Chapter 15 The Marketing Plan. Copyright © Houghton Mifflin Company15-2 Overview Relationship...

Chapter 15

The Marketing Plan

Copyright © Houghton Mifflin Company 15-2

Overview

• Relationship marketing

• The marketing plan

• Product/service promotion

• Online marketing


Relationship Marketing


Identifying and Rewardingthe Best Customers

• Calculate lifetimecustomer value: Present value of future purchases

+ Referrals – Maintenance

• Reward your best customers– Frequency programs

– Just-in-time marketing

– Complaint marketing


Preparing the Marketing Plan

• Define your approach to the market based on understanding customers’ needs

• Make a list of the marketing options

• Think like a customer: imagine the business from the customer’s point of view


Preparing the Marketing Plan (cont.)

• Study the competition: What makes them successful or unsuccessful?

• Analyze the options andrank them

– Whether they meet customers’ needs

– Whether they fit in the entrepreneur’s budget


The One-Paragraph Marketing Plan

• Purpose: What will the plan accomplish?

• Benefits: How will the product/service help the customer or satisfy a need?

• Target market: Who is the primary buyer?

• The market niche: Where do you fit in the industry or market? Differentiation?


The One-Paragraph Marketing Plan (cont.)

• Marketing tactics: What tools will you use?

• Company’s identity: How will customers see the company?

• Budget: How much money is allocated to the marketing plan?


Marketing Plan Outline

• One-paragraph marketing plan

• Key marketing issues that will affect the success of the company

• It contains launch objectives for the campaign

• Milestones

• Strategic alliances

• Metrics to measure effectiveness

• Strategic alignment: goals and tactics


Strategies for Pricing

• What are you trying to accomplish?– Increase sales– Increase market share– Maximize cash flow– Maximize profit– Set up entry barriers to competition– Define an image– Control demand


Types of Pricing

• Cost-based: cost + operating costs + profit

• Demand-based: what are customers willing to pay?

• Competition-based: priced in line with competitors

• Psychological pricing: $12.99 – bargain

• Distribution channel: consider number of intermediaries

• Extrapolating from other industries


Promotion-Guerrilla Marketing

• Take advantage of free publicity– What’s your compelling story?– Get customer testimonials

• Give your product away if– You will see this customer again– The cost is low, margins high– Customers need to try the product to decide– You can provide samples at a large event


Advertising

• Print Media

– Newspapers for broad coverage in a geographic area, low cost

– Magazines to target a particular interest

– Yellow pages for broad reach, but expensive

– Signs encourage impulse buying


Advertising (cont.)

• Direct marketing: mail, mail order, coupons, telemarketing, TV shopping networks– Success depends on the

mailing list

• Broadcast media– Radio for local or regional advertising

– Television to target an interest group on cable TV


Personal Selling

• Do your homework before you try to sell

• Build credibility with the customer before you sell

• Position yourself as a solution provider

• Grab the customer’s interest immediately


Personal Selling (cont.)

• Let the customer use the product

• Don’t waste the customer’s time; get to the point quickly

• If the customer says no, gently ask why and offer to let him/her talk to current customers


Trade Shows and Exhibits

• Rent booth space and design the site well

• Hire professionals to distribute information or to get people to the booth

• Have knowledgeable, personable people in the booth

• Offer something free

• Follow up with letters to anyone leaving a business card


Online Marketing

• Your marketing strategy should be anticipated, personal, and relevant

• Consider viral marketing– Analogous to word-of-mouth

• Affiliate programs– Strategic partnerships with companies that

offer complementary products and services


Why Customers Use the Internet

• It’s convenient: no crowds, traffic, or parking issues

• It’s easy to compare prices

• They have immediate access to a greater variety of stores around the globe

• They often pay less online

• It’s entertaining


Why Customers Don’t Use the Internet

• The time lag between purchasing and receiving

• Cannot test or try on the product

• Can be risky dealing with a retailer you don’t know

• Privacy issues

• Opportunity: solve these problems


Take-Aways

• List what students took away from the discussion in real time

Chapter 15 The Marketing Plan. Copyright © Houghton Mifflin Company15-2 Overview Relationship...

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