MARKETNG_PLAN_CH7_EFF - Building a Guerrilla Marketing Plan...

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Unformatted text preview: Building a Guerrilla Marketing Plan Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy 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. “Secrets” Understand target customers’ needs, demands, and wants before competitors can. Offer them products and services to satisfy those needs, demands, and wants. Provide customers with quality, service, convenience, and value so they will keep coming back. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy A Winning Marketing Strategy A Winning Marketing Strategy Three vital resources: People ­ the most important ingredient in a successful marketing strategy. Information ­ the fuel that feeds the marketing engine; without it, the marketing engine sputters and stops. Technology ­ a powerful marketing weapon, but what matters most is how a company integrates technology into its overall marketing strategy. A Guerrilla Marketing Plan Example: Jones Soda http://www.jonessoda.com/ Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Four Objectives of a Guerrilla Marketing Plan Pinpoint the target markets a company will serve Determine customer needs, wants, and characteristics through market research Analyze a company’s competitive advantages and build a marketing strategy around them Create a marketing mix that meets customer needs and wants Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Pinpointing the Target Market First step: 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 “one­size­fits­all approach.” Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Pinpointing the Target Market Key: Understanding target customers’ unique needs, wants, and preferences. Opportunity: Increasing populations of multicultural customers. Target customer must permeate the entire business. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Market Research Market research ­ the vehicle for gathering the information that serves as the foundation for the marketing plan. How to Conduct Market Research: Define the objective. Collect the data. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Collect the Data Individualized (one­to­one) 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. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy How to Become an Effective One­to­One Marketer How to Become an Effective One­to­One Marketer Identify your best customers, never passing up the opportunity to get their names. Collect information on these customers, linking their identities to their transactions. Enhance your products and services by giving customers information about them and how to use them. Successful One-to-One Marketing Calculate the long-term value of customers so you know which ones are most desirable (and most profitable). Source: Adapted from Susan Greco, “The Road to Oneto-One Marketing,” Inc., October 1995, pp. 56-66. See customer complaints for what they are - a chance to improve your service and quality. Encourage complaints and then fix them! Make sure your company’s product and service quality will astonish your customers. Know what your customers’ buying cycle is and time your marketing efforts to coincide with it - “just-in-time marketing.” Collect the Data Individualized (one­to­one) 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. Much valuable information about customers is already hidden inside companies; the key is mining it! Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Data Mining A 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. Example: Harrah’s Entertainment http://www.harrahs.com/index2.html Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Market Research Market research is the vehicle for gathering the information that serves as the foundation for the marketing plan. How to Conduct Market Research: Define the objective. Collect the data. Analyze and interpret the data. Put the information to work. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Relationship Marketing Involves developing, maintaining, and managing long­term 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 Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy FISH! Principles 1. 2. 3. 4. FISH Principle 1. Choose your attitude. FISH Principle 2. Play. FISH Principle 3. Make their day. FISH Principle 4. Be present. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Guerrilla Marketing Principles Find a niche and fill it Don’t just sell; entertain – “entertailing” Build a consistent branding strategy Strive to be unique Connect with customers on an emotional level Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Guerrilla Marketing Principles Focus on the customer Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Focus on the Customer 67% of customers who stop patronizing a business do so because an indifferent employee treated them poorly. 96% of dissatisfied customers never complain about rude or discourteous service, but... 91% will not buy from that business again. 100% will tell their “horror stories” to at least nine other people. 13% of those unhappy customers will tell their stories to at least 20 other people. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy The High Cost of Lost Customers The High Cost of Lost Customers If you lose . . . 1 customer a day $ Spending $10 weekly Spending $5 weekly 94,900 $ 189,800 Spending $50 weekly $ Spending $100 weekly Spending $200 weekly Spending $300 weekly 949,000 $ 1,898,000 $ 3,796,000 $ 5,694,000 2 customers a day 189,800 379,600 1,898,000 3,796,000 7,592,000 11,388,000 5 customers a day 474,500 949,000 4,745,000 9,490,000 18,980,000 28,470,000 10 customers a day 949,000 1,898,000 9,490,000 18,980,000 37,960,000 56,940,000 20 customers a day 1,898,000 3,796,000 18,980,000 37,960,000 75,920,000 113,880,000 50 customers a day 4,745,000 9,490,000 47,450,000 94,900,000 189,800,000 284,700,000 100 customers a day 9,490,000 18,980,000 94,900,000 189,800,000 379,600,000 569,400,000 Focus on the Customer Treating customers indifferently or poorly costs the average company from 15% to 30% of gross sales! Replacing lost customers is expensive; it costs five times as much to attract a new customer as it does to sell to an existing one! Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Focus on the Customer About 70% of a company’s sales come from existing customers. Because 20% of a typical company’s customers account for about 80% of its sales, no business can afford to alienate its best and most profitable customers and survive! Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy How to Focus on the Customer When you create a dissatisfied customer, fix the problem fast. Encourage customer complaints. Ask employees for feedback on improving customer service. Get total commitment to superior customer service from top managers ­ and allocate resources appropriately. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy How to Focus on the Customer (Continued) Allow managers to wait on customers occasionally. Develop a service theme that communicates your attitude toward customers. Reward employees “caught” providing exceptional service to customers. Carefully select and train everyone who will deal with customers. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Guerrilla Marketing Principles Focus on the customer Devotion to quality Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Devotion to Quality World­class companies treat quality as a strategic objective, an integral part of the company culture. Total Quality Management (TQM) ­ quality not just in the product or service itself, but in every aspect of the business and its relationship with the customer and continuous improvement in the quality delivered to customers. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Im lyz na e A M ea e ur s e ov pr l ro t on C Sustain Sustain quality improvements. improvements. Make changes to the process and measure improvements. improvements. Use statistical tools Use to find causes of quality to problems. problems. Measure important outcomes. outcomes. e fin De Define the problem. Adapted from: Walter H. Ettinger, MD, “Six Sigma,” Trustee, September 2001. P. 14. Increased Return on Quality Investment The Quality DMAIC The Quality DMAIC Process How Do Americans Define “Quality?” Reliability (average time between breakdowns) Durability (how long an item lasts) Ease of use Quality Known or trusted brand name Low price Quality Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Quality Guidelines Build quality into the process; don’t rely on inspection to obtain quality. Emphasize simplicity in design. Foster teamwork. Establish long­term ties with select suppliers. Provide managers and employees with the training needed to produce quality. Empower workers at all levels of the organization. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Quality Guidelines (Continued) Get managers’ commitment to the quality philosophy. Rethink the processes the company uses now. Is there a better way? Reward employees for quality work. Develop a company­wide strategy for continuous improvement of product and service quality. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Guerrilla Marketing Principles Focus on the customer Devotion to quality Attention to convenience Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Attention to Convenience Is your business conveniently located near customers? Are your business hours suitable to your customers? Would customers appreciate pickup and delivery services? Does your company make it easy for customers to buy on credit or with credit cards? Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Attention to Convenience Are you using technology to enhance customer convenience? Are your employees trained to handle business transactions quickly, efficiently, and politely? Do your employees use common courtesy when dealing with customers? Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Attention to Convenience Does your company offer “extras” to make customers’ lives easier? Can you adapt existing products to make them more convenient for customers? Does your company handle telephone calls well? Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Guerrilla Marketing Principles Focus on the customer Devotion to quality Attention to convenience Concentration on innovation Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Concentration on Innovation Innovation ­ the key to future success. Innovation ­ one of the greatest strengths of the entrepreneur, showing up in the new products, techniques, and unusual approaches they introduce. Entrepreneurs often create new products and services by focusing their efforts on one area and by using their size and flexibility to their advantage. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Stimulating Innovation Make innovation a priority in the company. Measure the company’s innovative ability. Set goals and objectives for innovation. Encourage new product or service ideas among employees. Always be on the lookout for new product and service ideas. Keep a steady stream of new products and services coming. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Guerrilla Marketing Principles Focus on the customer Devotion to quality Attention to convenience Concentration on innovation Dedication to service and customer satisfaction Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Dedication to Service Goal: to achieve customer astonishment! How can you improve your service? Listen to customers. Define “superior service.” Set standards and measure performance. Examine your company’s service cycle. Hire the right employees. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Dedication to Service Train employees to deliver superior service. Empower employees to offer superior service. Use technology to provide improved service. Reward superior service. Get top managers' support. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Guerrilla Marketing Principles Focus on the customer Devotion to quality Attention to convenience Concentration on innovation Dedication to service and customer satisfaction Emphasis on speed Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Emphasis on Speed Three aspects of TCM ­ Time Compression Management: 1. Speeding new products to market. 2. Shortening customer response time in manufacturing and delivery. 3. Reducing the administrative time required to fill an order. Companies using TCM have discovered that manufacturing takes only 5% ­ 10% of total lead time. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Emphasis on Speed Re­engineer the process rather than try to do the same things ­ only faster. Study every phase of the business process, looking for ways to shorten it. Create cross­functional teams of workers and empower them to attack and solve problems. Share information and ideas across the company. Set aggressive goals for production and stick to the schedule. Instill speed in the company culture. Use technology to find shortcuts wherever possible. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Marketing on the World Wide Web With an attractive Web site, even the smallest companies can market their products and services around the globe. The Web can be the “Great Equalizer” in a small company’s marketing strategy. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Marketing on the World Wide Web Only about 40% of small companies have Web sites. Result: Small businesses make nearly 50 percent of all retail sales in the U.S., but they account for just 6% of online sales. As a marketing tool, the Web allows companies to engage customers in an interactive rather than passive setting. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy Marketing on the World Wide Web Challenges: Attracting users to the company’s Web site Converting visitors into paying customers Top­selling items on the Web: Travel services, computers and related products, books, consumer electronics, clothing, and music. Chapter 7: Guerrilla Marketing Strategy Chapter 7: Guerrilla Marketing Strategy The Marketing Mix The Marketing Mix Product Place Price Promotion Stages in the Product Life Cycle Stages in the Product Life Cycle Introductory stage High Costs Stages in the Product Life Cycle Stages in the Product Life Cycle Introductory stage Growth and acceptance stage High Costs High Sales Costs Climb Stages in the Product Life Cycle Stages in the Product Life Cycle Introductory stage Growth and acceptance stage Maturity and competition stage High Costs Sales Climb Profits Peak Stages in the Product Life Cycle Stages in the Product Life Cycle Introductory stage Growth and acceptance stage Maturity and competition stage Market saturation stage High High Costs Costs Sales Climb Profits Profits Peak Peak Sales Sales Peak Peak Stages in the Product Life Cycle Stages in the Product Life Cycle Introductory stage Growth and acceptance stage Maturity and competition stage Market saturation stage Product decline stage High High High High Costs Costs Costs Costs Sales Climb Profits Profits Peak Peak Sales Sales Peak Peak Sales & Sales & Profits Profits Fall Fall Channels of Distribution Channels of Distribution Consumer Goods Manufacturer Consumer Manufacturer Manufacturer Manufacturer Retailer Wholesaler Wholesaler Consumer Retailer Wholesaler Consumer Retailer Consumer Channels of Distribution Channels of Distribution Industrial Goods Manufacturer Manufacturer Industrial User Wholesaler Industrial User ...
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This note was uploaded on 01/11/2012 for the course MANAGEMENT MGT4914 taught by Professor Duweane during the Spring '11 term at Assumption College.

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