unit 5 marketing_plan
TRANSCRIPT
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Chapter 6: Marketing Plan 1Copyright 2002 Prentice Hall Publishing Company
Creating aPowerful
Marketing Plan
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Chapter 6: Marketing Plan 2Copyright 2002 Prentice Hall Publishing Company
Market Research
Market research is the vehicle for gathering the
information that serves as the foundation for
the marketing plan.
Never assumethat a market exists for yourcompanys product or service.
Market research does nothave to be time
consuming, complex, or expensive to be useful.
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Chapter 6: Marketing Plan 3Copyright 2002 Prentice Hall Publishing Company
Market Research
How to Conduct Market Research:
Define the problem
Collect the data
Individualized (one-to-one) marketing
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How to Become an Effective One-to-One Marketer
Identify your best customers,
never passing up the
opportunity to get their names.
Collect information on these
customers, linking their
identities to their transactions.
Calculate the long-term valueof customers so you know
which ones are most desirable
(and most profitable).
Successful
One-to-One
Marketing
Know what your customers
buying cycle is and time your
marketing efforts to coincidewith itjust-in-time marketing.
Make sure your companysproduct and service quality
will astonish your customers.
See customer complaints
for what they area
chance to improve
your service and
quality. Encourage
complaints and then
fix them!
Enhance your products and
services by giving customers
information about them and how
to use them.
Source: Adapted from Susan Greco, The Road to One-to-One Marketing, Inc., October 1995, pp. 56-66.
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Chapter 6: Marketing Plan 5Copyright 2002 Prentice Hall Publishing Company
Market Research (continued)
How to Conduct Market Research:
Define the problem
Collect the data
Individualized (one-to-one) marketing
Data mining
Analyze the data and interpret the
results
Draw conclusions and act
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Chapter 6: Marketing Plan 6Copyright 2002 Prentice Hall Publishing Company
Marketing Strategies forEntrepreneurial Ventures
Target Market Selection Strategies:
Market specialization
Selective segment concentration
Selective specialization
Product specialization
Full market coverage
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Pinpointing the Target Market
One objective of market researchis to pinpoint the companys target
market, the specific group of
customers at whom the company
aims its products or services. Without a clear image of its target
market, a small company tries to
reach almost everyone and ends up
appealing to almost no one!
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Positioning
Choose the position you want your
company to take in the marketplace
Evaluate the competition and decidewhere they have position themselves
Consider the consequences of the various
choices of positioning available to yourcompany
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9/46Chapter 6: Marketing Plan 9Copyright 2002 Prentice Hall Publishing Company
Marketing Strategies forEntrepreneurial Ventures
Target Market Selection Strategies:
Market specialization
Selective segment concentration
Selective specialization
Product specialization
Full market coverage
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Marketing Strategies forEntrepreneurial Ventures
Segmentation Strategies:
Geographic
Demographic
Psychographic
Behavioral
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Chapter 6: Marketing Plan 11Copyright 2002 Prentice Hall Publishing Company
Marketing Strategies forEntrepreneurial Ventures
Differentiation Strategies:
Product itself
Services
Personnel
Image
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Chapter 6: Marketing Plan 12Copyright 2002 Prentice Hall Publishing Company
Marketing Strategies forEntrepreneurial Ventures
Marketing Mix Strategies:
New product development
Product line
BrandPackaging and labeling
Product life cycle decisions
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Chapter 6: Marketing Plan 13Copyright 2002 Prentice Hall Publishing Company
Marketing Strategies forEntrepreneurial Ventures
Marketing Mix Strategies:
Channel choice
Market logistics
Inventory Transportation modes / carriers
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Chapter 6: Marketing Plan 14Copyright 2002 Prentice Hall Publishing Company
Types of Product Purchasers
Innovators: The adventurous ones
Purchase early because it is exciting.
Early Adopters: The opinion leaders Purchase after analysis but willing to take a
reasonable risk.
Early Majority: The deliberate masses Try it after respected people have tried it.
Needs to be infected with the idea.
Later Majority: The skeptical masses
Try it after respected people have proven it. Need contagion
Laggards: The most traditional of all No urgent reason to change.
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Chapter 6: Marketing Plan 15Copyright 2002 Prentice Hall Publishing Company
A Guerrilla
Marketing Plan Determines customer needs and wants
through market research.
Pinpoints the specific target markets thecompany will serve.
Analyzes a firms competitive advantages andbuilds a marketing strategy around them.
Creates a marketing mix that meets customerneeds and wants.
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Chapter 6: Marketing Plan 16Copyright 2002 Prentice Hall Publishing Company
Guerrilla Marketing Strategies
Find a niche and fill it.
Dont just sell; entertain.
Strive to be unique.
Create an identity for your
business.
Connect with customers on an
emotional level.
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Chapter 6: Marketing Plan 17Copyright 2002 Prentice Hall Publishing Company
Relationship Marketing
Involves developing and maintaining long-termrelationshipswith customers so that they will
keep coming back to make repeat purchases.
Small companies have an advantage over theirlarger rivals at relationship marketing.
Requires a company to make customer service
an all-encompassing part of its culture.
Customers are part ofallmajor issues the
company faces.
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Chapter 6: Marketing Plan 18Copyright 2002 Prentice Hall Publishing Company
The Relationship Marketing Process
Connect&
Collect
Conduct detailed customer intelligence to
pinpoint most valuable customers and to learn
all you can about them, including their lifetime
value (LTV) to the company.
Make contact with most valuable customersand begin building a customer database using
data mining and data warehousing techniques.
Learn from your customers by encouraging
feedback from them; develop a thorough
customer profile and constantly refine it.
Based on what you have
learned, contact customers
with an offer designed for
them. Make customers feel
special and valued.
If you have done
everything else correctly,
this step is relatively easy.
Superb customer service isthe best way to retain your
most valuable customers.
Learn
Analyze
BuildRelationships
Sell,Service,
and Satisfy
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Chapter 6: Marketing Plan 19Copyright 2002 Prentice Hall Publishing Company
Plotting a Marketing Strategy:
Building a Competitive Edge
Focus on the customer
Devotion to quality
Attention to convenience
Concentration on innovation
Dedication to service and customer
satisfaction
Emphasis on speed
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Chapter 6: Marketing Plan 20Copyright 2002 Prentice Hall Publishing Company
Focus on the Customer
67% of customers who stop patronizing abusiness do so because an indifferent employee
treated them poorly.
96% of dissatisfied customers never complain
about rude or discourteous service to the
company, but...
91% will notbuy from that business again.
100% will tell their horror stories to atleast nine other people.
13% of those unhappy customers will tell
their stories to at least 20 other people.
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Chapter 6: Marketing Plan 21Copyright 2002 Prentice Hall Publishing Company
Focus on the Customer
Treating customers indifferently or poorly costs theaverage company 15% to 30% of gross sales!
Replacing lost customers is expensive; it costs fivetimesas much to attract a new customer as it doesto sell to an existing one!
About 70% of a companys sales come fromexisting customers.
Because 20% of a typical companys customersaccount for about 80% of its sales, no business can
afford to alienate its best and most profitablecustomers and survive!
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Chapter 6: Marketing Plan 22Copyright 2002 Prentice Hall Publishing Company
Focus on the Customer
Companies that are successful at retainingtheir customers constantly ask themselves
(and their customers) four questions:
1. What are we doing right?2. How can we do that even better?
3. What have we done wrong?
4. What can we do in the future?
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Chapter 6: Marketing Plan 23Copyright 2002 Prentice Hall Publishing Company
Devotion to Quality
Qualitymore than just a slogan on thecompany bulletin board
World-class companies treat quality as astrategic objective, an integral part of the
company culture. This is the philosophy of Total Quality
Management (TQM).
Quality in the product or service itself
Quality in every aspect of the business and itsrelationship with the customer
Continuous improvement in quality
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Chapter 6: Marketing Plan 24Copyright 2002 Prentice Hall Publishing Company
How Do Customers Define Quality
in a Product? Reliability (average time between breakdowns)
Durability (how long an item lasts)
Ease of use
Known or trusted brand name
Low price
Quality
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Chapter 6: Marketing Plan 25Copyright 2002 Prentice Hall Publishing Company
How Do Customers Define Quality
in a Service? Tangibles (equipment, facilities,
people)
Reliability (doing what you say youwill do)
Responsiveness (promptness in
helping customers)
Assurance and empathy (conveying
a caring attitude)
Quality
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Chapter 6: Marketing Plan 26Copyright 2002 Prentice Hall Publishing Company
Attention to Convenience
Is your business conveniently located near
customers? Are your business hours suitable to your
customers?
Would customers appreciate pickup and delivery
services?
Do you make it easy for customers to buy oncredit or with credit cards?
Are your employees trained to handle businesstransactions quickly, efficiently, and politely?
Does your company handle telephone calls well?
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Chapter 6: Marketing Plan 27Copyright 2002 Prentice Hall Publishing Company
Concentration on Innovation
Innovationthe key to future success Innovationone of the greatest strengths
of entrepreneurs. It shows up in the new
products, techniques, and unusual
approaches they introduce.
Entrepreneurs often create new products
and services by focusing their efforts on
one area and by using their size andflexibility to their advantage.
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Chapter 6: Marketing Plan 28Copyright 2002 Prentice Hall Publishing Company
Dedication to Service
Listen to customers.
Define superior service.
Set standards and measureperformance.
Examine your companys servicecycle.
Hire the right employees.
Train employees to deliver superiorservice.
Goal: to achieve customer astonishment!
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Chapter 6: Marketing Plan 29Copyright 2002 Prentice Hall Publishing Company
Dedication to Service
Empower employees to offersuperior service.
Use technology to provide improvedservice.
Reward superior service.
Get top managers support.
View customer service as aninvestment, not an expense.
Goal: to achieve customer astonishment!
(continued)
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Chapter 6: Marketing Plan 30Copyright 2002 Prentice Hall Publishing Company
Emphasis on Speed
Re-engineer the process rather than tryto do the same thingonly faster.
Create cross-functional teams of workers
and empower them to attack and solveproblems.
Set aggressive goals for production and
stick to the schedule.
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Chapter 6: Marketing Plan 31Copyright 2002 Prentice Hall Publishing Company
Emphasis on Speed(continued)
Rethink the supply chain. Instill speed in the company culture.
Use technology to find shortcuts
wherever possible. Put the Internet to work for you.
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Chapter 6: Marketing Plan 32Copyright 2002 Prentice Hall Publishing Company
Benefits of Marketing on the
World Wide Web
Even the smallest companies can
market their products and services
around the globe.
The Web is growing rapidly. The Web can be the Great
Equalizer in a small companys
marketing program.
Web customers are demographically
attractive: They are young,
educated, and wealthy.
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Chapter 6: Marketing Plan 33Copyright 2002 Prentice Hall Publishing Company
Small Businesses and the Web
Only 1/4 of small companies have Web
sites. Why?
Security concerns Site may not draw customers
Although small companies make about
50% of U.S. retail sales, they account forjust 9% of online sales.
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Chapter 6: Marketing Plan 34Copyright 2002 Prentice Hall Publishing Company
The Marketing Mix
Product
Place
Price
Promotion
$
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Chapter 6: Marketing Plan 35Copyright 2002 Prentice Hall Publishing Company
Stages in the Product Life Cycle
Introductory stage
Growth and acceptance stage
Maturity and competition stage
Market saturation stage
Product decline stage
High
CostsSales
Climb
Profits
Peak
Sales
Peak
Sales &
Profits
Fall
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Chapter 6: Marketing Plan 36Copyright 2002 Prentice Hall Publishing Company
Product Life Cycle
Introduction Growth Maturity Decline
2001 by Prentice Hall, Inc.
Time
Volume
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Chapter 6: Marketing Plan 37Copyright 2002 Prentice Hall Publishing Company
Value-Added Concepts
Modern Methods of Selling
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Chapter 6: Marketing Plan 38Copyright 2002 Prentice Hall Publishing Company
Value-Added Strategy
(a direction)
Value-Added Leadership
(a behavior)
Value-Added Planning
(a discipline)
Value-Added Selling
(a process)
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Chapter 6: Marketing Plan 39Copyright 2002 Prentice Hall Publishing Company
Value-Added Strategy
Focuses the total business and its people on satisfyingthe customer
Brands (positions) the company as a producer andprovider of premium values whose worth exceeds theprice asked
Makes satisfying the customer the #1 priority of thecompany
Creates an organization of customer advocates andactivists
Establishes team performance and cross-functionalbehavior
Improves the companys revenue, margin, costefficiency and profit performance
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Chapter 6: Marketing Plan 40Copyright 2002 Prentice Hall Publishing Company
Value-Added Planning
Created by the implementers
Protects limited resources
Applicable at all organizational levels
Easy and simple to usenot complex
Measurable and rewardable
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Chapter 6: Marketing Plan 41Copyright 2002 Prentice Hall Publishing Company
Value-Added Leadership
Differentiates between management andleadership
Bonds leadership talk with leadershipwalk
Establishes that all can be leaders
Produces a peer-based leadership climate
Improves individual and teamproductivity
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Chapter 6: Marketing Plan 42Copyright 2002 Prentice Hall Publishing Company
Value-Added Selling
Increases sales revenue
Increases sales force productivity
Creates customer focus and customerdrive
Motivates a partnership relationship
Enhances value-added branding
Strengthens competitive differentiation
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Chapter 6: Marketing Plan 43Copyright 2002 Prentice Hall Publishing Company
Develop Sales Skills
Platforming (positioning)
Questioning
Listening
Communicating
Concentrating Interacting
Using Aids
Reading and Reacting Managing Resistance
Closing
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Strategic Options
Competitive Advantage
TargetMarket
Industry
Niche
Uniqueness Perceivedby the Customer
Low CostPosition
Differentiation Low Cost
DifferentiationFocus
CostFocus
Marketing Strategies for
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Chapter 6: Marketing Plan 45Copyright 2002 Prentice Hall Publishing Company
Marketing Strategies forEntrepreneurial Ventures
Marketing Mix Strategies: Markup pricing
Target return pricing
Perceived-value pricing
Value pricing Going-rate pricing
Sealed-bid pricing
Geographical pricing
Price discounts and allowances Promotional pricing
Discriminatory pricing
Product mix pricing
Marketing Strategies for
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Marketing Strategies forEntrepreneurial Ventures
Marketing Mix Strategies:
Advertising
Billboards
Point-of-purchase displays Symbols and logos
Packaging inserts
Sales promotion
Public relations
Personal selling
Direct marketing