Small Business Marketing

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SMALL BUSINESS MARKETING
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Marketing Definitions

• Marketing is not the devious art of separating
  the unwary consumer from his loose change.
• Theodore Levitt Marketing for Business Growth
• Marketing is telling people what you do.
• C. J. Hayden Getting Clients Now
• to many, Marketing is seen narrowly as the art
  of finding clever ways to dispose of a companys
  products. Many people confuse marketing with
  advertising and selling. But authentic marketing
  is not the art of selling what you make, so much
  as knowing what to make. It is the art of
  identifying and understanding customer needs and
  coming up with solutions that satisfy customers
  and produce profits.
• Philip Kotler Marketing Management

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Small Business Climate Is Very Challenging

• 667,000 new businesses started each year
• 25,000 new products introduced annually
• 4,000 promotional messages assault each person
  daily
• Competition becoming fierce
• Marketing array is staggering

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Marketing Components

• 4 Ps of Marketing
• Product
• Price
• Promotion
• Place
• Customer

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8 Step Marketing Plan

• Identify Target Markets
• Define Goals in relation to Target Market
  Strategy
• What are BENEFITS of what you sell
• Why should anyone buy from you?
• Select Marketing Tactics
• Set up Marketing Budget
• Develop Implementation Schedule
• Measure Results

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Customer

• Business or Consumer
• Demographics Psychographics
• Everyone vs. Market Segments

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Why Do Customers Buy?

• Last year one million quarter-inch drill bits
  were sold not because people wanted
  quarter-inch drill bits, but because they wanted
  quarter-inch holes.
• Most small business dont spend enough time
  finding out what a prospect wants. Maybe
  prospects dont really know or cant articulate
  what they want, but you can get at their problems
  their pain.

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Customer Need Questions

1. Whats your biggest problem in (your line of
   business)?
2. How long have you had it?
3. What have you done to fix it?
4. And thats worked well for you?
5. What is this problem costing you in time, money,
   other?
6. Do you have a budget set up to solve this
   problem?
7. Are you the person who makes these decisions?
8. When are you committed to finding a solution to
   this problem?

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Finding Customers

• Targeted prospect list from professional list
  broker (both consumer and business)
• Yellow Pages and other general advertising
  directories
• Trade Association directories (e.g. Chamber/ BBB)
• Professional Association member directories
• Business and Industry directories (e.g. DB)
• Book of Lists from Rochester Business Journal
• On-line forums like bulletin boards/listserves
  and chats

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Product

• In 1987, there were 14,254 new products
  introduced in the US. By 1998, the number had
  grown to 25,118.
• It means 69 new products surfaced every day of
  the year.
• Position
• Name
• Packaging
• Product Bundle
• Performance/ Features
• Service
• Warranty

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Unique Selling Proposition (USP)

• Term created in 1960 by advertiser Rosser Reeves
• Offer customer a specific, unique benefit a
  proposition that differentiates you from
  competitors.
• Examples
• Amazon.com Books fast and cheap
• BMW Ultimate Driving Machine
• Dominos Pizza Fresh, hot pizza in 30 minutes
• Federal Express When it has to be there
  overnight
• Nordstroms Unparalleled Service
• Rolex Watches that Winners Wear
• Volvo Safety
• Mercedes Engineering

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Competition

• Products
• Price
• Promotion
• Place
• Markets Served
• Strengths/ Weaknesses
• Estimated Sales Levels

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Price

• Cost
• Competition
• Customer Value
• Lease or Sale
• Bundled - Look at what customer needs
• Volume Discount
• Current Specials
• Hide Unattractive Components

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Promotion

• According to market positioning expert, Jack
  Trout, the average American is exposed to 4,000
  marketing messages daily.
• Direct contact
• Networking Referral Building
• Public Speaking
• Writing Publicity
• Promotional Events
• Advertising

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Effective Promotional Tactics

• Create Awareness
• News Release, Press release, Publicity
• Advertising, Direct Mail
• Open House, Seminars, Trade Shows
• Create Comprehension
• Personal Selling
• Web Site
• Targeted Advertising/ Specific Message, Workshops
• Conviction
• Personal Sales
• Coupons, Contests, Rebates
• Orders/Reorders
• Personal Sales, Telemarketing Campaign
• Trade Shows, Direct Mail Sales Campaign

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Place

• Retail Location
• Direct Sales Force
• Dealers, Distributors, Agents
• Volunteer Sales Force

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Joint Ventures Expand Your Sales Force

• Exchanging leads with other businesses
• Exchanging links
• Exchanging counter-top brochures between stores
• Exchanging an endorsement of anothers
  product/service to your customer base for a
  percentage of sales (or a reverse endorsement)
• Placing brochures/sales fliers in store shopping
  bags at checkout
• Placing brochures in other business billings or
  newsletters
• Writing articles for someone elses ezine or web
  site accept others articles for yours
• Offering to sell someone elses products for a
  commission
• Cost-sharing for business functions (e.g. web
  site, ezine, newsletter, trade show, display
  ads,seminars, etc.)

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Marketing Goals

• Qualitative
• Best Customer Service in Town
• Office Out Of Home For Prestige
• Perception of Personalized Service
• Have Highest Quality
• Be the first ( _______ ) business prospects think
  of
• Quantitative
• Increase Sales from 27K to 100K in 12 Months
• Double Number of Customers in 2 Years
• Increase Market Share 1 point in 18 months
• Increase marketing spend to 10 of sales as sales
  increase

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Marketing Budget Schedule
Promotional Budget should be at least 1 - 3 of
gross sales.