Principles of Business BUS101

1
Principles of Business(BUS101)

• Donald R. Simon, Esq.
• Adjunct Professor - Digital Photography
• Spring 2009

2
Principles of Business - Class 4

• Lecture Marketing 101
• Lecture Drafting a Marketing Plan
• Assignment Marketing Plan

3
Principles of Business - Class 4

• Marketing 101
• Most small biz owners do not really understand
  the process of marketing.
• Being a successful marketer requires a number of
  make-it-or-break-it skills that separate the
  mediocre (or failed) biz from the successful one.
• Some less-than-stellar products and services are
  quite successful thanks to 1st class marketing
  efforts (e.g., McDonalds).

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Principles of Business - Class 4

• Marketing 101
• You are no longer someone with a camera.
• You must consider yourself a small biz
  proprietor. Operating as a small biz is
  mandatory to be competitive and help guarantee
  survival.
• Know your objective and craft your marketing
  message accordingly.

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Principles of Business - Class 4

• Marketing 101
• In any marketing campaign, it is important to
  think about
• What is your target market?
• What is your budget?
• What medium or media will you use?
• After roll-out, what were the results?
• What adjustments need to be made?

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Principles of Business - Class 4

• Marketing 101
• Definitions.
• Marketing the manner in which product (or
  service) development, sales, advertising, public
  relations, publicity, distribution, and pricing
  are bundled together into an overall plan
  designed to deliver your company's products (or
  services) to the marketplace and, hence, to the
  ultimate customer.
• Advertising the paid promotion of goods,
  services, companies, and ideas by an identified
  sponsor.

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Principles of Business - Class 4

• Marketing 101
• Definitions.
• Public relations (or PR) influencing public
  opinion, through the presentation of a clients
  image, message, and product or service.
• Publicity focused on generating editorial media
  coverage for an organization and/or its products.
• Sales either directly or indirectly connecting,
  convincing, and contracting with customers to
  purchase your products (or services).

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Principles of Business - Class 4

• Marketing 101

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Principles of Business - Class 4

• Marketing 101
• Advertising.
• Paid promotion of goods, services, companies, and
  ideas by an identified sponsor.
• Good advertising is about repetition, but
  repetition costs .
• View advertising as an important investment
  instead of a dreaded expense.
• When starting out, focus on low-cost advertising
  methods, networking, and referrals to get your
  first clients.

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Principles of Business - Class 4

• Marketing 101
• Advertising.
• To help be cost-effective, use one of these three
  methods of developing your advertising
• Create your ads in-house, either by writing them
  yourself or by utilizing and employee who has
  advertising and creative talent.
• Work with freelance copywriters, designers, media
  buyers, etc.
• Hire an advertising agency to handle all of your
  advertising needs.

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Principles of Business - Class 4

• Marketing 101
• Advertising.
• To find the advertising resource thats right for
  your biz, watch, read, or listen to media, select
  the ads you like, and then call the biz thats
  doing the advertising and find out who produced
  the ad.
• Or simply network with other small biz owners,
  vendors, and customers who have advertised and
  ask questions about what worked for them.
• Shop around for services.

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Principles of Business - Class 4

• Marketing 101
• Types of Advertising.
• Yellow Pages
• Largely created for, and belong to, hometown
  retailers and service suppliers.
• If your clientele is primarily local, consider
  the Yellow Pages first.
• Allows smaller biz to compete with bigger ones.
• Often your product or service may fit in more
  than one category.

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Principles of Business - Class 4

• Marketing 101
• Types of Advertising.
• Newspapers
• Generally requires less cash outlay than other
  forms of advertising.
• Great for specific targeting (such as zoned
  advertising) in which areas of town are targeted
  for specific advertising content in news sections
  tailored to them.
• Have a shorter shelf life than other forms of
  print advertising.

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Principles of Business - Class 4

• Marketing 101
• Types of Advertising.
• Radio
• Good for targeting a specific demographic group
  or geographic area.
• Allows for short lead times and can be directed
  to people in their cars.
• Studies indicate that approx. 75 of the
  responses to radio advertising occur in the 1st
  week after being aired.
• Frequency is important! Important to run ads
  over and over again to catch attention.

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Principles of Business - Class 4

• Marketing 101
• Types of Advertising.
• Television
• Adds prestige to the biz, but with significant
  costs.
• Network buys running your ad over an entire
  networkobviously very expensive.
• Local time and Cable TV purchasing time on your
  local TV station of cable system.
• Production costs can run the gamut.

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Principles of Business - Class 4

• Marketing 101
• Types of Advertising.
• Local and National Magazines
• Advertiser can better target a specific audience
  than a newspaper ad.
• Has a longer shelf life than other media.
• Can be a high-budget item relative to other
  media, especially for high-profile publications.

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Principles of Business - Class 4

• Marketing 101
• Types of Advertising.
• Local and National Magazines
• Must plan magazine ads well in advance.
• Cross your fingers when it comes to placement of
  your ad.
• The more upscale the audience and the bigger its
  audience, the more expensive the space.

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Principles of Business - Class 4

• Marketing 101
• Types of Advertising.
• Direct Mail
• Refers to the mailing of flyer and ads directly
  to a specific audience.
• The success or failure of any direct mail
  campaign to the quality of both the mailing list
  and the promotional piece.
• Relatively high cost.

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Principles of Business - Class 4

• Marketing 101
• Types of Advertising.
• Direct Mail--your own program
• Collect existing pieces you like and use them as
  examples for your design.
• Purchase or rent a customer list.
• Consider using a postcard where possible.
• Stagger mailings so you dont have too many phone
  calls at once.

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Principles of Business - Class 4

• Marketing 101
• Types of Advertising.
• Internet and Email
• Greatest direct mail medium of all time.
• Not referring to spam.
• Targeted emails to lists of current and potential
  customers who have give you permission to
  communicate with them via email.
• You get permission through personal contacts
  generated by phone conversations, sales calls,
  networking requests, etc.

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Principles of Business - Class 4

• Marketing 101
• Types of Advertising.
• Internet and Email--advantages
• Postage is free.
• Response rates are generally higher than other
  direct mail applications.
• Frequency is free.
• Printing is free.
• Contact is immediate.

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Principles of Business - Class 4

• Marketing 101
• Types of Advertising.
• Other Advertising Media
• Billboards.
• Transportation.
• Flyers.
• Posters.
• Handbills.

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Principles of Business - Class 4

• Marketing 101
• Public Relations.
• Networking.
• Referrals/Word-of-mouth.
• Personal appearances.
• Some PR efforts are undertaken to directly
  generate sales, while others will aim to educate,
  inform, and plant the seeds for future sales.

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Principles of Business - Class 4

• Marketing 101
• Public Relations.
• Networking.
• Chambers of Commerce, Rotary Club, etc.
• Friends, family, church, school, social
  organizations.
• A phone call, a flyer in the mail, a casual
  mention during a conversation.
• Be thought and careful when networking with
  people you know.

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Principles of Business - Class 4

• Marketing 101
• Public Relations.
• Networking.
• Make sure you have professional-looking biz cards
  and dont be shy about handing them out.
• Follow-up every networking opportunity with a
  phone call or email the next day.
• Set up a cross-referral system with other small
  biz.

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Principles of Business - Class 4

• Marketing 101
• Public Relations.
• Referrals/Word-of-mouth.
• You hear a radio spot that says that the Greasy
  Spoon Café has the best burgers in town.
• 5 minutes later, a friend that its Dannys Diner
  that serves the best burgers.
• If you are like most people, youll believe your
  friend. Such is the power of word-of-mouth
  referrals.

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Principles of Business - Class 4

• Marketing 101
• Public Relations.
• Referrals/Word-of-mouth.
• Owner cant dictate the script of a referral like
  in a radio ad.
• Word-of-mouth referrals tell it the way the
  client sees it, not as the owner would like the
  client to see itso make sure your service (or
  product) is up to snuff.
• Be sure to follow-up with satisfied clients and
  urge them to refer their friends and family to
  you.

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Principles of Business - Class 4

• Marketing 101
• Publicity.
• In effect, free advertising in the form of
  feature stories and product (or service)
  announcements distributed via print or broadcast
  media.
• Effective as a promotional tool because
  prospective clients give more credibility to what
  they read or hear when it comes from news
  sources.
• You dont pay for publicity, but can spend time
  and to generate it.

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Principles of Business - Class 4

• Marketing 101
• Publicity.
• Downside to publicity like word-of-mouth, is
  difficult to control what is said about your
  company or your products (or services).
• Make sure that what you are about to publicize
  can withstand media scrutiny.

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Principles of Business - Class 4

• Marketing 101
• Publicity.
• Issue a press release.
• Use a catchy headline and create a
  hooksomething thats interesting.
• Typical subject matter the opening of a new
  store, introduction of a new product (or
  service), or procurement of an important new
  client or key employee.
• Research to find the appropriate biz editor or
  reporter.
• Use Getting It On the Air and In Print.

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Principles of Business - Class 4

• Marketing 101
• Publicity.
• Write an article for your local newspaper on a
  subject that relates to your or your biz.
• Give talks or teach classes about your profession
  or biz to local groups such as the local Chamber
  of Commerce, Rotary Club, civic associations, and
  other groups.

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Principles of Business - Class 4

• Marketing 101

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Principles of Business - Class 4

• Drafting a Marketing Plan

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Principles of Business - Class 4

• Drafting a Marketing Plan
• What Is it?
• Contains information about your company and its
  products, marketing objectives and strategies, as
  well as how you will measure the success of your
  marketing activities.
• Describes all the marketing activities you'll
  perform during a specified time period (usually
  one year).

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Principles of Business - Class 4

• Drafting a Marketing Plan
• What Is it?
• Documents the costs associated with your planned
  marketing activities as well as the measurements
  you'll use to determine success.
• Most often, a marketing plan is a component of a
  biz plan. Marketing plans sometimes stand alone
  but should always support and be closely linked
  to a companys biz objectives.

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Principles of Business - Class 4

• Drafting a Marketing Plan
• Why Prepare One?
• Helps you establish, direct and coordinate your
  marketing efforts.
• Forces you to assess your marketplace and how it
  affects your biz.
• Provides a benchmark for later measurement.
• Preparing a marketing plan guides you in
  developing a successful marketing strategy.
• Update the marketing plan regularly.

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Principles of Business - Class 4

• Drafting a Marketing Plan
• Who Reads It?
• You, your staff, and media advisors.
• Sophisticated investors, potential biz partners,
  or loan officers at banks will mostly likely ask
  for one or want to see it as part of your biz
  plan.

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Principles of Business - Class 4

• Drafting a Marketing Plan
• Assignment (Due 2/09/09)
• Market Analysis. Who is your target market?
• Budget. How much can you spend?
• Media. How will you reach your target market?
• Goals. What do you wish to accomplish?
• Schedule. What is your implementation
  schedule?
• 12 pt. type, double-spaced, 1 margins, no
  minimum page requirement.

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Principles of Business - Class 5

• Go over Marketing Plans
• Lecture Bidding, Sales, and Negotiating
• Lecture Owners Wear Many Hats
• Assignment no assignment