Marketing Workshop

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  • Marketing is a plan for actions for bring customers to our business. Why it’s important: Drives sales Enables sales projections for the future Applications: Obtain funding. Obtain self confidence. Starts to build a knowledge of what you’re doing.
  • The Humvee motor vehicle providing transportation: Features: widest passenger vehicle on the market. All terrain, automatic transmission, f-wheel drive. Benefits: Safe, sturdy, can be used in any weather condition. Unique: one-of-a-kind Fills the niche for people who can afford the luxury of a vehicle tailored for heavy duty usage. Knowing all you can about your competition will help you position your service or product, so you can sell and promote your advantages over the competitive offering. Use the internet to learn about other similar companies. If it’s a product, will the package be unique? Standout? Will the main features be prominent? If it’s service, can you feature your service on a vehicle, in a brochure, on a sign?
  • Shop your competition, both local and remote. Call. Get quotes. Talk openly to your competition. Talk to prospective customers about what a fair price would be. Maximum sales = lowest price. Good value = medium price. Maximum profit = high price. High price implies higher quality. In head-on competition, you will lose to the company that offers the same for less. Drive home the idea that your price includes all features and benefits your service offers. Will you price above or below the “umbrella” (price used by your main competitor). Above = higher quality Below = better value. Beware of the fact that small jobs are low margin. Your service is valuable enough to provide you a decent profit. Consider setting a minimum.
  • If you sell your product through a wholesaler or distributor, your price must allow for your product to reach the end used at a competitive price – on the shelf. If you use a broker, brokers earn a commission based on the price they sell the product to the wholesaler.
  • Provides a disciplined way to work through the costs of your service. Accumulate an estimate of everything which makes up the cost of your performing a service. If travel is involved, the cost of a vehicle must be considered. The AAA has calculated $0.33/mile. Set a realistic salary for yourself…and for other in your company Add overhead (OH) costs Determine your objective profit. (10%, 20%...) Consider providing a job cost to your customer, rather than a proposal to bill by the hour. Get contracts spelling out what will be done by whom. Add-ons will be time and material. Consider what is standard for your industry
  • For each widget: estimate the cost for material and the cost of all labor to manufacture. add the cost of the package (could be a bottle plus label) add delivery cost (per unit, per case) determine the company overhead and assign a portion to each product. add your objective profit. (10%, 20%) Check against competitions’ prices
  • May be a moot point. You may be it, especially for a service! Brokers and manufacturer’s reps. Act as your sales force for a product; selling for you through a wholesaler and/or distributor. If the sales person is on your payroll, usually a base salary plus commission and benefits (medical insurance, automobile, expenses). Investigate your industry and your competitor to learn the accepted method. Advertising builds awareness, arouses interest and motivation to purchase.
  • Your marketing effort consists of: Rent, Sales Commission and Advertising Allocate ½ of your gross margin to your marketing effort. If your rent is high, your advertising budget is lower because you expect your location to generate high “foot traffic” by your store (e.g. mall versus shopping strip).
  • These are all tools for spreading the word about your service or product. Many are used by your sales people at the point of sale presentation. You can offer them to your prospective customers in ads and by way of the internet. Even your menu if your business is a restaurant. Business cards can be very effective to have your “target” customers know about your business.
  • Example: A tuxedo rental business could partner with a bakery, wedding photographer, bridal shop and florist. For cross promotion partner, choose a non-competitor with the same target market.
  • Sometimes it can be too expensive to satisfy a particular type of customer.
  • Your effort to create a positive image about you, your company, your product, your service. By writing news stories about you and your company for release to newspapers and people of influence. By sending out newsletters with positive information. By being involved and talking up your product or service. Relatively inexpensive compared to advertising media.
  • Marketing Workshop

    1. 1. Marketing/Sales Strategies for Small Businesses, and How to Effectively Use the Web Marketing and Sales Strategies Workshop
    2. 2. Course Objectives <ul><li>Identify successful marketing plan key elements </li></ul><ul><li>Do you really know your customers needs </li></ul><ul><li>What are the ‘A’,’B’, & ‘C’s of selling </li></ul><ul><li>The ‘Do’s & Don’ts of effective advertising </li></ul><ul><li>What is the ’20/80/30’ rule & how to use </li></ul><ul><li>Importance of the “Wounded Rabbit” Theory </li></ul><ul><li>Importance of PR </li></ul><ul><li>How to effectively use the Web in your business </li></ul>Marketing and Sales Strategies Workshop
    3. 3. Marketing – The Definition <ul><li>Each action which makes that service or product available for purchase by the end user. Consider: </li></ul><ul><ul><ul><li>Price </li></ul></ul></ul><ul><ul><ul><li>Product </li></ul></ul></ul><ul><ul><ul><li>Place </li></ul></ul></ul><ul><ul><ul><li>Promotion </li></ul></ul></ul><ul><ul><ul><li>Planning (Budgeting) </li></ul></ul></ul><ul><li>Marketing: The engine that will drive your company! </li></ul>Marketing and Sales Strategies Workshop
    4. 4. What Business Are You Really In? <ul><li>Define each of your services or products: </li></ul><ul><ul><li>Features </li></ul></ul><ul><ul><li>Benefits </li></ul></ul><ul><ul><li>Uniqueness </li></ul></ul><ul><ul><li>Does it fill a niche? </li></ul></ul><ul><li>Compare your service or product with competition against the same criteria </li></ul><ul><ul><li>Features </li></ul></ul><ul><ul><li>Benefits </li></ul></ul><ul><ul><li>Uniqueness </li></ul></ul><ul><ul><li>Does it fill a niche? </li></ul></ul><ul><li>What is your USP (unique selling proposition)? </li></ul>Marketing and Sales Strategies Workshop
    5. 5. Pricing <ul><li>Competitive analysis </li></ul><ul><ul><li>Compare “apple to apples” </li></ul></ul><ul><ul><li>Shop your competition </li></ul></ul><ul><li>Develop a pricing objective </li></ul><ul><ul><li>What do you want to achieve? </li></ul></ul><ul><ul><li>Pricing can define your business image </li></ul></ul><ul><ul><li>Cost driven vs. market driven </li></ul></ul><ul><li>Develop a pricing strategy </li></ul><ul><ul><li>Make pricing only one of your competitive tools </li></ul></ul><ul><ul><li>Do not underestimate your worth! </li></ul></ul><ul><ul><li>Establish a base price; if possible, offer add-ons and discounts for additional purchases </li></ul></ul>Marketing and Sales Strategies Workshop
    6. 6. Pricing (cont.) <ul><li>Will you use: </li></ul><ul><ul><li>Contract price? </li></ul></ul><ul><ul><li>Per unit pricing? </li></ul></ul><ul><ul><li>Volume pricing? </li></ul></ul><ul><ul><li>Offer “early-bird” pricing? </li></ul></ul><ul><ul><li>Offer “intro” pricing? </li></ul></ul><ul><ul><li>Buy 1 – get 1 free </li></ul></ul><ul><ul><li>Offer a certificate (coupon)? </li></ul></ul><ul><ul><li>Some of the above? </li></ul></ul>Marketing and Sales Strategies Workshop
    7. 7. Pricing - Service <ul><li>Labor Cost: </li></ul><ul><ul><li>Total hours per year = 2500 hours (50 hours per week * 50 weeks per year) </li></ul></ul><ul><ul><li>Billable hours = 1250 hours (50%) </li></ul></ul><ul><ul><li>Desired salary = $40,000 per year </li></ul></ul><ul><ul><li>Real salary cost = $56,000 per year (includes 40% for taxes and benefits) </li></ul></ul><ul><ul><li>Labor cots = $44.80 per hour ($56,000 divided by 1250 hours) </li></ul></ul><ul><li>Add other costs (overhead, advertising, etc.) </li></ul><ul><li>Total Costs = labor + Other costs </li></ul><ul><li>Selling Price = total costs + profit </li></ul><ul><li>Check against competition’s prices </li></ul>Marketing and Sales Strategies Workshop
    8. 8. Pricing - Product <ul><li>Cost of materials </li></ul><ul><li>+ Cost of labor </li></ul><ul><li>+ Cost of packaging and shipping </li></ul><ul><li>+ Cost of advertising and promotion </li></ul><ul><li>+ Overhead cost </li></ul><ul><li>+ Profit </li></ul><ul><li>= Selling price </li></ul><ul><li>Check against competition’s prices </li></ul>Marketing and Sales Strategies Workshop
    9. 9. Place <ul><li>Choosing location will determine your advertising budget </li></ul><ul><li>Advertising inversely proportional to rent </li></ul><ul><li>Place can effect pricing, time and place utility </li></ul>Marketing and Sales Strategies Workshop
    10. 10. Choosing Your Location <ul><li>Mall vs. strip shopping center </li></ul><ul><li>Demographics </li></ul><ul><li>Competition </li></ul><ul><li>Access </li></ul><ul><li>Parking </li></ul>Marketing and Sales Strategies Workshop
    11. 11. Sales Approach <ul><li>What sales approach will best fit your needs: </li></ul><ul><ul><li>Direct sales force? </li></ul></ul><ul><ul><li>Manufacturer’s reps? </li></ul></ul><ul><ul><li>Brokers? </li></ul></ul><ul><ul><li>Wholesalers and distributors? </li></ul></ul><ul><ul><li>Telemarketing? </li></ul></ul><ul><ul><li>Or a combination? </li></ul></ul><ul><li>How will you compensate for sales activity? </li></ul><ul><ul><li>Salary? </li></ul></ul><ul><ul><li>Commission </li></ul></ul><ul><ul><li>Incentive? </li></ul></ul><ul><ul><li>Combination? </li></ul></ul><ul><li>What is your industry norm? </li></ul><ul><li>What does your competition do? </li></ul>Marketing and Sales Strategies Workshop
    12. 12. SWOT <ul><li>Strengths </li></ul><ul><li>Weaknesses </li></ul><ul><li>Opportunities </li></ul><ul><li>Threats </li></ul>Marketing and Sales Strategies Workshop
    13. 13. Budget for Advertising <ul><li>What are some guidelines: </li></ul><ul><ul><li>Assuming 40% gross margin </li></ul></ul><ul><ul><li>Gross margin = selling price – cost of goods sold </li></ul></ul><ul><ul><ul><li>Allocate ½ of your gross margin to your marketing effort </li></ul></ul></ul><ul><ul><ul><li>If rent is high, spend less on marketing </li></ul></ul></ul><ul><ul><ul><li>For example: </li></ul></ul></ul><ul><ul><ul><ul><li>Sales commissions 10% 10% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Rent 3% 8% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Advertising 7% 2% </li></ul></ul></ul></ul>Marketing and Sales Strategies Workshop
    14. 14. Traditional Advertising Marketing and Sales Strategies Workshop <ul><li>Broadcast media </li></ul><ul><li>TV (cable option) </li></ul><ul><li>Radio </li></ul><ul><li>Niche programming </li></ul><ul><li>Celebrity endorsement </li></ul><ul><li>Be a talk show guest </li></ul>
    15. 15. Newspaper Advertising Marketing and Sales Strategies Workshop <ul><li>Daily vs. weekly </li></ul><ul><li>Day of week </li></ul><ul><li>Section </li></ul><ul><li>Size and shape </li></ul><ul><li>Using color </li></ul><ul><li>Time of month </li></ul>
    16. 16. Yellow Pages <ul><li>You “gotta” be listed </li></ul><ul><li>It can break the bank </li></ul><ul><li>Games they play </li></ul><ul><li>Using the White Pages </li></ul>Marketing and Sales Strategies Workshop
    17. 17. Direct Mail <ul><li>Creating your own list </li></ul><ul><li>Using bulk mail permit </li></ul><ul><li>Buying a targeted list </li></ul><ul><li>Shared mailers (ValPak Advo) </li></ul>Marketing and Sales Strategies Workshop
    18. 18. Promotion - Material <ul><li>Product literature </li></ul><ul><li>Web site </li></ul><ul><li>Catalogs </li></ul><ul><li>Brochures </li></ul><ul><li>Business cards </li></ul><ul><li>Newsletter </li></ul><ul><li>Point-of-sale handouts (menus..etc.) </li></ul>Marketing and Sales Strategies Workshop
    19. 19. Non Traditional Marketing <ul><li>Cross Promotions satisfy the “three C’s” of good marketing: </li></ul><ul><ul><li>Cost – low cost </li></ul></ul><ul><ul><li>Control – control of your distribution to selective areas </li></ul></ul><ul><ul><li>Credibility – Transfer the liability of discount or offer to cross promotion partners </li></ul></ul>Marketing and Sales Strategies Workshop
    20. 20. Other Ways to Advertise <ul><li>Billboards </li></ul><ul><li>Yard signs </li></ul><ul><li>Stickers </li></ul><ul><li>Trade shows </li></ul><ul><li>Door to door flyers </li></ul><ul><li>Posters </li></ul><ul><li>Sweepstakes </li></ul><ul><li>Frequent buyer rewards </li></ul>Marketing and Sales Strategies Workshop
    21. 21. “ Bird Dogging” <ul><li>Proactively encourages word </li></ul><ul><li>of mouth referrals </li></ul><ul><li>Reward both Bird Dog and </li></ul><ul><li>the Bird </li></ul>Marketing and Sales Strategies Workshop
    22. 22. The Wounded Rabbit Theory <ul><li>When to use </li></ul><ul><li>How to use </li></ul><ul><li>What are the ‘watch outs’ </li></ul>Marketing and Sales Strategies Workshop
    23. 23. Merchandising <ul><li>Signage inside and out </li></ul><ul><li>Windows </li></ul><ul><li>Changeable Marquee </li></ul><ul><li>Interior </li></ul><ul><li>Lighting </li></ul><ul><li>Point of Sale </li></ul>Marketing and Sales Strategies Workshop
    24. 24. 20/80/30 Rule <ul><li>20% of your products or services will create 80% of your headaches. Dropping that 20% of products or services and concentrating on the balance should result in a net increase in total sales of 10% </li></ul><ul><li>20% of your customers create 80% of your headaches </li></ul>Marketing and Sales Strategies Workshop
    25. 25. Public Relations <ul><li>Create a positive image about yourself and product/service </li></ul><ul><li>Community involvement can lead to favorable press coverage </li></ul><ul><li>Volunteer activities </li></ul><ul><li>Speaking </li></ul><ul><li>Seminars </li></ul><ul><li>Event sponsorship </li></ul><ul><li>Networking </li></ul><ul><li>Newsletters </li></ul><ul><li>Published articles </li></ul>Marketing and Sales Strategies Workshop
    26. 26. Public Relations (conti) <ul><li>Press releases </li></ul><ul><li>Building relationships with the media </li></ul><ul><li>Creating newsworthy “hooks” </li></ul><ul><li>Be a shameless, unabashed self-promoter </li></ul><ul><li>Wear your business on your: </li></ul><ul><li>Logo shirt </li></ul><ul><li>Lapel pin </li></ul><ul><li>Vanity plate </li></ul><ul><li>Talk before clubs and other groups </li></ul><ul><li>Elevator talk </li></ul>Marketing and Sales Strategies Workshop
    27. 27. Public Relations (conti) <ul><li>Create the event </li></ul><ul><li>Sample press release </li></ul><ul><li>Finding press contacts </li></ul><ul><li>Building rapport </li></ul><ul><li>Create newsworthy “hooks” </li></ul>Marketing and Sales Strategies Workshop
    28. 28. How to get help <ul><li>SCORE counselors </li></ul><ul><ul><li>One on One counseling available </li></ul></ul><ul><ul><ul><li>Sign up forms available at www.scoreworks.org </li></ul></ul></ul><ul><ul><ul><li>Call us at (513) 684-2812 </li></ul></ul></ul>Marketing and Sales Strategies Workshop

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