This is a chapter prepared by scarborough

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Chapter 9

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1. What is the goal of your marketing efforts?
2. What target market are you trying to reach with your
message?
3. What do you offer that is unique?
4. What is the specific need that the market? Specifically how
are you addressing that need?
5. How does your business stand out from the competitors?
What are you known for?
6. What are the strategies and specific steps you will use to
implement your marketing plan?
7. What budget will you need to sell and promote your
business?
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Marketing: the process of creating and delivering
desired goods and services to customers and involves
all of the activities associated with winning and
retaining loyal customers
Bootstrap marketing strategies: unconventional,
low-cost, creative techniques
Maximize “bang” from marketing bucks
Also known as guerilla marketing
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A bootstrap marketing plan should:
1. Pinpoint the target markets the small company will
serve
2. Determine customers needs, wants, and
characteristics through market research
Find the “pain points” in the market
3. Analyze a company’s competitive advantages and
build a marketing strategy around them
4. Help create a marketing mix that meets customer
needs and wants
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First step in building a marketing plan:
Identify the company's target market: the group of
customers at whom the company aims its products
or services
An effective marketing program depends on a
clear, concise definition of the firm's targeted
customers, not a “one-size-fits-all approach”
Technology is replacing the power of mass
marketing
Use the long tail of marketing
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The Long Tail of Marketing

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Three driving forces when marketing to
niches in the long tail:
1. Tools of production
2. Internet aggregators
3. Filtering software connects supply and
demand
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Market research: the vehicle for gathering
the information that serves as the
foundation for the marketing plan
Spot important demographic, social, and
cultural trends and adjust strategies to fit
Do research before investing in a
business!
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Individualized (one-to-one) marketing: a
system of gathering data on individual
customers and then developing a marketing
plan designed specifically to appeal to their
needs, tastes, and preferences
Primary research
Secondary research
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Primary research techniques:
Customer surveys and questionnaires
Social media
Focus groups
Daily transactions
Other ideas
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Data mining: process in which computer software
that uses statistical analysis, database technology,
and artificial intelligence finds hidden patterns, trends,
and connections in data so business owners can
make better marketing decisions and predictions
about customers’ behavior
Three types of information:
1. Geographic
2. Demographic
3. Psychographic
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How to Become an Effective One-to-One Marketer

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Relationship marketing (or customer relationship
marketing): developing, maintaining, and managing
long-term relationships with customers so that they
will keep coming back to make repeat purchases
Steps:
Build database of customer information
Identify best and most profitable customers
Develop lasting relationships with these
customers
Attract more customers like them
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Use the following principles to build a competitive
edge:
Find a niche and fill it
Retain existing customers
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The High (Annual) Cost of Lost Customers

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Use the following principles to build a competitive
edge:
Find a niche and fill it
Retain existing customers
Concentration on innovation
Make innovation a strategic priority
Set goals and objectives for innovation
Encourage new product and service ideas
Always be on the lookout for new ideas
Keep a steady stream of new products and
services flowing
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Testing the Viability of New Product Ideas

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Product
Place
Price
Promotion
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Product
Products travel through various stages of
development
Product life cycle: measures the stages of
growth
Introductory
Growth and acceptance
Maturity and competition
Market saturation
Product decline
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The Product Life Cycle

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Enhance their product offering through:
Focus on the customer
Dedication to service and customer satisfaction
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Dedication to service and customer satisfaction
Hire the right employees
Train employees to deliver superior customer
service
Listen to the customer
Define superior service
Set standards and measure performance
Examine your company’s service cycle
Empower employees to offer superior service
Use technology to provide improved service
Ensure top management’s support
Give customers an unexpected surprise
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Enhance their product offering through:
Focus on the customer
Dedication to service and customer satisfaction
Devotion to quality
Total quality management: quality in every aspect of
the business and its relationship with the customer and
in continuous improvement in the quality delivered to
customers
Define, measure, analyze, improve, and
control (DMAIC)
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The Quality DMAIC Process

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Enhance their product offering through:
Focus on the customer
Dedication to service and customer satisfaction
Devotion to quality
Attention to convenience
Easy to do business with (ETDBW) index
Emphasis on speed
Time compression management:
1. Speeding new products to market
2. Shortening customer response time
3. Reducing administrative time
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Promotion
Use the power of publicity
Publicity: any commercial news covered by the
media that boosts sales bit for which a small
company does not pay
Don’t just sell – entertain
Entertailing
Connect with customers on an emotional level
Build a consistent branding strategy
Embrace social media
Facebook and Twitter
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Percentage of Companies That Have Acquired At Least One
Customer From Social Networking Sites or a Blog

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Promotion
Use the power of publicity
Publicity: any commercial news covered by the
media that boosts sales bit for which a small
company does not pay
Don’t just sell – entertain
Entertailing
Connect with customers on an emotional level
Build a consistent branding strategy
Embrace social media
Facebook and Twitter
Blogging
Online videos
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Online videos
To market successfully on YouTube, companies
should:
Develop a well-defined channel
Use the right key words
Think “edutainment”
Be funny
Post videos on multiple social media sites
Use other social media tools to promote new
videos
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Percentage of Small Business Owners Who Sat They…

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Price
The right price for a product or service depends on:
1. A small company’s cost structure,
2. An assessment of what the market will bear
3. The desired image the company wants to create
in its customers’ minds.
Non-price competition can be more effective for
many small companies
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Place
Four common channels of distribution for consumer
goods:
1. Manufacturer to consumer
2. Manufacturer to retailer to consumer
3. Manufacturer to wholesaler to retailer to
consumer
4. Manufacturer to wholesaler to wholesaler to
retailer to consumer
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Two common channels of distribution for
industrial goods:
1. Manufacturer to industrial user
2. Manufacturer to wholesaler to industrial user
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