Creating a Powerful Marketing Plan

Learning Objective
Upon completion of this chapter the students will be able to
Describe the principles of building a guerrilla marketing plan and explain the benefits of preparing one. Discuss the role of market research in building a guerrilla marketing plan and outline the market research process. Describe how a small business can build a competitive edge in the marketplace using guerrilla marketing strategies. Discuss the 4 Ps of marketing and their role in building a successful marketing strategy.

Building a Guerrilla Marketing Plan

Marketing The process of creating and delivering desired goods and services to customers. Involves all of the activities associated with winning and retaining loyal customers. Guerrilla marketing strategies original, low-cost creative marketing techniques that allow a small company to wring more bang from its marketing bucks.

A Guerrilla Marketing Plan

1. Pinpoints the specific target markets the company will serve. 2. Determines customer needs and wants through market research. 3. Analyzes a firm's competitive advantages and builds a marketing strategy around them. 4. Creates a marketing mix that meets customer needs and wants.

Pinpointing the Target Market

First step in building a guerrilla marketing plan is to pinpoint the company's target market The specific group of customers at whom the company aims its products or services. The more a business learns about its local markets, its customers and their buyers habit and preferences, the more it can focus its marketing effort. Without a clear image of its target market, a small company tries to reach almost everyone and ends up appealing to almost no one! Learn how to reach the target market and offer goods and services designed specifically for them

Determines Customer Needs And Wants Through Market Research

Market research is the vehicle for gathering the information that serves as the foundation for the marketing plan. It involves systematically collecting, analyzing and interpreting data about companys market, customers and competitors. The objective of marketing research is to learn how to improve the level of satisfaction for existing customers and to find ways to attract new customers. Market research does not have to be time consuming, complex, or expensive to be useful.

Determines Customer Needs And Wants Through Market Research

How to Conduct Market Research: Define the problem. List all possible factor that could have caused it. Collect the data. Individualized (one-to-one) marketing A system based on gathering data on individual customers and developing a marketing program designed to appeal specifically to their needs tastes and performance Customer survey Focus group Daily transaction Other idea (suggestion system)

Determines Customer Needs And Wants Through Market Research

How to Conduct Market Research: Define the problem. List all possible factor that could have caused it. Collect the data. 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 that business owners can make better marketing decisions and prediction about customers behavior. Analyze the data and interpret the results. Draw conclusions and act.

Plotting a Guerrilla Marketing Strategy: Relationship Marketing

Customer Relationship Management Involves developing and maintaining long-term relationships with customers so that they will keep coming back to make repeat purchases. Small companies have an advantage over their larger rivals at relationship marketing. Requires a company to make customer service an inclusive part of its culture.

Steps in CRM
Collect meaningful information on existing customers and compile it in a database. Mine the database to identify the companys best and most profitable customers and their buying habits. Use the information to establish lasting relationships with these customers. Attract more customers who fit the profile of the companys best customers.

Guerrilla Marketing Strategies

Find a niche and fill it. Niche strategy allows a small company to maximize the advantage of its size Dont just sell; entertain. Entertailling- a marketing concept designed to draw customers into a store by creating a kaleidoscope of sights, sounds, smells and activities, all designed to entertain and of course sell. Strive to be unique. To create an image of uniqueness.

Guerrilla Marketing Strategies

Create an identity for your business. Can use vision to market their companies and their product and services Connect with customers on an emotional level. Customer receives an emotional boost every time they buy the product. Focus on the customer. Develop a customer focus and inspire a customer satisfaction attitude throughout the company.

Guerrilla Marketing Strategies

Devotion to quality. World-class companies treat quality as a strategic objective, an integral part of the company culture. This is the philosophy of Total Quality Management (TQM). Quality in the product or service itself. Quality in every aspect of the business and its relationship with the customer. Continuous improvement in quality Attention to convenience. Customers increasingly are looking for convenience Location, timing, service, extra offer, well trained employees, efficiency

Guerrilla Marketing Strategies

Dedication to service and customer satisfaction. Listen to customers. Define superior service. Set standards and measure performance. Examine your companys service cycle. Hire the right employees. 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. View customer service as an investment, not an expense

Guerrilla Marketing Strategies

Emphasis on speed. Use principles of time compression management (TCM): Speed new products to market. Shorten customer response time in manufacturing and delivery. Reduce the administrative time required to fill an order. Concentration on innovation. Entrepreneurs often create new products and services by focusing their efforts on one area and by using their size and flexibility to their advantage.

Benefits of Marketing on the World Wide Web

Even the smallest companies can market their products and services around the globe. 67% of small businesses that established Web sites said their sites brought in new customers. The Web can be the Great Equalizer in a small companys marketing program.

The Marketing Mix

Product Place Price Promotion

Stages in the Product Life Cycle

Introductory stage Slow sales growth, highest promotional expense, highest product prices and negligible profit. Strategy Rapid Skimming Strategy- high price, high promotional expense Slow Skimming Strategy- high price, low promotional expense Rapid Penetration Strategy low price, high promotional strategy Slow Penetration Strategy- low price, low promotional strategy

Stages in the Product Life Cycle

Growth and acceptance stage Strategy Improve product quality and add new product features and improved styling Add new models Enters new market segment Increase distribution coverage and enters new distribution channel Shift to product conviction promotion Lower price to attract new price sensitive buyers

Stages in the Product Life Cycle

Maturity and competition stage Increase in sales at decreasing rate Strategy Market modification Sales can be increased by increasing the brand users or by increasing the usage rate per user or both Product modification quality improvement, feature improvement, style improvement Market mix modification change any component of marketing mix Product decline stage Lower sales due to availability of new substitutes and changes in the consumer tastes and preferences. Strategy Reducing the number of items produced and promotional expense. Discarding the product Repositioning the product

Stages in the Product Life Cycle

Introduction Growth Maturity Decline

Total market sales

Total market profit

Lunching of the product

Rapid Increase in Sales and Maximum Profitability

Increase sales at decreasing rate

Sales & Profits Fall

Channels of Distribution Consumer Goods

Manufacturer Consumer

Manufacturer

Retailer

Consumer

Channels of Distribution Consumer Goods

Manufacturer Wholesaler Retailer Consumer

Manufacturer Wholesaler Wholesaler

Retailer

Consumer

Channels of Distribution Industrial Goods

Manufacturer

Industrial User

Manufacturer

Wholesaler

Industrial User