to carry
messages
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
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
•
•
•
•
•
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.
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
Social Media Applications
Create brand awareness
Build or manage online reputation
Research competitive intelligence
New customer service tool
Recruiting initiatives
Business development tool
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
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.
Sales promotions
•
•
•
•
•
Coupons & Discounts
Trade Shows
Samples
Contests
Free giveaways
– Key chains, mugs, calendars etc.
Advertising
• Newspapers, magazines, radio, internet,
television, yellow pages, direct mail
• Analyze the strengths & weaknesses
of the medium
– Which medium will target your customers?
– What is your advertising budget?
– What is the cost per million (CPM)?
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
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
The ABC’s of Good Branding
B
Is for Believable
It’s All About Expectations
Promise less … Deliver more
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
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.
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."
Lost in Translation
Ke-ke-ken-la
ko-kou-ko-le
• 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.
• 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."
The ABC’s of Good Branding
C
Is for Consistency
Monitoring
Keep monitoring your
marketing to make sure that
your images, messages, and
value stay consistent!
Messages…
• Can you hear me now?
• How do you spell relief?
• The Nightime Sniffling Sneezing Coughing Aching
Stuffyhead Fever So You Can Rest Medicine.
• We bring good things to life.
• You’re in good hands with …
• You’re fired!
Building the “Buzz”
• Fundamentals have to be in place:
• The right product and service
• You need an interesting story that other people can
remember and repeat
• You need to be visible and recognizable in
whatever you do
• Keep your customers involved
Placement/Distribution
• The “bridge” to reaching customers
• Sales Channels
– Distributors, retailers, value added resellers
• Issues/norms:
– Sales cycle (time of year, length)
– Expected materials, order forms, support, etc.
– Sales force implications
– Inside vs. outside sales people
– Quotas and territories
– Compensation and commissions
– Coverage
Effective Distribution
– Complementary, strategic channels
– Clear objectives for each channel that facilitate
measures of success
– “Increase number of stores carrying our product by
25%”
– “Keep 90% of our current customers this year”
– “Increase sales volume to 100 largest accounts by
20%”
– Budget & timeline
– Detailed outline of required logistics
– Sensitive measures of success, and methods for
absorbing and adjusting to data
Sales Team
• People
– Experience, reach
– Team structure
• Support structure
– Sales plan
– Marketing intelligence
– Incentives
– Materials
– Logistics
– Training
– Leadership
Values-Led Marketing Mix
“ Values-led marketing…promotes products and brands by integrating
social benefits into many different aspects of a business enterprise.”
- Ben & Jerry’s
– Product: Organic ingredients purchased from alternative
suppliers; creative, recyclable packaging
– Pricing: Premium with lots of giveaways & donations
– Placement: Regional, country stores, youth scoop shops
– Promotion: Music festivals, free samples, advocacy, public
relations
QUESTIONS?
Contact Info:
amy.yom@temple.edu
REMEMBER ~ BYOBB
plans are due by March
28 at 5PM. Email
submissions only! No
exceptions.