In Business Marketing Class
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This document provides an overview of marketing and outlines the key components of developing an effective marketing plan. It discusses the 4 Ps of marketing - product, place, price, and promotion. It emphasizes the importance of market research and defining the target market. The document then details the critical elements that should be included in a marketing plan such as goals, objectives, strategies, budget, and tactics. Finally, it provides homework assignments and resources for small businesses to further develop their marketing.
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In Business Marketing Class
- 1. In-Business Module: MARKETING Delivering your message to the market The Small Business Development Center is partially funded by the U.S. Small Business Development Center Small Business Administration and the CLIMB Center for Advancement Oregon Business Development Department. All opinions, conclusions Portland Community College or recommendations are those of the author(s) and do not necessarily reflect Maggie Hall the views of SBA or the OBDD. hall0022@comcast.net
- 2. Where Does Marketing Fit? Facilitates an exchange between business and its customers o It gives your business a purpose because it connects you to your customer Part of initial business plan It drives your revenue goals As dynamic as your market place o Marketing plan is an annual affair 01/31/13 2
- 3. AGENDA Critical Elements of Marketing – The 4 Ps Market Research Marketing Plan Components Marketing Tactics Homework Resources 3 01/31/13 3
- 4. THE FOUR Ps Product Place Product Place Price Promotion Target Market Promotion Price Marketing strategy is creating the pathway to fulfill the wants and needs of the customer. 01/31/13 4
- 5. MARKET RESEARCH – Do Your Homework Primary Research Methods Surveys o Surveymonkey.com o Zoomerang.com Polling, Interviews o Social media – Linkedin, Facebook, Twitter Focus Groups o Research Companies o Friends & Family Reports - Industry, Associations Secondary Research Methods Library – Reference Librarian Government Reports o Census Bureau - census.gov o Bureau of Labor Statistics- bls.gov Bizcenter.org, Google, Hoovers.com Trade Associations, Journals, Newspapers, Magazines SBDC MarketLink Service 01/31/13 5
- 6. ABOUT MARKETLINK Partnership with SBDC and OMEN Provides small businesses access to the same customized market research tools and services that many large-scale companies enjoy Oregon-microbiz.org Services o Research o Sales Lead Generation o Industry and Trend Analysis o Competitive Analysis 01/31/13 6
- 7. MARKETING PLAN COMPONENTS 1. Situation Analysis 2. SWOT 3. Target Market 4. Product / Service – Positioning 5. Marketing Goals 6. Marketing Objectives 7. Marketing Strategies 8. Marketing Budget 9. Promotional Plan 01/31/13 7
- 8. MARKETING PLAN COMPONENTS 1. Market Situation Analysis o Product/Service o Target Market o $ Size o Industry Trends o Politics, Technology, Economy o Geographic Marketplace o Competitors High Feature Set Value Premium Priced Priced Low Feature Set 01/31/13 8
- 9. MARKETING PLAN COMPONENTS Keep in Mind: 2. SWOT Analysis • Competition • Substitutes Positive Negative • Supplier power • Buyer power Strengths Weaknesses • Industry rivalry • Technology • Absence of skills • Gov regs Internal • Brand • Poor brand recognition • Distribution channel • Profit margin too low • Customer loyalty • Staff • Management • Unreliable cash flow •Product quality S W Opportunities O T Threats • Change in customer • Economy External tastes • New government • New complimentary regulations market • Lack of skilled • Marketing efficiencies labor • Market growth • New competitors 01/31/13 9
- 10. MARKETING PLAN COMPONENTS 3. Define Target Market* Customer (Demo, Geo, Psych, Behav) o Who are they? o Where are they? o What are their needs and why? o How do they like to be communicated to? o What are their values? o How do they make decisions? o How will they find you? o Is your target market a good fit for your products and services? *One of the two most important components. 01/31/13 10
- 11. MARKETING PLAN COMPONENTS 4. Product / Service Positioning* o Unique Selling Proposition - USP o What problem do you solve? What need do you fulfill? o What’s your solution? o What kind of value does it provide? (economical, timely, quality, image, easy, emotional) o How does it differ from the competition? o Is your solution unique? o What does it mean to the buyer? o How will you differentiate? o Tie to your company mission *The second most important component. 01/31/13 11
- 12. POSITIONING STATEMENT TEMPLATES FOR… (who?) WHO HAVE…(what problem?) (company/product) PROVIDES…(differentiator) WHICH…(core value proposition) UNLIKE…(competitor) (COMPANY/PRODUCT)…(key differentiator) FOR (your audience) (product name) IS A (category name) WHICH PROVIDES (main benefit) UNLIKE (competitor) WHICH PROVIDES (competitor’s main benefit). 01/31/13 12
- 13. MARKETING PLAN COMPONENTS 5. Marketing Goals What do you want to achieve, where do you want to go; an outcome statement Tie to business objectives, company mission “Grow market share 20%” “Be the best fast food restaurant” 6. Marketing Objectives A specific measurement to achieve goals Make them measureable and time-based An objective can support several goals “Build our customer database to 50,000 new names for the year” 01/31/13 13
- 14. MARKETING PLAN COMPONENTS 7. Marketing Strategies The pathways to achieve your marketing objectives Introduction of new products or services, emphasize certain geographic areas or particular consumer segments, pricing strategies, or employee incentives “Price product 10% below competitors” – pricing strategy 8. Budget Development Be realistic A standard approach - % of sales o Percent of projected gross sales o Percent of past gross sales o Seasonal allocation Breakdown between Media and Non-Media costs Plan for the unexpected in your budget 01/31/13 14
- 15. MARKETING PLAN COMPONENTS 9. Marketing Tactics o Marketing Mix - Online and Offline o Search Engine Marketing, Banner Ads, Pay-Per-Click o Broadcast, Print, Direct Mail, Telemarketing, Public Relations, Mass Transit o Promotional Calendar / Flowchart o Fish when the fish are biting o Needs to be flexible o Competitive blunting o Changes in the market – economy, politics 01/31/13 15
- 17. Month January February March Week of (Mon. Start) 31 7 14 21 23 4 11 18 25 3 10 17 24 31 Indust Martin ry Luthe Key Dates & Confe r King Events rence Day Public Relations Programs Pre Co Post Press Releases nf Conf. Online Keyword/Search Keyword/Search Advertising Site Targeted Ads Affiliate Prgms Affiliate Programs Ind. Podcast Trends Advertising TV XYZ Campaign Radio XYZ Campaign Print XYZ Campaign Outdoor Research Customer Surveys Online survey Analytics Campaign Analysis 01/31/13 17
- 18. MARKETING MIX TACTICS Outbound vs. Inbound Marketing o Influence of Social Media/Communications o It’s all about The Customer Creating a Dialogue Being Authentic o Examples: twitter.com/comcastcares facebook.com/starbucks Put metrics to your tactics; track execution Awareness Interest Desire Action Business Marketing Marketing Marketing Marketing Goals Objectives Goals Strategies Tactics 01/31/13 18
- 19. WHAT’S YOUR PROMOTIONAL MIX? 1. ________________ 2. ________________ SEM Print Ads 3. ________________ 4. ________________ Radio 5. ________________ Direct Mail / Email 6. ________________ 7. ________________ Events / Trade 8. ________________ Billboard Shows 9. ________________ 10. ________________ Online Public Banner Relations Ads 01/31/13 19
- 20. HOMEWORK … Research your industry www.bls.gov/cex/ B2C www.census.gov/services/index.html B2B Research your competition o www.census.gov/econ/cbp/index.html o http://portlandmaps.com/ Research your target market o www.zipskinny.com – micro data by zip codes o www.city-data.com Create your SWOT analysis Develop your marketing plan – spend time on USP Create your marketing budget o http://office.microsoft.com/en-us/templates/TC011455561033.aspx Develop you marketing mix 01/31/13 20
- 21. MAC Program Business Development Series SBM III Business Development Series SBM I SBM II Entrepreneur Development Series Pre-venture Development Series Bizcenter.org Orientation Directed Self-Study Entrepreneur Development Program 01/31/13 21
Editor's Notes
- Write name on board Welcome to In-Business: Module #2 – Marketing of the Directed Self Study Prgm here at SBDC Marketing professional that is all about engaging consumers to make transactions happen – product off shelf, walk into a store, or click on a link on a website. I develop & manage results-driven regional and WW marketing plans from market assessment, strategy development, brand/product position to creative development and media selection. I have worked in a variety of industries from high-tech to grocery, gaming to ad agency work, with a special niche in multi-unit retail and franchise organizations. So we know a little more about each other , I would like each of you to introduce yourself , (1) tell us the name of your business , (2) how long you have been in business and (3) anything specific you want to learn in this session. Slides for a little over an hour; then questions and discussions. Jo-el Hibian is Business Advisor for all “In Business” students (971-570-8477) [email_address]
- Marketing is the planning and implementation of almost everything a company does to facilitate an exchange between itself and its customers.
- Today we are going through the critical elements of marketing A little on market research Then we’ll step through 9 components of a basic marketing plan, drill down a little on tactics and then provide you with some resources to get you started on your marketing plan.
- 4 Ps. Are what makes up the Marketing Mix for your business. These 4 categories are what you control in the whole process of bringing a product or service to market. The goal is to make decisions that center the 4 Ps on the customers in the target market in order to create perceived value and generate a positive response. In regards to your Product or Service it’s all about the consumer's needs and wants and how product specifications can satisfy those needs and wants. Talking specifically about hard-good products, the P-Product deals with a whole array of issues such as product size, color, and look & like feel of the packaging. Often, first impressions are important, especially if you are marketing a product that sells on store shelves. You would want your product to stand out or for the consumer to want to choose your product over the others on the shelf. The same can be said for Services – you need to be able to create the services customers want & need and present them in a way to get customers to choose your service over another. The second P is about Place – Place is about the sales channel. How do you make your product available to your customers – how do your customers get it? Is it through brick & mortar retail outlets, mail order or ecommerce? You want your product to be visible and/or available at the precise moment that a consumer is willing to purchase such a product, be it through an actual need or an impulse buy. Price - You need to ask yourself: do you price to a perceived value in the market? Are you pricing against the competition to gain market share? Pricing to achieve a target profit margin? Price deals with supply and demand, or how much a consumer is willing to pay for a product or service – it’s perceived “value” to the customer. It also includes decisions on discounts and special offers. Pricing is not as simple as it might seem. In some situations, a lower price will not necessarily mean that more will be sold at that lower price level. Mall kiosk example. Pricing often affects the consumer's perception of the attractiveness of a product. Promotion - How to communicate to my customer? What vehicles, mediums (DM, TV, SEM), mix of mediums do I use? Promotion deals with the actual selling, advertising, or publicity of the product; it entails all your communications with your customers, trying to convince or persuade them to purchase your products or services. As we go through what a marketing plan is, remember that your marketing strategy is about creating a pathway to fulfill the wants & needs of the customer.
- You should consider research required homework. If you don’t do the research you will be in a world of hurt. Primary Research are methods you execute yourself and/or purchase Surveys – asking questions, short or long; good for rankings, such as ranking from 1-10 what factors do you consider in deciding where to go for lunch. Pollings, Interviews – Polls can be yes/no questions; interviews get you more qualitative information, like understanding your customer’s values, attitudes Focus groups – everyone aware of how a focus group works? Reports Secondary Research is information already available and for the most part, free Reference Librarians – great; direct you exactly what you are looking for. Governmt Reports – for demographic information (age, income, gender, etc) SBDC’s own BizCenter.org – Under “Information Resources” over 1,000 sources Hoovers – companies, industries, people ANY QUESTIONS ON TYPES OF RESEARCH?
- MarketLink is available through a partnership between SBDC and the Oregon Micro Enterprise network, OMEN. I have a handout that provides you with more information & I believe this sheet was also available in your Orientation packets. You can get research consultation, a target market research report, industry analysis report & competitive analysis report done for $380. We do recommend you do your own research first. Utilize them if you need further information.
- List of 9 components that make up an annual marketing plan. I wanted to go over these 9 components as the basis to write your annual marketing plan to go with your annual business goals. You update your marketing plan each year based on your business goals. Your marketing plan is driven solely on your business goals. Throughout the year your budget and promotional plans can change depending on the marketplace. However, your goals and strategies should not change unless your business strategies change. Just ask yourself when you execute any advertising – “is this on strategy to the marketing plan?” “Is my marketing plan on strategy with the business goals?”
- First write up a market situation analysis – this is your “state of the union,” describing the current situation for your product or service. Need to do this every year, because nothing stays the same – your product or services could change, the market, industry trends, economy & political environments, etc. This shouldn’t be a long description. Product/Services – and on an annual basis ask yourself did they change? Target – dollar size of your market; has it grown or shrunk? Demographics – age (what 25 yrs olds were like 5 yrs ago, doesn’t necessarily describe the 25 yr old of today), income (probably flat or down because of the economy), education, employment, location Put a face, to your audience; Psychographics – psychological variables, more about behavior; life style, interests, values Industry trends – past, present, future of industry, along with outside factors affecting your industry such as politics, technology or economy. Then start going into a micro-scopic view of…. Geographic Marketplace – if you have a store, is your marketplace 25 mile-radius around your store or is it only 3 miles; population, economics, local politics Competitors – develop a perception map of your competitors. The map gives a graphic depiction of the relationship between you & competitors based on criteria used by your consumers in making purchase decisions.
- Does anyone know what a SWOT analysis is: Here is a handout for you. These can be fun and very enlightening to do. Use SWOT for analyzing product development ideas, growth plans, annual biz strategy tool. Broken into quadrants - Internal (within your business) and External (outside your business) forces; Positive and Negative features In your marketing plan, have it reflect those things in relation to your consumer & their wants & needs, and what you provide in regards to product or service. DO WE HAVE TIME TO DO SOMEONE’S SWOT ANALYSIS REAL QUICKLY?
- Defining your Target Market is one of the 2 most important components to your marketing plan. You need a clear and detailed picture of your customer to understand how to market to them.
- Your product or service positioning is the second more important component in your marketing plan. It’s all about setting yourself apart from the competition and making your product or service the PREFERRED product the customer wants to buy. Has anyone developed their unique selling proposition – what makes you so special that customers really want/need. More times than not, your positioning statement will tie into your company mission or vision statement. It’s indicative to the nature of the business. (NEXT SLIDE IS POSITIONING STATEMENT TEMPLATE)
- Two examples of positioning statements. Any volunteer to develop their positioning statement here?
- Goals: Why - To enable a company to control its marketing plan. To help to motivate individuals and teams to reach a common goal. To provide an agreed, consistent focus for all functions of an organization. “ Grow market share by 20%” would be a goal. “ Build the customer database” will be the measurement of achieving the 20% growth.
- Strategies are the pathways, or specific highway you are going to use to get to your marketing objective of 50,000 new customer names in your database. May be you get those new customer names by introducing a new service or product, emphasize certain geographic areas ( expand into Clark County for the year ), pricing strategies & you can even have internal strategies that help you achieve your objectives such as employee or sales incentives. LET ME STOP HERE FOR A SECOND: CAN ANYONE THINK ABOUT A STRATEGY THAT WOULD WORK IN THEIR MARKETING PLAN? * * * Once you have your goals, objectives & strategies, you now need to develop a budget that is realistic. One way of creating a marketing budget is based off your sales. Be sure to plan for both media and non-media costs, such as administration costs, postage, etc. And plan for the unexpected. Signage can get destroyed by high winds. Don’t budget so tightly that you can’t handle some unexpected costs.
- Out of your budget you begin to put down the tactics or marketing mix that you will execute to marketing in Clark County, to get 50,000 new customer names, to grow your market share by 20%. See how everything is tied together? With the evolution of technology you need to think of marketing in both the online and offline worlds. Once you have your marketing mix decided upon, you put your tactics down in a promotional calendar or flowchart – I’ll show you an example in a minute. When creating your calendar be aware of any seasonality to your business and when your customers shop for your products or services. FISH WHEN THE FISH ARE BITING.
- This is an example of a marketing budget; you could also use it as your promotional calendar or flowchart. This template comes from Microsoft.
- Here is a marketing promotional calendar template just showing activities broken down to a weekly basis. So that ends all your marketing plan components. Now let’s talk a little more about marketing mix and tactics.
- Technology has enabled 2 big changes in marketing: Social communications or social media And the ease of measuring the results of your tactics. Traditional Outbound tactics (tv, radio, print) have not gone away but need to make room for the Inbound tactics of social networks such as Facebook, Twitter and blogs. Inbound tactics are more about an exchange of information and social interaction which was driven by Web2.0 technology. So it’s about the customer, creating a dialogue and being authentic. Don’t open a twitter account with your business name and do nothing but promote yourself and have a one-way conversation. 2 Examples of 2-way exchanges between business & customers – Starbucks & Comcast Tie Measurement goals to tactics: Measurement of tactics tell you how effective that activity/tactic is for you but also gives you a gauge on where you are in relation to achieving your marketing objectives, and business goals. With any and all of your communication tactics you want to move customers from awareness to interest to desire to action “buying your product” – much like your marketing plan components build of each other.
- LET’S DO AN IN-CLASS EXERCISE FOR 6 MINUTES. TAKE A COUPLE OF MINUTES AND WRITE DOWN SOME IDEAS FOR PROMOTIONAL TACTICS YOU WOULD USE FOR YOUR BUSINESS. NOW PARTNER UP WITH ANOTHER PERSON AND SHARE YOUR MARKETING MIX LIST WITH EACH OTHER, EXPLAINING WHY YOU PICKED THE TACTICS ON YOUR LIST. Learn a little something from each other’s marketing mix list.
- So here are some resources and a list of things you need to do to start developing your business’s marketing plan. Did we touch on everything that you had requested from the beginning of the class? Are there any other questions you have? Thank you for your time, I enjoyed meeting you and hope you are able to leave with some new information and an appetite to learn more. Check that everyone has an advisor (Jo-el); if not connect them to her.