Marketing for Entrepreneurs

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Marketing 101 for Entrepreneurs. Includes target marketing, social media, marketing mix. Prepared by Maine Social Media Marketing Berserker, John Moore

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Marketing for Entrepreneurs

  1. 1. Marketing For Entrepreneurs Windsor PR http://www.windsorpragency.com Twitter: @WindsorPR Facebook: http://www.facebook.com/WindsorPR
  2. 2. What is Marketing? <ul><li>“ Because the purpose of business is to create a customer, the business enterprise has two--and only two--basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business” </li></ul><ul><li>- Peter F. Drucker </li></ul>
  3. 3. What is Marketing? <ul><li>AMA Definition: “Marketing is 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.” </li></ul><ul><li>John’s Definition: “Marketing is anything you do which affects the behavior of customers. Ideally marketing is intended to generate behavior which has a positive effect on the business.” </li></ul>
  4. 4. What is Marketing? <ul><li>Includes </li></ul><ul><ul><li>Marketing Mix </li></ul></ul><ul><ul><li>Location Selection </li></ul></ul><ul><ul><li>Customer Service </li></ul></ul><ul><ul><li>Branding </li></ul></ul><ul><ul><li>How you Answer the Phone </li></ul></ul><ul><ul><li>The Cleanliness of Your Bathrooms </li></ul></ul><ul><ul><li>Etc… </li></ul></ul>
  5. 5. Pre Startup Activities <ul><li>Identify a Target Market </li></ul><ul><li>Identify the Problem </li></ul><ul><li>Competitive Research </li></ul><ul><li>Points of Potential Differentiation </li></ul>
  6. 6. Target Market <ul><li>Trying to create a new market is an uphill and expensive battle </li></ul><ul><ul><li>Ideally sell to people already buying similar products / services </li></ul></ul><ul><li>Questions </li></ul><ul><ul><li>Is the target niche identifiable? </li></ul></ul><ul><ul><li>Can they afford what you’re selling? </li></ul></ul><ul><ul><li>Do they want or need something that your product / service provides? </li></ul></ul>
  7. 7. Doug Hall Research <ul><li>6 year analysis of 4000 brands came up with 3 success criteria </li></ul><ul><li>Overt Benefit Low: 13%, Medium: 26%, High: 38% </li></ul><ul><li>Real Reason to Believe Low: 18%, Medium: 29%, High: 42% </li></ul><ul><li>Dramatic Difference Low: 15%, Medium 40%, High: 53% </li></ul>
  8. 8. Benefits <ul><li>Features are things or characteristics </li></ul><ul><li>Benefits answer the question, “So, what’s in it for me?” </li></ul>
  9. 9. Reason To Believe <ul><li>Credibility, Proof of Claims, Explanation How </li></ul><ul><li>What types of things increase credibility? </li></ul><ul><ul><li>Press </li></ul></ul><ul><ul><li>Testimonials </li></ul></ul><ul><ul><li>Endorsements </li></ul></ul><ul><li>Proof of claims </li></ul><ul><ul><li>Real numbers </li></ul></ul><ul><ul><li>Research </li></ul></ul><ul><ul><li>Before and After Photos </li></ul></ul><ul><li>How Does it Work? </li></ul>
  10. 10. Dramatic Difference <ul><li>People resist: </li></ul><ul><ul><li>Change </li></ul></ul><ul><ul><li>Sales – fear a loss of control </li></ul></ul><ul><li>To gain attention, your difference must be significant </li></ul>
  11. 11. Marketing Mix (4Ps) <ul><li>Neil Borden – Marketing Mix - 1948 </li></ul><ul><li>Marketing Resource Distribution to: “achieve the ideal way for the organization to reach and satisfy their customers in their target market </li></ul><ul><li>Essential to marketing planning </li></ul>
  12. 12. Marketing Mix (4Ps) <ul><li>Product </li></ul><ul><li>Price </li></ul><ul><li>Place </li></ul><ul><li>Promotion </li></ul>
  13. 13. Positioning (The 5 th P) <ul><li>The process by which marketers create an identity in the minds of the target market </li></ul><ul><ul><li>Finding “mindspace” </li></ul></ul><ul><ul><li>Again Differentiation </li></ul></ul><ul><li>May include </li></ul><ul><ul><li>Branding </li></ul></ul><ul><ul><li>Any of the 4 Ps </li></ul></ul><ul><ul><li>Channel </li></ul></ul><ul><ul><li>Target Market </li></ul></ul><ul><li>Memes, slogans, jingles, logos </li></ul>
  14. 14. Emotion as a Key Element <ul><li>All decisions are based on emotion and justified with logic </li></ul><ul><li>We buy a lot of stuff to feel good. </li></ul><ul><li>We move away from pain and towards pleasure </li></ul>
  15. 15. 3 Ways to Increase Revenue <ul><li>Increase your number of customers </li></ul><ul><li>Increase your average transaction size </li></ul><ul><li>Increase your rate of transactions per customer </li></ul>
  16. 16. Understand Average Customer Lifetime Value <ul><li>Average Transaction Amount </li></ul><ul><li>Average rate at which a customer buys </li></ul><ul><li>Average length of time someone remains a customer </li></ul><ul><li>Example: An average customer buys $10 per transaction, 12X per year, and stays a customer for 3 years. The Average Customer Lifetime Value = $360 </li></ul>
  17. 17. Average Customer Lifetime Value <ul><li>Example (continued): </li></ul><ul><li>Your ACLV is at $360. </li></ul><ul><li>Let’s you can add an upsell that increases the average transaction to $12. Now, you run a promotion that get’s a customer in 2 more times per year (14 times). And you spend effort on retention and keep your average customer for 4 years. </li></ul><ul><li>New ACLV = $672, a lifetime revenue increase of 86.6% </li></ul>
  18. 18. Average Customer Lifetime Value <ul><li>If you have 2,000 customers, with an average yearly spend of $120 (12 purchases a year at $10 average), your revenue is $240,000 per year. </li></ul><ul><li>Again increase the purchases to 14 times per year at $12 average purchase and your yearly revenue goes to: $336,000 (+40%) </li></ul><ul><li>Now, increase your customer base by 10% to 2,200 as well and your yearly revenue is: $369,000 or (+54%) </li></ul>
  19. 19. So, Where Can You Focus Marketing Efforts <ul><li>Customer acquisition </li></ul><ul><ul><li>4-7 Times more expensive than generating repeat business </li></ul></ul><ul><li>Customer retention </li></ul><ul><ul><li>Loyalty programs </li></ul></ul><ul><ul><li>Personal touches </li></ul></ul><ul><ul><li>Good customer service </li></ul></ul><ul><li>Increasing transaction rates </li></ul><ul><ul><li>Future coupons </li></ul></ul><ul><ul><li>Reminders </li></ul></ul><ul><li>Increasing average transaction amounts </li></ul><ul><ul><li>Upsales </li></ul></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>Add-ons </li></ul></ul>
  20. 20. Simplified Marketing Cycle <ul><li>Get Attention Peple need to know you exist. </li></ul><ul><li>Position You must gain peoples trust. </li></ul><ul><li>Sell Obtain the sale. </li></ul>
  21. 21. Simplified Marketing Strategy <ul><li>Find out where your target market congregates. </li></ul><ul><li>Go there. </li></ul><ul><li>Provide value. </li></ul>
  22. 22. Best Promotional Tools <ul><li>Higher up = Most effective + least expensive </li></ul><ul><li>Website (must have) </li></ul><ul><li>PR </li></ul><ul><li>Social media </li></ul><ul><li>Word of mouth </li></ul><ul><li>One on one sales </li></ul><ul><li>Direct mail </li></ul><ul><li>Paid advertising </li></ul>

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