Marketing

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Marketing Promoting Your Small Business Part II
WANTED CUSTOMERS For a Lifetime!
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Promoting Yourself Part IIExercise Is Your Net
Working?

• 20 second elevator blurb
• Present Your Business Cards to the people that
  you think could use your services
  
• Collect business cards from the people whose
  services you could use.
  
• What will you do with those business cards?
• Hint Start a Customer Database!

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The 3 Rs of Target Marketing

• Researching Your Market
• Reaching Your Market
• Retaining Your Market

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Putting Your Ps to Work for You

• All of your Ps work together to design a
  marketing strategy..this is the mix that
  reaches your Target Market
  
• Product/Service Positioning- keep the needs of
  the customers in mind!
  
• Place- means distribution and the distribution
  channels used
  
• Price- Recognize the Price Ceilings Floors
• Promotion- Timing of Market entry, Advertising,
  Publicity, Alternative Marketing, Marketing on
  the Net, Community Marketing
  

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Product- Service Line

• Positioning the Product/ Service Line is
  critical
  
• Distribution channels are ALL of the individuals
  and organizations involved in moving your product
  (or service) from producer to the end-user
  
• Many of these folks are your Internal Customers
  (Internal Market)
  
• Developing strategic alliances is key

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PLACEthe Pipeline to the Customer

• Consider the needs, attitudes and location of
  your target market your suppliers and
  employees
  
• What is the primary method?
• Direct Sales, Mail Order, Wholesale, Consignment
• Where will the service be provided?
• Location Distribution Factors to consider
• (market, supplies ,labor force, competition,
  cost, home-based or not
  

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Pricewith a profit margin

• Biggest obstaclepricing a product or service for
  what we WANT to sell it for, rather than what it
  WILL sell for
  
• Price Ceiling is the top amount the market will
  bear and is determined by the market
  
• Price Floor is the lowest amount you could sell
  still meet expenses
  
• Profit Margins differ greatly in every industry
  and in business size
  
• When determining your pricing strategy take into
  account all the costs involved!

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Promotionanyway to advertise your
business.Evaluate Your Options

• Timing of Market Entry -adjust to the nature of
  your business. Is your product seasonal?
  
• Advertising -reminding customers about the
  benefits of your product in printed or spoken
  matter
  
• Publicity or PR -free advertising
• E- Marketing
• Alternative Marketing Displays, Community
  Involvement, Networking, Trade Shows,
  Direct-Mail, Brochures, Telemarketing , promo
  gimmicks

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Implementation of Marketing Strategy Useful
Small Business Strategies

• Differentiation your business is made to appear
  different from the others (think in terms of a
  yellow page ad)
  
• Location location geographically, virtually,
  and in the minds of your clients, like
  Fredericks of Hollywood
  
• Specialization Being specialized helps in a
  saturated market, for example, a bookkeeper
  that specializes in contractors, or a
  automobile repair business that specializes in
  BMWs
• Positioning More likely used by larger
  corporations i.e. THE other Phone Company
  
• Substitution Attract customers by offering one
  product or service at a low price and then sell
  an additional product at a higher price. A good
  example is the Mc Ds Buck Menu or hair salon
  that has a 39 perm special

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Implementation of Marketing Strategy MORE
Useful Small Business Strategies

• Niches finding a small segment of the market
  that is untapped grab the customers attention
  
• Star One, when you are a star (even a local
  politician) Two, when you use the name of a star
  to draw attention (OJ Simpson and Samsonite
  Luggage, or the George Forman Grill)
• Benefit People dont buy features, they buy
  benefits! Remember to market the BENEFITS!
  
• Tell them the Benefits.
• Overnite Web Design
• Clean as a Whistle Janitorial

Most small businesses use two or more strategies!
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What is in a Name?

• The name should
• Contain the Marketing Strategy
• Describe the business
• Show a Benefit for the customer (not you)
• Be an attention-grabber
• Be easy to remember

Eat Today at E. Colis Place! Good Food!
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Selecting a Slogan (or tag line)

• Often, the name is not enough to grab the
  interest or to tell the story
  
• Add a slogan to emphasize the benefit or grab
  attention
  
• The Bookkeeping Company
• For Timely Financial Statements
• SL Pemberton
• The Furniture Dealer
• The Mechanics Bank
• Northern Californias Most Trusted Bank since
  1905.
  
• Napa Downtown Association
• Where the Valley Begins..

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The Most Costly Form of MarketingBuilding
Relationships

• Also, the most effective!
• Marketing is about building relationships and
  referrals
  
• People want to know the people they are doing
  business with
  
• Building Customers takes time
• Think, long-term ROI, not immediate
  gratification
  

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Action Ideas to Build Relationships

• Plant a seed.
• Overcome the fear of cold-calling.
• Introduce yourself to someone you dont know (in
  a safe environment).
  
• Give yourself permission to fail.
• You miss 100 of the shots you never take.
• Wayne Gretsky

• 5. Ask permission to
• follow-up.
• 6. FOLLOW-UP!
• 7. Create a hit list of companies and send a
  personal note.
  
• 8. Get to know your contacts (start a contact
  file).
  
• 9. LISTEN TO THEIR NEEDS!
• 10. Thank people!

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Advertising

• Takes planning, time, persistence and money!
• Image Identity is developed
• Determine the most appropriate form of Media
• Involve the audience
• Inform the customer about the benefits
• Illustrate the benefits
• Always track your advertising response for
  effectiveness

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Tracking Your Advertising DollarsYou need to
know which advertisement pays

• Develop an Advertising Worksheet to plan a
  targeted advertising campaign.
  
• Systematically TRACK your referrals through an
  Advertising Response Record
  
• Ask your clients how they were referred to you.
  Train your employees to ask how they heard about
  you. Remember to thank the referrals!
  
• Many small business owners join Leads groups to
  help stimulate referrals.

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THE YELLOW Pages

• One of the most common forms of advertising is
  the Yellow Pages
  
• When people look in the Yellow Pages they are
  ready to buy But, ask yourself when do you look
  in the book? Do you look for a massage therapist?
  How about a plumber?
• Use a Marketing Strategy in the Advertisement.
• Size is not always the biggest attention
  grabber..it is the message!
  
• Follow-up is critical. Potential customers will
  call, but you need to respond.

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Service Directories Classified Ads

• Service Directories appear in most newspapers,
  before the classified ads.
  
• Many papers will have special sections or
  special inserts for certain industries. Call them
  to find out.
  
• Solano Napa Counties are unique because of the
  many localize papers, in specific communities.
  
• The advantage of a Service Directory is that you
  can change or drop the ad at anytime and save
  .
  
• Classified are also like Yellow Pages, where you
  are listed alphabetically.
  
• You can test the effectiveness by advertising
  once (Sunday is best) before paying for a whole
  month, or committing to a whole year.

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Door to Door Flyers

• Still one of the most cost effective method of
  getting the word out.
  
• Take the time to design a professional
  flyer..it can be the standard 8 ½ x 11.
  
• Test Market the flyer with one-hundred copies.
  See if you get interest and at least one
  customer
  
• Think of the appropriate
• Location, Message, Timing
• Be familiar with zoning practices.
• Remember, door-to-door work for some businesses
  and not for others!

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Effective Brochures

• A brochure for your business should be
  eye-catching, professional and without
  grammatical errors, easy to read,
  eye-pleasing to follow.
• Keep in mind your target market needs-
• Include testimonials from customers.
• Always focus on your unique and special
  expertise.
  
• Brochures, business cards, press release kits,
  and all marketing materials should follow a
  similar them or image.

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Direct Mail Techniques

• Direct Mail means you send out a brochure, flyer,
  catalogue or cover letter to a prospective
  client.
  
• The real success lies in your database of
  potential clients.
  
• The more you know them, the more you have an
  opportunity of grabbing their interest and action
  is taken.
  
• There are mailing lists that can be purchased
  for as low as 250 per 5,000.
  
• Starting your own Database Marketing is key.
• (start today with the members of the class)
• Many small businesses will grow their own lists
  through chamber mixers, leads groups trade
  shows.
  
• Follow-up is a critical!

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Direct Mail Tips

• Check on the lists available to you- SDRS
• Target, target, target make sure you are hitting
  the right people.
  
• Avoid using anything with a government look.
• Proof your sales letter or copy- be
  professional.
  
• .

• Try postcards. People have to take a look before
  they throw it away.
  
• Shop printing carefully. Print prices can vary by
  200!
  
• See if a Val-Pak mailing might work for you.
• Use a tracking system so you know the rate of
  return. Coupons are effective for tracking.
  
• Follow-up!

In 2002, 36 billion was spent on direct mail,
more now than print and broadcast.
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Personal Mail

• We hardly ever consider personal notes as a type
  of marketingin truth, they are still considered
  the most effective.
  
• Develop a small town Marketing approach and
  send out congratulatory notes to clients and
  prospects.
  
• Consistently use personalized thank you notes.

The most successful people write personal notes,
regularlyTom Peters
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Alternative MarketingOther means to get the
message out!

• Displays at Trade Shows or Community Events
  (www.TSNN.com)
  
• Community Involvement Sponsor a Little League
  Team or a Class
  
• Sponsor an Athletic Event or a Fun Run
• Telemarketing (good luck)
• Utilizing Networking or Leads Groups Letip,
  Leads International
  
• Promotional Gimmicks Fobs and magnets

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Trade Show Tips

• Dont use trade shows only as an opportunity to
  write orders. The real reason for trade show
  attendance is company product awareness
  promotion.
• Trade Shows are a proven method to introduce new
  product lines (or introduce new players to the
  industry)
  
• Trade Shows are proven effective for building
  relationships with current customers, sales reps,
  industry media distributors and understanding
  the competition.
• Before attending a Trade Show carefully outline
  your objectives.

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Marketing on the Internet

• E- Marketing is Hot!, but it is Not for every
  business!
  
• Before you dive into e-commerce, e-marketing and
  becoming a pure click business do your
  research!
  
• Ask the questions
• What message do I want to deliver?
• How do I want to format the material?
• Who do I want to reach?
• Do my customers have access?
• Is it cost effective?
• What other marketing pieces direct the clients to
  this webpage ( is your email or website on your
  brochure)

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Create Your Own Newsletter, Article or
Presentation

• Writing an article or newsletter is a low cost
  method to build awareness and create
  credibility.
  
• Newsletters have 4x the readership of ads.
• Newsletters can attract new clients keep you in
  touch with your current customers.
  
• Keep the articles fresh, up-to-date, and
  professional. Avoid Fluff.
  
• If you have a unique skills or qualifications,
  try marketing yourself through local workshops or
  meetings (Rotary, Adult Ed Classes, Community
  College non-credit)
• E-Zines are on-line newsletters.

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The 4th P Promotion

• Many business owners only buy-in to advertising
  when they consider promoting their businesses.
  
• Remember PROMOTION is any and every way to
• Get the word out about your products services
• Generate referrals and interest for your
  business
  
• Present your image.
• Promotion includes advertising, marketing,
  networking and publicity.

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Publicity FREE ADVERTISING!

• Publicity has been defined as free advertising
  (unfortunately there is little control over it)
  
• You need to be able to present a Unique Angle
  on your business to get a Press Release printed
  or a PSA ( Public Service Announcement) aired
  
• Get involved with the community and the annual
  events
  
• Become a specialist in your community
• Time your Press Release and/or PSA at least 2
  weeks before the event
  
• Speak to classes or publicize your unique service
  at a Rotary Meeting
  

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What is Publicity?

• Public Relations- PRpublic any group who
  might have an interest on the ability of your
  company to achieve its objective
  
• PR is a variety of programs design to promote or
  protect a companys image.
  
• Publicity Includes Press Relations, Product
  Publicity, Corporate Communication, Lobbying,
  Counseling

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The Pros Cons of PR

• PROS
• There is always a publicity angle!
• PR is cheap or FREE, but it can be worth a lot!
• You can save a copy of the article and show it
  again and again!
  
• It builds credibility and promotes your image!
• It can be used to enhance your advertising!

• Cons
• Most small businesses make the mistake of not
  adding into the marketing mix.
  
• Most small businesses do not target their
  Publicity.
  
• It can be an one-time shot.
• Often times it is not controlled.
• BIG Media isnt always the Best channel.
• Publicity is like selling..it may take a lot of
  leg work!
  

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BPs top 10 Tips for Marketing Your Small
Business

• Show your uniqueness- know your competitive
  advantage.
  
• Develop a web presence utilize email.
• Attend Trade Shows in your industry.
• Participate in community marketing through your
  local chamber of commerce.
  
• Track your advertising dollars.

• 6. Write articles for community business groups
  or local industry publications or publish your
  own newsletter
  
• 7. Personalize your follow-up. Send Thank you
  notes.
  
• 8. Create an effective brochure.
• 9. Develop a marketing promotional calendar.
• 10. Ask your clients for referrals.

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The Final R Retaining Your MarketCustomer
Satisfaction

• The customer may not be the KING, or always
  right, but the customer is always the customer!
  
• Customer Satisfaction is the Heart of Retention
• RETENTION is the heart of staying in business and
  growing (and profiting)
  
• Customer Relationship Management is a key element
  in our Growing for Sales Profit Class.
  
• For now, remember to focus on the customer
  (internal external)!

80 of your business comes from 20 of your
customers