Marketing Your Small Business Chris Houchens www.ChrisHouchens.com July 14, 2008 Western Kentucky University Small Business Development Center

What we’ll discuss this evening Quick Marketing 101 Creating a Marketing Plan Budget Getting the Message Out Public Relations / Media Relations Traditional Advertising Internal Marketing Online Tracking / Evaluation Your turn – Open Floor Questions

Quick Marketing 101

Creating a Marketing Plan

Budget

Getting the Message Out

Public Relations / Media Relations

Traditional Advertising

Internal Marketing

Online

Tracking / Evaluation

Your turn – Open Floor Questions

Why Market? To communicate a consistent intended message to a specific intended audience. Marketing is NOT just advertising . Marketing is NOT just sales . Marketing helps CREATE the sales opportunity.

To communicate a consistent intended message to a specific intended audience.

Marketing is NOT just advertising .

Marketing is NOT just sales .

Marketing helps CREATE the sales opportunity.

Most prevalent marketing mistakes “ Me Too” Competitive Following the fad wagon Campaigns designed around cutesy or non-relevant centers Marketer trying to reach themselves Focus on costs rather than effectiveness Thinking that $$$ = Success Accepting proposed prices Forgetting multiple media maximizes messages

“ Me Too” Competitive

Following the fad wagon

Campaigns designed around cutesy or non-relevant centers

Marketer trying to reach themselves

Focus on costs rather than effectiveness

Thinking that $$$ = Success

Accepting proposed prices

Forgetting multiple media maximizes messages

Great Marketing... Begins with the Product Driven by the Message Nurtured by the Relationship

Begins with the Product

Driven by the Message

Nurtured by the Relationship

The 1st Two Marketing Steps Step 1 - Have a Product Great Marketing Begins with a Great Product

Step 1 - Have a Product

Great Marketing Begins with a Great Product

World’s Most Powerful Woman

Marketing – Product Oprah gave away 276 new G6 Pontiacs PR / Publicity Value - $Infinity.00 BUT…G6 Sales are FLAT Vanilla is hard to Sell “ Tastes Like Chicken” is NOT a compliment

Oprah gave away 276 new G6 Pontiacs

PR / Publicity Value - $Infinity.00

BUT…G6 Sales are FLAT

Vanilla is hard to Sell

“ Tastes Like Chicken”

is NOT a compliment

The 1st Two Marketing Steps Step 1 – Have a Product Step 2 - Have a Plan Doesn’t have to be complicated On Paper On Purpose

Step 1 – Have a Product

Step 2 - Have a Plan

Doesn’t have to be complicated

On Paper

On Purpose

A Marketing Plan... Defines Marketing Costs Shows Marketing Value Defines Mission / Provides Focus Written Game Plan Evolving Document

Defines Marketing Costs

Shows Marketing Value

Defines Mission / Provides Focus

Written Game Plan

Evolving Document

Developing a Marketing Plan Two major questions... Where are you now? Where do you want to be? S.W.O.T. Analysis Strengths Weaknesses Opportunities Threats Get input from staff, current & potential customers Research

Two major questions...

Where are you now?

Where do you want to be?

S.W.O.T. Analysis

Strengths

Weaknesses

Opportunities

Threats

Get input from staff, current & potential customers

Research

Elements of a Marketing Plan At a minimum ...a Marketing Plan should include the following: Target Market Who you are (BRAND) Budget Where you want to go How you’re going to get there

At a minimum ...a Marketing Plan should include the following:

Target Market

Who you are (BRAND)

Budget

Where you want to go

How you’re going to get there

Developing a Target Market Marketing Truths Not everyone loves you No one cares about your marketing Talk only to those who will listen If you try to be all things to all people, you will be nothing

Marketing Truths

Not everyone loves you

No one cares about your marketing

Talk only to those who will listen

If you try to be all things to all people, you will be nothing

Developing a Target Market What is the potential audience? SPECIFIC Demographics Age, marital status, gender, etc SPECIFIC Psychographics Politics, religion, etc SPECIFIC Geographics Not just zip codes....streets.

What is the potential audience?

SPECIFIC Demographics

Age, marital status, gender, etc

SPECIFIC Psychographics

Politics, religion, etc

SPECIFIC Geographics

Not just zip codes....streets.

Developing a Target Market You should be able to Explain current mindset of the group How you will impact that mindset Describe what they want and need What price they will pay Predict future changes in the group How you will adapt to those changes

You should be able to

Explain current mindset of the group

How you will impact that mindset

Describe what they want and need

What price they will pay

Predict future changes in the group

How you will adapt to those changes

Case Study: Brand Kentucky State was spending $2.5 million annually for separate & overlapping ad agencies and marketing campaigns Governor proposed an unified state brand Goal: Provide an unified message for tourism & economic development Citizens voted for logo at welcome centers & online

State was spending $2.5 million annually for separate & overlapping ad agencies and marketing campaigns

Governor proposed an unified state brand

Goal: Provide an unified message for tourism & economic development

Citizens voted for logo at welcome centers & online

Case Study: Brand Kentucky = As viewed from the other 49 states, Brands are created by the consumer, not the marketer! Logo ≠ Brand

What is a Brand? Your single most valuable asset A promise that past performance will indicate future results Your target’s experience with you Faces vs. personalities Perception IS reality You have a brand even if you don’t have a brand strategy .

Your single most valuable asset

A promise that past performance will indicate future results

Your target’s experience with you

Faces vs. personalities

Perception IS reality

Conditional Response

Branding is a conditional response

Brand strategy should influence every marketing initiative

Brand Consistency Touchpoints All interactions with the target Messaging Slogans / Taglines Advertising Design Logo / Identity Packaging Colors / Fonts Pricing

Touchpoints

All interactions with the target

Messaging

Slogans / Taglines

Advertising

Design

Logo / Identity

Packaging

Colors / Fonts

Pricing

Branding Success Microwave vs. Slow Cooker

Successful branding makes other aspects of marketing easier and cheaper.

How Much Should I Spend? It Depends... 3% to 5% minimum Up to 10% for a highly competitive field Base budget on where you’re going...not where you are Budget depends on market Majority of Budget will go to placement

It Depends...

3% to 5% minimum

Up to 10% for a highly competitive field

Base budget on where you’re going...not where you are

Budget depends on market

Majority of Budget will go to placement

Budgeting #1: Strategy Is this marketing initiative a priority? What is the LONG TERM goal ? More customers? More exposure? More credit? How much of the pot should this get? What’s the needed ROI?

Is this marketing initiative a priority?

What is the LONG TERM goal ?

More customers?

More exposure?

More credit?

How much of the pot should this get?

What’s the needed ROI?

Budgeting #2: Segmentation Who are we really trying to talk to? Stop wasting money / time / resources: trying to retail a wholesale product firing canons instead of rifles Figure out who is making the decision and find the best / cheapest / quickest way to reach them at the right time

Who are we really trying to talk to?

Stop wasting money / time / resources:

trying to retail a wholesale product

firing canons instead of rifles

Figure out who is making the decision and find the best / cheapest / quickest way to reach them at the right time

Budgeting #3: Leverage Use current customers to gain new ones Word of mouth Cross - promotions CRM: always collect e-mail addresses and other contact info (and follow up) Use the web Let viral and other networks grow the investment exponentially

Use current customers to gain new ones

Word of mouth

Cross - promotions

CRM: always collect e-mail addresses and other contact info (and follow up)

Use the web

Let viral and other networks grow the investment exponentially

Budgeting #4: Measurement Measure actual ROI as well as responses Measure satisfaction and “stickiness” as well as the actual numbers Use the info to make adjustments You can’t manage what you can’t measure

Measure actual ROI as well as responses

Measure satisfaction and “stickiness” as well as the actual numbers

Use the info to make adjustments

You can’t manage what

you can’t measure

Low Cost “Guerilla” Marketing #1 Method - Word-of-Mouth / “Buzz” Referrals from customers, friends, vendors, etc Brochures / Posters / Printed Literature Build marketing into current paper trail Business cards, fax sheet, letterhead, e-signatures On-Hold Message Community Events / Trade Shows Articles / Publishing Ad Specialties / Gifts Cross Promotions / Alliances Networking Seminars / Workshops Public Relations - Press Releases - Media Show

#1 Method - Word-of-Mouth / “Buzz”

Referrals from customers, friends, vendors, etc

Brochures / Posters / Printed Literature

Build marketing into current paper trail

Business cards, fax sheet, letterhead, e-signatures

On-Hold Message

Community Events / Trade Shows

Articles / Publishing

Ad Specialties / Gifts

Cross Promotions / Alliances

Networking

Seminars / Workshops

Public Relations - Press Releases - Media Show

Schedule to maximize budget Continuous Constant Strong Activity Flight Activity with periods of no activity Pulse Strong activity with lighter periods between

Continuous

Constant Strong Activity

Flight

Activity with periods of no activity

Pulse

Strong activity with lighter periods between

Media Scheduling Let’s go to Disney World July? October? Advertise in the Off-Season Cheaper More Effective 1 st Quarter is the best time to advertise 4 th Quarter is the worst

Let’s go to Disney World

July?

October?

Advertise in the Off-Season

Cheaper

More Effective

1 st Quarter is the best time to advertise

4 th Quarter is the worst

Agency or In-House? Agency / Consultant Little Fish/Big Pond or Big Fish/Little Pond Typical cost: 15% of placement Creative Control Overall Marketing or Just External? In-House Are they really your “marketing person”? Education / Experience Who is making decisions? No Committees Salespeople are NOT “Marketing Consultants”

Agency / Consultant

Little Fish/Big Pond or Big Fish/Little Pond

Typical cost: 15% of placement

Creative Control

Overall Marketing or Just External?

In-House

Are they really your “marketing person”?

Education / Experience

Who is making decisions?

No Committees

Let’s take a break When we return… How to effectively buy advertising Tips & Tricks for marketing in: Newspapers Radio TV Yellow Pages Online Tracking and Evaluation of Marketing Your questions

When we return…

How to effectively buy advertising

Tips & Tricks for marketing in:

Newspapers

Radio

TV

Yellow Pages

Online

Tracking and Evaluation of Marketing

Your questions

Marketing Mix Print Newspaper Magazine Broadcast Radio TV Outdoor Billboards Directories Yellow Pages Web Banner SEO Adwords / Affiliates E-mail Direct Mail Etc / Etc / Etc

Print

Newspaper

Magazine

Broadcast

Radio

TV

Outdoor

Billboards

Directories

Yellow Pages

Web

Banner

SEO

Adwords / Affiliates

E-mail

Direct Mail

Etc / Etc / Etc

Public Relations What is P.R.? Unpaid coverage of your business in the media NOT – Public perception (that’s your brand) A PR program is PART of your marketing strategy....... not the other way around Best Part - $$ - FREE - $$ Worst Part – Lots of time and work Extremely effective & credible OVERALL GOALS of a PR Program : Establish credibility and Become a “source” Free Coverage

What is P.R.?

Unpaid coverage of your business in the media

NOT – Public perception (that’s your brand)

A PR program is PART of your marketing strategy....... not the other way around

Best Part - $$ - FREE - $$

Worst Part – Lots of time and work

Extremely effective & credible

OVERALL GOALS of a PR Program :

Establish credibility and Become a “source”

Free Coverage

PR Hints and Tips Press Releases Is it News or an Ad ? Media Opportunities Media List / Contacts Media / Press Kits Persistence with media is the key MUST be ongoing and active

Press Releases

Is it News or an Ad ?

Media Opportunities

Media List / Contacts

Media / Press Kits

Persistence with media is the key

MUST be ongoing and active

General Advertising Tips ALWAYS ask for an action Use a Media Mix - not just one medium 3 times - 3 ways The key to advertising is REPETITION No one cares about your advertising Bellyflops instead of toes in the water Stay away from vanity advertising Ask for the rate card (but don’t use it)

ALWAYS ask for an action

Use a Media Mix - not just one medium

3 times - 3 ways

The key to advertising is REPETITION

No one cares about your advertising

Bellyflops instead of toes in the water

Stay away from vanity advertising

Ask for the rate card (but don’t use it)

General Advertising Numbers Reach/Cume = # of people who are exposed Frequency = # of times they are exposed Reach and Frequency MUST be used together for effective advertising CPM = Cost per thousand impressions of an ad medium

Reach/Cume = # of people who are exposed

Frequency = # of times they are exposed

Reach and Frequency MUST be used together for effective advertising

CPM = Cost per thousand impressions of an ad medium

If you don’t remember anything else today, remember this… You should always BUY advertising Never be SOLD advertising There’s a difference Did I mention that salespeople are NOT “Marketing Consultants”

You should always BUY advertising

Never be SOLD advertising

There’s a difference

Did I mention that salespeople are NOT “Marketing Consultants”

Marketing – Ad Messages Ad/PR messages as conversations not announcements.

Print Ads - Design Issues Don’t be afraid of “white space” Go “against the tide” Concise, Attention-Grabbing Headline Clean graphics / photos Minimum copy Ask for the action Always include contact info and who you are

Don’t be afraid of “white space”

Go “against the tide”

Concise, Attention-Grabbing Headline

Clean graphics / photos

Minimum copy

Ask for the action

Always include contact info and who you are

Ways to buy Print Newspapers Today? - High reach and usability Tomorrow? - Fish wrap or birdcage Supplements - Inserts Stands out in a newspaper - cheap to insert Was it looked at? - expensive to produce Local Tabloids Targeted Audiences Typically low production value Local Magazines Better production and shelf life More costly

Newspapers

Today? - High reach and usability

Tomorrow? - Fish wrap or birdcage

Supplements - Inserts

Stands out in a newspaper - cheap to insert

Was it looked at? - expensive to produce

Local Tabloids

Targeted Audiences

Typically low production value

Local Magazines

Better production and shelf life

More costly

Print Terms Circulation - # of copies sold or distributed ABC - Audit Bureau of Circulation Passalong - “Bonus” readers that are not counted in circulation 4-color - Full color ROP - Run of paper/publication/press

Circulation - # of copies sold or distributed

ABC - Audit Bureau of Circulation

Passalong - “Bonus” readers that are not counted in circulation

4-color - Full color

ROP - Run of paper/publication/press

Print Advertising Column Inch Columns across times inches high SAU - 6 column wide SAU - 21 inches tall 36 column inches 1 2 3 12

Column Inch

Columns across times inches high

SAU - 6 column wide

SAU - 21 inches tall

Print Ads 8 Which is More Effective? 40 2 4 8 5 30 days = 240 inches $4500 @18.75/inch 6 days = 240 inches $4500 @18.75/inch

Print Placement and Buying Contract rates are cheaper But be careful Repeat discounts Sundays are expensive but may not be worth it Choosing a section is dependant on who you want to reach Go “Above the Fold” (11 or higher) Request a Right Hand Placement

Contract rates are cheaper

But be careful

Repeat discounts

Sundays are expensive

but may not be worth it

Choosing a section is dependant on who you want to reach

Go “Above the Fold” (11 or higher)

Request a Right Hand Placement

Print Ads - Design Issues Don’t be afraid of “white space” Concise, Attention-Grabbing Headline Clean graphics / photos Minimum copy Ask for the action Always include contact info and who you are

Don’t be afraid of “white space”

Concise, Attention-Grabbing Headline

Clean graphics / photos

Minimum copy

Ask for the action

Always include contact info and who you are

Radio Dying Or maybe not Targeted Formats Oldies, news/talk, rock, country, etc Dayparts Drivetimes - 6am-10am and 3pm-7pm Try non-commercial options Billboards / Sponsorships / Contests

Dying

Or maybe not

Targeted Formats

Oldies, news/talk, rock, country, etc

Dayparts

Drivetimes - 6am-10am and 3pm-7pm

Try non-commercial options

Billboards / Sponsorships / Contests

Radio Buy Placement Tips Arbitron ratings 12+ Ratings from the top 293 markets are free online at www.radioandrecords.com Beware of ratings from salespeople! Do NOT buy based on what you like Station Groups may offer discounts (combo rate) Buy as deep as you can afford Example: Fall 2008 Ratings Population - 430,900 Listeners - 12+ Rating Format Station 6.2 6.6 7.2 11.1 News/Talk WCDS Oldies WXPC Country WKNK CHR WHTZ

Arbitron ratings

12+ Ratings from the top 293 markets are free online at www.radioandrecords.com

Beware of ratings from salespeople!

Do NOT buy based on what you like

Station Groups may offer discounts (combo rate)

Buy as deep as you can afford

Radio Copy Tips Writing Copy Contact info is hard to convey www-dot & Area Codes What’s in it for Me? Theater of the Mind Timing 30 seconds = 70-80 words 60 seconds = 120-130 words You are not an announcer

Writing Copy

Contact info is hard to convey

www-dot & Area Codes

What’s in it for Me?

Theater of the Mind

Timing

30 seconds = 70-80 words

60 seconds = 120-130 words

You are not an announcer

Ways to buy TV Local Spot Losing audience with media diversification Locally a 2 (or 5?) way race Cable Spot Not as cheap as it looks Great for targeting Infomercial Bad reputation Great results if done correctly

Local Spot

Losing audience with media diversification

Locally a 2 (or 5?) way race

Cable Spot

Not as cheap as it looks

Great for targeting

Infomercial

Bad reputation

Great results if done correctly

Television Terms Nielsen Rating - % of homes exposed to program or station HUT - Homes using TV Share - % of HUT for a program or station HUT x Share = Rating ADI / DMA - the market CPP - Cost per point

Nielsen Rating - % of homes exposed to program or station

HUT - Homes using TV

Share - % of HUT for a program or station

HUT x Share = Rating

ADI / DMA - the market

CPP - Cost per point

TV Advertising Tips Key to TV ads - Show and Tell Audio/Video should work together but be able to stand alone if needed Muted ad should work Ad while you’re out of the room Don’t be redundant (too much) Storyboard the ad Have a point Use professional production

Key to TV ads - Show and Tell

Audio/Video should work together but be able to stand alone if needed

Muted ad should work

Ad while you’re out of the room

Don’t be redundant (too much)

Storyboard the ad

Have a point

Use professional production

Infomercials “ Direct Response Television Advertising” Typically 30-minute unsold inventory slots in unattractive dayparts Weekends Overnight Early A.M. Typically cheaper than traditional TV spots Costlier to produce

“ Direct Response Television Advertising”

Typically 30-minute unsold inventory slots in unattractive dayparts

Weekends

Overnight

Early A.M.

Typically cheaper than traditional TV spots

Costlier to produce

Direct Mail Single most effective marketing tool Easily Tracked and Targeted 2 Essential Elements The Right List Good Piece Not necessarily 42-cents per person Newspaper inserts

Single most effective marketing tool

Easily Tracked and Targeted

2 Essential Elements

The Right List

Good Piece

Not necessarily 42-cents per person

Newspaper inserts

Fundamental E-Marketing Online Spending Budget for Website Banner Ads Contextual Search Advertising SEO – Search Engine Optimization E-mail Marketing Phishing / Spam Permission-Based Blogs / Social Media

Online Spending

Budget for Website

Banner Ads

Contextual Search Advertising

SEO – Search Engine Optimization

E-mail Marketing

Phishing / Spam

Permission-Based

Blogs / Social Media

The Website Cannot just be an online brochure Must be dynamic and change constantly Content is King Simple is best Just because you can – doesn’t mean you should When was the last time you visited your own website?

Cannot just be an online brochure

Must be dynamic and change constantly

Content is King

Simple is best

Just because you can – doesn’t mean you should

When was the last time you visited your own website?

Domain Names Easy to communicate Good – www.helpagency.com Bad – http://helpagency.geocities.net/home.htm Bad – www.help-agency.com Provides professional e-mail Good – [email_address] Bad – [email_address] , [email_address] , etc

Easy to communicate

Good – www.helpagency.com

Bad – http://helpagency.geocities.net/home.htm

Bad – www.help-agency.com

Provides professional e-mail

Good – [email_address]

Bad – [email_address] , [email_address] , etc

Search Engine Optimization Text not graphics Write text with SEO in mind Inbound links Metadata Keywords Descriptions <title> Graphic alt tags

Text not graphics

Write text with SEO in mind

Inbound links

Metadata

Keywords

Descriptions

<title>

Graphic alt tags

Email Marketing Anticipated, personal and relevant messages delivered to people who actually want to get them PERMISSION Sign-ups Opt-outs Keys to success The List Subject and “from” Permission

Anticipated, personal and relevant messages delivered to people who actually want to get them

PERMISSION

Sign-ups

Opt-outs

Keys to success

The List

Subject and “from”

Permission

What do you mean by Social Media? Blogs Microblogs Twitter Video Google & YouTube Revver Social Networks MySpace Facebook Wikis Photo Flickr Photobucket Virtual reality Second Life Social / News Bookmarks Digg Reddit Del.icio.us Community / user generated content

Blogs

Microblogs

Twitter

Video

Google & YouTube

Revver

Social Networks

MySpace

Facebook

Wikis

Photo

Flickr

Photobucket

Virtual reality

Second Life

Social / News Bookmarks

Digg

Reddit

Del.icio.us

Brand Strategy PR Efforts Advertising Corporate Messages Media & Press Gatekeepers Consumers & Public Word Of Mouth Traditional Marketing

Social Media Marketing Brand Strategy PR Efforts Advertising Corporate Messages Consumers & Public Word Of Mouth

Social Media are NOT mass media.

Warhol Revisited “ In the future, everyone will be famous for 15 minutes .” With social media, everyone is famous to 15 people.

“ In the future,

everyone will be famous for

15 minutes .”

With social media,

everyone is famous to

15 people.

Yellow Pages Designed to be confusing and expensive NOT necessarily part of an ad budget People aren’t looking for an ad…they’re looking for a number Use simple ads in the “official” book or most used book Track YP use with covers

Designed to be confusing and expensive

NOT necessarily part of an ad budget

People aren’t looking for an ad…they’re looking for a number

Use simple ads in the “official” book or most used book

Track YP use with covers

Out-of-Home Advertising Sold by “Showings” Billboards / Outdoor Poster Panels and Vinyl Painted The key to billboards ONE Thought

Sold by “Showings”

Billboards / Outdoor

Poster Panels and Vinyl

Painted

The key to billboards

ONE Thought

Out-of-Home Advertising Transit Bus, subway, etc Place/Store shopping carts, POP displays, etc Miscellaneous movie theater, skywriting, etc

Transit

Bus, subway, etc

Place/Store

shopping carts, POP displays, etc

Miscellaneous

movie theater, skywriting, etc

Tracking / Effectiveness &quot;I know that half my advertising works... I just don't know which half.&quot; John Wanamaker (1838- 1922) If this is true of your business... STOP ADVERTISING

We’re not finished… Biggest opportunity for FAILURE is right after the marketing begins Inform all your touchpoints Everyone who gets a paycheck from you Develop a tracking system

Biggest opportunity for FAILURE is right after the marketing begins

Inform all your touchpoints

Everyone who gets a paycheck from you

Develop a tracking system

Tracking System Why did you choose us today? Verbal - keep record As a part of Intake forms Timing will be off from placement Track with special offers & coupons Do NOT Tell us you heard our ad and get 10% off Keep track in your head

Why did you choose us today?

Verbal - keep record

As a part of Intake forms

Timing will be off from placement

Track with special offers & coupons

Do NOT

Tell us you heard our ad and get 10% off

Keep track in your head

Thank You Begins with the PRODUCT Driven by the MESSAGE Nurtured by the RELATIONSHIP Marketing… Chris Houchens Blog :: ShotgunConcepts.com Website :: ChrisHouchens.com E-Mail :: chris@shotgunconcepts.com Your Turn Questions Comments Problems Rants Raves Complaints These slides are available for free online: www.slideshare.net/shotgunconcepts

Begins with the PRODUCT

Driven by the MESSAGE

Nurtured by the RELATIONSHIP

Your Turn

Questions

Comments

Problems

Rants

Raves

Complaints