Building a Guerrilla Marketing Plan Chapter 9 Guerrilla
Building a Guerrilla Marketing Plan Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -1
Marketing n n The process of creating and delivering desired goods and services to customers; involves all of the activities associated with winning and retaining loyal customers “Secrets” Ø Ø Ø Understand target customers’ needs, demands, and wants before competitors can Offer them products and services to satisfy those needs, demands, and wants Provide customers with quality, service, convenience, and value so they will keep coming back Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -2
Four Objectives of a Guerrilla Marketing Plan n n Pinpoint the target markets a company will serve Determine customer needs, wants, and characteristics through market research Analyze a company’s competitive advantages and build a marketing strategy around them Create a marketing mix that meets customer needs and wants Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -3
Pinpointing the Target Marke n n First step: Identify the company's target market, the group of customers at whom the company aims its products or services An effective marketing program depends on a clear, concise definition of the firm's targeted customers, not a “one-size-fits-all approach” Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -4
Pinpointing the Target Marke Key: Understanding target customers’ unique needs, wants, and preferences n Opportunity: Increasing populations of multicultural customers n Target customer must permeate the entire business n Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -5
Market Research Market research - the vehicle for gathering the information that serves as the foundation for the marketing plan How to Conduct Market Research: n Define the objective n Collect the data Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -6
How to Become an Effective One-to-One Marketer Identify your best customers, never passing up the opportunity to get their names. Collect information on these customers, linking their identities to their transactions. Enhance your products and services by giving customers information about them and how to use them. Successful One-to-One Marketing Calculate the long-term value of customers so you know which ones are most desirable (and most profitable). Source: Adapted from Susan Greco, “The Road to Oneto-One Marketing, ” Inc. , October 1995, pp. 56 -66. Chapter 9: Guerilla Marketing Plan See customer complaints for what they are - a chance to improve your service and quality. Encourage complaints and then fix them! Make sure your company’s product and service quality will astonish your customers. Know what your customers’ buying cycle is and time your marketing efforts to coincide with it - “just-in-time marketing. ” Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -9
Market Research Market research is the vehicle for gathering the information that serves as the foundation for the marketing plan How to Conduct Market Research: n Define the objective n Collect the data n Analyze and interpret the data n Put the information to work Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -8
Relationship Marketing n n Involves developing, maintaining, and managing long-term relationships with customers so that they will keep coming back to make repeat purchases Steps: Build database of customer information Ø Identify best and most profitable customers Ø Develop lasting relationships with these customers Ø Attract more customers like them Ø Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -9
Guerrilla Marketing Principles Find a niche and fill it n Use the power of publicity n Don’t just sell; entertain – “entertailing” n Connect with customers on an emotional level n Build a consistent branding strategy n n Embrace social networking Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -10
Acquiring Customers via Social Media Source: The State of Inbound Marketing, 2010, Hub. Spot. Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -11
Embrace Social Networking n n n Companies that are highly engaged in social media significantly outperform in both revenues and profits those companies that are less engaged Companies that use Twitter generate 2 x as many sales leads as companies that do not But, only 24% of small businesses use social media to attract new customers or connect with existing ones Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -12
Create Online Videos n Internet users watch 31 billion videos online each month! Ø Think “edutainment” Ø Be funny Ø Post videos on multiple social media sites Ø Focus on a point of differentiation Ø Keep it short Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -13
Guerrilla Marketing Principles (continued) Focus on the Customer American companies lose $83 billion in sales each year because of poor customer service n For every complaint a company receives, 17 other complaints exist, but the company never hears about them n Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -14
Focus on the Customer (continued) will not buy from that business again Ø 31% will tell others about their negative experience Ø Negative word of mouth has exponential power – many people avoid a store just because of someone else’s negative experience with it Ø 71% Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -15
Retain Existing Customers (continued) About 70% of a company’s sales come from existing customers n Allowing shoppers to customize their products has the power to increase customer retention, satisfaction, and profits n Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -16
Quality Guidelines n n n Build quality into the process; don’t rely on inspection to obtain quality Emphasize simplicity in design Foster teamwork Establish long-term ties with select suppliers Provide managers and employees with the training needed to produce quality Empower workers at all levels of the organization Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -17
Quality Guidelines (Continued) Get managers’ commitment to the quality philosophy n Rethink the processes the company uses now. Is there a better way? n Reward employees for quality work n Develop a company-wide strategy for continuous improvement of product and service quality n Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -18
Guerrilla Marketing Principles (continued) n Attention to convenience Concentration on Innovation n Dedication to Service and Customer Satisfaction n Emphasis on Speed n Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -19
Attention to Convenience n n Is your business conveniently located near customers? Are your business hours suitable to your customers? Would customers appreciate pickup and delivery services? Does your company make it easy for customers to buy on credit or with credit cards? Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -20
Attention to Convenience n n n Are you using technology to enhance customer convenience? Are your employees trained to handle business transactions quickly, efficiently, and politely? Do your employees use common courtesy when dealing with customers? Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -21
Attention to Convenience n n n Does your company offer “extras” to make customers’ lives easier? Can you adapt existing products to make them more convenient for customers? Does your company handle telephone calls well? Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -22
Concentration on Innovation - the key to future success n Innovation - one of the greatest strengths of the entrepreneur, showing up in the new products, techniques, and unusual approaches they introduce n Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -23
Concentration on Innovation n Product Development and Management Association Study of top performing companies across 400 industries: New products accounted for 49% of profits, more than twice as much as their less innovative competitors Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -24
Stimulating Innovation n n n Make innovation a priority in the company Measure the company’s innovative ability Set goals and objectives for innovation Encourage new product or service ideas among employees Listen to customers Always be on the lookout for new product and service ideas Keep a steady stream of new products and services coming Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -25
Guerrilla Marketing Principles Attention to convenience n Concentration on innovation n n Dedication to service and customer satisfaction Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -26
Dedication to Service n n n Goal: to achieve customer astonishment! How can you improve your service? Listen to customers Define “superior service” Set standards and measure performance Examine your company’s service cycle Hire the right employees Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -27
Dedication to Service n n n Train employees to deliver superior service Empower employees to offer superior service Use technology to provide improved service Reward superior service Get top managers' support Give customers an unexpected surprise Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -28
Guerrilla Marketing Principles Attention to convenience n Concentration on innovation n Dedication to service and customer satisfaction n n Emphasis on speed Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -29
Emphasis on Speed Three aspects of TCM - Time Compression Management: 1. Speeding new products to market 2. Shortening customer response time in manufacturing and delivery 3. Reducing the administrative time required to fill an order Companies using TCM have discovered that manufacturing takes only 5% - 10% of total lead time Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -30
Emphasis on Speed n n n n Re-engineer the process rather than try to do the same things - only faster Study every phase of the business process, looking for ways to shorten it Create cross-functional teams of workers and empower them to attack and solve problems Share information and ideas across the company Set aggressive goals for production and stick to the schedule Instill speed in the company culture Use technology to find shortcuts wherever possible Chapter 9: Guerrilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -31
The Marketing Mix Product Place Price Promotion Chapter 9: Guerilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -41
Stages in the Product Life Cycle n Introductory stage High Costs Chapter 9: Guerilla Marketing Plan Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -42
Stages in the Product Life Cycle Introductory stage n Growth and acceptance stage n High Costs Chapter 9: Guerilla Marketing Plan High Sales Costs Climb Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -43
Stages in the Product Life Cycle Introductory stage n Growth and acceptance stage n Maturity and competition stage n High Costs Chapter 9: Guerilla Marketing Plan Sales Climb Profits Peak Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -44
Stages in the Product Life Cycle Introductory stage n Growth and acceptance stage n Maturity and competition stage n Market saturation stage n High Costs Chapter 9: Guerilla Marketing Plan Sales Climb Profits Peak Sales Peak Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -45
Stages in the Product Life Cycle Introductory stage n Growth and acceptance stage n Maturity and competition stage n Market saturation stage n Product decline stage n High Costs Chapter 9: Guerilla Marketing Plan Sales Climb Profits Peak Sales Peak Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Sales & Profits Fall 9 -46
Channels of Distribution Consumer Goods Manufacturer Consumer Manufacturer Chapter 9: Guerilla Marketing Plan Retailer Wholesaler Consumer Retailer Consumer Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 9 -47
Channels of Distribution Industrial Goods Manufacturer Chapter 9: Guerilla Marketing Plan Industrial User Wholesaler Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Industrial User 9 -48
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