Fundamentals of Marketing Presented May 23rd, 2011 MediTour Expo Conference Pioneering the Future of Global Healthcare Andrea Dominic, CEO SpaTrends.com
What is Marketing?• Marketing is the process by which companies create customer interest in goods and services. It generates the strategy that underlies sales techniques, business communication, and business development. ---From Wikipedia• The activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. ---From American Marketing Association (AMA)• The management process responsible for identifying, anticipating and satisfying customer requirements profitably. ---From The Chartered Institute of Marketing
Marketing Plan - Do I need one?• An entrepreneur who jumps into business without a marketing plan – is like a sailboat dropped in the middle of the ocean without a sail.• You need a solid plan and the tools to get there.• It needs to be well researched and contain sound strategies.• It’s not something that you simply sit down and do in a day.• Creating a marketing plan that provides vision and action plans requires effort, is not static and must be constantly revised.
Market Research• Market Research is the process of gaining specific information about your market.• Market Analysis is the Foundation of the Marketing Plan• Uncovers key factors that influence target market buying decisions• May not be “statistically significant” but still valuable.
Primary Market Research• Conduct yourself vs. published info• Direct contact with customers or public• Focus Groups – gather a small group of people together for a discussion with an assigned leader• Customer Surveys for existing customers and potential customers• Study your competition
Secondary Market Research• Others have acquired and already published• Trade Associations: DSA, IMSA,PBA, HBA,MSS,ISPA• Government Information: State and Local Reports, SBA,SBDC,SCORE,US Bureau of Census• Educational Resources• Chambers of Commerce
How to find your Target Market• Survey existing customers for: – Basic Demographic Data – Household Income and Spending Habits – Shopping Preferences: Online, in-store, by phone – Frequency of Purchasing – Frequency of Product/Service Use• Schedule a question and answer forum• Have employees ask questions• Analyze sales data/predict spending habits• Track marketing and advertising results
Market Data for the US• US Census Cendata: Reports on different industries, county-specific economic surveys, business patterns for a specific zip code.• Zapdata.com: Good industry data reports, sorted by SIC code (Standard Industrial Classification)• CEO Express: excellent compilation of additional useful sites• Industry Specific Magazines and Publications
International Market Research• American Economic Association: http://rfe.wustl.edu/Data/World/index.html• Nanyang Technology University:• http://www.ntu.edu.sg/library• The United Nations Statistics Division: http://unstats.un.org/unsd/default.htm• US Census Foreign Trade Division• Department of Commerce’s International Trade Administration• Yahoo.com
The Marketing Mix (4 P’s of Marketing)• Product• Price• Place (distribution)• PromotionThey are the variables that marketing managerscan control in order to best satisfy customers inthe target market
Summary of the Marketing Mix• Product: Functionality, Appearance, Quality, Packaging, Brand, Warranty, Service/Support• Price: List Price, Discounts, Allowances, Financing, Leasing Options, Payment Plans• Place: Channel Members, Channel Motivation, Market Coverage, Locations, Logistics, Service Levels• Promotion: Advertising, Personal Selling, Public Relations, Message, Media, Budget
Competitive Analysis• Goal: To better position your organization to leverage your competitive edge• How is your company different from others?• In what way does it stand out?• Is there a sustainable value that you can maintain and develop over time?
Competitive Analysis Process• Describes competitors in terms of the factors that most influence revenues:• Organization size• Market share• Growth• Available Capital and Resources• Image• Marketing Stategy• Target Markets• Any attributes you consider important
SWOT Analysis• Conduct an inventory of internal Strengths and Weaknesses• Look for external Opportunities and Threats• Capture the factors you believe are relevant in each of these 4 areas• Takes an objective look at your business• Helps develop and confirm your goals and marketing strategy
Strengths• Positive Attributes both tangible and intangible• Internal to your organization and within your control• What do you do well?• What resources do you have?• What advantages do you have over your competition?
Weaknesses• Factors that are within your control that detract from your ability to obtain and maintain a competitive edge• Which areas might your improve?• The more accurately you identify weaknesses the more valuable the SWOT analysis• Examples: Lack of expertise, limited resources, inferior service, poor location of your business
Opportunities• External attractive factors that represent the reason for your business to exist and prosper• What opportunities exist in your market, or in the environment, from which you can benefit?• Can be the result of market growth, lifestyle changes, resolution of problems, positive perceptions about your business
Threats• What factors are potential threats to your business?• Factors beyond your control that could place your marketing strategy, or the business itself, at risk• A challenge created by an unfavorable trend or development that may lead to deteriorating revenues• Examples: Competition, price increases by suppliers, governmental regulation, economic downturns, devastating media or press coverage, a shift in consumer behavior• Classify according to “seriousness” or “probability of occurrence”
SWOT – Why do it?• Offers additional insight into the condition and potential of your business• How can you use the strengths to better take advantage of the opportunities ahead and minimize the harm that threats may introduce if they become a reality?• How can weaknesses be minimized or eliminated?• Helps identify the most promising opportunities and the most crucial issues in your business
Strategic Internet Marketing Plan• Decide on the products you want to promote and sell online• Will you design and create the products yourself or outsource production?• Define your target group to obtain a clear marketing perspective• Analyze customer’s specific needs• Provide excellent customer service via Auto Responders• Select and adopt the appropriate promotion strategy.
Define Your Purpose• What is the purpose of your Internet Marketing Plan?• Do you want to provide services to existing clients or find new clients?• Are you interested in creating an online community to address prospective customers?• Have you allocated any money to be spent on Internet Marketing?• Understand your position among your competitors. Are they in the Internet Marketing arena? Keep track of their websites and online activities.
Designing Your Website• Visual appeal and functionality must be good enough to attract the right audience• Need to captivate the attention of online visitors thru design• Tempt them to revisit and make a purchase• Emphasize benefits of your product so people are compelled to make the purchase• Decide in advance on the course of action that you want your visitors to take once they visit your website….Buy Now, Request Info, Set phone Appointment• Include a Subscription Box and an Inquiry Box where interested visitors can leave contact info• Create an online Database and build a list of prospective customers that you can market to in the future• Make very certain that any download links work properly• Publish and upload content on a regular basis• Exchange links with other industries having the same business targets• Build a good team of internet professionals to design and run your site according to your internet marketing plan
Search Advertising Campaigns• Have a defined Goal that is specific and measurable• Diversify Search Advertising: Google, Microsoft AdCenter, Yahoo! Search Marketing, Miva.com, SearchFeed.com, 7Search.com, and Ask.com• Narrow your Ad Scope: Focus on a specific product or service aimed at a very specific audience and keywords• Set up Landing Pages with their own unique URLs so you can track who comes in, the number of clicks from your search Ads, how many clickthroughs occur to your sales page from you landing page.• Build a good team of internet professionals to optimize your site and run your Search Advertising Campaign according to your internet marketing plan
What can you do to ensure excellent e-mail delivery?• Keep your list healthy: Be sure everyone has specifically requested info from or about your company. Don’t wait more than a month to mail to new contact….longer than that – they will forget their interaction with your company. Leads to lower open rate and can cause them to report your email as Spam• Design with delivery in mind: Needs to be easy to read, consider paragraph length and fonts.• Treat subscribers with respect: Don’t email too often, Maintain a relationship with the subscriber, Don’t email them sporadically once or twice a year and expect them to take action – Be consistent.• How often is too often? A good range is no more than twice/ week to once every 2 months, depending on the type of message you are sending out.
Effective e-Newsletter Program• Key is a balance of information and offers• “What’s in it for me?” factor• Start with 3 topic areas and increase to 5 over a few months• Measure open and click-through rates of each and let the audience decide on what’s the right amount of content• Test your mailing days, time of the day e-mail is received & frequency. All can have a significant effect on the response.
e-Newsletter Content Topics• A message from the expert: Include the first two lines of copy in your newsletter and link to your blog• Customer Testimonial: A simple quote from a happy customer about how you helped them or fixed a problem, a measurable result achieved, or link to a video that you host on YouTube• An Offer: Do you have a white paper, discount or promotion currently running to announce?• Event Schedule: Link to the event page on your website or directly to an industry event you plan to attend• Quick Fact: What’s the most popular selling product? What do you customers view as the greatest challenge for them next year? Gather info with simple survey and share results
Final Challenge• Getting it done – Commit to frequency so that your audience will come to expect it• Write your first 3 issues at the same time• Schedule time to work on it. Line up 3 customer quotes, 3 notable events worth covering and 3 facts to share.• Have a Marketing Calendar with deadline dates for e-Newsletter delivery• Build a good team of internet professionals to help manage your email marketing according to your internet marketing plan
What is Social Media?• Media for social interaction, using highly accessible and scalable publishing techniques• Uses web-based technologies to transform and broadcast media monologues into social media dialogues• Builds on technological foundation of Web 2.0 and allows for the creation and exchange of user- generated content• Businesses refer to social media as consumer- generated media (CGM)• A blending of technology and social interaction for the co-creation of value
Use and Effectiveness of Social Media• Social Networking now accounts for 11 percent of all time spent online in the US• A total of 234 million people age 13 and older in the US used mobile devices in December 2010• Twitter processed more than 1 billion tweets in December 2009 and averages over 40 million tweets per day• Over 25% of US internet page views occurred at one of the top networking sites in December 2009, up from 13.8% a year before
Building “Social Authority”• One-way, top-down communication does not work as well as in former days.• Must create conversations with customers• Must deliver useful content• Think like journalists and create a dialogue with audience to earn a prospect’s trust• Can’t push products on people
Social Networking• Can manage your company’s reputation• Can help you conduct Market Research• Can monitor your Competitors efforts• Can collaborate with your colleagues• Low cost: Ideal customers can now be reached with targeted messages• Instant feedback• Measurable Results
Types of Social Media*• Collaborative Projects• Blogs• Content Communities• Social Networking Sites• Virtual Game Worlds• Virtual Communities*(As Identified by Kaplan and Haenlein in Business Horizons article 2010
Technologies of Social Media• Internet Forums• Weblogs• Podcasts• Picture Sharing• Video Sharing• Rating and Bookmarking• Wall Postings• E-mail• Instant Messaging• Music Sharing• Voice over IP
How to get Started• State your Social Networking Goals for the year and describe how your company will reach these goals• Know your ideal clients, their needs, wants and where to reach them• Write or polish your core message to resonate with your target audience---test your message• Develop educational marketing materials in formats that your ideal clients will appreciate• Establish your Lead Generation and Sales Response System• Create a process to monitor and evaluate your marketing efforts• Be consistent, follow your system and your efforts will pay off
What’s Out There• Blogs: TypePad,Blogger,ExpressionEngine, LiveJournal, Open Diary, Vox, WordPress, Xanga• Microblogging: FMyLife, Foursquare, Jaiku, Plurk, Posterous,Tumblr,Twitter,Qaiku,Yammer, Google Buzz• Location-basedsocialnetworks: Foursquare, Gowalla, Facebook places• SocialNetworking:Facebook,Orkut,LinkedIn, MySpace,Cyworld
What’s Out There (con’t)• Events: Eventful, Meetup.com, Upcoming• Information Aggregators: Netvibes,Twine• Online Advocacy and Fundraising: Causes• Social Bookmarking: CiteULike, Delicious, Diigo, Google Reader, StumbleUpon, folkd• Social News: Digg, Mixx, NowPublic, Reddit, Newsvine• Social Navagation: Trapster, Waze
What’s Out There (con’t)• Photography and Art Sharing: deviantArt, Flickr, Photobucket, Picasa, SmugMug, Zooomr, BetweenCreation• Video Sharing: sevenload, Viddler, Vimeo, YouTube, Dailymotion, Metacafe, Nico Nico Douga, Openfilm• Livecasting: Justin.tv, Livestream, OpenCU, Skype, Stickam, Ustream• Music and Audio Sharing: ccMixter, Last.fm, MySpace Music, ReverbNation.com, ShareTheMusic, The Hype Machine• Game Sharing: Kongregate, Miniclip
What is a Blog?• It’s a communications tool written in a casual style and has a personalized quality• A forum for airing ideas and building community over the internet• You can distribute information with little or no technical experience• Can voice opinions, establish dialogues with readers, link to interesting articles and studies, post press releases and display graphics
Blogging Business Objectives• It is a great communications tool• Helps define your image• Customer Relations - Brings you closer to your customer• Helps establish competitive positioning• Improves Search Engine Marketing• Brand Building• Improves Media Relations and serves as an information resource for them
Your Blog - Getting Started• TypePad: Take about 30 minutes to set up and is an easy to use application that gets you started right away at minimal cost• Blogger• Movable Type and WordPress: Allows for more customization and requires software hosting• Build a good team of internet professionals to help set up and manage your blog according to your internet marketing plan
Summary of Online Marketing Efforts• Not about flashy websites• Need to provide useful information to help customers make their purchasing decisions• Messages and websites cannot be stale – content needs to be fresh• Reactions of visitors need to be measured and analyzed, so that your content can be continuously improved• Build a good team of internet professionals
Marketing in a Recession• Follow up on Old Leads: Start calling your contacts• Partner with a Complementary Business: Helps decrease costs• Take Extra Care of Your Existing Clients: Keep in regular touch, Offer specials or gifts as a token of your appreciation for their business• Find new clients: Be more flexible, smaller orders, staggered deliveries• Increase your Level of Service: Give them much more than they were expecting• Consider refer-a-friend Promotions: Key is to offer something of value to your current customers• Join Local Networking Organizations• Public Relations Strategy: Get positive publicity and share it, Write a great press release and distribute it• Public Speaking: Get out there and find an audience for what you do
Marketing Planning Questions• Who is your competition?• What makes them your competition?• Who is your competitions target market?• How does your competition reach that target market?• What kinds of products or services is your competition offering and at what price?• What are their product’s strengths and weaknesses?
Marketing Planning Questions• How is your product similar or different to what is already in the marketplace today?• How will it be priced?• What will the profit margin look like?• How will the product be stored when it’s not being sold? (Are there theft and waste concerns)• Who is your target market?
Marketing Planning Questions• How is your market the same or different than your competitor’s?• How do you plan on marketing your product?• How will you specifically market your product this year? In 2 years? In 5 years? In 10 years?• How is your marketing going to be different than your closest competitor’s?• What are the costs of your marketing programs for the coming year?
Marketing Planning Questions• Do you have a contingency plan in case your product doesn’t sell?• Using industry and historical information, forecast your sales in both units sold and dollars earned• What are the upselling and ancillary sales opportunities?• What are the promotions you have lined up to help you move your product or service?
Marketing Planning Questions• What will you do in the first critical 90 days of business to get your name out there?• Aside from direct promotions, what types of indirect marketing will you do (i.e., public speaking, signage, etc)• What is the general industry forecast in the next decade?• During industry downturns, how do you plan to “stay above water”.