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Flying Start Rally 2006 Basics of Marketing John McMillan, McMillan Technology www.mcmillantech.co.uk Marketing If you have the right team and get the marketing right, you will succeed If the marketing is wrong, you won’t Marketing Marketing is like an iceberg – 90% is below the surface The essence of marketing is having the right product for the right customers When Should I Start Marketing? Most new companies start marketing too late You need to start on day 1 If you design your product around the market you are much more likely to succeed Step 1 – Get the Product Right Who needs the product? How badly do they want it? Casual interest Want it (desire) Want it badly (strong desire) Can’t live without it The demand can be latent (They don’t know they want it) The Product and Supplier Can we realistically bring this to market? Why would they buy from us? What is different about us? The Unique Selling Proposition (USP) What is the competition? Now and in the future? Why Do Customers Choose a Supplier? (The 4 Ps of marketing) Promotion Product i.e. how they get to know about it Think of a house Price Place “Where do I buy it?” Market Segments You almost certainly can’t sell to the whole world HUGE marketing budget Tiny market share Tiny brand and reputation So … Shrink your market Market Segments A segment must be Different Relevant Significant (something special about its needs) Accessible Suitable size Ideally about 5 - 10 times your target turnover Example segments Geographic Town, County, Region Ideal for retail and professions Industry or profession Consumer interest e.g. disco, koi carp, classic cars Market Segment A good segment would have some sort of “community” List of “members” can be found Journals exist Other forums exist – clubs, exhibitions They talk to each other SWOT Analysis Strengths Weaknesses Opportunities Threats SWOT for small business Strengths Flexibility No chain of command – no need to approve Close to customers Comfort from small customers Weaknesses Few resources Market Research You should really do this before committing Talk to prospective customers How much to they like it, what are their problems, how much will they pay? Research Internet Reference library Marketing Methods Advertising Expensive Whole campaign needed 1 ad is never effective Needs targeted media Local papers Magazines Posters Web sites Marketing Methods Mail shots You have high control Fairly slow, several needed 2 seconds before it goes in the bin Can put out a lot of information Email Cheap and rapid Problems with spam Marketing Methods Point of sale Great for retailers On site boards Vans Exhibitions and shows Expensive Mixed targeting Make sure you follow up Marketing Methods Web site How do they find the site? Vast potential to give information The user can select what he wants to read Ability to distribute demos and samples Easy to keep up to date Search engines Links from club sites &c A web site can be used to back up other methods Marketing Methods Telesales Dealers, Distributors and Agents Easier to find than end customers They will want a cut, but will this cost more than finding customers yourself? You lose a lot of control People who can introduce you to customers Marketing Methods Be Creative Word of mouth It’s how Google got there Networking There are many ways to market on a budget Get out and meet people Mutual help “You scratch my back …” Creative Marketing Sponsorship Visit exhibitions It’s not a donation, it’s advertising Be cheeky, hand out your card Press articles Write articles, become an expert Conduct master classes! Branding and Reputation Branding is about the way customers see you Aim to be the first company a customer checks Reputation is vital Rather a good reputation is Word of mouth is the most powerful marketing tool Finally Marketing is like an iceberg Define your: SWOT USP Market segment Start on day 1 Select your methods Be creative www.mcmillantech.co.uk