Small Business Marketing
SCORE
SMALL BUSINESS
MARKETING
Small Business Marketing
SCORE
Marketing Definitions
•
“Marketing is not the devious art of separating the unwary consumer from his
loose change.”
Theodore Levitt Marketing for Business Growth
•
“Marketing is telling people what you do.”
C. J. Hayden Getting Clients Now
•
“…to many, Marketing is seen narrowly as the art of finding clever ways to
dispose of a company’s products. Many people confuse marketing with
advertising and selling. But authentic marketing is not the art of selling what
you make, so much as knowing what to make. It is the art of identifying and
understanding customer needs and coming up with solutions that satisfy
customers and produce profits.”
Philip Kotler Marketing Management
Small Business Marketing
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Small Business Climate Is Very Challenging
• 667,000 new businesses started each year
• 25,000 new products introduced annually
• 4,000 promotional messages assault each person daily
• Competition becoming fierce
• Marketing array is staggering
Small Business Marketing
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Marketing Components
• 4 Ps of Marketing
– Product
– Price
– Promotion
– Place
• Customer
Small Business Marketing
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8 Step Marketing Plan
1.
2.
3.
4.
5.
6.
7.
8.
Identify Target Markets
Define Goals in relation to Target Market Strategy
What are BENEFITS of what you sell
Why should anyone buy from you?
Select Marketing Tactics
Set up Marketing Budget
Develop Implementation Schedule
Measure Results
Small Business Marketing
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Customer
• Business or Consumer
• Demographics & Psychographics
• Everyone vs. Market Segments
Small Business Marketing
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Why Do Customers Buy?
• “Last year one million quarter-inch drill bits were sold –
not because people wanted quarter-inch drill bits, but
because they wanted quarter-inch holes.”
• Most small business don’t spend enough time finding out
what a prospect wants. Maybe prospects don’t really know
or can’t articulate what they want, but you can get at their
problems – their “pain.”
Small Business Marketing
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Customer Need Questions
1.
What’s your biggest problem in (your line of business)?
2.
How long have you had it?
3.
What have you done to fix it?
4.
And that’s worked well for you?
5.
What is this problem costing you in time, money, other?
6.
Do you have a budget set up to solve this problem?
7.
Are you the person who makes these decisions?
8.
When are you committed to finding a solution to this problem?
Small Business Marketing
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Finding Customers
• Targeted prospect list from professional list broker (both
consumer and business)
• Yellow Pages and other general advertising directories
• Trade Association directories (e.g. Chamber/ BBB)
• Professional Association member directories
• Business and Industry directories (e.g. D&B)
• “Book of Lists” from Rochester Business Journal
• On-line forums like bulletin boards/listserves and chats
Small Business Marketing
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Product
In 1987, there were 14,254 new products introduced in
the US. By 1998, the number had grown to 25,118.
It means 69 new products surfaced every day of the year.
• Position
• Name
• Packaging
• Product Bundle
• Performance/ Features
• Service
• Warranty
Small Business Marketing
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Unique Selling Proposition (USP)
Term created in 1960 by advertiser Rosser
Reeves
• Offer customer a specific, unique benefit – a
proposition that differentiates you from
competitors.
• Examples
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–
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Amazon.com
BMW
Domino’s Pizza
Federal Express
Nordstrom’s
Rolex
Volvo
Mercedes
Books fast and cheap
Ultimate Driving Machine
Fresh, hot pizza in 30 minutes
When it has to be there overnight
Unparalleled Service
Watches that Winners Wear
Safety
Engineering
Small Business Marketing
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Competition
•
•
•
•
•
•
•
Products
Price
Promotion
Place
Markets Served
Strengths/ Weaknesses
Estimated Sales Levels
Small Business Marketing
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Price
•
•
•
•
•
Cost
Competition
Customer Value
Lease or Sale
Bundled - Look at what customer
needs
• Volume Discount
• Current Specials
• Hide Unattractive Components
Small Business Marketing
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Promotion
According to market positioning expert, Jack Trout, the
average American is exposed to 4,000 marketing
messages daily.
1.
2.
3.
4.
5.
6.
Direct contact
Networking & Referral Building
Public Speaking
Writing & Publicity
Promotional Events
Advertising
Small Business Marketing
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Effective Promotional Tactics
• Create Awareness
– News Release, Press release, Publicity
– Advertising, Direct Mail
– Open House, Seminars, Trade Shows
• Create Comprehension
– Personal Selling
– Web Site
– Targeted Advertising/ Specific Message, Workshops
• Conviction
– Personal Sales
– Coupons, Contests, Rebates
• Orders/Reorders
– Personal Sales, Telemarketing Campaign
– Trade Shows, Direct Mail Sales Campaign
Small Business Marketing
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Place
•
Retail Location
•
Direct Sales Force
•
Dealers, Distributors, Agents
•
Volunteer “Sales Force”
Small Business Marketing
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Joint Ventures Expand Your Sales Force
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•
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•
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•
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Exchanging leads with other businesses
Exchanging links
Exchanging counter-top brochures between stores
Exchanging an endorsement of another’s product/service
to your customer base for a percentage of sales (or a
reverse endorsement)
Placing brochures/sales fliers in store shopping bags at
checkout
Placing brochures in other business’ billings or newsletters
Writing articles for someone else’s ezine or web site &
accept others’ articles for yours
Offering to sell someone else’s products for a commission
Cost-sharing for business functions (e.g. web site, ezine,
newsletter, trade show, display ads,seminars, etc.)
Small Business Marketing
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Marketing Goals
• Qualitative
–
–
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–
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Best Customer Service in Town
Office Out Of Home For Prestige
Perception of Personalized Service
Have Highest Quality
Be the first ( _______ ) business prospects think of
• Quantitative
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Increase Sales from $27K to $100K in 12 Months
Double Number of Customers in 2 Years
Increase Market Share 1 point in 18 months
Increase marketing spend to 10% of sales as sales increase
Small Business Marketing
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Marketing Budget & Schedule
Marketing
20XX
Budget
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Customer Data Base
TOTAL
$
-
Business Cards
$ 120
$
-
$
-
$
-
$
120
Stationery
$ 250
$
-
$
-
$
-
$
250
$
585
On-Hold Message
Netw ork Group
$255
$ 30
Web Site
$
30
$ 30
$ 30
$ 30
$ 30
$ 30
$ 30
$ 30
$ 30
$ 30
$
$ 1,750
$ 20
$ 20
$ 20
$ 20
$ 20
$ 20
$ 20
$ 20
$ 20
$ 1,930
Email
$
Penny Saver
$ 200
$ 400
$ 400
$ 400
$ 200
-
$ 1,600
Shopping Bag
$
-
Yellow Pages
$
-
Open House/ Roundtables
$ 700
$ 350
$ 100
Flyers
$ 100
$ 100
$ 100
$ 100
$
400
Seminars
$ 200
$ 150
$
$
$
350
Val Pak
$
-
Telemarketing
$
-
Direct Mail
$
-
Testimonials
$
-
Referrals
$
-
Other
TOTAL
$10
$10
$10
$10
$10
$10
$10
$265
$40
$1,790
$60
$60
$60
$60
$10
$10
-
$ 1,150
-
$10
$10
$10
$120
$260 $1,830 $1,060
$660
$360
$6,505
Promotional Budget should be at least 1% - 3% of gross sales.