Marketing Bootcamp

Marketing Bootcamp Thom Poole April 2011

Agenda What is marketing Marketing - basic concepts Marketing mix Marketing planning Conclusions

Why me? International marketing director with 25 years experience Developed the first MSc in digital marketing Written papers on ‘Data Privacy’, ‘The Marketing Art of the Opt-in’ and ‘Trust in Business and Marketing’ Written many books, including ‘a guide to ethical digital marketing’ called ‘Play It By Trust’ Held senior marketing positions at O2, Black & Decker and Hilti A Fellow of the Chartered Institute of Marketing, and Chartered Marketer. Member of the Worshipful Company of Marketors Consultant & business mentor for marketing strategy and implementation

Definitions 1 Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. Chartered Institute of Marketing (CIM) 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. American Marketing Association (AMA)

Definitions 2 Marketing is all about exploitation! You learn everything you can about your customers, marketplace, competitors, etc... and you exploit your knowledge... to give your customers what they want, think they want, or you can persuade them they want! Thom Poole

Role of marketing marketing provides the ammunition for the front-line of sales that ammunition could be the right product, competitive pricing, inspiring collateral, intuitive training, etc...

Provides much more… The voice of an organisation – public relations The interactivity of the organisation – digital marketing The eyes and ears of the organisation – research The managers of the organisation – customer-centric processes The trackers of success – marketing and business metrics Marketers shape and develop new products; develop and track strategic and tactical plans; assign and control budgets; and build knowledge about the organisation’s customers.

Critical business function Marketing is critical for organic growth of a business and its central role is in creating, communicating, capturing and sustaining value for an organisation. Marketing helps a company create value through better understanding of the needs of its customers and providing them with innovative products and services. This value is communicated through a variety of channels as well as through the firm's branding strategy. Effective management of customers and pricing allows the firm to capture part of the value it has created. Finally, by building an effective customer-centric organisation a business attempts to sustain value over time. Source: Harvard Business School

Roles Marketing is perhaps the most important activity in a business because it has a direct effect on profitability and sales. Larger businesses will dedicate specific staff and departments for the purpose of marketing.

SME marketing Look bigger Improve the chance of procuring venture capital or other investments Attract more clients Brand yourself Convey that you are a business Provide a sense of business stability Be more memorable Explains your business name/ values Endear your company name and identity to your clients Explains unusual lines of business Demonstrates how you differentiate Stand out in your field Comply with expectations Demonstrate commitment and personal pride in your business Source: Yahoo! small business advice

The mix The marketing mix was coined by Neil Borden in 1965 and used a cookery analogy. Originally, the mix comprised of product, price, promotion and place (distribution). The mix was extended to the ‘7 P’s’: Product or service Price Promotion Place (distribution) People Process Physical evidence

Product Design Technology Usefulness Convenience Value Quality Packaging Branding Accessories/consumables Warranties

Pricing Premium pricing Price skimming Penetration pricing Psychological pricing Cost-plus pricing Loss-leader pricing Economic pricing Product line pricing Optional product pricing Captive product pricing Product bundle pricing Promotional pricing Geographic pricing Value pricing Pricing strategies

Promotion Special offers Advertising Endorsements User trials Direct marketing Collateral, such as leaflets, posters and brochures Merchandising, such as gifts Competitions Joint ventures Digital marketing, such as websites, email marketing, etc

Place (distribution) Retail Wholesale Mail order Internet Direct sales Peer to peer Multi-channel Point of sale

People Employees Management Culture Customer service Environment Community

Processes In service organisations, processes are traceable and demonstrate capability and competence. At each stage of the process, marketers must demonstrate: Delivery of value through all elements of the marketing mix Feedback is acknowledged and the mix be altered as appropriate Customers are retained, and other services or products are extended and marketed to them The process itself can be customised to the needs of different individuals, experiencing a similar service concurrently

Physical evidence Physical evidence is vital to demonstrate quality and trustworthiness. Internet/web pages Paperwork (such as invoices, tickets and despatch notes) Brochures Furnishings and decoration Signage (e.g. on buildings and vehicles) Uniforms Business cards The facilities Quality marks Recommendations and testimonials Service delivery

Planning Strengths of organisation Market needs Weakness of organisation Design for creating value Existing competitors Expected competitors

The plan Describe your market and the characteristics and size of each market segment R esearch what customers value Compare the distribution channels for reaching customers Profile your competitors and what they're offering Identify other key factors influencing your business environment Review the effectiveness of previous marketing initiatives Assess the profitability and sales potential of different customers and market segments Decide who to target among both existing and potential customers Set SMART objectives Decide how you will price each product or service

Tactical orientation Tactical Orientation Strategic orientation Board Senior management Middle management Operations

Strategic orientation Tactical Orientation Strategic orientation Board Senior management Middle management Operations

Contents Executive summary Mission statement Financial summary of revenue, expenses and earnings Marketing audit SWOT analysis Assumption of key determinants Overall marketing objectives and strategies Expected results Contingency plan Budget

Marketing matters more Markets are incredibly complex and competitive Competitive intensity has tripled in most markets Typical market segmentation models now have 400 clusters Product lifecycles have reduced by 70% over the last decade Source: Peter Fisk – Marketing Genius

Customers are important Customers are much more powerful than ever Consumers now receive 1500 messages per day 54% of consumers have registered for ‘do not call ’ Purchase decisions are typically made in 2.6 seconds Source: Peter Fisk – Marketing Genius

Shareholders demands Shareholders demand higher, faster returns Intangible assets make up 78% of the Fortune 500 company values 60% of brand investment impacts future years 21% of CEOs are marketers delivering 5% better total systems resourcing Source: Peter Fisk – Marketing Genius

Marketing Bootcamp

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