Transcript Document

Want CA$H?
Marketing & Branding:
Your Key to Greater Profits
and a More Valuable Business
Presented by:
Edward S. Balian, Ph.D.
© 2006
Edward S. Balian, Ph.D.
10.27.06
For your notes….(optional pull out)
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(c)2006, E.S. Balian, Ph.D.
For your notes….(optional pull out)
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(c)2006, E.S. Balian, Ph.D.
Dr. Ed Balian….
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Q-Stat started 1977
Owned numerous companies; corporations
Started, maintained, bought & sold businesses
School of Business professor since 1976
Authored: textbooks and software
Consulted with over 60 companies to date; large & small
Former Dean of GIA School of Business
Over 50 instructional seminars presented, including Harvard
Business School
(c)2006, E.S. Balian, Ph.D.
I Welcome Three Groups
that are Before Me Today:
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Those wanting (or
praying?) to BECOME
millionaires
Those who ALREADY
ARE millionaires, now
wanting to become
MULTI-millionaires
Those who already are
multi-millionaires
(Let’s do LUNCH!)
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(c)2006, E.S. Balian, Ph.D.
I Promise You…..
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BIG MONEY—TODAY!
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No tricks—it takes:
Hard work, YES, but
also:
Spending your time
efficiently, on the
“RIGHT STUFF!”
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(c)2006, E.S. Balian, Ph.D.
Keep It Simple, Stupid
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YES---we all know this
catchy and cute
saying, but when it
comes to today’s
complex business
challenges, it is,
UNFORTUNATELY, just
not so “simple”
anymore.
(c)2006, E.S. Balian, Ph.D.
Questions that “DRIVE” the
Creation of Your Success: (1)
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WHAT are you driving?
WHERE are you
going?
HOW and WHEN are
you moving forward?
How FAST will you go?
When will you know to
SLOW DOWN?
Note that the size, style or cost of “car,”
(i.e., your business) does NOT matter--You still need knowledge and control
of your MARKETING PLAN to
move it where you want to go.
(c)2006, E.S. Balian, Ph.D.
Questions that “DRIVE” the
Creation of Your Success: (2)
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How will you measure
your business’
EFFICIENCY?
If inefficient, will you
blow your cool?
Will you be glancing
back or moving
forward? Both?
Can you avoid panicstops?
Note that the size, style or cost of “car,”
(i.e., your business) does NOT matter--You still need knowledge and control of
your MARKETING PLAN to move it
where you want to go.
(c)2006, E.S. Balian, Ph.D.
Major Points Today:
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Ways to Operate Your Business
The Power of Marketing Working for You
How Market Research Will Help You
The 4-P’s of Marketing
SWOT Analysis
A Marketing Plan
Branding and its Ultimate Power to You
(c)2006, E.S. Balian, Ph.D.
There Are Two Basic Ways to
Operate Your Business….
SO, CHOOSE:
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(c)2006, E.S. Balian, Ph.D.
Think OUTSIDE the Box:
 The
guy who
invented the
wheel….
Be creative and courageous---but not crazy!
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(c)2006, E.S. Balian, Ph.D.
Let’s Start at the Ending….
BRANDING is the ultimate end of
sound marketing efforts
 How nice if all our businesses were
readily recognized as a positive
brand-image within the marketplace?
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(c)2006, E.S. Balian, Ph.D.
BUT, UNFORTUNATELY, We Can’t
Just “Jump to the End of the Book
and See What Happens”
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(c)2006, E.S. Balian, Ph.D.
It’s tempting…
It’s done all the
time…
And, it leads to
wasted expense
and, potentially,
even…
“Chapter” 7
How Powerful is Branding?
What Images are Created in Your Mind?
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Let’s do a quick survey to test the
POWER of BRANDING.
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Close your eyes---NO PEEKING until I
give you the word….
(c)2006, E.S. Balian, Ph.D.
The “BLUE BOX” of…
(Courtesy: Tiffany)
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(c)2006, E.S. Balian, Ph.D.
“It’s the real thing.”
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(Slogan,
Logo
Font and
Color)
(c)2006, E.S. Balian, Ph.D.
“Tony the Tiger”
(1957)
(Courtesy: Kellogg)
(Character Logo)
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(c)2006, E.S. Balian, Ph.D.
Note that Tony is not just ANY
Tiger….BRANDING denotes:
SPECIFIC!
Any Child Will Tell You:
This may be a tiger,
but it’s NOT Tony!
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(c)2006, E.S. Balian, Ph.D.
Another Sort of Feline Branding….
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(Logo & Color)
(Detroit Lions)
(c)2006, E.S. Balian, Ph.D.
Branding by Cartier
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At Cartier, over
time, BRANDING
has created an
IMAGE through
name IDENTITY and
an association with
quality PRODUCTS.
(Courtesy: Cartier)
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(c)2006, E.S. Balian, Ph.D.
“Yoga Journal” (Lesser known, but in
process of building a “logo” and
“brand”)
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(c)2006, E.S. Balian, Ph.D.
What Leads to Identity?
(One Answer: Long-term Repetition of a
Unique “Message” or Symbol)
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(c)2006, E.S. Balian, Ph.D.
“Identity” from 70 Years of
Repetition: Texaco Calendar from
1933 & a Pin from 2003:
1933
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2003
(c)2006, E.S. Balian, Ph.D.
Or, A Unique Identity:
The Hamilton Ventura Wrist Watch:
Introduced In 1957
 Worn by ELVIS In his
movie,
“Blue Hawaii”
 Originals Worth up to
$3,000+
 Current Remakes At
Retailers Selling Out At
$300-$700
 Now Featured in “MIB”
Movies
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(c)2006, E.S. Balian, Ph.D.
Need Proof-Positive?
Fair Enough!
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When MARKETING is applied CORRECTLY:
SUCCESS HAPPENS: SUCCESS HAPPENS:
A senior-citizen, fictional rodent now owns
ABC Broadcasting, Touchstone Movies, and
countless mega-resorts, worldwide.
A “Diamond is Forever” is recognized by
99% of those within the company’s
industry; 78% of those not in the industry.
(c)2006, E.S. Balian, Ph.D.
Diamonds or Football?
The “Game” is the Same:
BRANDING!
DeBeers
DaBears
BOTH “BRANDING” Identities are Quickly Recognized!
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(c)2006, E.S. Balian, Ph.D.
Need Proof-Negative?
Fair Enough!
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When MARKETING is applied
incorrectly or not applied at all,
DISASTER HAPPENS:
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1972 Chevrolet Vega vs. Honda Civic
1959 Edsel (Ford) vs. Anything
Beta-format video tape (Sony) vs. VHS
“New” formula Coca-Cola vs. Classic Coke
(Notice that ALL the above were large, multinational corporations---so what? They can error,
too!)
(c)2006, E.S. Balian, Ph.D.
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So, At This Point,
We Just Need to….
…and CONSIDER:
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(c)2006, E.S. Balian, Ph.D.
Five Critical Steps…..
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5.
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Use Sound Business Practices
Learn & Understand Your Target
Market, then:
Refine Your 4-P’s, thus leading to:
Creation a Marketing Plan, leading to:
“Branding,” over time.
(c)2006, E.S. Balian, Ph.D.
TARKET MARKETING:
You MUST KNOW YOUR CUSTOMER BEFORE You
Can Effectively Promote Your Business
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COSTLY ERRORS if you “just guess,” no matter
how confident you are in being correct.
Your current “success” is a poor measure---how
much better still COULD it be?
In today’s new, highly competitive global
environment, no one can afford to GUESS
WRONG. The “expense” of doing research is a
myth. The cost of not doing it could result in
Chapter 7.
(c)2006, E.S. Balian, Ph.D.
Market Research POWER
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Always learn more about HOW YOUR
PRODUCT/BUSINESS is perceived by potential
customers. Don’t just guess!
WHO are your customers?
WHERE are they?
HOW do they behave? (Travel? Read? Do? Internet?)
HOW will they know about and/or care about your
products or services?
THE ANSWERS TO THESE QUESTIONS WILL
DEFINE YOUR TARGET MARKET
(c)2006, E.S. Balian, Ph.D.
Product (by DeBeers):
3-Stone Anniversary Ring
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A PRODUCT target
marketed to Baby
Boomers, but
obviously NOT
Boomer-newlyweds.
DeBeers “BRANDING”
adds the “trust”
dimension.
(Courtesy: DeBeers)
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(c)2006, E.S. Balian, Ph.D.
First-Hand Data?
First-hand (Primary) Data:
Surveys, POP/receipts data
 PRO: Customized for you and your
business
 CON: Can be slower and sometimes,
expensive.
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(c)2006, E.S. Balian, Ph.D.
Second-Hand Data
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Second-Hand (Secondary) Data: gov’t data,
published industry trend data
PRO: Fast, less costly
CON: Not specific to your products or
services, questionable quality, not under
your control
(c)2006, E.S. Balian, Ph.D.
The 4-P’s of Marketing….
Product
 Price
 Placement
 Promotion
This is NOT “mumbo-jumbo,”
they lead directly to higher profits through
greater efficiency of your business.
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(c)2006, E.S. Balian, Ph.D.
The Building Blocks:
The 4-P’s of Marketing
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PRICE: Wal-Mart, Dollar General Stores,
Cartier, Tiffany
PRODUCT & PROMOTION: Ford T-Bird went
from 2-seater to 4-seater, DeBeers
PRODUCT, PROMOTION & PLACEMENT:
Tiffany, Pet Rocks, Cabbage-Patch Dolls
PROMOTION: AVIS Car Rental, Zales
(c)2006, E.S. Balian, Ph.D.
P1: PRODUCT
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ESSENTIAL: Is your Product or Service in demand
by a particular (targeted) market? MARKET
RESEARCH may help.
NOT ESSENTIAL:
Unique?
Necessity or Discretionary?
Alluring? Fun?
Packaged “Correctly?”
Has Potential to Expand into Larger Product Line
(Variety & Assortment)?
You DON’T NEED all (or ANY) of these, necessarily!
(c)2006, E.S. Balian, Ph.D.
DeBeers and Product Expansion
 DeBeers
print
ad (October,
2003)
promoting
“RIGHT HAND
RINGS” to
women for
women.
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(c)2006, E.S. Balian, Ph.D.
Who Started with Only THIS, then
EXPANDED their PRODUCT Line?
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(c)2006, E.S. Balian, Ph.D.
Packaging is an Element of both
Product and Promotion and Can
Effectively Transform an Image…
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(c)2006, E.S. Balian, Ph.D.
Follow-up “Product,”
Customer Service, Nearing
Extinction?
USA TODAY, September 30, 2003,
Headline: Drop in Traditional “CUSTOMER SERVICE”
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(c)2006, E.S. Balian, Ph.D.
P2: PRICE
(aka, “The Goldilocks Syndrome”)
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Is the PRICE reasonable vs. competitors?
Tangible vs. Intangible “value” to customer vs.
selling “price.”
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Is “low price” (or customer PERCEPTION of low
price) a selling point? (Wal-Mart)
Is high price a selling point? (Tiffany)
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MARKET RESEARCH to price it “just right”
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(TIFFANY SILVER HARMONICA vs. WAL-MART Earrings)
(c)2006, E.S. Balian, Ph.D.
PRICING from Tiffany & Co.
Diamond Engagement Rings:
$1,000 to
$1,000,000
(As per website information)
(Courtesy: Tiffany & Co.)
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(c)2006, E.S. Balian, Ph.D.
P3: PLACEMENT (aka, “Distribution”)
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How hard do customers
need to look to find you—
including .com sites. (Travel
the world? Tiring!)
How badly do customers
think they NEED to find
you?
What are your costs
regarding placement: store
location(s), internet, etc.?
MARKET RESEARCH will
help answer these
questions.
(c)2006, E.S. Balian, Ph.D.
P4: PROMOTION
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“Promotion” potentially may include many
elements:
Press Releases
Print Ads
Radio, TV Ads
Community Sponsorship
Word of Mouth
“On Sale” Clearance Campaigns
Training for In-Store Sales Associates
And more….
(c)2006, E.S. Balian, Ph.D.
Let’s Look at Each of the 4-P’s,
One at a Time, Using a Few
Real-World Examples….
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(c)2006, E.S. Balian, Ph.D.
The 4-P’s at ZALES
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Let’s Discuss:
PRODUCT
PRICE ($299)
PLACEMENT
PROMOTION
(Courtesy: Zales)
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(c)2006, E.S. Balian, Ph.D.
The 4-P’s at Wal-Mart:
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Let’s Discuss:
PRODUCT
PRICE ($299)
PLACEMENT
PROMOTION
(Courtesy: Wal-Mart)
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(c)2006, E.S. Balian, Ph.D.
The 4-P’s at J.C. Penny
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Let’s Discuss:
PRODUCTS
PRICE ($499)
PLACEMENT
PROMOTION
(Courtesy: J.C.Penny)
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(c)2006, E.S. Balian, Ph.D.
The 4-P’s at Starbucks:
Let’s Discuss:
 PRODUCT
 PRICE
 PLACEMENT
 PROMOTION
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(Courtesy: Starbucks)
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(c)2006, E.S. Balian, Ph.D.
Let’s Go Back and Study Types of
P4: PROMOTION in More Detail
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(c)2006, E.S. Balian, Ph.D.
Press Releases
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PROS:
Relatively low cost mailings
Can reach wide audiences
with your informational
message
Can word articles the way
you want
Can help build future PR
contacts for later re-use
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CONS:
Publications only run your
press release if they want to
No fine “targeting” of your
audience in most cases
You have no control over
editing
You have no control over
dates of publication
Must be “newsworthy”
(c)2006, E.S. Balian, Ph.D.
Print Ads
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PROS
You personally create
your message and
image
No edits or alterations
Can be highly targeted
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CONS
Lead-time is
considerable
Gen X & Y are already
“turned off” by typical
print ad messages
Production cost can be
very high
Ad placement costs
can be very high
(c)2006, E.S. Balian, Ph.D.
Community Sponsorships
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PROS:
Demonstrates your
involvement in
community, by name
and spirit
Local audience
targeted
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CONS:
Very limited “eyeballs”
on your name and
product/service
Potentially high cost
relative to small
audience
Could be perceived as
“small time” business
(c)2006, E.S. Balian, Ph.D.
Radio & TV/Cable Ads
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PROS:
More “human”
approach with voices
and/or images
Allows excitement and
energy not found in
other approaches
Potentially huge
audiences
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CONS:
Gen X & Y just not
interested in typical ad
messages
“Bathroom Break” queue
Potentially very high cost
Audience may be too wide;
results in an inefficient
approach to target
Poor ad can result in
disaster—risk is high
(c)2006, E.S. Balian, Ph.D.
“Positive” Word of Mouth
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No direct cost!
Personal testimonials
between friends are
powerful and credible
Pyramiding
(c)2006, E.S. Balian, Ph.D.
“Negative” Word of Mouth
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Pyramiding
Danger: Just one bad
experience by ONE
“crying” customer can
be disproportionately
harmful to your
business
Whether the complaint
is actually valid or not
is immaterial
(c)2006, E.S. Balian, Ph.D.
Training for Sales Associates
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MOST COMMON comments from my
students entering a retail operation on
assignment:
“I wasn’t treated well…”
“I was ignored”
“May I help you/No, I’m just looking,
thanks.”
(c)2006, E.S. Balian, Ph.D.
SWOT Analysis
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Existing In the Present:
S= STRENGTH (how will you maximize it?)
W=WEAKNESS (how will you attack it?)
Potential In the Future:
O=OPPORTUNITIES (how and when to
capitalize on it?)
T= THREATS (how will you defend against it?)
(c)2006, E.S. Balian, Ph.D.
Houston---
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WE HAVE A
PROBLEM:
With all these
marketing issues
and without
millions of dollars
behind us, how do
we find our
DIRECTION?
(c)2006, E.S. Balian, Ph.D.
Until You Have A Marketing Plan….
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(c)2006, E.S. Balian, Ph.D.
We MUST HAVE a “MAP” or
MARKETING PLAN to Move
Forward Intelligently
WOULD YOU TAKE A MAJOR
ROAD TRIP WITHOUT A MAP?
THE “MAP” IS CALLED A
“MARKETING PLAN.”
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(c)2006, E.S. Balian, Ph.D.
The MARKETING PLAN
Takes into Account:
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WHO we are trying to reach (Target Market)
HOW we want to reach them
WHERE the product will be available
WHAT the MESSAGE needs to be (ad copy, images)
HOW MUCH $$$ is in our MARKETING BUDGET (per
Pro Forma P&L, Cash Flow, Balance Sheet)
SWOT Analysis
AND WHEN will the action happen, per a TIMELINE
(c)2006, E.S. Balian, Ph.D.
Marketing Plan Quick-Tips:
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Concentrate on a “do-able” population and scale.
Be realistic in expectations.
Do an accurate SWOT, not “Pie in the Sky”
Stay the course; use your “map,” do not
unnecessarily “change direction” or make
adjustments to name or logo without quality
research behind it.
The Marketing Plan we follow MUST be thought out
and researched FIRST, not last.
(c)2006, E.S. Balian, Ph.D.
Back to Where We Started in
Today’s Presentation:
Branding!
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MARKETING = POWER
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The sum of your marketing 4-P’s and
Marketing Plan will ultimately build your
“BRAND” (either one way or the other!)
Solid and positive BRANDING will
ultimately provide huge added value to your
name, your business and your products or
services.
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(c)2006, E.S. Balian, Ph.D.
In Review…..we discussed:
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Your Choices in How to Operate a Business
The Power of Marketing
Target Marketing through Market Research
The 4-P’s of Marketing
SWOT Analysis
Your Marketing Plan, Ultimately Leading to:
Branding and its Long-Term Value
(c)2006, E.S. Balian, Ph.D.
How Might I Further Assist YOU?
It was my pleasure to meet you today!
Best of luck in all your future
endeavors!
Stay in touch!
[email protected]
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(c)2006, E.S. Balian, Ph.D.
Contact Me….

For a set of my
presentation notes (in
PowerPoint only):
Email:
[email protected]
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(c)2006, E.S. Balian, Ph.D.
NOTES…………..
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(c)2006, E.S. Balian, Ph.D.