Kay Reisen, November, 2008
MARKETING <ul><li>is  EVERYTHING </li></ul><ul><li>you do to promote your </li></ul><ul><li>business, from the moment </li...
However, success today is difficult because customers are: <ul><li>Sophisticated </li></ul><ul><li>Price sensitive  </li><...
Therefore, you need to identify and create a competitive advantage by: <ul><li>1. Conducting market research </li></ul><ul...
Step 1: Market Research <ul><ul><li>Trade associations  </li></ul></ul><ul><ul><li>National and local press Industry magaz...
Market Research Web Sites <ul><li>www.sba.gov </li></ul><ul><li>http://www.misbtdc.org </li></ul><ul><li>www.bplans.com </...
Step 2:  Examine your current marketing situation <ul><li>Review your past performance </li></ul><ul><li>Perform SWOT </li...
Step 3: Identify your segment(s) <ul><ul><li>Marketing Segmentation :  The process of dividing a market into customer cate...
Demographics <ul><ul><ul><ul><ul><li>Age </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Gender </li></ul></ul></ul>...
Psychographics <ul><li>Needs </li></ul><ul><ul><li>Security, esteem, love, acceptance, understanding, beauty, good health ...
Market segment <ul><li>Over the Edge Expeditions  caters to sports thrill seekers and outdoor adventure enthusiasts betwee...
4. Develop the marketing mix <ul><li>Product </li></ul><ul><li>Price </li></ul><ul><li>Place </li></ul><ul><li>Promotion <...
What is a Product? <ul><li>A  PRODUCT  is anything that can be offered to a market for attention, acquisition, use, or con...
Product Continuum Source: Business Today, Ninth Edition, Mescon, Bovee Thill, Prentice Hall Publishers. Salt Shoes DVD Pla...
Product Life Cycle Internet Cellular Phones VCRs Cassette Tapes Source: Business Today, Ninth Edition, Mescon, Bovee Thill...
Create a Clear Product Identity <ul><li>include: </li></ul><ul><ul><li>Name </li></ul></ul><ul><ul><li>Niche </li></ul></u...
Name <ul><li>The business name should reflect the nature of the business </li></ul><ul><ul><ul><li>“ Joe’s Accounting” des...
Niche <ul><li>Find an unoccupied niche and claim your turf.  A niche is a customer segment with unmet needs. </li></ul><ul...
Product Perceptual Map  for Different Brands of Bar Soap ©  2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use on...
Quality <ul><li>High quality leads to repeat and referral sales. </li></ul><ul><li>Poor quality leads to dissatisfied cust...
Color <ul><li>Coca-Cola is red. </li></ul><ul><li>McDonald’s is golden </li></ul><ul><li>What is the right color for you? ...
Logo <ul><li>Many people are visually oriented. </li></ul><ul><li>Logos should be simple and easy to understand </li></ul>...
Reel 'Em In
 
 
 
 
Themes, slogans <ul><li>A theme is a set of words that summarizes your identity. </li></ul><ul><li>Themes should be placed...
<ul><li>Slogans and Catchy Phrases </li></ul><ul><li>See how many of these phrases--product and campaign slogans, taglines...
Location <ul><li>Convenient to your target market </li></ul><ul><li>Ample parking </li></ul><ul><li>Clean / decorated </li...
Selection <ul><li>Everyone wants a choice. </li></ul><ul><li>The more you emphasize your selection, the more likely your p...
Table 14.1: Product-Mix Width and Product-Line Length for Proctor& Gamble Products PRODUCT-LINE LENGTH Product-Mix Width D...
10 -  BREADTH (DIFFERENT LINES) Lawn mowers Gardening tools Lawn furniture Power rotary Power reel Hand-powered DEPTH (ASS...
Weapons Not Recognized as Part of Product Identity <ul><li>Business Cards </li></ul><ul><li>Order Forms/Invoices </li></ul...
Business Cards <ul><li>Are powerful selling tools </li></ul><ul><li>Use a typeface that is clear and easy to read </li></u...
Order Forms/Invoices <ul><li>Always show your logo </li></ul><ul><li>Pay close attention to all the wording on the form.  ...
Attire <ul><li>Attire influences human behavior. </li></ul><ul><li>Navy blue signifies authority </li></ul><ul><li>Brown s...
Phone Demeanor <ul><ul><li>The phone should be answered the same way each time </li></ul></ul><ul><ul><li>The answer shoul...
Smiles <ul><li>A smile forms a human bond. </li></ul><ul><li>A smile shows you consider the person a human being. </li></u...
Pricing Strategies versus Price conveys image.
Pricing decisions are determined by: <ul><li>A firm’s costs </li></ul><ul><li>Customer perceptions  </li></ul><ul><li>Cust...
Cost-Based Pricing Break-Even Analysis Break-Even Point $$ Profits $$ More Than $$ Losses $$ Less Than Fixed costs Selling...
Break-Even Analysis
Price-Based Pricing Establish Optimal Price Based on Customer Perception/ Segment Characteristics Figure in Cost
Advertising <ul><li>Is  paid, nonpersonal communication </li></ul>Village Ice Cream
Advertising <ul><li>Establishes credibility for your business </li></ul><ul><li>Allows you to repeat your message and gain...
 
Major Advertising Media MEDIUM ADVANTAGES DISADVANTAGES Newspapers Extensive market coverage; low cost; short lead time fo...
Yellow Pages <ul><li>Do people look for businesses such as yours in the yellow pages? </li></ul><ul><li>If so, the color r...
Circulars <ul><li>Can be distributed at your business </li></ul><ul><li>Handed out on street corners </li></ul><ul><li>Pla...
Direct-Mail Postcards and Doorhangers <ul><li>Use them with your customer list </li></ul><ul><li>Make a special offer </li...
Outdoor Billboards <ul><li>Can serve as an excellent reminder if your basic message can be done in 6 words or less. </li><...
Free publicity <ul><li>To attract publicity you must have news of interest. </li></ul>
Tips for Stimulating Publicity <ul><li>Write an article of interest to customers </li></ul><ul><li>Offer to be interviewed...
Articles, Courses, & Lectures <ul><li>The more credibility you have the more confidence your prospects will have in your b...
Network <ul><li>Get the most out of this key business development tool </li></ul><ul><ul><li>Set goals for every event </l...
Club and Association Memberships <ul><li>Join social clubs, professional clubs, chambers, trade associations, etc. </li></...
Trade Shows & Consumer Fairs <ul><li>Good place to meet a lot of prospects all at once </li></ul><ul><li>Great way to show...
Community Involvement <ul><li>Develop a promotion involving a local school, church, etc. </li></ul><ul><li>Establish tie-i...
Why Contests and Sweepstakes? <ul><li>To have people try your product or service </li></ul><ul><li>To make people aware of...
Reprints of Ads & Publicity <ul><li>Have your advertisements and publicity do double, even triple duty. </li></ul><ul><li>...
Strategies for E-Success <ul><li>Consider forming strategic alliances </li></ul><ul><li>Promote your site online and offli...
Customer mailing list <ul><li>Compile a loyal mailing list of people who have purchased from you. </li></ul><ul><li>1.  Ha...
Follow-up <ul><li>A birthday card </li></ul><ul><li>A newsletter </li></ul><ul><li>A letter with a special offer </li></ul...
Timing <ul><li>Now that you’ve decided what promotional tools to use, what order are you going to use them in? </li></ul>
Strike Zone Promotional Strategy
Step 6: Compute a Budget <ul><li>If you don’t do enough marketing, you whither. </li></ul><ul><li>Do too much and you wast...
Budget <ul><li>Pre-Grand Opening </li></ul><ul><ul><li>A budget of  $3,500  has been allocated to fund pre-launch promotio...
SO WHERE DO YOU GO FROM HERE? <ul><li>1. Market Research </li></ul><ul><li>2.Write a Business Plan </li></ul>
Market Research <ul><ul><li>Trade associations  </li></ul></ul><ul><ul><li>National and local press Industry magazines  </...
Market Research Web Sites <ul><li>www.sba.gov </li></ul><ul><li>http://www.misbtdc.org </li></ul><ul><li>www.bplans.com </...
<ul><li>See you next week! </li></ul>Step 6:  Write a Business Plan
Kay Reisen
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Practical Marketing Tips for the Small Business Owner

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Practical marketing tips for the small business owner such as: bakeries, electricians, restaurants, consultants, day care centers.

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Practical Marketing Tips for the Small Business Owner

  1. 1. Kay Reisen, November, 2008
  2. 2. MARKETING <ul><li>is EVERYTHING </li></ul><ul><li>you do to promote your </li></ul><ul><li>business, from the moment </li></ul><ul><li>you conceive of it to the point </li></ul><ul><li>at which customers buy your </li></ul><ul><li>product or service and begin </li></ul><ul><li>to patronize your business on </li></ul><ul><li>a regular basis. </li></ul><ul><li>The key words to remember </li></ul><ul><li>are everything and regular basis . </li></ul><ul><li>- Jay Conrad Levinson </li></ul>
  3. 3. However, success today is difficult because customers are: <ul><li>Sophisticated </li></ul><ul><li>Price sensitive </li></ul><ul><li>Demanding </li></ul><ul><li>Live time-compressed lives, and </li></ul><ul><li>Have unprecedented control due to the saturation in today’s market. </li></ul>
  4. 4. Therefore, you need to identify and create a competitive advantage by: <ul><li>1. Conducting market research </li></ul><ul><li>2. Examining your current market situation </li></ul><ul><li>3. Identifying your target segment(s) </li></ul><ul><li>4. Developing the marketing mix </li></ul><ul><ul><li>Product, </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Place </li></ul></ul><ul><ul><li>Promotion </li></ul></ul><ul><li>5. Computing a budget </li></ul><ul><li>6. Writing a business plan! </li></ul>
  5. 5. Step 1: Market Research <ul><ul><li>Trade associations </li></ul></ul><ul><ul><li>National and local press Industry magazines </li></ul></ul><ul><ul><li>National/ international governments </li></ul></ul><ul><ul><li>Informal contacts </li></ul></ul><ul><ul><li>Trade directories </li></ul></ul><ul><ul><li>Published company accounts </li></ul></ul><ul><ul><li>Business libraries </li></ul></ul><ul><ul><li>Professional institutes and organizations </li></ul></ul><ul><ul><li>Previously gathered marketing research </li></ul></ul><ul><ul><li>Census data </li></ul></ul><ul><ul><li>Public records </li></ul></ul>
  6. 6. Market Research Web Sites <ul><li>www.sba.gov </li></ul><ul><li>http://www.misbtdc.org </li></ul><ul><li>www.bplans.com </li></ul><ul><li>http://www.businessplans.org/businessplans.html </li></ul><ul><li>www.business.gov </li></ul><ul><li>www.enterpreneur.com </li></ul><ul><li>www.medc.michigan.gov </li></ul><ul><li>http://www.toolkit.cch.com </li></ul><ul><li>www.fedstats.gov </li></ul><ul><li>www.infomi.com </li></ul><ul><li>www.semcog.org </li></ul><ul><li>http://www.businessownersideacafe.com </li></ul><ul><li>http://www.michigan.gov/businessstartup </li></ul><ul><li>http://www.businesstown.com </li></ul><ul><li>http://www.e ntrewor ld.org </li></ul><ul><li>www.wsj.com </li></ul><ul><li>www.census.gov </li></ul><ul><li>  </li></ul>
  7. 7. Step 2: Examine your current marketing situation <ul><li>Review your past performance </li></ul><ul><li>Perform SWOT </li></ul><ul><li>Evaluate your competition </li></ul>
  8. 8. Step 3: Identify your segment(s) <ul><ul><li>Marketing Segmentation : The process of dividing a market into customer categories. </li></ul></ul><ul><ul><ul><ul><li>Geographic variables </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Demographic variables </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Psychographic variables </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Geodemographics variables </li></ul></ul></ul></ul>
  9. 9. Demographics <ul><ul><ul><ul><ul><li>Age </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Gender </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Location </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Education </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Occupation </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Income Level </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Martial Status </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Household Type </li></ul></ul></ul></ul></ul>
  10. 10. Psychographics <ul><li>Needs </li></ul><ul><ul><li>Security, esteem, love, acceptance, understanding, beauty, good health </li></ul></ul><ul><li>Values </li></ul><ul><ul><li>Status, success, greed, simplicity </li></ul></ul><ul><li>Buying Styles </li></ul><ul><ul><li>Price, fads, quality, technology, luxury, convenience </li></ul></ul><ul><li>Cultures </li></ul><ul><ul><li>Modern, artistic, religious, liberal, conservative, environmental </li></ul></ul><ul><li>Interests </li></ul><ul><ul><li>Sports, reading, fitness, cooking, workaholic, gardening </li></ul></ul>
  11. 11. Market segment <ul><li>Over the Edge Expeditions caters to sports thrill seekers and outdoor adventure enthusiasts between the ages of 18-44 with middle to high levels of income and education, which includes baby-boomers, women and minorities. </li></ul>
  12. 12. 4. Develop the marketing mix <ul><li>Product </li></ul><ul><li>Price </li></ul><ul><li>Place </li></ul><ul><li>Promotion </li></ul>
  13. 13. What is a Product? <ul><li>A PRODUCT is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or a need. </li></ul><ul><ul><li>Services are an intangible form of product that consist of: </li></ul></ul><ul><ul><ul><li>Activities or </li></ul></ul></ul><ul><ul><ul><li>Benefits </li></ul></ul></ul><ul><ul><ul><ul><li>offered for sale that don’t result in the ownership of anything. </li></ul></ul></ul></ul>
  14. 14. Product Continuum Source: Business Today, Ninth Edition, Mescon, Bovee Thill, Prentice Hall Publishers. Salt Shoes DVD Player Automobile Fast Food Cruise Consulting Insurance Education Tangible Dominant Intangible Dominant GOODS IDEAS SERVICES
  15. 15. Product Life Cycle Internet Cellular Phones VCRs Cassette Tapes Source: Business Today, Ninth Edition, Mescon, Bovee Thill, Prentice Hall Publishers. Time Sales Volume (units) + 0 ± Introduction Growth Maturity Decline Sales Profits
  16. 16. Create a Clear Product Identity <ul><li>include: </li></ul><ul><ul><li>Name </li></ul></ul><ul><ul><li>Niche </li></ul></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><li>Color </li></ul></ul><ul><ul><li>Logo </li></ul></ul><ul><ul><li>Themes </li></ul></ul><ul><ul><li>Location </li></ul></ul><ul><ul><li>Selection </li></ul></ul>
  17. 17. Name <ul><li>The business name should reflect the nature of the business </li></ul><ul><ul><ul><li>“ Joe’s Accounting” describes the business </li></ul></ul></ul><ul><ul><ul><li>“ Joe and Associates” leaves you guessing </li></ul></ul></ul><ul><ul><ul><li>Ask: How will my name sound on the phone? </li></ul></ul></ul><ul><ul><ul><li>On the radio? </li></ul></ul></ul><ul><ul><ul><li>What will it look like in ads? </li></ul></ul></ul><ul><ul><ul><li>On stationery? </li></ul></ul></ul><ul><ul><ul><li>If your business might attract prospects from the yellow pages, use a name that will be listed first…. Aardvark? </li></ul></ul></ul><ul><ul><ul><li>Whatever you do…do a name search to make sure you are not stepping on any toes… </li></ul></ul></ul>
  18. 18. Niche <ul><li>Find an unoccupied niche and claim your turf. A niche is a customer segment with unmet needs. </li></ul><ul><li>Service your niche based on: </li></ul><ul><li>Quality or service, speed or convenience, experience or low prices, innovation or selection or any other attribute for which you wish to be known. </li></ul>
  19. 19. Product Perceptual Map for Different Brands of Bar Soap © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing
  20. 20. Quality <ul><li>High quality leads to repeat and referral sales. </li></ul><ul><li>Poor quality leads to dissatisfied customers. </li></ul>
  21. 21. Color <ul><li>Coca-Cola is red. </li></ul><ul><li>McDonald’s is golden </li></ul><ul><li>What is the right color for you? </li></ul><ul><li>Green is a color often associated with anything natural </li></ul><ul><li>Pink is feminine </li></ul><ul><li>Gray is masculine </li></ul><ul><li>Red goes well with low prices </li></ul><ul><li>The color you choose should tie in with your products, niche, and identity. </li></ul>
  22. 22. Logo <ul><li>Many people are visually oriented. </li></ul><ul><li>Logos should be simple and easy to understand </li></ul><ul><li>Should be compatible with your name and identity </li></ul><ul><li>Professionally developed </li></ul><ul><li>Used everywhere… </li></ul><ul><ul><ul><li>Business cards, letterheads, signage, advertising and promotional materials </li></ul></ul></ul>
  23. 23. Reel 'Em In
  24. 28. Themes, slogans <ul><li>A theme is a set of words that summarizes your identity. </li></ul><ul><li>Themes should be placed in as many places as possible: brochures, ads, commercials, business cards, trade shows, everywhere. </li></ul>
  25. 29. <ul><li>Slogans and Catchy Phrases </li></ul><ul><li>See how many of these phrases--product and campaign slogans, taglines and catchy phrases from ads--are lodged in your mind. Match the phrase to its brand. </li></ul><ul><li>___ a. “Don’t leave home without it.” 1. Maxwell House </li></ul><ul><li>___ b. “Where’s the beef?” 2. Allstate </li></ul><ul><li>___ c. “Builds strong bodies 12 ways.” 3. McDonald's </li></ul><ul><li>___ d. “Melts in your mouth, not in your hand.” 4. Hallmark </li></ul><ul><li>___ e. “How do you spell relief?” 5. United </li></ul><ul><li>___ f. “When it rains it pours.” 6. General Electric </li></ul><ul><li>___ g. “Reach out and touch someone.” 7. Yellow Pages </li></ul><ul><li>___ h. “Takes a lickin' and keeps on ticking.” 8. Rolaids </li></ul><ul><li>___ i. “99 44/100 percent pure.” 9. Wonder Bread </li></ul><ul><li>___ j. “Fly the friendly skies.” 10. Timex </li></ul><ul><li>___ k. “Let your fingers do the walking.” 11. AT&T </li></ul><ul><li>___ l. “You're in good hands.” 12. M&Ms </li></ul><ul><li>___ m. “You deserve a break today.” 13. Morton Salt </li></ul><ul><li>___ n. “We bring good things to life.” 14. American Express </li></ul><ul><li>___ o. “When you care enough to send the very best.” 15. Ivory Soap </li></ul><ul><li>___ p. “Good to the last drop.” 16. Wendy's </li></ul>Themes/taglines/slogans
  26. 30. Location <ul><li>Convenient to your target market </li></ul><ul><li>Ample parking </li></ul><ul><li>Clean / decorated </li></ul><ul><li>Easy to find </li></ul><ul><li>Large enough for all your needs </li></ul><ul><li>You can afford it without busting your budget </li></ul>
  27. 31. Selection <ul><li>Everyone wants a choice. </li></ul><ul><li>The more you emphasize your selection, the more likely your prospect will be able to decide you’ve got what she/he wants. </li></ul>
  28. 32. Table 14.1: Product-Mix Width and Product-Line Length for Proctor& Gamble Products PRODUCT-LINE LENGTH Product-Mix Width Detergents Toothpaste Disposable Bar Soap Diapers Paper Tissue Ivory Snow (1930) Dreft (1933) Tide (1946) Cheer (1950) Gleem (1952) Crest (1955) Ivory (1879) Kirk’s (1885) Lava (1893) Camay (1926) Pampers (1961) Luvs (1976) Charmin (1928) Puffs (1960) Banner (1982) Summit (1992)
  29. 33. 10 - BREADTH (DIFFERENT LINES) Lawn mowers Gardening tools Lawn furniture Power rotary Power reel Hand-powered DEPTH (ASSORTMENT WITHIN A LINE) Rakes Hoes Shovels Chairs Chaise lounges Benches Each in various sizes and prices Each in various sizes and prices Various sizes and prices in redwood or aluminium with plastic webbing Product Mix - An Example
  30. 34. Weapons Not Recognized as Part of Product Identity <ul><li>Business Cards </li></ul><ul><li>Order Forms/Invoices </li></ul><ul><li>Attire </li></ul><ul><li>Phone Demeanor </li></ul><ul><li>Smiles </li></ul>
  31. 35. Business Cards <ul><li>Are powerful selling tools </li></ul><ul><li>Use a typeface that is clear and easy to read </li></ul><ul><li>Include your area code, zip code and fax number </li></ul><ul><li>The feel of a good paper stock or the raised lettering of your copy can turn a prospect into a customer. </li></ul><ul><li>Give more information than the usual name, address, phone number. </li></ul><ul><li>Be unique without calling attention to your cleverness. </li></ul>
  32. 36. Order Forms/Invoices <ul><li>Always show your logo </li></ul><ul><li>Pay close attention to all the wording on the form. Are requests stated politely? </li></ul><ul><li>Make your order form more than a boring business form. </li></ul><ul><li>Examine the paper stock, size, and color. Are they marketing for you? </li></ul><ul><li>Show the right numbers, date, price, and tax. </li></ul><ul><li>Show the customer name, product name and your address </li></ul><ul><li>Can you print something on them (calendars, etc. or things of interest to your customers). </li></ul>
  33. 37. Attire <ul><li>Attire influences human behavior. </li></ul><ul><li>Navy blue signifies authority </li></ul><ul><li>Brown shows a lack of sophistication </li></ul><ul><li>Black shows too much power </li></ul><ul><li>Red calls a great deal of attention to the wearer </li></ul><ul><li>Each color puts forth its own message. </li></ul><ul><li>When in a dilemma be more formal than informal. </li></ul><ul><li>If you are sloppy people make the unconscious but natural assumption that your company is sloppy too </li></ul>
  34. 38. Phone Demeanor <ul><ul><li>The phone should be answered the same way each time </li></ul></ul><ul><ul><li>The answer should be friendly and mention the company name </li></ul></ul><ul><ul><li>More importantly, it should have a built-in warm smile </li></ul></ul><ul><ul><li>Be polite regardless of the caller’s attitude </li></ul></ul>
  35. 39. Smiles <ul><li>A smile forms a human bond. </li></ul><ul><li>A smile shows you consider the person a human being. </li></ul><ul><li>A smile says you are personally interested. </li></ul><ul><li>A smile makes the person feel good. </li></ul>
  36. 40. Pricing Strategies versus Price conveys image.
  37. 41. Pricing decisions are determined by: <ul><li>A firm’s costs </li></ul><ul><li>Customer perceptions </li></ul><ul><li>Customer demand </li></ul><ul><li>Competitor prices </li></ul><ul><li>Your niche </li></ul>
  38. 42. Cost-Based Pricing Break-Even Analysis Break-Even Point $$ Profits $$ More Than $$ Losses $$ Less Than Fixed costs Selling price per unit-Variable costs per unit
  39. 43. Break-Even Analysis
  40. 44. Price-Based Pricing Establish Optimal Price Based on Customer Perception/ Segment Characteristics Figure in Cost
  41. 45. Advertising <ul><li>Is paid, nonpersonal communication </li></ul>Village Ice Cream
  42. 46. Advertising <ul><li>Establishes credibility for your business </li></ul><ul><li>Allows you to repeat your message and gain access to the unconscious minds of your prospects and customers. </li></ul><ul><li>Use the “free” “2-for-1” etc. </li></ul><ul><li>Best day to run an ad is Sunday when people take the most time to read the paper </li></ul><ul><li>Monday is good too – when men are reading the summarized sports section </li></ul><ul><li>If you can, have the ad run on the right-hand page near the right margin and above the fold </li></ul><ul><li>Trying adding one color to stand out </li></ul>
  43. 48. Major Advertising Media MEDIUM ADVANTAGES DISADVANTAGES Newspapers Extensive market coverage; low cost; short lead time for placing ads; good local market coverage; geographic selectivity Poor graphic quality; short life span; cluttered pages; visual competition from other ads Television Great impact; broad reach; appealing to senses of sight, sound & motion; creative opportunities for demonstration; high attention; entertainment carryover High cost for production & air time; less audience selectivity; long preparation time; commercial clutter; short life for message; vulnerability to remote controls Direct Mail Can deliver large amounts of information to narrowly selected audiences; excellent control over quality of message; personalization High cost per contact; delivery delays; difficulty of obtaining desired mailing list; consumer resistance; generally poor image (junk mail) Radio Low cost; high frequency; immediacy; highly portable; high geographic & demographic selectivity No visual possibilities; short message life; commercial clutter; lower attention span than television; easy to switch stations Magazines Good reproduction; long life; local & regional market selectivity; authority & credibility; multiple readers Limited demonstration possibilities; long lead time (from placing to publishing ads); high cost; less compelling than other media Internet Growing reach; low cost; ability to personalize; can appeal to senses of sight, sound & motion Difficulty in measuring audiences; consumer resistance, increasing clutter
  44. 49. Yellow Pages <ul><li>Do people look for businesses such as yours in the yellow pages? </li></ul><ul><li>If so, the color red pays for itself in the yellow pages. </li></ul><ul><li>Make your ad as large as possible within the constraints of your budget. </li></ul><ul><li>Use words like: reliable, years in business, size of firm, licenses, certifications, degrees, awards. </li></ul><ul><li>Convince the buyer that you are the best and most complete dealer for the product or service. </li></ul><ul><li>Let people know where they can find you. </li></ul>
  45. 50. Circulars <ul><li>Can be distributed at your business </li></ul><ul><li>Handed out on street corners </li></ul><ul><li>Placed under windshield wipers </li></ul><ul><li>Costs a few cents each </li></ul><ul><li>Highlights the benefits of doing business with you (name, phone number, hours, theme line). </li></ul>
  46. 51. Direct-Mail Postcards and Doorhangers <ul><li>Use them with your customer list </li></ul><ul><li>Make a special offer </li></ul><ul><li>Stand out in some way – outstanding design or compelling offer </li></ul><ul><li>Make sure you tell recipients what to do: visit a location, make a phone call, take an action. </li></ul>
  47. 52. Outdoor Billboards <ul><li>Can serve as an excellent reminder if your basic message can be done in 6 words or less. </li></ul><ul><li>Also, if can write these magic words “NEXT EXIT” “TWO MILES AHEAD” “5 MINUTES” </li></ul><ul><li>Generates impulse reactions and instant sales. </li></ul>
  48. 53. Free publicity <ul><li>To attract publicity you must have news of interest. </li></ul>
  49. 54. Tips for Stimulating Publicity <ul><li>Write an article of interest to customers </li></ul><ul><li>Offer to be interviewed on TV/Cable and radio stations </li></ul><ul><li>Publish a newsletter </li></ul><ul><li>Speak to local organizations </li></ul><ul><li>Sponsor a seminar </li></ul><ul><li>Write news releases and fax them to the media </li></ul><ul><li>Serve on community and industry boards and committees </li></ul><ul><li>Sponsor a community project or support a nonprofit organization </li></ul><ul><li>Letters to the Editor </li></ul>For example,
  50. 55. Articles, Courses, & Lectures <ul><li>The more credibility you have the more confidence your prospects will have in your business. </li></ul><ul><li>Write articles on your topic of expertise for magazines and newspapers </li></ul><ul><li>Don’t talk to sell – just give great advice – for free but give your company phone number so people can contact you for further information </li></ul>
  51. 56. Network <ul><li>Get the most out of this key business development tool </li></ul><ul><ul><li>Set goals for every event </li></ul></ul><ul><ul><li>Give and get cards </li></ul></ul><ul><ul><li>Listen </li></ul></ul><ul><ul><li>Catalogue </li></ul></ul><ul><ul><li>Follow-up with both give and take </li></ul></ul>
  52. 57. Club and Association Memberships <ul><li>Join social clubs, professional clubs, chambers, trade associations, etc. </li></ul><ul><li>Why? </li></ul><ul><li>You meet a lot of prospects </li></ul><ul><li>You learn which customers are happy/unhappy and why </li></ul><ul><li>You can strengthen relationships with customers </li></ul>
  53. 58. Trade Shows & Consumer Fairs <ul><li>Good place to meet a lot of prospects all at once </li></ul><ul><li>Great way to show the product in operation and provide samples </li></ul><ul><li>Make your booth a class act (have a sweepstakes that people can enter simply by dropping their business cards into a bowl). </li></ul><ul><li>Distribute circulars directing people to your display </li></ul><ul><li>Train your staff extensively </li></ul><ul><li>Have a demonstration/video/sample in your booth </li></ul><ul><li>Don’t forget business cards and brochures/flyers </li></ul><ul><li>Follow up promptly </li></ul><ul><li>Evaluate everything you did and all costs </li></ul>
  54. 59. Community Involvement <ul><li>Develop a promotion involving a local school, church, etc. </li></ul><ul><li>Establish tie-ins with community stores. </li></ul><ul><li>Offer to distribute their brochures, if they’ll distribute yours. </li></ul><ul><li>Post your own sign on local bulletin boards – supermarkets, churches, and clubs. </li></ul><ul><li>Offer your product or service to local charities as part of their fund-raising efforts. </li></ul><ul><li>Make special offers, with mailings, set to clubs in your community. </li></ul><ul><li>Organize community events such as 10K races, essay contests, or painting contests. Give T-shirts to participants with your logo on it! </li></ul>
  55. 60. Why Contests and Sweepstakes? <ul><li>To have people try your product or service </li></ul><ul><li>To make people aware of your product or service </li></ul><ul><li>To show people where to buy your product or service </li></ul><ul><li>To get names for your mailing list </li></ul><ul><li>To gain free publicity </li></ul>
  56. 61. Reprints of Ads & Publicity <ul><li>Have your advertisements and publicity do double, even triple duty. </li></ul><ul><li>Have reprints made and give them away. </li></ul><ul><li>Put them up in prominent places where everyone can read them </li></ul><ul><li>Put them into a press kit </li></ul><ul><li>Reprints ad credibility </li></ul>
  57. 62. Strategies for E-Success <ul><li>Consider forming strategic alliances </li></ul><ul><li>Promote your site online and offline </li></ul><ul><ul><li>Register with search engines </li></ul></ul><ul><ul><li>Create banner ads </li></ul></ul><ul><ul><li>Use direct mail and newspapers </li></ul></ul><ul><ul><li>Issue press releases </li></ul></ul><ul><ul><li>Put the company’s Web address on business cards and anything else you can think of </li></ul></ul>
  58. 63. Customer mailing list <ul><li>Compile a loyal mailing list of people who have purchased from you. </li></ul><ul><li>1. Have a sign up book in your store </li></ul><ul><li>Add the names of all your customers </li></ul><ul><li>Have contests or sweepstakes in which people must write their names and addresses in order to enter. </li></ul><ul><li>Satisfy them by keeping in touch. </li></ul><ul><li>Invite them to sales. </li></ul>
  59. 64. Follow-up <ul><li>A birthday card </li></ul><ul><li>A newsletter </li></ul><ul><li>A letter with a special offer </li></ul><ul><li>A postcard mailing program </li></ul><ul><li>A Christmas card </li></ul><ul><li>A contest or sweepstakes </li></ul><ul><li>The anniversary of when your customer became your customer </li></ul><ul><li>Customer Surveys </li></ul><ul><li>Stay in touch with your customers, because if you don’t someone else will. </li></ul>
  60. 65. Timing <ul><li>Now that you’ve decided what promotional tools to use, what order are you going to use them in? </li></ul>
  61. 66. Strike Zone Promotional Strategy
  62. 67. Step 6: Compute a Budget <ul><li>If you don’t do enough marketing, you whither. </li></ul><ul><li>Do too much and you waste marketing dollars </li></ul><ul><li>A good rule of thumb is 10% of sales </li></ul><ul><li>If not sure, do some research </li></ul>
  63. 68. Budget <ul><li>Pre-Grand Opening </li></ul><ul><ul><li>A budget of $3,500 has been allocated to fund pre-launch promotional activities (included in business plan start-up costs) </li></ul></ul><ul><li>Ongoing </li></ul><ul><ul><li>Research indicates that an Advertising spending level of 3% of sales is appropriate for Amusement and Recreation Services (SIC 799). Reference: U.S. Census Bureau Business Expense Report issued December 2000. </li></ul></ul><ul><ul><li>Strike Zone will budget $7,500 in year one (equal to 4% of sales) to foster the initial growth period </li></ul></ul>
  64. 69. SO WHERE DO YOU GO FROM HERE? <ul><li>1. Market Research </li></ul><ul><li>2.Write a Business Plan </li></ul>
  65. 70. Market Research <ul><ul><li>Trade associations </li></ul></ul><ul><ul><li>National and local press Industry magazines </li></ul></ul><ul><ul><li>National/ international governments </li></ul></ul><ul><ul><li>Web sites </li></ul></ul><ul><ul><li>Informal contacts </li></ul></ul><ul><ul><li>Trade directories </li></ul></ul><ul><ul><li>Published company accounts </li></ul></ul><ul><ul><li>Business libraries </li></ul></ul><ul><ul><li>Professional institutes and organizations </li></ul></ul><ul><ul><li>Previously gathered marketing research </li></ul></ul><ul><ul><li>Census data </li></ul></ul><ul><ul><li>Public records </li></ul></ul>
  66. 71. Market Research Web Sites <ul><li>www.sba.gov </li></ul><ul><li>http://www.misbtdc.org </li></ul><ul><li>www.bplans.com </li></ul><ul><li>http://www.businessplans.org/businessplans.html </li></ul><ul><li>www.business.gov </li></ul><ul><li>www.enterpreneur.com </li></ul><ul><li>www.medc.michigan.gov </li></ul><ul><li>http://www.toolkit.cch.com </li></ul><ul><li>www.fedstats.gov </li></ul><ul><li>www.infomi.com </li></ul><ul><li>www.semcog.org </li></ul><ul><li>http://www.businessownersideacafe.com </li></ul><ul><li>http://www.michigan.gov/businessstartup </li></ul><ul><li>http://www.businesstown.com </li></ul><ul><li>http://www.entreworld.org </li></ul><ul><li>www.wsj.com </li></ul><ul><li>www.census.gov </li></ul><ul><li>  </li></ul>
  67. 72. <ul><li>See you next week! </li></ul>Step 6: Write a Business Plan
  68. 73. Kay Reisen

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