re-wiring your marketing machine

©2009

Re-Wiring Your Marketing Machine

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©2009www.mycleardirections.com

First, check the engine Second, look at the pistons Third, thoroughly examine the promotion

piston Fourth, review spark plugs that fire the

promotion piston, particularly social networking

Last, look at re-wiring your thinking about your engine

How We’ll Spend Our Time Together


Main objective of marketing is to create customer value ◦ Usually involves an exchange between buyers and

sellers or between other parties◦ Has an impact on the firm, its suppliers, its

customers, and others affected by the firm’s choices

◦ Frequently involves enduring relationships between buyers, sellers, and other parties

◦ Processes involved include “creating, communicating, delivering, and exchanging offerings”

Let’s Check the Engine First:Marketing Well-Defined


Product◦ Developing a tangible good or service exchanged

for money or other goods and services Place

◦ Determining the distribution of those goods and services

Price◦ Setting the value placed on those goods and

services Promotion

◦ Creating the methods used to generate awareness, trial and purchase of goods and services

Marketing is a Bigger Engine Than Most Think: More than Just Promotion


Pricing is the only part of the marketing mix which brings in revenue.

Once a price has been set, consumers will often show a great deal of resistance to any attempts to change it.

Pricing frequently has important

Why is Price Such an Important Piston in Your Engine?

implications for the positioning of a product.

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Price is the marketing mix variable for which a competitive response can be most quickly implemented.


Modernly called “Integrated Marketing Communication”◦ Advertising: traditional and on-line◦ Public relations: traditional and on-line◦ Social networking◦ On-line marketing: Webinars, e-mail, blogs, podcasts,

RSS feeds◦ Trade promotion◦ Sales promotion◦ Personal selling or network marketing◦ In-store displays◦ Samples◦ Premium items

Tonight’s Featured Piston –Promotion – Requires Skill, Intuition


Advertising◦ Paid messages placed in specific media

Public relations◦ Providing information to the media in the hopes of getting news coverage◦ Often less expensive and usually more credible than advertising ◦ Poses a risk : we can’t control what the media will say◦ Very useful tool for small and growing businesses—especially those that make

a product which is inherently interesting to the audience Social networking (one of the newer spark plugs)

◦ The grouping of individuals into specific groups◦ Though possible in person, especially in schools or in the workplace, it is most

popular on-line since the internet is filled with millions of individuals who are looking to meet other internet users to develop friendships and business relationships

◦ Resources LinkedIn, Facebook, Twitter, Affluence, Plaxo, Classmates, etc.

Integrated Marketing Communication Tactics: Our Spark Plugs

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On-line marketing◦Websites◦E-mail blasts◦Webinars

Show and tell Demonstrate expertise Many can participate Archive access Resources

GoToWebinar http://del.icio.us/ecoscribe/webinars

Integrated Marketing Communication

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On-line marketing, continued◦Blogging

Search engines love blogs Be brief and sweet Can replace your newsletter Blog regularly Be responsive Show some personality Resources

Blogger, wordpress Widgets for your blog/website

Flickr, YouTube, Slideshare.net



On-line marketing, continued◦ Podcasting

Great for those on the go No need to worry about visuals Easy to subscribe to these Share speeches, stories, interviews with field experts, quick tips Use a script, offer quality content, produce a series, promote it! Resources

Audacity, Podcastalley.com, Libsyn, Podbean

◦ On-line press releases More specialized that print news releases Yahoo! News, Google, Topix, RSS feeds, blogs, and many more Resources

Prweb.com, prnewswire.com



On-line marketing, continued◦ RSS Feeds

An acronym for Really Simple Syndication A web language format designed to help syndicate content across

different sources What are the benefits?

Beat email filters Spread YOUR word on other websites Get listed on search engines Use the first-mover advantage by being an early adopter and getting

indexed on search engines Offer your readers new content

Resources myrsscreator.com, press-feed.com, simplefeed.com, nooked.com,

myst-technology.com, rssautopublisher.com and www.market-soft.com/bypass



Trade promotion◦ Offering discounts to wholesalers and retailers who may pass the savings

to the consumer Sales promotion

◦ Discounts, coupons and rebates Personal selling or network marketing

◦ An in-house sales force who work on commission◦ An army of direct sales reps who sell a consumer product or service,

person-to-person, away from a fixed retail location who are paid for sales volume generated by people they have recruited into the distribution network

In-store displays◦ Most desirable display spaces include: end of an aisle, free-standing

displays, and near the check-out counter◦ Usually pay a “slotting fee”

Samples Premium items



First, let’s look under the hood◦ PC Usage>radio+TV+magazine

usage◦ The power of the Internet continues

to grow 73% in North America report using the

internet 70% report using it to search for

information 60% use it to shop

Newer Spark Plug: Social NetworkingWhat Is Its Value in Business?

Sources: Forrester, Miniwatts Marketing Group, 2008, JupiterResearch, 2007

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Discover inside connections when you’re looking for a job or new business opportunity

Beneficial for both business-to-consumer and business-to-business markets

Use it to:• Publish your expertise• Help your network• Self-promote• Find expertise• Collaborate• Make connections• Recommend others, products and services• Communicate and learn

Social Networking Extends Your Reach

Source: D. Tebbutt of Freeform Dynamics (UK), 2009


Speed your discoveries◦ People, places, information and networks

Accelerate and improve communication◦ Direct, unfiltered dialogue◦ With employees, suppliers, customers and

prospects Enhance your reputation

◦ Your profile, your responsiveness Quickly improve your products and services

◦ Obtain and respond to feedback from customers◦ Virally drive new ideas internally

If You Value Any of These Gains, You Should Use Social Networking

Source: D. Tebbutt of Freeform Dynamics (UK), 2009


Bottom line: Relationships for Future Returns

Can also measure in terms of links, web traffic, positive comments

Typically not direct and immediate Can manage your “time cost” spent on this tactic

◦ Track time spent on this activity freely on sites you enjoy (RescueTime, MeeTimer)

◦ Determine how much time you can afford to spend and portion out that time by percentage on those sites you enjoy or find beneficial

What’s Social Networking’s ROI?


So, Let’s Start Re-Wiring

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Preceded by a known sequence of events, or hierarchy

How humans buy a product/service

Awareness

Attention

Evaluation

Trial

Use


Selling emphasizes existing products◦ If a product is not selling, more aggressive

measures must be taken to sell it — e.g., cutting price, advertising more, or hiring more aggressive salespeople

Marketing focuses on getting consumers what they seek, regardless of whether this means creating entirely new products

Selling vs. Marketing


Before you create a marketing campaign, you must SToP: Segment, Target, and Position (SToP for DirectionsSM)

Three-stage process• Determine which kinds of customers exist• Select which ones we are best off trying to

serve• Implement our segmentation by optimizing our

products/services for that segment and communicating that we have made the choice to distinguish ourselves that way

After Product Concept,You Need to SToP!

SToP for Directions SM


Segmentation: what is it?◦ Involves finding out what kinds of consumers with

different needs exist◦ “You can’t be all things to all people”◦ Riches are in the Niches

Entities that specialize in meeting the needs of one group of consumers over another tend to be more profitable

Segmentation: A Key Wire in Your Engine


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Demographics◦ Personal statistics such as income, gender, education, location

(rural vs. urban, East vs. West), ethnicity, and family size Lifestyle and values

◦ Some consumers want to be seen as similar to others, while a different segment wants to stand apart from the crowd

◦ How they spend their free time and what they emphasize in their lives

Behavior◦ Some consumers are “brand loyal”— e.g., they tend to stick with

their preferred brands even when a competing one is on sale◦ Some consumers are “heavy” users while others are “light” users

Benefits sought◦ Bypasses demographic explanatory variables – e.g., some prefer

scented soaps over unscented soaps

How Can We Segment?



Target your “best” segments◦ How well are existing segments served by other

manufacturers, service providers? Go for those whose needs are not being met or met well

◦ How large is the segment, and how can we expect it to grow? Beware of rapidly growing segments as competition will

be fierce◦ Do we have the strengths as a company that will help

us appeal particularly to one group of consumers? Be sure your reputation, if you have one, matches your

target’s perceptions

How Do We Target?


As entrepreneurs, transform your passion into your positioning

Implement your segmentation by optimizing your product/service for the needs of that segment and communicating how you meet their needs best◦ Create your image of what your company stands

for and what your product/service does Define it clearly for your company or

someone else will!

How Do We Position?



Price Quality Service Distribution Packaging

Factors That Form Positioning



Produce more effective marketing campaigns with higher ROI

Better use of all resources (money, time, energy) Allow for proper planning of future investments

◦ For example, new products are usually initially adopted by a few consumers and only spread later to the rest of the population, we learn that companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success

It makes running a business much more fun when “all pistons are firing”

The Importance of Wiring Your Marketing to Your Audience


"Grant me the serenity to say no to the requests that are mere distractions, the courage to act on the ones that are truly

opportunities, and the wisdom to the know the difference."

The Entrepreneurs Serenity Prayer

One for the Road…


Denise StillmanPrincipalClear Directions, LLC

[email protected]+1.708.638.8891

Your source for marketing services, business planning and strategy

development.