Startup Boot Camp
Kick Starting Success for
California’s Retail, Restaurant and
Service Entrepreneurs!
Day 3 — Session 1
REVIEW/QUESTIONS
From Day 2

Let’s discuss any questions you have from last week
–
What sources of market research have you found?
–
What questions do you have regarding . . . .
• Estimating sales
• Startup vs. operating costs
• Developing cash flow projections
3
“People don't need to necessarily see me
in the jersey to understand who I am and
what message I'm trying to get across with
the things that I'm marketing.”
– Dwyane Wade
MARKETING BASICS
Importance Of Marketing

Marketing pulls it all together

Marketing is more than placing an advertisement
–
It’s about developing the right product(s) or service(s), at the right
price, at the right place, in the right quantities at the right time and
offering it to the right customer

Marketing drives sales

Sales drive profits
5
The 4Ps of Marketing

Product: Whatever you are selling

Price: The amount of money asked for, or given in
exchange for your product

Place: Distribution channels (where will your customers
find the product/service)

Promotion: An activity designed to encourage the
purchase of a product
And don’t forget . . . . People!
6
Marketing Mix Definition?

How the 4Ps are combined is known as the Marketing
Mix. It’s the coordination of product/service design,
pricing decisions, distribution, and promotional decisions
to form a consistent and effective marketing
program.
7
What’s The Marketing Mix?




Product?
Price?
Place?
Promotion?
8
What’s The Marketing Mix?




Product?
Price?
Place?
Promotion?
9
What’s The Marketing Mix?




Product?
Price?
Place?
Promotion?
10
Product

Remember your target customer, their needs and wants

Tailor your product/service to your customer
11
Price

Must make sense given the:
–
–
–
–
Markets served and the target customer
Products/services offered
Operational costs/method of distribution
Competition/perceived competitive advantage
12
Place

Where will your customers find you?
13
Promotion

Methods a company uses to communicate its
message to its target market and Brand its
product or service
– 5 Promotional Strategy Methods (eMarketing tools
discussed separately):
•
•
•
•
•
Advertising
Sales Promotion
Public Relations
Personal Selling
Direct Marketing
14
Branding

Branding (positioning)
– The battle for your customers’ minds.
– Who will the customers think of first, when making a decision on
your product/service type?
15
The Message

Lends itself to multiple media

From t-shirts and hats to cable ads

Shorter is better

Distinctive

Memorable

Examples:
–
–
You Deserve a Break Today
The Ultimate Driving Machine
16
Advertising

The message(s) and what it says about your company and products
The mediums used and how they are perceived by different
audiences

The mix of media combined with the message(s)

Can reach masses of geographically dispersed buyers

Message must be repeated many times to move customers to take
action

Impersonal one-way, one-to-many communication

Can be very costly

17
Media Choices

Yellow pages

Newspaper

Other print

Radio

TV/Cable

Press Releases

The business systems and collateral materials

The Internet
18
Yellow Pages

Everyone’s favorite — sold hard by the phone company

Mass market reach

Low cost per thousand but expensive overall

Most over use with diminishing effects

Web based version often a better value

Is your business really that mass market driven?

Some exposure is good — keep it small and focused
19
Newspaper






Run of press is also mass market
Classified ads and retailing driven
Has lost ground to all other media
Older readership
Consider alternative papers
Consider special editions & sections:
– Directories
– Home repair guide
– Real estate Sunday section

Best used by local retailers to drive traffic with deals,
sales and coupons
20
Other Print

Specialty magazines

Chamber of Commerce newsletters

Industry Associations

Use depends on the product and customer

Can be high cost per thousand

Hard to measure and control

Keep use small and focused
21
Radio

Lots of very targeted media choices

Radio stations have detailed information about their
customers’ demographics

Great for campaigns where high frequency is a plus

Ads are typically not expensive to produce
22
Cable TV

Lots of choice by market and system

Good for targeted marketing with a TV flair

Companies have in-house production resources

Many day/time choices

Easy to measure and track — use a unique URL and phone number
in the ad

Excellent viewer-ship information

Immediate if it works well

Lots of choices and deals
23
Promotion

Wide assortment of tools

Attracts consumer attention

Offers strong incentives to buy

Invites and rewards quick consumer response

Use to generate immediate sales
24
Promotion

Public relations

Events

Sponsorships

Pricing

Innovative sales and promotions

Good works
25
Promotion Examples







Samples
Coupons
Rebates
Cents-off Deals
Premiums
Advertising
Specialties




26
Patronage Rewards
Point-of-Purchase
Promotions
Contests
Sweepstakes
Games
Promotion Ideas
The following 7 slides contain examples of potential promotion
ideas for you to consider as you formulate your marketing plan.

Always carry business cards. Give them freely and ask permission
to leave them in places your target market may visit

Print the products you sell or services offered on the back of your
business cards

Create a calendar for customers with your shop's name and address
on it

Join a trade association or organization related to your industry
27
Promotion Ideas (cont’d)

Collect your customers’ email and mailing addresses by
offering your customers an additional % on their next
sale (which you will email to them to confirm the email
address)

Have a drawing for a product or a gift certificate. Use the
entry forms to collect customers' mailing addresses

Develop a brochure of services your shop offers

Conduct monthly clinics about a product or service you
offer
28
Promotion Ideas (cont’d)






Print a tagline for your business on letterhead, fax cover
sheets, e-mails and invoices
Develop a website. Use a memorable URL
Include customer testimonials in your printed and online
literature
Promote yourself as an expert
Submit to the local newspaper, trade journal or other
publications
Host an after-hours gathering for your employees and
their friends/relatives
29
Promotion Ideas (cont’d)

Provide free t-shirts with your logo to your staff to wear

Create an annual award and publicize it

Create a press kit and keep its contents current

Use an answering machine or voice mail system

Distribute specialty products such as pens, mouse pads,
or mugs with your store's logo
Give a speech

30
Promotion Ideas (cont’d)

Sponsor an Adopt-a-Highway area in your community

Donate your product or service to a charity event or
auction

Maintain your on-line presence

Advertise in creative locations such as park benches,
buses, and popular Web sites

Improve your building signage
31
Promotion Ideas (cont’d)

Create window displays in locations away from your
shop. Airports, hospitals, and large office buildings
occasionally have display areas they rent to local
businesses

Cross-market with local non-competing businesses

Team up with a non-competing business in your area to
offer a package promotion

Pick the slowest day to hold a 1-day sale
32
Promotion Ideas (cont’d)

Create a loyalty program to reward existing customers

Send hand-written thank you notes to important
customers every chance you get

Use brightly colored envelopes and unique stationary
when sending direct mail pieces

Show product demos or related videos on a television on
the sales floors during store hours

Book a celebrity guest for an event at your store
33
Public Relations

Very believable

Reaches people who avoid salespeople and ads

Can dramatize a company or product

Tends to be used as an afterthought

Planned use can be effective and economical
34
Public Relations

Cheaper to get them to write about you than to write
about yourself

Worth a PR firm’s cost if you are doing something
noteworthy and different

Many angles to play for all companies

A PR Agent will network you into the correct channels to
get press
35
Examples Of Public Relations







News
Speeches
Special events
Buzz marketing
Mobile marketing
Written materials
Editorials





36
Audiovisual
materials
Corporate identity
materials
Public service
activities
Web sites
Blogs
Public Relations “Kit”

Biography of You

Fact Sheet (bullet points which answer –who, what,
where, when, why)

Business Information (Biography about the business)

Pictures of the business and product/service

An article about something newsworthy & amazing that
the business has done

Public Relations Kit
37
Direct Marketing

4 characteristics of Direct Marketing:
–
–
–
–

Nonpublic (private)
Immediate
Customized
Interactive
Benefits
–
–
–
–
–
Powerful tool
Can be highly targeted
Can tailor offers to individual needs
Can be timed to reach prospects at just the right moment
Low-cost and efficient
38
Direct Marketing Examples

Examples of Direct Marketing
–
–
–
–
–
Telemarketing
Direct-Mail Marketing
Catalog Marketing
Direct Response TV Marketing (i.e. infomercial and shopping channels)
Kiosk Marketing
39
Personal Selling

Personal interaction between two or more people

Allows relationship building

Most expensive promotion tool
40
Sales

Product/service knowledge — the more knowledgeable a
salesperson is about a product, the easier it is for
her/him to explain it to others

Training is important

Make sure they know what to say and have the tools to
say it well
41
Is This A Salesperson?
42
Your Elevator Pitch

Whether you are trying to raise capital, promote your company, or promote
yourself, it’s essential to have an “elevator pitch.” You must communicate
your main message quickly, clearly, and distinctly to someone who doesn’t
even know you. A good pitch takes planning and practice to deliver quickly,
on the spot, and under pressure. 30 seconds to a maximum of 1 minute!

You — your business name — what you do — any special/unique
capabilities — what kind of customers can benefit from your business and
how you help them. If time, include an example of something great you
have done that helped a customer

Example: “If you're a restaurateur and can't keep your regulars coming
back, you're lost. Using proprietary online and offline survey techniques,
Trey Research will find out how you can stop the losses and start
generating profit.”
43
MARKETING EXECUTION
Elements Of A Sound Marketing Plan

The market research is done

The heavy user group identified

The message is clear, concise and tested

The marketing mix well thought out and consistent with
the product and target market

Spending is within budget

Feedback systems allow tracking and measurement

Willingness to change and adjust based on results
45
Marketing Budget

What the business can afford

What it needs to spend to be competitive

Fixed or Variable Cost model

Total communication costs

New businesses:
–
–
–
–
Always spend more
Need to get known
Build a client base
Make mistakes while trying media
46
How To Spend The Money

Driven by the business plan and the target market

Reach your “heavy user” as often as possible

Budget by the month

Structure marketing campaigns

Manage costs by the campaign
47
How Much To Spend

A function of:
–
–
–
–
–
–
The business model
Your profit vs. growth objectives
Stage of the company
Gross margins
Competition
Cash

5% is about as little as one can spend

12% is about the maximum

Averaged over the year — seasonal peaks and valleys

Fish all day when they are running — don’t waste money when
they’re not
48
Spending Levels

Model could be something like this:
– $1.00
– .55
– .45
– .09
– .09
– .09
– .05
– .13
Net Revenue
Cost of Goods Sold
Gross Margin
Occupancy/Web Costs
G&A
Sales and Marketing
Interest and other cash
Profit before Taxes
49
Spending Levels

Higher Gross Margins means more $$$ for Marketing

Sometimes you must over spend to launch a new
business, new product, stay competitive or grow

Make sure you monitor costs and results frequently
50
Measurement Systems






Need to measure results
Gauge results quantitatively
Track leads and conversion to sales
Use the results to adjust future spending
Fund winners
Kill losers
51
Measurement Systems

Some ways to track results:
–
–
–
–
–
Special phone numbers
Web site landing pages
Web based surveys
Questions when people call
Coupon codes

Simple tracking systems are the best

Use the data to adjust spending
52
The Marketing Plan

The schedule of all the planned marketing activities
to be performed over a period of time
53
Example

Take out a blank sheet of paper.

Remember the bicycle shop:
Take 3 minutes and write down marketing
ideas it should pursue
54
EXERCISE: Marketing Plan

Take out the 7th sheet labeled “Marketing” and fill in
ideas you tend to consider for the various elements of
your marketing plan.
55
“People share, read and generally engage more
with any type of content when it’s surfaced
through friends and people they know and trust.”
– Malorie Lucich, Facebook
eMARKETING
Traditional Marketing
“One to Many”
Company Message
Messages
Audience
57
Online Marketing Or “eMarketing”
“Many to Many”
Audience
Newsletters
Audience
Website
Company Message
SEO
58
Audience
Social Media
Audience
Goals of eMarketing
eMarketing provides an
additional set of tools to
communicate with your
customers to:



Create Brand Awareness
Strengthen Customer
Loyalty
Generate New
Opportunities
59
Effective eMarketing Is Built On . . .
60
Find Your Online Audience

What Are they Looking For?

Where are they on the Internet?

How Do they Find You?

What are Your Competitors
doing?

Develop a set of questions to
survey your current or
perspective clients

Do your research!
61
Tracking & Analysis
The Key Benefit of Online Marketing is the
ability to track and analyze results, then
quickly iterate and adjust for optimal
performance
62
Your eMarketing Toolkit
Categories of eMarketing tools:

Website, Blog, Newsletter – Your online message!

Online Directories – e.g., Google/Yahoo Local – How
they’ll find you

Review Site – e.g., Yelp – How they will verify the quality
of your services

Social Networks – e.g, Facebook – Developing your
online community
63
Your eMarketing Toolkit (cont’d)

Micro Blogging – e.g., Twitter – Build a flowing

Rich Media – e.g., YouTube – A picture says a 1,000
words

Mobile Apps – e.g., FourSquare – Community building;
quick hitting specials/deals

Industry Specific – e.g., your local news website –
industry, geography, grouping specific

Event Promotion – e.g., MeetUp – Get people out for
your next event
64
Website And Blog

Control the content
– A chance to tell your story

Define a clear message.
– What do you offer?

Create a medium for contact
– Invite feedback/questions

Provide links to other
content/other content links
back to website where you
control the message
– FB, Twitter, etc.

Strategically update
65
Google ranking, Alexa
ranking, SEO, Wordpress,
Blogger, Typepad
Website – The Hub Of Your Online Strategy
66
What And Why SEO/Keyword Advertising?

Why? It helps your customers find you online!

SEO = Search Engine Optimization – free – dictates when you show
up and how high you show up in the listing generated by an internet
search

User selected “keywords” to associate with your business

Helped by the degree of your online presence and your activity

SEM = Search Engine Marketing – paid advertising – advertisement
shows up in a special area of the page – pay per “click”
67
eNewsletter
Goal: Keep Customers Connected/Informed
68
eNewsletter Basics

Build an email list
– Include subscription on your website
– Ask customers for their email address (in the store)
– Build the list at any events you attend

Create a newsletter that your audience will
value
– Perhaps include an incentive
69
Online Directories

Search yourself
– The power of Google!

Look for similar businesses
– If you’re not listed, someone else is!

Display correct contact info
– Location, phone #, hours/directions
MUST be correct

Add a photo
70
Google Local/Maps,
Yahoo Local, Yellow
Pages, CitySearch
Google Search vs. Places

Google Search

– Website scanned and
indexed by search engine
robots
– Use SEO techniques to
improve ranking
RESULT: Customers find
business on Google
Search
Google Places
www.google.com/places
– Need Google account to claim
your listing
– Requires verifiable address
– Can fill in basics first, then add
detail later
RESULT: Business listing
shows on Google Maps
71
Google Places: Scream Sorbet
72
Claim Your Google Places Listing

Click on the name of your business in the search results in
the left-hand panel of Google Maps

In the information box that appears, click “more info” next to
your business’s name

In the right hand menu, scroll down to IS THIS YOUR
BUSINESS? And click on “Manage this page”

Three options appear: You can Add, Edit or Suspend the
listing.

For each of these options, Google will ask you to verify that
you are the business owner. You can chose to receive a
PIN by phone, SMS or by Post Card. Once you receive
the PIN you can complete the verification process.
See Google Places Support for more information:
http://support.google.com/places/
73
Yelp, Zagat, Chow,
Lawyers.com
Review Sites

Rely on word of mouth
– People trust personal accounts more
than ads

Offer additional information.
– Yelp is a mobile tour guide

Respond to reviews
– Thank those who provide feedback,
positive an negative

Learn from your reviews
– Don’t make the same mistake twice!
74
Social Networks

Communicate with clients
– Be involved with the conversation

Connect
– Associate your business with related
pages and people

Establish a following.
– Invite past clients/customers to
view/like your page
75
Facebook, Linkedin
Twitter, Friendfeed
Micro Blogging

Interact with daily events
– Relate to what’s happening

Remind everyone about
events
– Update information leading up to the
event

Invite new customers.
– Friend of a friend of a friend…
76
Youtube Videos, iTunes
Audio PodCast, Flickr
Pictures
Rich Media

Appeal to the senses
– The eyes are drawn to an
image/video first!

Attract new customers
– If the website quality is great, then
people assume the business quality
is great, as well

Entertain your audience
– Get creative with images and video
77
FourSquare,
Urbanspoon, Yelp,
iPhone, SMS Text
Mobile Apps

Stay in contact
– People are ALWAYS on their
smartphones

Solidify your relationship
– Make the client feel special for
receiving extra attention

Go the extra mile.
– This shows that you’re
following through
78
Industry Specific

Network within the group.
– Get the scoop on what’s the
latest and greatest in your
industry, geography, etc.

Surround yourself with
what you want to become
– Hang out with likeminded
businesses

Help those who help you
– You’ll never know when you’ll
need something
79
East Bay Express, San
Francisco Chronicle,
DiabloMag.com
Event Promotion

Promote what you’ve got
– An event can attract more
business

Collaborate with others.
– Get other businesses involved

Feature your calendar
– The internet is a great way to
publicize!
80
Meetup, Zvents,
Constant Contact
Events, PlanCast
Getting Started

Get with your SBDC Business Advisor and develop a plan!

Build a website (many options with a variety of costs – the SBDC
can help you decide)

Claim yourself on Google Places and Yelp – regularly monitor
comments

Research and identify what tools your target market uses

Experiment strategically – figure out where to spend your time

Create profiles on other tools over time (helps increase your search
engine ranking)
81
Time Management

Don’t let managing your online presence become all
consuming.

Do what you like and what shows results

3 days a week; 15 minutes a day
82
Internet Marketing References
Resource
Description
Web Address
www.blogger.com
Blogger
Free Blogging Platform
CoffeeCup
Website Design
Software
Email Marketing Service
www.coffeecup.com
Email Marketing Service
www.cooleremail.com
Dream Template
Website Templates
www.dreamtemplate.com
Elance
Freelance Internet
Consultants
Social Media Platform
www.elance.com
Constant
Contact
Cooler Email
Facebook
83
www.constantcontact.com
www.facebook.com
Internet Marketing References
Resource
Description
Web Address
www.google.com/analytics
Google
Analytics
Google Places
Free Website Analytics
Service
Free Online Directory
www.google.com/places
Homestead
Website Hosting Service
www.homestead.com
HP Logoworks
www.logoworks.com
iContact
Graphics & Website
Design Service
Email Marketing Service
LinkedIn
Social Media Platform
www.linkedin.com
Mail Chimp
Email Marketing Service
www.mailchimp.com
84
www.icontact.com
Internet Marketing References (continued)
Resource
Ning
Odesk
Open Web
Analytics
Twitter
Vertical Response
vWorker
Description
Social Website
Design Service
Freelance Internet
Consultants
Open Source Web
Analytics
Micro-blogging
Social Media
Platform
Email Marketing
Service
Freelance Internet
Consultants
85
Web Address
www.ning.com
www.odesk.com
www.openwebanalytics.com
www.twitter.com
www.verticalresponse.com
www.vworker.com
Internet Marketing References (continued)
Resource
WebSort
(cardsorting)
Wordpress
Wordtracker
Yahoo Small
Business
Description:
Web Address:
www.websort.net
Website Design
Application/Service
Website Content
Management Application
SEM Application &
Service
Website Hosting Service
86
www.wordpress.com
www.wordtracker.com
www.smallbusiness.yahoo.com
SEM Resources
Keyword & SEO Research Resources
 Google AdWords Main Page:
http://adwords.google.com
 Wordtracker Keyword Research and SEO Tools
http://www.wordtracker.com
 Google’s Search Insights Tool
http://www.google.com/insights/search
87
Startup Boot Camp — LUNCH
“I haven't trusted polls since I read that 62% of
women had affairs during their lunch hour. I've
never met a woman in my life who would give
up lunch for sex.”
– Erma Bombeck