Chapter 15 Developing An Entrepreneurial Marketing Plan.

Chapter 15

Developing An Entrepreneurial Marketing Plan

Copyright © Houghton Mifflin Company. All rights reserved. 15 | 2

Learning Objectives

• Discuss the role of the product adoption/diffusion curve for marketing strategy

• Explain how to create an effective marketing plan• Discuss the forms of advertising and promotion that

entrepreneur can tap • Describe the role of publicity• Explain how entrepreneurs can employ new media

to their advantage• Discuss the role of personal selling in a marketing

strategy


The Product Adoption/Diffusion Curve

• Groups customers into categories based on how quickly they adopt a new product

• Innovators

• Early adopters • Early majority • Late majority • Laggards


Figure 15.2: New Product Adoption/Diffusion Curve


Figure 15.3: The Technology Adoption-Diffusion Curve


The Marketing Plan

• Details the strategies and tactics that will create customer awareness

• Builds a brand and a develops a loyal customer base

• Provides a consistent message to the customer and creates an opportunity for the entrepreneur to make a sale


The Marketing Plan (continued)• Steps prior to writing the marketing plan

– Define the approach to the market• Message• Differentiation tactics• Channel strategies• Performance goals

– Define the value proposition – Analyze and rank the marketing options– Establish sales and marketing goals (SMART)


The Marketing Plan (continued)• The marketing plan in one paragraph…

– Contents

• Purpose of the marketing plan• Benefits of the product/service• The target market• The market niche• The marketing tactics • The company’s convictions and identity• The percentage of sales represented by the

marketing budget


5 P’s of Marketing

• People• Product• Price• Place • Promotion

– Advertising and promotional goals– The media plan


Marketing Plan Outline

• One-paragraph overview of the marketing plan• Key marketing issues that will affect company

success• Launch objectives and milestones• Brand strategy• Strategic alignment• Assessing effectiveness


Advertising and Promotion

• Advertising is employed to pull the product through the distribution channel (Pull strategy)

• Promotion tends to be more price-focused or incentive-focused (Push strategy)


Push vs. Pull Strategy Factors to Consider Use Advertising (Pull) Use Promotion (Push)

Price sensitivity Not effective Effective

Brand loyalty High loyalty Low loyalty

Need for information High need Low need

Risk – switching costs, learning curve

High risk for customer Low risk for customer

Product life cycle stage Growing or mature New product or declining product

Market status High market share Low market share

Purchasing pattern Predictable Unpredictable

Contribution to profit Above average Below average

Differentiation Strong differentiation Little differentiation


Advertising Media

• Print– Newspapers– Magazines– Direct marketing (direct mail, telemarketing)– Yellow Pages– Signs

• Broadcast Media– Radio– Television


Taking Advantage of Publicity

• Publicity and word-of-mouth (referrals) are two of the most effective entrepreneurial marketing tools around because they don’t cost the company any money – Require a compelling story – Network with the media– Issue a press release


Constructing an Effective Press Release

• Contents:– Date– Name of contact person– Phone number– Release date– Descriptive headline– Release information– The who, what, where, when, and why – Photo/Illustration– Explanatory note regarding why the release was

sent


Getting Customer Referrals

• Ask satisfied current customers• Take a customer to lunch to get ideas• Do a global Internet search on rumors• Conduct in-depth third party

interviews• Administering an open-ended online

survey• Host an online discussion • Create a customer advisory board


Giving It Away

• When the customer is likely to return• The cost for each additional item is low and

margins are high• When customers need to try the

product/service in order to risk the money to buy it

• When samples of the product/service can be offered at a large event


Internet Marketing and New Media

• Internet advertising will be a $26 billion dollar market in 2009

• Traditional media boundaries disappearing• Barriers to content creation have been

breached • New challenges and opportunities for

entrepreneurs


Internet Marketing and New Media (continued)

• Social Media • Search Engine Marketing • Affiliate Programs • Privacy Issues


Personal Selling

• Become a value-added company by tailoring products to meet customer’ needs

• Improve personal selling skills– What do customers want from the sale?– Give them what they want

• Trade shows and exhibits– Expose products– Network on site and after the show– Rent a hospitality suite


Customer Relationship Management

• CRM is a system for gathering/using customer information which combines– Technology– Training– Business strategy

• The CRM system contains– Names– Addresses– Attributes of people who are likely to

purchase


Identifying and Rewarding the Best Customers

• For many companies 24 percent of its customers account for 95 percent of its revenues

• Calculate lifetime customer value


Complaint Marketing

• A dissatisfied customer will probably tell at least nine other people about the problem

• Complaints should be viewed as opportunities for continual improvement

• Satisfaction surveys


Review…• Product adoption/diffusion curve for marketing

strategy• Create an effective marketing plan• Forms of advertising and promotion that

entrepreneur can tap • Role of publicity• Entrepreneurs can employ new media to their

advantage• Personal selling in a marketing strategy

Chapter 15 Developing An Entrepreneurial Marketing Plan.

Documents

Transcript of Chapter 15 Developing An Entrepreneurial Marketing Plan.