HOW TO GROW YOUR BUSINESS

Annmarie Hanlon

Agenda• Understanding the 7 key elements in your business• Introduction to the 4 key product and market strategies• Customer insights• Marketing information sources and usefulness• Market segmentation• Pricing and routes to market• Your ideal customer• Which promotion methods work?• Positioning your business• Action Plan

UNDERSTANDING THE 7 KEY ELEMENTS IN YOUR BUSINESS

7Ps

Product Price Place

Promotion Processes Physical Evidence

People

INTRODUCTION TO THE 4 KEY PRODUCT AND MARKET STRATEGIES

The Four Product and Market Strategies

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HOW TO SELL MORE OF YOUR EXISTING PRODUCTS OR SERVICES TO YOUR EXISTING CUSTOMER BASE

1. Market Penetration Strategy

Ways to achieve market penetration

1. Reduce the order interval

2. Increase the average order value

3. Demonstrate the entire product selection

4. Increase or change opening hours

5. Improve customer service

6. Change packaging7. Look at price breaks8. Remove delivery costs9. Make it easier to buy10. Take away old stock11. Contact customers

How can your business increase sales?Action we need to take to increase sales from existing customers

HOW TO MOVE INTO NEW MARKETS

2. Market Development StrategyStrategy

Ways to achieve market development

•Age, gender, income, education, household size, business type

Demographics

•Where they are based – local, regional, national, international

Geography•Ne

w mums, recently retired, moving house

Life stages

•Manufacturing, services, retail

Business sector

•3 hour response time, VIP service

Benefit sought

•Small, medium, multi-site

Organisation size

What new markets are right for you?New market Action we need to take

HOW TO DEVELOP YOUR EXISTING PRODUCTS OR SERVICES

3. Product Development Strategy

Ways to achieve Product Development

How can you augment or improve the existing product

offer?

What do market conditions suggest?

Do you have any customer feedback?

What opportunities exist for research and

development?

Ways to achieve Product Development

• Can the product be made cheaper?• Can the product be made locally?• Can you increase quality? • Change the packaging?• Can you ask your customers or potential

customers what they want?

How to develop new products

• Walkers Crisps, Marmite food spread and Vitamin Water.

Facebook

• RS Components generates new ideas via its engineers forum.

Blog or forum

• Members seek advice from others.

LinkedIn groups

Product Development

Supplies Your product

Added value

Online sources for new product ideas

http://www.quora.comhttp://ideascale.comhttps://www.innocentive.comhttp://www.hypios.com http://www.wazoku.com

HOW TO MOVE INTO NEW MARKETS WITH NEW PRODUCTS OR SERVICES

4. Diversification Strategies

Diversification Strategies 1

Related Diversification• Can you move into a new market with a new

product offer using the skills within the business ?• Look at opportunities to increase sales within

similar customer groups, whilst still maintaining your brand values, this is new but related products.

• What’s your expertise, your technical know-how?

Diversification Strategies 2

Unrelated Diversification• This involves greater risks and is only undertaken

where there is potential for high return on investment, often because the company is undervalued or financially distressed.

• Consider whether you have a strong management team with the ability to manage diverse business units.

CUSTOMER INSIGHTS

WHAT YOU REALLY NEED TO KNOW

Source of insights

• Survey; in person, telephone, online• Google analytics• Website feedback• Comments on social media pages• Emails, letters, phone calls

Questions you can ask

• Why did you select our company in the first place?

• What do you mainly use our company for?• Which other companies do you use for these

services / products?• What do you like about our company?• What do you dislike about our company?

Questions you can ask

• What change in our business is likely to have a benefit on you?

• Have your purchases stayed the same, decreased or increased in the last 12 months?

• Has your budget for next year been increased, stayed the same or been decreased for next year?

• Any other comments or is there anything I’ve missed?

Insights: Surveys

• http://polldaddy.com/• http://www.surveymonkey.com/• http://www.google.com/insights/consumersurvey

s/home

MARKETING INFORMATION

SOURCES AND USEFULNESS

Sources of information

Secondary •Library•Online reports•Industry associations•Blogs, websites

Primary •Your customers•Your suppliers•Your staff•Exhibitions, conferences

Market size

MARKET SEGMENTATION

A segment can be based on any attributes where there is large enough market for your business

Why segment?

• To create market niches• To provide growth for mature markets• To deliver more effective communication• To make the business more efficient

Segments

• Demographics • Psychographics • Lifestyle / Life stages• Belief and value systems • Geography • Benefit • Behaviour

When you can see significant, measurable

differences in your market, you should

consider market segmentation.

You can create a segment if you can see

Size

Unique

Profits

Easy Access

Reaction

Benefits

PRICING AND ROUTES TO MARKET

If it’s too cheap the buyer will be suspicious ‘what’s wrong with it?’

Pricing strategies

Routes to marketDirect to customers offline

Direct to customers online

Via a third party under your own brand name offline

Via a third party under your own brand name online

Via a third party under their brand name (often called 'white label')

Via a marketplace like eBay, Amazon under your own name

Distribution options

•Limits access to the products via an exclusive number of outlets or partners. Exclusivity may be limited by geographical area or product lines.

Exclusive distribution

•Only selling via outlets or partners that meet specific criteria such as position in the market, location, competitor products stocked.

Selective distribution

•Selling via any outlets or partners that will stock the products.

Intensive distribution

YOUR IDEAL CUSTOMER, HOW TO CREATE THE MODEL AND FIND THE RIGHT CUSTOMERS

Identify your current customers

Developing the PersonasRich: Marketing ExecAge: 25Second job after UniDegree in EnglishLoves playing in a bandHas done some web programming as a hobby

Catherine: Marketing ManagerAge: 26Degree in Languages, CAM Digital DiplomaCommutes for an hour to workMainly B2C, first B2B role

Sean: Marketing DirectorAge: 41MBA and speaker at eventsYoung family, keen to start own businessResults focused, works long hours

B2B: Segmentation and buying cycle mappingBuying cycle stage

Personas involved Preferred content Preferred channel Length of stage

Exploring new agency

• Rich: Marketing Exec • Information• White papers

• Online search to respected sites

• Blogs

6 weeks

Short-listing • Rich: Marketing Exec• Catherine: Marketing

Manager

• Recommendations • Testimonials• Trade websites

• LinkedIn • Professional

associations

2 weeks

Contact for discussion

• Rich: Marketing Exec • Vendor website • Email 2 weeks

Pitch / meeting

• Rich: Marketing Exec• Catherine: Marketing

Manager• Sean: Marketing

Director

• Presentation• YouTube • Case studies

• Face to face• Written proposal

1 month

WHICH PROMOTION METHODS WORK FOR WHICH CUSTOMER GROUPS?

Traditional Marketing Methods

• Newspapers• Radio• TV• Billboards• Magazines• Flyers• Coupons• Direct Mail

• Catalogues• Events & Shows• Retail Outlets• Referrals• Sponsorship• Mobile/SMS• Press Releases• Sales People

2007

2012

2013

100M iPhones

sold since 2007

20M? Galaxy Note

Phablets sold

The Power of Social Media

200MUsers

1 BillionUsers

500MUsers

200M+Users

1 BillionUsers per month

70M+Users

Lead capture I

• Search Engine Results• Marketplaces• Pay-Per-Click• Paid Content Networks• Paid Banner Advertising• Affiliates• Coupon / Voucher Sites

• Group Deals / Daily Deals• Email Marketing• Social Media• Supplier Sites• Review Sites• Video, Images• News

Lead capture II

• Infographics• Whitepapers• Guides• Newsletters• Free audits• Webinars

How do you capture leads?

1. 2. 3. 4. 5.

POSITIONING YOUR BUSINESS

What’s your value proposition?

LOW TOTAL COST, OPERATIONAL EXCELLENCE

SUPERIOR PRODUCTS, EXPERTISE,

INNOVATION

CUSTOMER FOCUS,TAILORED TO

CUSTOMERS’ NEEDS

Ways to develop your OVP• Are there opportunities for

modifying the core or extended product online?Product

• Increased transparency, downwards pressure on price, what can you do? Price

• New channels and new channel structures.Place

• Changing role of staff and the time they’re needed.People

Ways to develop your OVP• New communications’

methodsPromotion

• Client experience can change. controlled.Physical

evidence

• Adapting the business to adopt online marketing.

Processes

Strategy blocks

STRATEGY BLOCKS YOUR RESPONSEWe will (do this)With (this product)That is bought by (audience)Because (it does this)

To develop a strategy for your business, fill in the template below and turn this into a sentence:

ACTION PLAN

Action Plan to achieve objectives ACTION DETAIL WHO BY WHEN STATUSNew market Agree market and our

product offerMD, sales 30/05/13

New market Identify decision makers and build list

Contactor 10/06/13

New market Prepare letter 1 and despatch

Admin 20/06/13

Sort out website

Appoint web company MD 30/04/13 23/04/13 Met 2 web companies, got fee proposal, must decide

Sort out website

Agree framework MD & web co

15/05/13

Sort out website

Create copy Writer 31/05/13

Sort out website

Launch new site Web co 10/06/13

Tips: Best Practice

1. Decide your objectives2. Create a plan for the year3. Integrate online and offline presence4. Schedule work5. Share the workload6.Measure results – Google Analytics7.Monitor the brand – Google Alerts8. Review

My top 5 actions

1. 2. 3. 4. 5.