This deck is a look at the information you need to know to make marketing decisions. Marketing is the connection that you have with your customers - you need to understand your customers in order to reach them effectively.
The Garage Entrepreneurs Team
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4. The Affected Campaign
Started in 2006 by Brady Thrasher
Thrasher bootstrapped his business to get it off the
ground
With a small start-up budget, Thrasher has created
a movement that is getting some huge publicity
See the next slides for how he got the word out…
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7. Marketing Defined
“Marketing is the process of planning and executing
the conception, pricing, promotion, and distribution
of ideas, goods, and services to create exchanges
that satisfy individual and organizational
objectives.”
-American Marketing Association
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8. What is Marketing?
Marketing is the link between you and your
customers
Achieved by creating, developing and
maintaining profitable relationships between
customers and your company
All about creating some profit margin
A marketers job is to understand, influence and
serve people
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9. The
W Marketing Challenge
What problem does your company face – what are
you trying to change?
Ex. Drive more customers to store, increase profit from
each customer
Think about it now: What is YOUR marketing
challenge?
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10. Market Segmentation
Dividing people into groups based on similar
characteristics
Allows marketers to influence behaviors
Many ways to segment (age, income, education)
Can be broad (male/female) or narrow (age)
Focus on a group so that you can serve them better
than competition – can’t be everything to everyone
Once target is chosen, analyze needs/wants and
purchase motivators AND 4 P’s (see next slide)
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11. The
W 4 P’s
Product Place Promotion Price
• Kinds and • Sales promotion
• Physical good • Flexibility
locations of • Salespeople
• Service • Comparison to
stores • Advertising
• Features competitors
• Channel • Publicity
• Benefits • Changes over
• Market exposure
• Quality Level product life
• How to handle
• Accessories cycle
transporting
• Installation • Geographic
and storing
• Instructions terms
• Service levels
• Warranty • Discounts
• Packaging • Allowances
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12. What type of person buys this car?
What are the purchase motivators?
13. What type of person buys this car?
Now, what are the purchase motivators?
14. Customer Segmentation
W
Customer Segment #1 (PORSCHE) Customer Segment #2 (VAN)
Characteristics
Fun, Rich Older?
Young? Upper/Middle Class
Product
Colors/Features Simple
Customization Generic
Placement
Specialty dealers Many dealer outlets
Promotion
Upper-class events Mass market (newspaper)
Personal mail packages Magazine
Pricing
High Mid
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15. Competitive Analysis
W
“Quite often the preparers of marketing plans assume that the
competition simply will do nothing to try and stop us from doing
precisely what we want to do.”
William Smith, Quaker Oats Company
Predict future competitive strategies
Identify a competitive vulnerability that we can exploit
Predict reaction to current strategies
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16. Competitive Analysis
W
Questions to Ask:
Who are our competitors? (Direct vs. Indirect)
1.
Indirect: Do same thing but in different ways
(Crest/Listerine)
Direct: Two companies doing exact same thing
What are THEY currently doing well/poorly?
2.
How can we compete with them?
3.
How might they react to our decision(s)?
4.
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17. Marketing Framework
W
Who are our customers
and how do they buy?
Who are our
Implementation and
competitors?
actual performance?
How can we design our
Marketing Mix so that
Can we make a profit Why does the customer
customers choose our
with this marketing mix? choose one product or
product/service over
service over another?
our competitors?
Product
Price
Promotion
Place
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18. Marketing Math
W
Marketing Math
Variable Cost: A cost that varies with volume
For every one you sell, it costs more
Fixed Cost: A cost that does not vary with volume
Rent expense
Investment: A one time cost; accounted for through
depreciation expense over the useful life of the asset
Unit Contribution (UC): The amount of money a
company keeps
Selling Price (SP) – Variable Costs (VC) x # units
Profit is what is left over after we pay our fixed costs
Profit = Contribution – Fixed Costs
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19. Breakeven Example
Fixed Costs Variable Costs
$500 Marketing Plan $25 Delivery
$1000 Rent $50 Grocery Expense
$500 Salary (Target Profit)
How many units do you have to sell to cover your costs?
1. Find unit contribution. (UC = SP – VC)
UC = $150 – ($25 + $50)
= $75
2. Find total fixed costs.
= $500 + $1000 + $500
= $2000
3. BE (units) = FC (Including Target Profit) / UC
= $2000/$75
= 27 deliveries
Is this number reasonable and attainable? DON’T FORGET SENSITIVITY!
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20. Pricing Strategies
W
Skimming - High price/low volume; ST strategy
Goal: Keep industry profits high, stay away from a price war
Great strategy when you are the first to market a certain product
Ex. Honda – Hybrid Cars
Wanted car, price did not matter; kept people fighting for them
Market Penetration - Low price/high volume; LT Strategy
Goal: Gain Market Share
Used when competing firms want to discourage new competitors from entering the market
Ex. Rogers and Bell (Internet Market)
Based on perceived value, not actual worth
Dynamic Pricing - Set prices in real time – changes with demand
Ex. Airline Industry, Coke attempted to do this!
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21. W
Marketing Ideas
Wear company logo’s/buttons
Talk to people •
•
Sell at flea markets
•
Mail a postcard
•
Advertise on movie theatre
•
Make a creative business card
•
screens
Classified ads
•
Sponsor local teams
•
Speeches, training Send a newsletter
•
•
Exchange services for advertising Advertise on voicemail
• •
Ask “How did you hear about
Events, contests, raffles •
•
us?” from every customer
Put advertising on your car
•
Follow online discussion
(banner, magnet) •
groups and mention your
Offer free samples business
•
Donate product to local Advertise in entertainment
• •
books/magazines
auctions/raffles
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22. W Takeaways
Key
Determining the marketing challenge is the first step in a
marketing plan
Choosing a target market is critical in order to make your
marketing plan tailored and effective
It is essential to know as much as possible about the target
market – SEGMENT!
A company must ALWAYS monitor the actions of the
competition
DO THE NUMBERS!
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