Transcript Mkt 443 Class4R Marketing Plan - Cal State LA

More Rich Dad. Poor Dad.
Mkt 443
Prof. White
Class 4
Why and How Should You Work,
Invest, or Own a Business?
Buying/creating assets to increase your passive
income to support your desired lifestyle.
Arranging your work schedule to match desired
lifestyle.
Increasing your ability to create income at will.
Doing something that genuinely interests you, and
allows you to reject jobs and opportunities that don’t.
Dealing with people you only want to deal with.
Feeling/being free of any pressure, other than selfimposed.
Not caring about what others think of you.
Who Gets Paid First?
Who Gets Paid Most?
Investors – The Bank – Business Owner(s)
– The Asset – Employees
Paid Last
Business Owner(s) Paid Most
Investors
The Bank
Employees
Paid First
The Asset
Paid Least
Dealing with Your Money
“Many people are good when it comes to making their money,
but are foolish when spending it.” – Rich Dad
5. Exit: Get back original investment
4. Protect: Guard against taxes, crooks, & lawsuits
3. Leverage: How much other people’s time, $, ideas
Financial
Education
2. Manage: How to analyze, budget, and forecast
1. Earn/create: How to make money
Academic, and
professional education
Leverage Defined
Leverage is the ability:
To do more and more
With less and less
Of your own, personal resources.
The goal is to become a Powerful Invalid.
Leverage
O
P
T
O
P
M
O
P
I
O
P
E
All you need is a good idea
and the commitment to see
it through. Everything else
can be begged, borrowed,
or stolen.
O
P
W
Your
Good Biz or
Investment
Idea
You
Real Estate Leverage
Joe Cash
Value
$105K
$100K
$5K
Mike Leverage
Appreciation
Profit
Down
Pay Invest
$5K
$10K
Value
$105K
$100K
Owned
$100K
All Cash
$90K
Mortgage
Free and
Clear
$0
Mortgage
$5K Profit = 5% ROI
$100K Investment
$5K Profit = 50% ROI
$10K Investment
Modified from Robert G. Allen
Media: Finding Your Niche
Who Is Your Perfect Customer?
Perfect Customers are:
Affluent Addicts
 with Big Mouths
 who Love You to Death!

And, “You only deal with those Perfect
Customers who want to deal with you.”
So, “Leave a trail where those Perfect
Customers can find you.”
Customer-First Business Model
Test
Pre-Defined
Customers
What’s my
favorite fish?
What’s my
Niche?
Am I passionate?
Do I have
expertise?
Select
Media
Which ponds have
my favorite fish?
Find Big, Addicted
fish--high probability
prospects.
Decide
Message
Make
Product/Brand
Start fishing.
What bait are
my fish eating?
Find a Competitive
Advantage.
Build
Database
Stock your
Private Pond
Media-First Business Model
“Let’s Find the Fish.”
Test
Pre-Defined
Media
=
My
Prospects
Decide
Message
Make
Product/Brand
Start fishing.
What bait are
Pick ponds with my Perfect, Affluent,
my fish eating?
Addicted fish?
Find a Competitive
This is my Niche.
Advantage.
I am passionate.
Build
I have expertise.
Database
Stock your
Private Pond
About Niches
Business Definition: A special, narrow area of demand
for a product or service.
Advantages:



You can create specifically tailored products.
You get fast awareness among niche members.
It’s easier and cheaper to prospect customers.
All you need is 10,000 names in your database/
mailing list.



Then you’ll make $500/day by selling just 25 units/day with a
$20 profit margin.
25 units/day divided by 10,000 names equals just a .25%
response rate.
$500/day times 300 days equals $150,000/year.
Evaluating Possible Niche(s)
Does the niche address one or more of my passions,
talents, values, and/or my destiny?
Can I easily and affordably contact my niche?
Can the niche afford the product or service?
Does the niche already buy the product or service?
Do I have experience and credentials with the niche?
Does the niche have serious problems to be solved?
Is there excessive competition in the niche?
Do I have a competitive advantage that’s important
to the niche?
Is the niche large enough to make my desired profit?
Finding Your Niche(s)
Standard Rates and Data Service (SRDS)

List of mailing lists, publications, radio, and TV
Media Directories

MediaFinders.com; Oxbridge Communications; Gibbie Press
Mailing list brokers
Compile your own list


Sweepstakes and giveaways to capture names
Electronic copy of the Yellow Pages
Organization and association memberships
Niche radio and cable TV stations/programs
Internet forums, chat rooms, and blogs
Joint venture partners
Your current and past customer lists, warranty cards,
sales/service records, inquiries, etc.
Creating a Powerful
Marketing Plan
A Guerrilla/Small Business
Marketing Plan
Understands the business environment in which
the business operates.
Pinpoints the specific target markets/niches the
company will serve.
Analyzes a firm’s competitive advantages and
builds a marketing strategy around them.
Creates a marketing mix that meets customer
needs and wants.
The Marketing Mix
Step One
The Target Market -- Needs, Wants, Expectations
Step Two
The Positioning -- The Story
Brand Image & Competitive Advantage
Step Three
“The 4 P’s”
Product ---- Price ---- Place ---- Promotion
Grow Your Brand
Your Brand is Your “Body of Work.”
Your products.
 Your service.
 Your reputation: Word of Mouth
 Your people and partners.
 Your promotion.

Advertising
 Slogan


Your charity

Public relations
Market Research:
Don’t Fool Yourself
Market research is the vehicle for gathering
the information that serves as the foundation
for the business/marketing plan.
Never assume that a market exists for your
company’s product or service.
Market research does not have to be time
consuming, complex, or expensive to be
useful.
What to Research –
Nationally and Locally
Your Industry: Sales/profit trends, life cycle stage,
market share shifts, outlook, threats, etc.
Economic Conditions: Disposable income, spending
patterns, inflation, etc.
Technological Trends: New products, production
techniques, customer services, marketing, etc.
Legal/Regulatory Issues/Trends: Employment,
environment, safety, taxes, etc.
Competition: Strengths, weaknesses, barriers to
entry, indirect competitors, etc.
Quick and Easy Market Research
Look: Evaluate things around you. Evaluate new
locations by observing vehicle and foot traffic.
Visit competitors stores and websites to check
prices, layout, customer mix, etc. Monitor ads.
Ask: Conduct informal surveys to determine
customers’ likes, dislikes, wants, and don’t
wants. Take a small group to lunch to discuss
your plans. Use telephone interviews.
Test: Test everything, all the time.Compare
results of different ads, media, and deals. Offer
different products and prices to see which pulls
best.
Quick and Easy Market Research
(Continued)
Read: Local chambers of commerce, trade assoc.’s,
and various gov’t. agencies provide dozens of free
publications. The media often provides info on their
audience and their buying habits and patterns.
Get Help: Local service clubs and government
funded agencies like SCORE and the SBA can help.
Make it a class project for college students. Use the
local library reference desk and online databases.
Watch Out: Recognize the weaknesses and biases
of your informal research. Only use your research as
a general guide. Confirm your findings with the
opinions and ideas of successful entrepreneurs in
the field and other reliable sources.
Customer Service and
Relationship Marketing
Bad Customer Service
67% of customers who stop patronizing a business
do so because an indifferent employee treated them
poorly.
96% of dissatisfied customers never complain about
rude or discourteous service, but...
 91% will not buy from that business again.
 100% will tell their “horror stories” to at
least nine other people.
 13% of those unhappy customers will tell their
stories to at least 20 other people.
Focus on the Customer
Companies that are successful at retaining
their customers constantly ask themselves
(and their customers) four questions:
1. What are we doing right?
2. How can we do that even better?
3. What have we done wrong?
4. What should we do in the future?
Stew Leonard’s Video
Relationship Marketing
Involves developing and maintaining longterm relationships with customers so that they
will keep coming back to make repeat
purchases.
Small companies have an advantage over
their larger rivals at relationship marketing.
Requires a company to make customer
service an all-encompassing part of its
culture.
Customers are part of all major issues the
company faces.
The Relationship
Think “Lifetime Value” (LTV).
Think “80/20 Rule.”
Relationship Strategies
Outrageous customer service
 Selling-up and cross-selling
 Referrals
 Loyalty programs
 Joint ventures
 Customized products
 Test marketing
 Online and offline communities


Hog.com
How to Become an Effective
Relationship Marketer
Identify your best customers,
never passing up the
opportunity to get their names.
Enhance your products and
services by giving customers
information about them and how
to use them.
Collect information on these
customers, linking their
identities to their transactions.
Successful
Relationship
Marketing
Make sure your company’s
product and service quality
will astonish your customers.
Calculate the long-term value
of customers so you know
which ones are most desirable
(and most profitable).
Source: Adapted from Susan Greco, “The Road to Oneto-One Marketing,” Inc., October 1995, pp. 56-66.
See customer complaints
for what they are – a
chance to improve
your service and
quality. Encourage
complaints and then
fix them!
Know what your customers’
buying cycle is and time your
marketing efforts to coincide
with it – “just-in-time marketing.”
Example Relationship Objectives
Ambassadors
Clients
(Reg Purchases)
Customers
(First Purchase)
Prospects
(In Database)
Target Market
(Suspects)
10U/Week +10 Referrals/Wk
50U/Week
25U/Week
10,000
1,000,000
Decide Your Business Emphasis
Pick Any Three Squares
Similar to
Competition
Product/
Service
Customer
Service
Relationship
Unique from
Competition
Absolute
Best Overall
Contrasting Marketing Models
Image Based
Awareness/Image
Promotion
Shopping & A Sale
Undefined
Market share
Database/Response/Relationship Based
Direct
Response
Promotion
Response
• Sale
• Inquiry
• Subscribe
Database
Private
Target Market
• Lifetime Value
• Custom Programs
Customer Information Collected
for the Database
Sources of Information
Inquiries, newsletter
subscribers, and requests
for samples/freebies from
ads and website
Online and offline surveys
Warranty cards
Coupon redemptions
Rebate applicants
Sweepstakes entrants
Types of Information
Name
Address
Telephone/fax
Email address
Credit card
Purchase history
Source of sale, contact,
initial awareness
Income
Occupation
Product ownership