Transcript Implementing CRM and e commerce - Does the marketing concept

A Gap in the Market?
A Market in the Gap?
Keith Burton
What we’ll be covering

What’s marketing?

Why marketing?

Questions, questions, questions

Applied common sense?

Best laid plans?
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Delivering customer value

Value customers

Future framework
So, what is marketing then?

Function or department?

Advertising and selling?

Approach to doing business?
Academics and their definitions…
“to attract and retain customers at a profit”
(Drucker)
“matching a company’s capabilities and the
wants of customers in order to achieve the
objectives of both parties”
(McDonald)
“..turning simple ideas into strategy”
(Trout)
It’s more important than that!
It’s the whole business –
as seen by the customer:
“The only valid definition of a business
purpose is to create a customer.
What the business thinks it produces is
not of first importance … what the
customer thinks he is buying, what he
considers value, is decisive…
(Drucker)
A marketing orientation

Fundamental focus on customers

Understanding them via feedback & research

Understanding competitive situation

Innovation, adaptation & proactivity
Striving for competitive advantage produces
better products or services

Understanding, controlling & planning your
business

What fires up the Dragons?
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Realistic, defensible forecasts
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Detailed market knowledge – trends, segments, barriers

Competitive knowledge – who, how long, shares?
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Value – company, idea/offer, contacts

Pricing strategy, detailed costs, profit potential
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Product distinctiveness – easy to imitate/ protect?
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Target customer strategy
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Risk assessment/ contingency planning
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You – credibility, experience, passion, listening
and that’s all Marketing!
Some really good questions …

What problem does your idea resolve?

Who would be interested in it/ why?

What do they currently do/ buy?

Why should they change/ try your idea?
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Where will customers be able to buy?
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When will they be most interested?
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How will they get to know about it?
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How much/ how regularly/ what price?

How effective – how likely to come back?

Who will copy your idea and when?
Towards finding some answers
Research your opportunity:
1. Define the target customers
- the most likely to be interested
- segmentation (avoid going too broad)
- describe “bulls-eye” customer in detail
2. Decide if you have a market
- secondary data
- library, internet, Business Link, Uni
3. Get to know it
- influencers/ innovators?
- why buy, when, how often, trends?
- check out the competition (mystery shop)
Towards finding some answers cont.
4. Review all your assumptions
Pull apart and reconstruct:
- name, presentation, format
- price structure
- segmentation and target audience
- forecast volumes
- test? (pros and cons)
5. Evaluation/ on-going assessment
- quantified objectives
- benchmarking
- customer feedback
- avoid wishful thinking
- be a good listener; commonsense
Positioning
Segmentation - where company competes
Positioning – how it competes
About providing customers with a salient reason
to choose your offering over a competitor’s
– i.e. your competitive advantage.
“…it’s what you do to the
mind of the prospect.”
Positioning maps
Luxury
X
Mercedes
X
X
Lexus
BMW
Performance
Safety
X
X
Audi
Volvo
X
Saab?
Used?
X
Alfa
Everyday
The Marketing Mix
Aim: right product, right place,
right price, and right time. Right?
Product
Price
Place
Promotion
+
People
Process
Physical evidence
The marketing mix
Product
 Quality - specification & management
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Key suppliers

Features & Benefits
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Patents
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Name, packaging/ presentation, trademarks
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Range/ sizes
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On-going development
The marketing mix
Price
 Pricing strategy (premium, value etc)
 Approach - cost plus; competitor,
market?
 Value - not only financial: “cost” of
continuing to live with the problem?
 Cost elements/ value added
 Monitor competition
 Trading terms/ discount structure?
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Easy to lower, harder to raise!
The marketing mix
Place

Segment - geography/market/customer
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Internet/ e-commerce
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Direct channels
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Own retail outlet
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Own/contract sales

Wholesalers, retailers, agents
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Franchising
The marketing mix
Promotion – creating a dialogue
Objectives, strategy and budget
*Advertising
*Public Relations
*Sales promotion
*Direct marketing
*Website
*Personal selling
*Trade fairs
*Exhibitions
*Letterheads, brochures, business cards
*Word of mouth
*Testimonials
Tone of voice/ imagery?
Services marketing mix

Services are different:

So three more P’s :
(intangibility, inseparability, variability, perishability)

your people represent the company
the way you do business says a lot about
the company/ brand

your delivery point makes a statement too
(address, website, workshop, call-centre,
retail shop, company vehicles)

Needs integrated approach!
Company
Internal Marketing
Enabling promises
Employees
External Marketing
Interactive Marketing
Keeping promises
Making promises
Customers
Building a Brand
Your input into
Product
Place
Price
Promotion
People
Process
Physical evidence
Brand
Distinctive
reputation
Functional &
emotional values
Consistency and
trust
Customers’
output from
Quality
Value
Expected
performance
Differentiation
Self image
The marketing plan

Starts with Mission and Key Objectives
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Defines scope, activities & aspirations
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Market focused

Defines boundaries
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Explains purpose

States core values
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Identifies resources required
WAWN, WWTB, HWGT
SWOT analysis
Source
Strengths
Weaknesses
matching
strategies
conversion strategies
Opportunities
Threats
Internal
(controllable)
External
(uncontrollable)
Setting Objectives &
Defining Strategy

An objective is what you want to achieve

A strategy is how you plan to achieve it
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Objectives should be measurable

Strategy should involve:
- target markets/ customers
- competitors
- marketing activity
Implementation Plans

Develop strategy into action plans
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Costed, clear targets & time-tabled
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Any additional resources needed?

Dependencies/ contingencies recognised

Programmes coordinated
Don’t forget post evaluation!
Key customer strategies too
Who buys?
Who’s involved in the decision?
How do they buy?
What are their choice criteria?
Where do they buy?
When do they buy?
Where can we add value?
How can we reach them?
Aim to build relationships


Life-time value:

Knowledge of existing customers

Opportunity to cross/up sell

Build trust/ social bonds

Develop customer loyalty
Start & maintain database!
Delivering customer value
Performance
Loyalty
Delighted
Very satisfied
Satisfied
Dissatisfied
Zone of
tolerance
Great implementation!
Understanding
Persuasion
Selling
Negotiation
Conviction
Communication
Listening
Tenacity
Execution
To summarise…
Market/ segmentation analysis
Research – not just family and friends!
Positioning – how do you want to be regarded?
All the P’s – the marketing toolbox
Branding – the ultimate aim?
Planning – control, evaluation, feedback
Customer relationships – building the future
Orientation – from day one!
Common sense but…seek advice/ creative input
Good Luck!
Any Questions?