Transcript Slides - McCormack Associates

An Ghlasaigh, Doirí Beaga, Leitir Ceanainn, Co Dun na nGall
Monaghan LEO
Start Your Own Business Training
Programme 2014
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Schedule
6 Modules, 6.30 – 9.30 pm
+ 1 Individual Mentoring Session re Business Plan Development
Module 1
Introduction to Business Planning
Module 2
Ideas Generation and Market Research
Module 3
Marketing and the Small Business – What’s Your Idea
and How are you going to sell it?
Module 4
Prospecting and Closing Sales
Legal Issues for Business Start Ups
Module 5
Business Finance
Module 6
Your Business Plan – A Practical Guide
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Dedicated Course Website
www.moodle.mccormackassociates.org.uk
Username:
mcebsyob12a
Password:
mcebSYOB12*@
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
A few thoughts about marketing
“Next to doing the right thing, the most
important thing is to let people know you are
doing the right thing.”
– John D Rockefeller
Running a business without marketing is like winking at
a girl in the dark . You know what you’re doing, but she
doesn’t …
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Think about this…..
• What is your unique selling proposition (USP)?
• How will people know about your product/service?
• Why will people chose to do business with you rather
than with your competitors?
• Why will people spend their money on your product
rather than an alternative product?
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Core Elements of Marketing Mix
All the elements must meet the needs and desires of your target market.
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Marketing Synergy
• Synergy is the working together of two or
more things to produce a result greater than
the sum of their individual effects.
• Getting one element wrong can
diminish/destroy the impact of your
marketing efforts and spend
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Getting one element wrong…
Strand
Mist
Nova
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Getting one element wrong…
•
Marketing message: Scandinavian vacuum manufacturer Electrolux used the following in
an American campaign: "Nothing sucks like an Electrolux."
•
Labelling: When Gerber started selling baby food in Africa, they used
the same packaging as in the US, with the smiling baby on the label.
Later they learned that in Africa, companies routinely put pictures on
the labels of what's inside since many people can't read.
•
Packaging: Nectar in Spain – bottle size
•
All elements must come together to produce synergy
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
What do your potential customers want?
USE YOUR MARKET RESEARCH
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
The Product…....
What does the customer want?
•
•
•
•
•
•
•
What need – current or latent – does it meet?
Functionality?
Styling?
Quality?
Safety?
Warranty?
Repairs and Support?
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Different Market Segments have different
purchasing criteria
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Market Segmentation … e.g.
• B2C
• Business to consumer
• B2B
• Business to business
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Basic Market Segmentation
Further Segmentation: B2C
• Sex
• Age
• Location
• Social demographics
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Market Segmentation
• Further segmentation:
– B2B: By industry type
– By geographic location
– By size
– By position within business
– A combination of the above
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Product type – 2 basic categories
• High
Involvement
• Low
Involvement
• Important!
Represents major
expenditure/investment
Smooth operation depends on
it
It will be round for a long time
• Nothing much rests on it!
Not major investment
Short term purchase
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Price
•
•
•
•
•
Entry strategy
Strategy for growth
“Milking” the market
Extending product life cycle
Exit strategy?
The elements of Marketing Mix are inter-dependent. Don’t
change one without considering the others!
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Pricing Strategies
E.G. Cost + Pricing
=
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Pricing Strategies
Cost + ignores …
•Your position in the market
•Your product’s position in the market
•Perceived value of your product/service
•Ability/willingness to pay
•Competitors
•Stage in product life cycle
•Price sensitivity …
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Possible Strategies
Skimming the market
High price – if significant competitive advantage
Not sustainable – high profits attract competitors
Penetration Pricing
Price artificially low to gain market share
Economy Pricing
“No frills” – basic product, low price
Optional Product Pricing
Charge for optional extras
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Possible Strategies…. more
Product Line Pricing
Elements within a range e.g. car wash, wash and wax,
wash wax and valet
Psychological Pricing
Odd numbers (€19.99 v €20.00); High price = better quality?
Competitor Based Pricing
Be careful about making direct comparisons – only do it if you
know you can win!
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Possible Strategies…. more
Captive Product Pricing
e.g. Printer/toner
Promotional Pricing
e.g. Buy two, get one free; Buy before …; Introductory Offer
Loss Leaders
To attract the customers
Market Specific Pricing
e.g. RoI v Spanish v UK pricing
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Possible Strategies…. more
Dangerous to make your Price
your USP
•No room for negotiation
•Little buffer for contingencies
•It’s easier to take your prices down
than put them up!
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Place
• “Place” must be:
– Consistent with marketing strategy
– Suit the customer
• Perception of “place” changing in the context of e-commerce
24/7/52 concept
• Keep your eye on the market!
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Factors to take into account re Place
• Distribution channels
• Market coverage (inclusive, selective, or exclusive
distribution)
• Specific channel members
• Inventory management
• Warehousing
• Distribution centres
• Transportation
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Place - - - “www”
Opportunity to:
• Have access to global market
– Reality check: Can you service this market?
Logistics/Volumes/Prices
Excellent opportunity:
• To monitor interest in the market place (Statistics)
• Develop relationship with potential clients (Enquiries –
Newsletters – Competitions)
• Keep an eye on the competition!
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Promotion
• A plethora of means
– E.g.? What’s Your Business
Name?
Does it tell people what you do?
• A2B or A2B Logistics
• G Jones or G Jones Graphics
• Is the domain name available? More in this in
eCommerce
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Promotion – Cost Effectiveness!!!!
Signs/signage
Press releases
Make a news story – with photos!
Target relevant publications – what do potential
customers read?
Launch with invited guests?
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Promotion – Cost Effectiveness!!!!
Become an expert – and let people
know you are!
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Promotion – Cost Effectiveness!!!!
•
•
•
•
Mail shot – encourage feed back
Texts (permission and opt out facility)
Leaflets
Web-site Promote your web-site – Update – Monitor
– Easy to find and navigate
– Relevant
• Sponsorship
• Trade shows
• In store promotions
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Promotion – Cost Effectiveness!!!!
- Permanent reminders ….
Pens?
Calendars? (with useful/relevant information)
Fridge magnets?
Book markers?
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Promotion
• Social media – Facebook, Twitter,
Google+, Pinterest
Advertising – Pay per click
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Advertising
“The activity of attracting public attention to a
product or business, as by paid announcements
in the print, broadcast, or electronic media.”
“ … the science of arresting human
intelligence long enough to get money
from it”
Stephen Leacok
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Be Careful
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Advertising – expensive and transient
Always set objectives and monitor results
Impact on sales
Vouchers redeemed
Number of entries in competition – form mailing list
Number of people asking for “Debbie”
Always include a Call the Action
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Advertising
• Don’t be Banal - Work on copy!
– Should be “the start of a riveting conversation”
BROTHEL IN PIMLICO (Roy Brooks, Estate Agent, London)
•
WANTED: Someone with taste, means and a stomach strong enough to buy this
erstwhile house of ill-repute in Pimlico. It is untouched by the 20th Century as far as
convenience for even the basic human decencies is concerned. Although it reeks of
damp or worse, the plaster is coming off the walls and daylight peeps through a hole in
the roof, it is still habitable judging by the bed of rags, fag ends and empty bottles in
one corner. Plenty of scope for the socially aspiring to express their decorative taste and
get their abode in 'The Glossy' and nothing to stop them putting Westminster on their
notepaper. 10 rather unpleasant rooms with slimy back yard. £4,650 Freehold. Tarted
up these houses make £15,000.
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Advertising – Stay Legal!
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Advertising – Stay Legal! - Beware Passing Off!
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Visibility/Credibility – Networking
Potentially very effective
• Join business organisations
• Join special interest organisations
• Take every opportunity for self promotion
– Always have cards, brochures.
– Get contact details, keep organised and follow up
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Establish Credibility from the Outset
•
•
•
•
•
•
•
•
Business name
Clear business description – the “elevator pitch”
Register domain name
Good web presence (put domain name on everything!)
Professional stationery, cards
Develop distinct corporate image
Build up contacts
Present yourself and your business with confidence
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
What we considered today
• Marketing principles – The 5 Ps
– Assist in developing model around which to
build your marketing strategy
• Marketing Synergies
• Purchasing Decision Priorities
• Market Segmentation
• The 4 Ps of Marketing
• Issues for Start Ups and how to deal with them
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Suggestion
• List all the marketing actions you can think of
• Select in terms of usefulness to your business
• Put them in time sequence to maximise impact
• Cost
• Review
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]
Schedule
6 Modules, 6.30 – 9.30 pm
+ 1 Individual Mentoring Session re Business Plan Development
Module 1
Introduction to Business Planning
Module 2
Ideas Generation and Market Research
Module 3
Marketing and the Small Business – What’s Your Idea and
How are you going to sell it?
Module 4
Prospecting and Closing Sales
Legal Issues for Business Start Ups
Module 5
Business Finance
Module 6
Your Business Plan – A Practical Guide
Local Enterprise Office Monaghan
Unit 9, M:TEK Building, Knockaconny, Monaghan
Tel 047 71818 [email protected]