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Master mktg talk_rotary_12_march2013
This document summarizes best practices for marketing, sales, and customer relationships. It discusses aligning business and marketing goals, resources, and activities. Key aspects include understanding customers through data on recency, frequency, volume, and profit of purchases. Retaining top customers is emphasized through rewards, recognition, and loyalty programs. Referrals are identified as a major source of new business. The presentation recommends gaining customer advocates or "apostles" by delivering exceptional value and solutions.
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Master mktg talk_rotary_12_march2013
- 1. Presented by: Ethan Chazin President TheChazin Group How to Master Your Marketing The Chazin Group
- 2.
- 3. Align Your Marketing, Sales& Business Strategies for Success.
- 4. • Effective marketingis aligned with your overall business strategy. • Your business strategy MUST guide your approach to marketing. • Your marketing strategy needs to be aligned with your business strategy on 4 dimensions: – Goal Alignment – Resource Alignment – Activity Alignment – Implementation Alignment Aligning Strategies
- 5. • Are yourstrategic and financial goals consistent with your marketing goals? • Your goals can become misaligned due to: – Rapidly changing business goals (marketplace circumstances.) –Poor communication between your Departments. – Lack of checkpoints to ensure both sets of your goals are in sync. Goal Alignment
- 6. Aligning Goals Your BusinessGoals Your Marketing Goals Increase market share By 15% this year. Increase sales to existing clients by 20%. Acquire 2 competitors with combined 10-15% market share. Acquire 400 new clients. Discontinue 30% of your existing product portfolio. Launch minor league baseball advertising campaign. Form 3 strategic partnerships. Integrate outdoor ad campaign in Central/No. NJ
- 7. Aligning Goals MARKETING’s YEAR-LONG“THEME” CATEGORY STRATEGIES Target Market Positioning Statement Offering to customers Price Strategy Distribution Sales Strategy Service Strategy Promotion Strategy Marketing Research Any other component of your marketing plan
- 8. • Are theresources in your business and your allocated marketing resources consistent? • Business allocates resources throughout the organization annually with $ for marketing as a % of annual sales (typically 1-2%.) • Marketing spreads the money around as best it can to help you achieve your business goals. Resource Alignment
- 9. 5Ps & 2Is: Individualization &Interactivity
- 10. • MASS CUSTOMIZATIONmeans you have the ability to send out customized communications with MANY of your customers simultaneously. • Your customers decide how much interaction they have with you through: – Social media – User forums/online user communities – Chat & Messaging – Email – Website contacts Individualization
- 11. • The extent/amountof 2-WAY communication between your customers and you. • The Internet gives your customers the power to engage with you in a way never previously permitted. • Shift from broadcast 1-WAY dialog (TV & radio) to an interactive marketing dynamic which fosters debate, exchanges, and… …CONVERSATION! Interactivity’s New Paradigm
- 12. 3 Kinds ofProduct Exist: What Are Yours?
- 13. What is a“PRODUCT”
- 14. • Core ProductBenefit: most basic value offered by your products. • Basic/Actual: minimum product offering needed to deliver your core benefit. • Augmented: Features that go beyond your customer’s basic expectations. What is a “PRODUCT”
- 15. 5 Customer Needs. WhatAre They?
- 16. • Stated inexpensivecar • Real car with LOW operating cost • Unstated good service • Delight include a cool nav system • Secret your friends see you as a cool & savvy consumer FIVE Kinds of Needs
- 17. What Does YourSWOT Look like?
- 19.
- 20. Long Live ThePareto Principle • Vilfredo Pareto: Italian Economist, Sociologist • Mathematical Formula Created In 1906 to Explain Uneven Income Distribution In Switzerland • Today Known as “80/20 Rule” – 1940s: Dr. Joseph Juran proved “In nearly all cases, a few (20 percent) are vital and many (80 percent) are trivial. – Universality: Can be Applied Equally to Any Endeavor (Business, Academia, AND Career Center Goals!) – 20% of Your Clients Create 80% Business – 20% of Your Clients Place 80% of Orders – 20% of Your Clients Purchase 80% of Your Stuff!!!
- 21. What is a “relationship”when you are talking about organizations & customers?
- 22. A bond/connection between thecustomer and the organization.
- 23. 3 Types ofClient: Mercenary Loyalist Raving Fan
- 24. 4 Stages ofthe Customer Relationship Model
- 25. Moving Through theRelationship
- 26. • Awareness: Dothey know if you even exist? • Exploration/Expansion through: – Attraction – Relationship Norms: patterns of behavior – Trust: can be established many ways – Power: Your organization’s ability to influence potential customers. – Satisfaction: Required before they even commit to engaging you in the Buyer/Seller process Relationship Stages
- 27. • Commitment: Keepthem SATISFIED or they dissolve “END” their relationship with you: – How much does each party contribute to the relationship – How much each party invest in the relationship – The consistency in the exchange • Dissolution: Goodbye – Better options come along for customers – You neglect your customers esp. online – A major failure i.e. poor service – Customers outgrow your offerings Relationship Stages
- 28. You need differentskills at different stages of the sales process.
- 29. The Sales Process ProspectMarketing Skills Sale Solution Selling Skills Repeat Customer Service Skills Apostle Relationship Skills Know Your Customers
- 30. • Customer relationshipsincrease your profitability 3 ways: – It costs less to service existing clients than to generate new ones. – Existing clients are willing to pay a higher price for your products and services. – Strong buyer-seller relationships increases the likelihood that customers will share their personal information which can help you customize offerings and sell more effectively to them. The Value in Relationships
- 31. • Define the“expected” lifetime value of your customer. • The PARETO Principle matters. • You MUST have a database of past customer purchases. • A profitable/unprofitable client today is an unprofitable/profitable one tomorrow. • Consider how many referrals they give you. RFVP: Recency, frequency, volume & profit. Determining Customer Value
- 32. Know Your Customers •Goal: Identify and Study Your Top 20: – Create a Profile To Match Your Top 20 – Use the RFVP Profile: • Recency Of Them Doing Business With You • Frequency of Them Doing Business With You • Volume of Business They Do With You • Profit They Contribute (conduct an ROI)
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- 34. Is a Branda PROMISE?
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- 37. • Reduces thecost associated with searching for products internally (how much to think about them) and externally (how much to look for them) • Define product/service qualities • Present product/service characteristics • Chance to “connect” with product maker • Sign of “perceived” quality…PRESTIGE • Help consumers organize their knowledge about a product to clarify their decision-making and thus adds value to firms. Brands Matter to Consumers
- 38. • Savvy customers •Brand proliferation • Media fragmentation – Cost – Clutter: 10-15 second spots join :30 & :60 spots – Fragmentation: Growth of independent stations & cable – Technology: VCRs, Remote controls, TiVo • Increased competition • Increased costs • Greater accountability by marketers to hit short-term profit goals Today’s Branding Challenges
- 39. • You achievedifferent outcomes from the “added value” attributed to a product as a result of marketing the brand. • You can create value for the brand in many different ways. • Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand. • There are many different ways in which the value of a brand can be exhibited or exploited to benefit the firm. Brand Equity
- 41. 41 The Chazin GroupSeekNew Markets
- 42. 42 • How LongDoes It Take to Follow Up on a Lead? Set a Company Policy • Ask All Leads: How Did You Hear About Us? • Use Campaign Specific Reference Codes • Apply Unique Tel #s For Each Campaign to Track Results • Utilize a Lead Capture/Management System The Chazin GroupProspecting
- 43. 43 • Develop aStrategic Networking Plan For Identifying, Engaging and Converting Prospects • Create a BEST Customer Profile • Launch a “Give to Get” Referral Strategy The Chazin GroupSeek New Markets
- 44. 44 Where Are Your Referrals? TheChazin Group
- 45. 45 • For SmallBusinesses New Business Comes One of 3 Ways: 50% from existing clients 35% are referrals from existing customers 15% from advertising efforts 85% of your NEW business comes from EXISTING business The Chazin GroupThe Power of Referrals
- 46. 46 Expand Your Offerings TheChazin Group
- 47. Reward, Recognize, Retain YourTop Clients
- 48. • Thank them. •Give gifts. • Discounts, coupons, special offers. • Honor outdated returns. • Encourage desired behavior. • Customer “Spotlights.” • Waive outstanding balances. The Chazin GroupReward Them
- 49. • According toInc. it costs 5-10X more to land a new client than it does to sell to an existing one. • Existing clients spend 67% more than new ones. • Of the $48 billion worth of perceived value in reward points and miles distributed by American businesses annually, 33% goes unredeemed by consumers. • Companies lose money on time and effort, and customers get no more value from the businesses to which they are "loyal." The Chazin GroupClient Loyalty Programs 7 Customer Loyalty Programs That Actually Add Value. Hubspot Blog, April 3, 2012
- 50. • Use asimple points system. • Tier it to encourage more client purchases. • Charge an upfront fee for VIP benefits. • Structure non-monetary benefits around customer values. • Partner with other companies to offer all- inclusive benefits. • Make a game out of it. • Scratch the program and offer awesome benefits instead. The Chazin GroupMaking Loyalty Work
- 51. • Maintain arobust database. • Keep in touch. • Encourage complaints. • Offer loyalty programs. • Do an amazing job! The Chazin GroupClient Retention Program
- 52. • Create ActionPlan to Develop Apostles: – Conduct needs assessment – Develop set of CUSTOMIZED solutions – Convince client to implement your recommendations – Review annually – Target of 12 Gaining Apostles
- 53. • Three Stepsto Gaining Apostles: – Write down the names of your apostles – Write down what it takes to keep them – Write a list of clients to convert to apostles: • 2X the Actual # Current Apostles • Follow Actions From Previous Step • Convert 50% Per Year Until Magic 12 Gaining Apostles
- 54. • Learn YourProspect/Client’s Top Pain Points • What Challenges Do They Face • Deliver Value at Every Stage of the 4-Step Sales Process • Exceed Their Wildest Expectations • Empower Every Employee to do the Same • Account Penetration Strategy • Create Policy of “Standards of Care” Selling Best Practices
- 55. • Follow CustomerConversations Online • Align Sales, Marketing, & Product Management • Touch Them Several Ways • Focus Your Presentations in Their Problems • Become More Visible: – Attend Shows & Conferences – Write Articles – Facilitate Roundtables Selling Best Practices