Marketing Essentials: Marketing Basics

Smart Marketing for
Small Business Owners

2/13/2012
1

Raise your hand if you…….
 Know the difference between acquisition and retention
marketing
 Know who your ideal customer is
 Know what channel marketing is
 Have created one marketing piece with different
messages targeted to different populations
 Know what integrated marketing is
 Know how to calculate the Return On Investment (ROI) of
your marketing campaigns

Company Confidential Vistaprint © 2011 2/13/2012 2

Smart Marketing Tip
#1

“The key to getting started is
asking the right questions”

2/13/2012
3

Key questions before you begin
 What is my primary marketing goal now?

 Who is my ideal customer?

 Why do they buy from me?

 How do I find them?

 What do I say to them?

 How do I know if my marketing is working? Which
channel(s) best support my goals?


 What is the specific goal for this
marketing initiative?

Acquisition

Increased
Profitability

Retention/
Winback
Repeat


 Who is my ideal customer and
why?
• Identify who your best customers are in terms of the total
value they represent to your revenue and their loyalty to your
business.

• Determine the common characteristic these customers share
o Demographic i.e., Age, Income, Location
o Behavioral i.e., Product Use, Response / What do they buy
from you? How often? Full price or only at a discount?
o Psychographic i.e., Values or Status, Needs and Attitudes/
What do they do for hobbies? Are they “green conscious”?

• Target those people in the marketplace who display these
characteristics = Target Audience


Market Research Tools
Free Online Survey
Feedback card at
point of purchase

In person


Effective Consumer Research
• Free web-based survey
with offer for free car
wash for participation

• 53% of respondents said
they would like to receive
future communication –
sales, coupons, news

• Resulted in new channel
in the form of a monthly
newsletter


Smart Marketing Tip
#2

“You are not selling a product
feature but rather a product
benefit.”

 Why do they buy from me?
The Consumer Decision Process

choice for me?


The 5 Ps of Marketing
• What are your customers really buying?
• Are you selling a quality product? How does it compare?
PRODUCT
• Which products are the most profitable to promote?
• How are they packaged/delivered?

• Does the price make your target customer see the value?
PRICE • Do you simply slash prices when business lags?
• Are there unique ways you can approach pricing?

• How do customers react to your
product, price, quality, price, service and brand?
PEOPLE • Who are your most profitable customers? What are the
attributes that define them as a group?
• Do you deliver/guarantee customer satisfaction?

• Are you creating a consistent perception across multiple
PROMOTION channels?
• Are you targeting customers through the correct channels?

• Are you top of mind when your target customer is in the
market for your product?
PLACE
• Can target customers easily find you?
• Is it convenient for customers to do business with you?

 How do I find them?
print advertising

refer a friend

tradeshows direct mail

email marketing
ecommerce

Channel Marketing
Pros Cons
Word of Mouth Effective (people trust friends and Hard to Control
family
FREE!

Direct Mail Higher likelihood of being viewed Can be expensive (cost of printing and
Easy to personalize postage) and time consuming
$$$ Can use to reach existing and new High cost per contact
customers
Email Easy to personalize Easy for customers/prospects to ignore
Cost effective for reaching existing Expensive for reaching prospects (list
$ customers purchase cost)
Helps drive traffic to your website
Website Can drive new business by making you Need to update regularly to improve
easier to find online search results and keep info current
$ The easiest, most inexpensive way to Can be intimidating if you not
post up-to-date info aren’t “web savvy”
Online Search Can reach highly-qualified prospects Can be tricky to do yourself (managing
by being targeted (by location or by key words, optimizing SEO)
FREE! - $$ keywords paid search can be expensive
Organic search is free!
Social Media Easy to post relevant content Time consuming
Can be effective in reaching large numbers Hard to quantify the value
FREE!

Print, TV & Radio Ads Makes it easy to reach a large audience Media is expensive to buy
Raises awareness and helps build your May require hiring an ad agency
$$$$ brand


Smart Marketing Tip
#3

“Once you understand the channels,
make them work in support of each
other.”

2/13/2012
15

Integrated Marketing
Channel marketing is stronger when you combine the channels to work together:

Add social media links to your
website, email template and direct
mail pieces

Develop an email campaign that
pushes recipients to refer friends


Smart Marketing Tip
#4

The more relevant your message is
to the recipient, the stronger your
response rate will be.

2/13/2012
17

Targeted Messaging
Direct mail campaign to local residents
to acquire new members at the start of
the new year.

• Inspirational images and text
create an emotional connection

• Images of club to pique
interest

• Introduction to club features

• Strong trial offer


 What do I say to them?
Acquisition Retention Winback

 Introduce the  Encourage repeat  Regain trust or
prospect to your purchase with strong attention
brand and your offer
product/service

 Differentiate yourself  Introduce them to  Offer incentive to
from the competition additional come back
products/services
 Show the value of  Reinforce the value  Reduce attrition
doing business with and build long term
via with strong trial relationship and
offer loyalty


Smart Marketing Tip
#5

“Marketing is about increasing
profitability, not only driving sales.”

2/13/2012
21

 How do I know if it is working?
Case Study: Direct Mail Campaign
Massage therapist postcard direct mail campaign to past
customer’s with massage package offer.
Offer: $80 each when you buy a package of 10 by Jan 31.
Regularly $100 each.
Total cost of package: $800

Mailed: 1,000 pieces
Cost of List: $0
Cost of Printing: $150
Cost of Postage: $340.00 (bulk rate .34)
Total cost of mailer: $490.00
Cost of promo: $200 per sale
($20 discount x 10 massages) Total cost of campaign: $2,490

Response Rate: 2% = 20
# of Contracts Sold: 10
Revenue earned: $8,000 ($800 per package x 10 sold)
Cost of promo: $2,000 ($200 x 10 packages sold)

$8,000 - $2,490 / $2,490 x 100 = 221%

Formula:
Marketing ROI% = Total revenue – total cost/total cost x 100


Case Study
Email Acquisition Campaign
Wedding planner email campaign to a targeted list of
newly engaged brides to introduce wedding planning
services. List was obtained by attending a bridal event.

Wedding Planning Service Fee: $5,000

Cost of Email List: $0
Cost of Printing: $0
Cost of Postage: $0
Monthly cost of email service: $10
Cost of promo: $0 – no discount on service
Cost to attend bridal event: $500
Total cost of campaign: $510

Emails sent: 806
Open Rate: 197 = 24%
Click Thru rate: 65 = 33%
Sales generated: 2
Revenue earned: $10,000

$10,000 - $510 / $510 x 100 = 1,860%!!!!

Formula:
Marketing ROI% = Total revenue – total cost/total cost x100


Questions?

2/13/2012
24

Appendix

2/13/2012
25

Resources
• Free online surveys at www.zoomerang.com and
www.surveymonkey.com

• Free Annual Marketing Budget Template from SCORE
http://www.score.org/resources/annual-marketing-
budget-template

• Free Online Marketing Resources, Articles, Seminars,
Case Studies, Conferences… www.marketingprofs.com


Core Values, Mission and Vision Worksheet
Business Name:

Core Values:

Mission Statement:

One Year Vision:

Three Year Vision:

Five Year Vision:


Needs Assessment Worksheet Page 1
Business Name:

General:
Gross Revenue for Last Year: Gross Expenses for Last Year:

Current Avg. Monthly Revenue. Current Avg. Monthly Expenses:

List the top 5 current revenue streams and your average monthly revenue form each:

Profit Center Avg. Monthly Rev Avg. Monthly Exp Margin # of Active Customers Max Capacity % of Capacity

1.

2.
3.

4.

5.
Marketing:
How many inactive customers do you currently have? (list by profit center and if you have them segmented in any way)

How many unconverted prospects do you have How many unconverted prospects do you have
contact information for? contact information for?
How many do you have email addresses for? How many do you have mailing addresses for?
Do you have a database organized with contact information for your various lists?


How many external lead generation campaigns have you been running each month on average?

Is your current marketing bringing in the volume of sales leads you need to reach your sales goals?
If not, how many more leads do you need each month to hit your sales goals?
Do you have a follow-up marketing system in place to consistently communicate with and make offers to your list?
If so, how often do you communicate with your list?
Do you have a system in place to capture testimonials from your best clients on a regular basis?
If so, are you consistent in executing it?
Do you have a system in place to capture referrals from your clients on a regular basis?

If so, are you running it on schedule and getting results?
Sales:
List out sales information for the top 5 profit centers for your business:

Profit Center Avg. Monthly Leads Avg. Monthly Closed Sales Avg. Close Rate Avg. Transaction

1.

2.
3.

4.

5.

Is your sales process converting where it needs to be in order to maximize ROI on marketing campaigns and hit revenue goals?


Summary of your business and current strengths:

Areas of the business that need improvement:

Action steps identified to move the business forward that align with your vision, mission, short and long term goals:


Marketing Essentials: Marketing Basics

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