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Putting Below-the-Line Marketing to the test!
Seminar 1
Building Relationships
July 2010
First Things First
First Things First
Who am I and why should you you listen to me?
• I give you 25% of your mark
• And I’ll fail you if you don’t
• I have been where you are
• I went through the system
• I have been working in Advertising for 3 years
• It’s not as great as it seems
• Industry is mean - you need some muscle
• I’m gonna teach you what it took me 3 years to learn
First Things First
Why are we doing things this way?
• There is a gap in the market
• Love Entrepreneurship
• Local Communities need help
• Get bums off seats!
• Apply Theory
• Get Experience
• Previous years didn’t work
• Testing this out
• Make Some Money!!!
First Things First
Please do not contact me at [email protected].
May new email address for this competition is:
[email protected]
Marketing Strategy
Its an Ever Changing World!
Find on Facebook page wall
Introduction
• Small businesses need help responding to the ever-changing
environment.
• Especially in the current economic crisis.
• We are young, in with the times, and have marketing skills.
• We must come along-side our communities and support them.
• This competition hopes to mobilize you and teach you how to do
just that.
• And do not think of this philanthropy or volunteerism.
• Marketing is based on finding a need and filling it.
• And there is a large market in need of advertising support,
• And we are going to build profitable relationships with those in
it.
• In good times business people want to advertise. In bad times
they have to.
• If you want to keep your business small, it’s easy. Don’t
advertise.
• Advertising is the mouthpiece of business.
• Many a small thing has been made large with the right kind of
advertising.
• Stopping advertising to save money, is like stopping your watch
to save time.
New Agency Development
• So, to build profitable customer relationships, we need to
develop a brand that can be-friend them.
• Every Mini-agency will need some marketing focus
• We cannot possibly serve all the customers in the smallbusiness market.
• So, to create some perspective, we will develop a marketing
strategy for our new mini-agencies together.
• Does everyone have a name for their agency?
The Market
“A Market is the set of all actual and potential buyers of a
product or service. These buyers share particular needs and
wants that can be satisfied by the same solution.”
What are the shared needs and wants of our market?
A Supportive Consultation Relationship
Affordable Advertising Solutions
Help them distinguish themselves from competition (positioning)
Exposure (targeted awareness)
Realistic marketing objectives (perspective)
Sales - Increased turnover
Effective & Creative Strategic thinking
Repeat purchases - Increased loyalty
Flexible consultation times and pricing
Measurable Return on Investment
Access to new media, especially the internet
Growth of Client base
Education of marketing principles and advertising concepts
Business Growth
Segmenting the Market
What are the different segments?
• Demographic: Turnover of R1 mil or less per/ year (smallmedium)
• Geographic: Cape Town (close to where you live)
• Psychographic: Retail, wholesale, manufacturing, or a small
service. (preferably location based)
• Behavioural: Those who do not do any advertising yet (a
business where you can add real value)
Targeting
Which segments are the most attractive?
In which segments can we generate the greatest customer value
profitably and sustain it over time?
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Small, local enteprises
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Choose a specific industry that you are passionate about (Fashion,
sport, food&beverage, wellness, etc)
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The key is to target an industry by starting with one client and then
building your experience and portfolio in that industry as you go along
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Remember: Marketing is not really an industry in itself. It is a skill set
that can help you serve the industry you love. (Example: I love
Entrepreneurship and Higher education, and my marketing skills help
me to serve it, and grow in it. Like I am doing in this competition)
Porters 5 forces
What is the level of competition in the market?
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Buyers Power: None really - empower them
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Potential Substitutes: None really (Only expensive ad agencies on one
end, and small printers and designers on other)
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Strength of suppliers: Not much at the moment (financial crisis)
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Barriers to Entry: No huge barriers - Only our time, money, petrol,
expertise, experience, and the market’s perceptions. Which can be
overcome easily.
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Overcoming barriers: You can share the cost amongst yourselves; I
have the expertise to help you; you will grow in experience; and you
can educate the market to overcome their fears and wrong perceptions.
Core capabilities
Do we have what it takes to compete in this market successfully?
• What can we offer based on:
• Expertise: understanding of youth market and new
technology/media, creativity, strategic thinking, contacts,
networks, unique advertising ideas
• Resources: Computers, internet, textbooks, transport, contacts,
Dylan, B-Line, Mr. Duffet, suppliers, wider network
• Location: Flexible (coffee shop or @ client office), Mobile,
laptops, Cell Phones (You are the business, where you go,
advertising will happen)
• Time: Flexible, 2-3 years of studying left
• Team: Support one another, Advertising family
Positioning
How should we position ourselves to offer superior value?
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Identify a set of competitive advantages upon which to build positioning.
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Holistic affordable advertising solutions * (Marketing Leadership)
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Fresh advertising ideas
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Dedication (only clients for the moment), one-on-one
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Devote time and effort to growing their business (supportive relationship)
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Tangible results & Measurable ROI
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Tailor-made, customisable solutions
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Simpler way of approaching increasing sales
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Better than alternatives (small printer and big agency) and better option to try in
current financially difficult situation.
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Faster way of communicating, and hopefully increasing the speed of doing
business
Marketing Mix (4 P’s)
Product: What goods and services combination will we offer the target
audience?
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Affordable Advertising consultation & solutions (service
consisting of a range of “products”) like:
 Targeted Exposure - e.g. consists of:
 A website (in with the times)
 Basic advertising material (brochures)
 Increased Sales - e.g consists of:
 Promotions
 CRM database & better communication
*Tailor made packages
Marketing Mix (4 P’s)
Price: How much money will customers have to pay to obtain the
product?
• Time, Trust, & Information
• Understanding, Grace, and Patience
• No retainers (like big agencies)
• Mark up on production
• Initially, no consultation fees.
• Eventually, hourly rates, and so on.
Marketing Mix (4 P’s)
Place: What activities will make the product-service available to the target
customers?
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Face to face
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At client offices or at coffee shop
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Car and other transport
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Computer and other IT facilities
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Email and Skype
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Blog or website
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Facebook & Linked In
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Telephone and cell phone
Marketing Mix (4 P’s)
Promotion: What activities will communicate the benefits of our
product-service and persuade target customers to buy?
• Build a profile on Linked In & on hard copy
• Credentials document (what done before)
• Personal selling (educate client)
• Promotion Letter/ leaflet (DM)
• Promotional video (you tube)
• Website or blog
• Testimonials (Later)
Integrated Marketing Communications
So why are we doing this strategic planning together?
• We need to send out a clear, consistent, and compelling
message to the target audience.
• There can be no conflicting messages that confuse people.
• We must all make sure that we communicate effectively and be
sure of our positioning to grow a good reputation.
Managing the Marketing
How will we manage the marketing effort successfully and
efficiently?
• We will manage it together
• You will communicate with me a lot
• Everything will go through Dylan
• Stay in contact with your client
• Use email to keep Dylan, Client, and Rodney infomred
“Marketing is not an event, but a process… It has a
beginning, a middle, but never and end. You improve
it, perfect it, even pause it. But you never stop in
completely.”
Customer Relationship Management
How will we make sure that we do not just get new clients, but that
once we have them, we grow and maintain them effectively over time?
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Develop and maintain a good working relationship.
Be real with client
Make good impression
Keep giving new ideas
Upfront loyalty
Think practically
Befriend them
Keep in contact with Dylan and Client
Overall Objectives
• So what is the overall goal of going after this market in this way?
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Get experience
Network
Make money
Understand the procedure
Serve the market
Building relationships
FNB: How can we help?
Find on Facebook group wall
How do we help?
• Like Imisch, we need to spend time with our client.
• We need to get to know their business - (Feel the pig, hold the
chicken.)
• So that we can develop the best solutions
• We need to go to the ends of the earth for our clients
• We are here to serve them, not take from them.
Communication
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Do not bombard your client with information
Think about what you need before you contact them
Do stress in front of them. Always keep your composure
But be honest about things.
If you mess up, and you will, do not stress, just sort it out and be open
with your client.
They are more interested in how you handle problems, than in the
problems themselves.
Also, keep them informed. They like to know what’s going on.
Go to their offices and meet with them regularly.
Agenda’s: This is a list of things that need to be discussed in a meeting
Contact reports: This is the minutes of a meeting you had with the
client. Once the meeting is over, you type it up with columns for item,
action, person, date. This keeps everyone one same track.
Contact Report Example
Item
Action
Person
Date
Competition
Upload powerpoint
Dylan
Prac 1
Do IDI with client
Account Executive
4/7/10
Video 1
Film during interview
Researcher
6/7/10
30/07/10
Practical Tips
• Think of this process as an opportunity to educate your client on
the basics and importance of marketing.
• Agencies are constantly trying to inform their client about bestpractice, new developments, and ways of doing things.
• If your client understands why they need to do something, and
the benefits attached, they will be more likely to employ you to
develop and implement it for them.
• So take every opportunity to give your client practical advertising
tips.
• Stay up-to-date with the latest trends in advertising.
*Please view the Facebook group for articles on this.
Practical Resources
• memeurn.com
• foursquare.com
• linkedin.com
• Old Spice Social Media Campaign
• fourhourworkweek.com (Tim Ferriss)
• sethgodin.com (Check out free stuff)
• shopify.com
Reports
• Develop a report at the end of every phase to document the
progress, successes, and difficulties of that phase.
• Agencies need to keep on evaluating their programme and
relationship with the client, brand, and customers.
• Reports give an overview of how a mechanism worked or didn’t
work.
• It is important to write up reports and give to your clients after
any phase in a relationship.
• Reports are used extensively in debriefing meetings after a
campaign has run its course.
• They are crucial for evaluation, control, and advertising
management.
Process & Timing
• Explain how things will work.
• People only fear and get nervous when they are uninformed.
• So be sure to keep them informed, and make sure they
understand.
• Maybe you can develop a little calendar for them, with all the
important dates.
• Planning is something you must do with your client. So that
everybody is on the same page.
Budgeting
• Try not to scare your client.
• They do not like to hear the word MONEY!
• So, initially, explain to them that your consultation is free, but
that if any printing is done, you will add a small mark-up.
• Mutually beneficial & profitable relationship that grows - do not
have to have everything figured out in the beginning.
• But, we will get into more detail closer to the time.
• For now, just ask them how much they would be willing to spend
on advertising.
• Possibly ask them based on the different parts of advertising
(basic material, promotion, experiential, etc)
Return on Investment (ROI)
• Explain to your client the possible return on investment for the
money they are spending.
• They want to know that your strategies will work.
• To work this out, you will have to apply some financial
techniques. Like:
• Break-even analysis (how many products do we have to sell to
cover the cost of advertising. And once this limit is reached the
rest is profit, and therefore a good ROI)
• This may require that you understand the businesses mark-up
on products, so that you can work out projections for the
advertising.
• Please be discreet and sensitive in this area. Businesses are a
bit touchy about their financials.(Non-disclosure form)
• Build trust and respect with the client first.
Invoicing
• Before any material can be produced, an invoice must be given
to the client.
• Also, 50% of the total amount will have to be paid before printing
can commence.
• This is to ensure that clients take our work seriously, and that
we have a deposit in case a mishap occurs, or the client
cancels. (Which can happen and does)
• I will be managing the invoicing process. So please
communicate with me when we get to this stage.
• Do not just ask the client for money straight away. All money will
go through me for now.
Pricing
• The way we are going to make money out of this is by marking
up the material production.
• We will add a 20% mark-up to all printing.
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Example:
1000 leaflets @ R2 per leaflet = R2000
2000 + 20% = R2400
R400
* This is still to be finalized.
Making Money
• The key to this competition is to teach you how to consult and
grow your own client base.
• It is important, that we continue managing and growing your
client base once we are finished with the competition.
• The goal is to eventually have many small clients all ordering
small amounts.
• But this will take a lot of hard work, dedication, and clever
consulting.
Marketing Information Audit
• There is information you need to be able to consult properly.
• Do in-depth secondary research (Prac 1)
• Secondary Research
• SWOT Analysis
• Evaluation of all the marketing information
• Please do not just send your client a letter asking for all the
information.
• The best way to do it, is to develop a IDI questionnaire and then
send them a letter explaining that you want to interview them.
• List some of the topics you will cover.
• Then, meet with them, and record the interview on your phone.
• Transcribe the interview and use it as data.
• Go to Facebook group for a thorough questionnaire layout
Proposals
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I will need four sections to your proposals
1. Consumer Research proposal, quote, and post
implementation evaluation report
2. Basic advertising proposal & quote
3. Promotional proposal & quote
4. Experiential proposal & quote
Consumer Research
• This is the first aspect of BTL marketing we will implement for
the client. It comprises of two mechanisms:
• A customer survey mechanism and a CRM mechanism.
• Customer Survey: This is a questionnaire that determines
customer satisfaction.
• How was you experience?
• What would you recommend?
• CRM mechanism: This is a mechanism that generates customer
data for the purpose of relationship management.
• What is your email address?
• When is your birthday?
* Please see Facebook group for notes and articles on this
Basic Advertising Proposal
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To accompany these mechanisms, the business
may need a range of basic advertising as well:
• Business Cards
• Information pamphlet
• Credentials document
• Website
• Etc.
Promotional Proposal
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Once they have the needed basic advertising
materials, they will be ready to launch a promotion to
increase sales and grow their client base.
This may involve a:
• SMS Competition
• Buy one get one free promo
• Etc.
Experiential Marketing Proposal
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And then, once they have
• grown their client base,
• are running little promotions now and again,
• have a CRM mechanism in place, and
• have all the advertising material needed,
They can launch an experiential campaign to get all
their current and potential clients together in a brand
experience that grows loyalty.
Mini-Agency Relationships
Agency Staff
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It is very important to have the right professionals working on an
advertising campaign
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There are specific tasks that are critical to the success of the campaign
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These should not be overlooked in your team arrangements
You all have been working together for almost 2 years now
You should have a fair understanding of one another’s strengths and
areas of knowledge
There are six “departments” that are essential and should therefore be
implemented in your teams as well
Each individual will be responsible for one or more specific tasks
Each will guide the group to the respective goals of that position
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Agency Staff
• Researcher - The researcher is responsible for all possible
research, analysis, evaluation, processing and recommending
• Strategist - The strategist uses the researched information to
plan all the concepts and develop the mechanics of the
campaign
• Traffic - Traffic is the link between all the members and acts as
the organizer of the group by relaying information, planning
meetings, coordinating and dealing with admin
Agency Staff
• Account Executive: This person is the link between the client
and the agency and is responsible for developing the
relationship. This is the only person who liaises with the client
• Production - Production is in charge of costing and producing
the job. This person will source all the quotes needed and plan
for the material to be printed and made
• Designer - The designer is the visual marketer. This person
takes marketing concepts and transforms them into attention
grabbing and experience giving elements
Work Flow Model
• Once the current briefing has been completed, there is a
specific sequence to developing a successful campaign.
• This process ensures that one stage flows to the next achieving
optimal growth and efficiency.
• As you progress as marketing professionals, you will witness
this process becoming 2nd nature to your line of thought and
campaign development planning.
• Once the marketers have planned the campaign, it is their
responsibility to develop a thorough design brief for the artists to
work from.
• It is advisable that the artist has an active part in strategising
with the marketers, as it adds greater dynamics to the process
and therefore the overall success of the campaign.
Work Flow Model
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Briefing
Analysis of Brief
Research
Create Objectives
Create Platform
Develop Strategy
Develop Tactics
Brief Designers
Assist Designers
Cost Job
Communication
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Working space
Creative meetings
Meet Often
Email & Internet
Cell Phones
Keep Informed
Work Fast
Work Smart
Do whatever it takes
B-Line Relationship
• I will be your point of contact in B-line
• I have a good relationship with the CEO, John Withers, as well
as with all the other staff members.
• Please do not contact anyone else in the company without my
permission.
• I will be here to guide you and advise you on what to do and
how to do it.
• Please know that I am for you and want to help you make this
competition a huge success.
• Have grace for me.
Supplier Relationships
• I will also be your point of contact with suppliers
• I am currently developing a relationship with a printer, where we
will get all our work printed hopefully.
• If you would like something specific produced at a different
supplier, please make sure that you speak to me first,
• I can then contact them and explain the competition
• Do not contact the suppliers direct please.
What’s Next
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Primary & Secondary Research (Prac 1)
1. Internet research & IDI with client
2. CRM & Customer Survey Proposal
Date: Needs to be completed in week of 2-6 august
I will meet with every group this week to discuss the
individual clients and ideas.
I will also meet with each group in the week of 9-13
August to prepare for research implementation.
Last but not Least
Video Portfolio
• In edition to your written portfolio, you will have to hand in a
video portfolio as well.
• What is a Video Portfolio?
• Your video Portfolio will be a collection of video clips that you
record with either your cell phones or camcorders during the
consulting process.
• Think of it as a video documentary of the whole experience
• Choose one person to do all the filming (possibly the person
with the highest MP camera phone)
Video Portfolio
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What things would you be filming?
• Business processes
• Customer interviews
• Creative meetings
• Designers at work
• And anything else you think is interesting
• You will also eventually develop a short you tube ad for your
client.
• So make sure you get enough footage throughout your time
with which to make it.
Video Portfolio - Video one
• Your first task is to make a 1 minute video clip of your client.
• You must post it up onto the Facebook for all to see.
• You must ask them 5 questions. Upload by 6 August 2010!
• Please go watch the video brief on the 2010 B-Line Experiment
Advertising Facebook group to know what questions to ask.
• Also, make sure that you sign up to the group so that you know
when the next video brief comes out.
• I will also be posting other links and information about
resources, ideas, and instructions for the competition.
• Please feel free to post up any comments, or suggestions for
other group members.
Final Questions???