Transcript Marketing - St Helens Chamber

‘Marketing’
Welcome
to the
Business Start-Up
Programme
Workshop 2
‘Marketing’
Workshop Links
The Essentials
Why start a business?
Marketing
Business
Planning
Management control
 Front Page
Legal issues
 Executive Summary
Viability assessment
Funding
Marketing
Product &
service
Place
Price
FinancePromotion
 The Business
 Market
 Operations
 Finance
Profit & Loss
 SWOT Analysis
Cash flow
 Action Plan
Balance sheet
Marketing – The 4 Ps
Marketing
Start-up
Workshops
Business Plan
Action Plan
On-going Support
Product
Place
Price
Promotion
Be clear about what you’re
selling
•
•
Know your customers.
•
Sell at a profit.
•
Make promotion work.
Product & Services
Marketing
Start-up
Workshops
Product & Services
Place
Price
Business Plan
Action Plan
On-going Support
Have a clear idea about your product & service offer.
Think about what the customer is buying, not what
you’re selling.
Ensure you have the skills to provide both product and
service.
Look for unique selling points to differentiate from your
competitors
Protect something Unique.
Promotion
Feed into your
Promotional Message!!
Product & Services
Competitor Analysis
Strengths
Weaknesses
Price
My Company
Competitor 1
- Qualified
- Market Knowledge
- Data base
- Established
- Market knowledge
- Contract
customers
-
- Complacent
- Customer service
- Bad reputation
- Dissatisfied
workers
Job costing
Financial Mgt.
Not known
Selling
Capacity
0
+ 10%
Competitor 2
Competitor 3
Product & Services
Example: Landscape Gardener
Product Offer
Design
- Building/paving
- Installation of electrical power
- Horticulture
- Garden maintenance
-
Skills Needed
Design software
- Planning Legislation
- Legislation, approvals
- Planning (Listed Trees etc)
- Knowledge of plants etc
-
Service Offer
Responsive
- Accessible
- Reliable
- Flexible
- Value for money
- Warranty
-
Customer Requirements
Quote request followed within 24hrs
- 24/7
- Turn up & deliver as promised
- Exceed their expectations
- Quality
- Peace of mind
-
Place
Marketing
Start-up
Workshops
Product & Services
Place
Price
Promotion
Business Plan
•
•
•
•
•
Action Plan
On-going Support
Profile the characteristics of your customers
Understand your customer’s expectations
Locate and quantify the number of your
potential customers and competitors
Know your market share
Confirm how your customers will access
your product
Confirm that there is
sufficient demand to reach
your sales targets
Place – Customer Profile (B2B)
Example: Landscape Gardener
Customer Characteristics
Research Areas
- Type/Sector
- Schools/Councils/Businesses
-
-
Annual Sales
Profitability/credit rating
Number of employees
Premises
Standard Industry Classification (SIC code)
Customer Expectations
Profitable/Busy
Capable of paying bills
N/A
Premises with grounds
N/A
Research Areas
- Accreditations
- Horticultural/ building qualifications
-
-
Contracts
Licences
Standards
Buying behaviour
Legislation
Electronic trading
Terms & conditions of trade
N/A
Professional (presentation/image)
Frequency of purchase
Health and safety/insurance
On-line orders/invoices/direct banking
Place – Customer Profile (B2C)
Example: Landscape Gardener
Scope of Product Offer
- Type/Sector
- Disposable income
-Premises
-Geography
Research Areas
- General public
- Ability to pay
-Property with gardens
-North West
Scope of Service Offer
-
Accreditations
Contracts
Licences
Standards
Buying behaviour
Legislation
Electronic trading
Research Areas
-
Qualified
Terms & conditions of trade
N/A
Professional (presentation/image)
Frequency of purchase
Health and safety/insurance
N/A
Place – Locate & Quantify Customer Numbers
Information research sources:






Telephone directories/yellow pages/Thomson directories
Government Council Economic Development Units/Office of National statistics
Trade organisations
Libraries/Press
Market research organisations
List brokers
Research results Business to Business (B2B)
Location
Local (St Helens)
Regional (Lancs.)
National
Source
Internet
Internet
?
No. of Customers
50 (www.sthelens.gov.uk)
607 (www.lancashire.gov.uk)
?
No. of Competitors
13 (www.yell.com)
100 (www.yell.com)
?
Research results Business to Consumer (B2C)
Location
Local (St Helens)
Regional (Merseyside.)
National
Source
Internet
Internet
?
No. of Customers
15K (www.sthelens.gov.uk)
462K (www.lancashire.gov)
?
No. of Competitors
13 (yell.com)
100 (yell.com)
?
Place
Customer Access to Product
Mail order (Catalogue/call
centres)
•
•
Store/your premises
•
Internet (e-bay)
•
Their premises.
•
Sales representative
•
Image/perception
Cost Implications?
Price
Marketing
Start-up
Workshops
Business Plan
Price
Promotion
On-going Support

Understand market conditions in relation to
supply and demand.

Check what your customer is prepared to pay.

Check competitor pricing.

Know your break even and cover your costs

Add premium for added value.

Monitor conversion rates from quotes to orders.
Product & Services
Place
Action Plan
Optimise profitability keeping
abreast of market conditions
and being flexible in pricing.
Price – Break Even & Cost
Plus
Calculating Break
Even:
By Value :
Total Overhead (Fixed Costs) ÷ Gross
Profit %
£25000 ÷ 45%
Break even sales = £55,556
By Number of Orders:
Break even sales - £55,556
Average order value £10
Break even unit sales = 5555 units
Calculating
Cost Plus:
Labour cost
+
Material Cost
+
Overhead Charge
=
Total cost
+
Profit
=
Selling Price
Promotion
Marketing
Start-up
Workshops
Product & Services
Business Plan
Action Plan
On-going Support
Use a clear message, emphasise product
and service features and benefits


Place
Use unique selling points in promotional
materials

Use logos and branding to give a
professional image
Price


Promotion
Check competitor promotional methods
Work within budgets

Monitor the impact and return on
investment
Use promotions
to achieve sales targets
Promotion – Features &
Benefits
Features
Benefits
Service Offer
Promotion – Impact
Customer Contact
Remote
Personal
Cost (£)
Sales Conversion Rate (%)
0%
10%
Remote
(<1%)
Internet
(1-3%)
Target Marketing
(4-7%)
• Yellow pages
• Mail shot
• Press ad
• SEO
• PPC
• Journal
• Direct Mail
20%
Tele-sales
(10-15%)
30%
Sales Rep
(25-30%)
WOM
(>30%)
Promotion – Work With
Budgets
Campaign
Details
Costs
Circulation
Conversion
Enquiry
Cost /
enquiry
Remote
Local Press
4 line
£100
25K
< 1%
0 - 25
£0.40 £100
List
£58 / day
50 / day
10% - 15%
5-7
£4 - £6
Appt.
£135 / day
6 / day
25% - 30%
2–3
£46 - £67
Target
£870
1K
4% - 7%
40 - 70
£12 - £21
Tele-sales
Cold Calling
Sales
Sales Rep.
Target
Direct Mail
Promotion – Measure Impact
Promotio
n
Request
for
quotation
Plan & deliver
promotion
campaign:
Record
customer
response:
• Decide on budget.
• Record date,
• Calculate no. of
contacts
to achieve sales
targets
•Customer,
• Identify target
customers
•Nature of
request
• Decide on
promotional
method
•Contact
details,
Build estimate &
send quotation
Record your
response:
• Record date quote
sent,
product
information and
cost
Customer
order
decision
Record
customer
response:
•Record date of
order
decision.
Use Impact Reports:
 Time taken for each stage of the process.
• Set up data base to
 Number and value of request for quotations
monitor
response.
 Number, value and frequency of orders.
 Conversion rates for contact to request for quote and
placement of order
 Average value of quotes and orders/£1 of promotional
cost
Keep Your Customers
Customer Service:

Be responsive
 Understand their requirements and working
methods
 Do what you promise and exceed their
expectations
 Look after them and solve their problems
 The answer is yes- now what was the problem
Getting one new customer costs
much more than the cost of
keeping
an existing one.
Moving on?
Marketing is not just advertising
and selling!
How often should you do it ?
1.Routine
2.Budget
3.Measure
Customers and competitors are ever
changing.
Make sure you’re always up to date.
Keep in touch!
Keep in touch with each other,
chat and network on Linked in.
www.linkedin.com
Join the ‘Business Start Up
Group’ and then join ‘The
Workshop Group’ subgroup to
keep in touch!