Developing a startup marketing plan

1. 14 Developing a startup marketing plan

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 in a marketing strategy. • Explain how entrepreneurs can employ new media to their advantage. • Discuss the role of personal selling in a marketing strategy.

3. 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

4. New Product Adoption/Diffusion Curve Figure 14.2

5. The Technology Adoption-Diffusion Curve Figure 14.3

6. The Marketing Plan • Details the strategies and tactics that will create customer awareness and build a brand and a loyal customer base • Provides a consistent message to the customer and creates an opportunity for the entrepreneur to make a sale • An investment in the future of the business that takes time to mature

7. Creating Customer Value • Define the approach to the market • Message • Differentiation tactics • Channel strategies • Performance goals • Identify the niche to dominate • Typically is a segment of the market not being served

8. Developing the Pitch • Presenting a solution to the problem the customer is experiencing in such a way as to highlight the benefits or value • Identify possible marketing options • Explore options by talking to other business owners, customers, suppliers • Study the competition • Identify and rank the top ten options

9. Setting Sales and Marketing Goals • Set SMART goals (sensible, measurable, achievable, realistic, and time specific) • The marketing plan in one paragraph, including: • 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

10. Launch Objectives and Milestones • Key goals for the marketing campaign • Startup objectives: • Create awareness for the company and its brand • Reach target customers to product sales quickly • Additional objectives added as firm grows

11. Brand Strategy • Brand: a name, term, design, symbol, or other feature that identifies one seller’s good or service as distinct from other sellers • Brand strategy: a set of decisions around the brand’s positioning in the marketplace • Brand equity: the effectiveness of the brand in the market, often in terms of financial metrics • Requires that customers form an emotional attachment

12. Some Marketing Metrics for Entrepreneurs Figure 14.4

13. 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).

14. Push vs. Pull Strategy Table 14.1

15. Entrepreneurial Market Strategies • Traditional advertising • Newspapers • Magazines • Direct marketing • Yellow pages • Signs • Broadcast media • Television • Cable TV shopping • Infomercials • Miscellaneous

16. Publicity & Referrals • 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

17. 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

18. 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

19. When to Give 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

20. Internet Marketing and New Media • Internet advertising was a $300 billion dollar market in 2009. • Traditional media boundaries disappearing. • Barriers to content creation have been breached. • New challenges and opportunities for entrepreneurs.

21. Social Media • Viral marketing is widely used to describe a marketing strategy that entices customers to pass on the marketing message to others. • Types of social media: • Blogs, Twitter, and e-newsletters • Podcasts and vodcasts • RSS readers (Really Simple Syndication) • Wikis • Facebook & YouTube

22. Social Media (cont’d) • Tips for successful viral strategies: • Provide free products • Make it easy to pass on the message • Make sure that the mail server can handle the traffic • Take advantage of existing social networks • Use other people’s websites

23. Social Media Metrics • Registration • People who register and provide information help development of a customer profile • Sharing • Gives users ability to share content, ratings, and other information • Traffic • Track the percentage of traffic coming from social networking sites

24. Search Engine Marketing • Search engine marketing (SEM) and search engine optimization (SEO) are simply tools for increasing the level of visibility of a website when customers search. • Means for creating revenue streams: • Conversion rate • Cost-per-action • Cost-per-click • Cost-per-impression • Pay per lead

25. Affiliate Programs • Strategic partnerships that offer complimentary products and services • Banner exchange program

26. Content Strategy • Addresses customer needs at every stage of buying process • Stages include: • Awareness • Information search • Evaluation of alternatives • Purchase decision • Post purchase behavior

27. Privacy Issues • Online commerce makes customers more aware. • Internet magnifies things done in offline world. • Companies must do more to protect customer privacy.

28. 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 • Give away samples or hold raffle • Follow up on prospects after show

29. Managing Customer Relationships (CRM) • 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

30. 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

31. 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. • Use satisfaction surveys.

32. New Venture Action Plan • Determine your business’s compelling story. • Analyze your marketing options and rank them. • Write a clear, concise, one-paragraph statement of the marketing plan. • Develop an advertising, publicity, and promotion strategy incorporating social media.