Transcript Slides - McCormack Associates

Start Your
Own Business
Monaghan
LEOTraining
Programme
February – March 2015
Schedule
Four 1 Day Workshops
+ Follow Up Clinic for Business Plan Review
Module 1
Introduction - Start Your Own Business and Personal Assessment
Module 2
Ideas Generation and Researching the Market
Module 3
Marketing the Small Business
Module 4
Preparing a Business Plan
Module 5
Legal Issues for Start Ups and Managing People
Module 6
Sales
Module 7
Bookkeeping and Records Management
Module 8
Financial Management
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 …
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?
Core Elements of Marketing Mix
All the elements must meet the needs and desires of your target market.
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
Getting one element wrong…
Strand
Mist
Nova
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
What do your potential customers want?
USE YOUR MARKET RESEARCH
The Product…....
What does the customer want?
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What need – current or latent – does it meet?
Functionality?
Styling?
Quality?
Safety?
Warranty?
Repairs and Support?
Different Market Segments have different
purchasing criteria
Market Segmentation … e.g.
• B2C
• Business to consumer
• B2B
• Business to business
Basic Market Segmentation
Further Segmentation: B2C
• Sex
• Age
• Location
• Social demographics
Market Segmentation
• Further segmentation:
– B2B: By industry type
– By geographic location
– By size
– By position within business
– A combination of the above
Product type – 2 basic categories
• High
Involvement
• Important!
 Represents major
expenditure/investment
 Smooth operation depends on it
 It will be round for a long time
• Low
Involvement
• Nothing much rests on it!
 Not major investment
 Short term purchase
Price
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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!
Pricing Strategies
E.G. Cost + Pricing
=
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 …
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
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!
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
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!
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!
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
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!
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
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?
Promotion – Cost Effectiveness!!!!
Become an expert – and let people
know you are!
Promotion – Cost Effectiveness!!!!
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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
Promotion – Cost Effectiveness!!!!
- Permanent reminders ….
Pens?
Calendars? (with useful/relevant information)
Fridge magnets?
Book markers?
Promotion
• Social media – Facebook, Twitter,
Google+, Pinterest
Advertising – Pay per click
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
Be Careful
If paying for space – USE IT WELL.
Be different – Use Humour? But be careful!
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
Advertising
• Don’t be Banal - Work on copy!
– Should be “the start of a riveting conversation”
BROTHEL IN PIMLICO (Roy Brooks, Estate Agent, London)
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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.
Advertising – Stay Legal!
Advertising – Stay Legal! - Beware Passing Off!
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
Establish Credibility from the Outset
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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
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
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
This Afternoon …
Preparing a Business Plan