Transcript Chapter #8 – Marketing - Elements of Entrepreneurship

MANA 3325 T-Th.
Professor Thurburn
Marketing
What is Marketing?
MANA 3325 T-Th.
Professor Thurburn
Marketing
Marketing Definition:
1. The process of creating and delivering desired goods
and services to customers.
2. Involves all of the activities associated with winning
and retaining loyal customers.
3. Includes Market Research, Advertising, Selling, and
Customer Support
MANA 3325 T-Th.
Professor Thurburn
Marketing
Advertising Definition:
1. Advertising Supports Sales.
2. Advertising is NOT the same as Sales or Selling.
3. Advertising Builds Awareness, Trust, Confidence, and
when done well Leads a Prospect to the Sales Cycle
Entry Point… Taking an Action that leads to a sale.
MANA 3325 T-Th.
Professor Thurburn
Marketing
Selling Definition:
1.
2.
3.
4.
Exchange of Money for Products or Services
The Most Critical Step in the Marketing Cycle
May happen with or without human interaction.
Buyer MUST overcome their reluctance to separate
from their money.
MANA 3325 T-Th.
Professor Thurburn
Selling Made Simple:
1. People Only Buy What They Want
2. Selling is the Art of converting a Need to a Want.
3. Selling effectively requires Creating a Sense of
Urgency.
4. People rarely buy today what they can purchase
tomorrow.
5. Time Kills Deals!
Marketing
MANA 3325 T-Th.
Professor Thurburn
The Purchase Cycle
Marketing
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Professor Thurburn
Marketing
MANA 3325 T-Th.
Professor Thurburn
Marketing
The Consumer Perception Process
Awareness
Top of Mind
Awareness
Expertise
or
Authority
The IBM Paradigm
Trust
and
Confidence
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Professor Thurburn
Step 1 - Building Awareness: Traditional Media
1.
2.
3.
4.
5.
6.
7.
Television
Radio
Print Media
Direct Mail
Signs
Exhibits & Expos
Others?
Marketing
MANA 3325 T-Th.
Professor Thurburn
Step 1 - Building Awareness: Digital Media
1.
2.
3.
4.
5.
6.
7.
8.
9.
Email Marketing
Websites
SEO
Social Media
PPC Advertising
Banner Advertising
Video Marketing
Google Hangouts
Others?
Marketing
MANA 3325 T-Th.
Professor Thurburn
Marketing
What is primary difference between
Traditional Marketing and Digital
Marketing?
Interactivity!
MANA 3325 T-Th.
Professor Thurburn
Marketing
Guerilla Marketing Definition:
1. Are unconventional, low-cost, and creative
marketing techniques that allow a small company to
realize a greater return from its marketing
investment than do larger rivals.
2. Do not require large amounts of money to be
effective – just creativity.
MANA 3325 T-Th.
Professor Thurburn
Guerilla Marketing Myth:
Free and Easy…
…just need to figure out the magic formula.
Marketing
MANA 3325 T-Th.
Professor Thurburn
Guerilla Marketing Reality:
All Marketing costs either
1. Time… or
2. Money… or
3. Both
Marketing
MANA 3325 T-Th.
Professor Thurburn
Marketing
Guerilla Marketing Principles:
1. Find a niche and fill it.
2. Use the power of publicity
3. Don’t just sell… entertain!... “Entertailing”
4. Strive to be unique.
5. Connect with customers on an emotional level.
•
Build trust
•
Define a unique selling proposition (USP)
MANA 3325 T-Th.
Professor Thurburn
Marketing
Unique Selling Proposition:
1. A key customer benefit of a product or service that
sets it apart from its competition.
2. Answers key customer question: “What’s in it for
me?” WiiFM
3. Consider intangible or psychological benefits as well
as tangible ones.
4. Communicate your USP to your customers often.
MANA 3325 T-Th.
Professor Thurburn
Marketing
More Guerilla Marketing Principles:
 Create an identity for your business through
branding.
 Embrace social networking.
 Start a blog.
 Create online videos.
 Host a special event.
 Focus on customer satisfaction.
 Retain existing customers
 Be devoted to quality.
 Pay attention to convenience.
MANA 3325 T-Th.
Professor Thurburn
USP and Brand Relationship:
Marketing
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Professor Thurburn
USP and Brand Relationship:
Threshold Attributes
• Does it work?
Performance Attributes
• Is it easy?
Excitement Attributes
• Does it Deliver Results Wanted?
Marketing
MANA 3325 T-Th.
Professor Thurburn
Marketing
Building a Brand:
Relevance
High
“Antes”
“Drivers”
Features that are important
to customers but all
competitors provide them
Features that are both
important to customers and are
highly differentiated from those
of competitors
Every company in the
market must “ante up” on
these features.
These are the attributes on
which a company must focus to
build its brand.1
“Neutrals”
“Fool’s Gold”
Features that are irrelevant to
customers
Features that are unique to
your company but do not drive
customers’ loyalty to your
product and services
These features are useless
when it comes to branding.
Low
Low
Don’t make the mistake of
trying to build a brand on
these features!
Differentiation
High
MANA 3325 T-Th.
Professor Thurburn
Marketing
Embrace Social Media:
1. Social networks sites, such as Facebook, LinkedIn,
and Twitter, allow entrepreneurs to connect with
potential and existing customers at little or no cost.
2. 44% of entrepreneurs use social media to connect
with existing and potential customers.
MANA 3325 T-Th.
Professor Thurburn
Marketing
Blog Marketing Guidelines:
1. Be honest, balanced, and interesting.
2. Post blog entries consistently so that readers have a
reason to return.
3. Ask customers for feedback.
4. Strive to cultivate the image of an expert or a trusted
friend on a topic that is important.
5. Use services (ie:Google Alerts) that scan for a company’s
name and send e-mail alerts when they find posts.
6. Promote the blog via e-mail and promotional Web Sites.
MANA 3325 T-Th.
Professor Thurburn
Marketing
Video Marketing:
YouTube reports that visitors view 3 billion videos per day.
Online video guidelines:
1. Think “edutainment.”
2. Be funny.
3. Tell Stories.
4. Post videos on multiple social media sites.
5. Involve customers.
6. Keep it short.
MANA 3325 T-Th.
Professor Thurburn
Marketing
Customer Service: Customer Experience Management (CEM)
1. Surveys show 79% of unhappy customers tell others about
their experiences.
2. 48% of shoppers say they won’t patronize stores where
they know others have had negative experiences.
3. For every complaint a company receives, 17 other
complaints go unspoken.
4. Disgruntled customers often post their experiences online.
5. 80% of shoppers have changed their minds about a
purchase after reading negative information online.
MANA 3325 T-Th.
Professor Thurburn
Marketing
Customer Service: (CEM)
To achieve stellar customer service and customer satisfaction:
1. Examine your company’s service cycle
2. Set standards and measure performance
3. See customer complaints as a mechanism for improving
customer service
4. Listen to customers
5. Define superior service
MANA 3325 T-Th.
Professor Thurburn
Marketing
Customer Service: (CEM)
1. Treat employees with respect and show them how
valuable they are
2. Use technology to provide improved experience
3. View customer service as an investment, not an expense
4. Reward superior service
5. Give customers an unexpected surprise
MANA 3325 T-Th.
Professor Thurburn
Marketing
Customer Service: (CEM)
Every customer interaction should be…
• Intimate
• Personal
• Consistent, courteous, and professional
• Responsive
• Helpful information and advice
• Involvement of caring, well-trained people
• Long-term relationship view
• Emphasis on sustaining an ongoing relationship
• Nurturing the company/customer relationship
Which Leads to…
MANA 3325 T-Th.
Professor Thurburn
Marketing
Customer Service: (CEM)
Every customer interaction should be…
• Intimate
• Personal
• Consistent, courteous, and professional
Which Leads to…
• Responsive
Satisfied,
loyal, repeat
• Helpful information and advice
(and profitable)
• Involvement of caring, well-trained people
• Long-term relationship view
• Emphasis on sustaining an ongoing relationship
• Nurturing the company/customer relationship
customers
MANA 3325 T-Th.
Professor Thurburn
Marketing
Retain Existing Customers: (CEM)
1. A company must land 12 to 20 new customers to
offset the impact of one lost loyal customer!
2. Research shows that repeat customers spend 67%
more than new customers.
3. Attracting new customers costs the typical business
7 to 9 times as much as keeping existing customers.
4. Practice customer experience management.
MANA 3325 T-Th.
Professor Thurburn
Marketing
Retain Existing Customers: (CEM)
Companies that are successful at retaining their customers
constantly ask themselves (and their customers) 4 questions:
1. What are we doing right?
2. How can we do that even better?
3. What have we done wrong?
4. What can we do in the future?
MANA 3325 T-Th.
Professor Thurburn
Marketing
How Americans Define Product Quality:
1. Reliability (average time between breakdowns)
2. Durability (how long an item lasts)
3. Ease of use
4. Known or trusted brand name
5. Low price
MANA 3325 T-Th.
Professor Thurburn
Marketing
How Americans Define Service Quality:
1. Tangibles - equipment, facilities, people
2. Reliability - doing what you say you will do
3. Responsiveness – promptness in helping customers
4. Assurance and empathy - conveying a caring attitude