Building a powerful marketing plan chapter 09

business education

1. Copyright 2008 Prentice Hall Publishing 1Chapter 8: Guerrilla Marketing Plan
Building a Powerful
Marketing Plan

2. Copyright 2008 Prentice Hall Publishing 2Chapter 8: Guerrilla Marketing Plan
Building a Guerrilla Marketing Building a Guerrilla Marketing
PlanPlan

MarketingMarketing

The process of creating and delivering The process of creating and delivering
desired goods and services to customers.desired goods and services to customers.

Involves all of the activities associated with Involves all of the activities associated with
winning and retaining loyal customers.winning and retaining loyal customers.

3. Copyright 2008 Prentice Hall Publishing 3Chapter 8: Guerrilla Marketing Plan
Building a Guerrilla Marketing Building a Guerrilla Marketing
PlanPlan

Guerrilla marketing strategiesGuerrilla marketing strategies

Unconventional, low-cost creative marketing Unconventional, low-cost creative marketing
techniques that allow a small company to techniques that allow a small company to
wring more bang from its marketing bucks wring more bang from its marketing bucks
than do larger rivals.than do larger rivals.

Do not have to spend large amounts of Do not have to spend large amounts of
money to be effective.money to be effective.

4. Copyright 2008 Prentice Hall Publishing 4Chapter 8: Guerrilla Marketing Plan
A Guerrilla A Guerrilla
Marketing PlanMarketing Plan
1.1.Pinpoints the specific target markets the Pinpoints the specific target markets the
company will serve.company will serve.
2.2.Determines customer needs and wants through Determines customer needs and wants through
market research.market research.
3.3.Analyzes a firm’s competitive advantages and Analyzes a firm’s competitive advantages and
builds a marketing strategy around them.builds a marketing strategy around them.
4.4.Creates a marketing mix that meets customer Creates a marketing mix that meets customer
needs and wants.needs and wants.

5. Copyright 2008 Prentice Hall Publishing 5Chapter 8: Guerrilla Marketing Plan
Market ResearchMarket Research
How to Conduct Market Research:How to Conduct Market Research:

Define the problem.Define the problem.

Collect the data.Collect the data.

Individualized (one-to-one) marketingIndividualized (one-to-one) marketing

Analyze and interpret the data.Analyze and interpret the data.

Draw conclusionsDraw conclusions and act. and act.

6. Copyright 2008 Prentice Hall Publishing 6Chapter 8: Guerrilla Marketing Plan
Relationship MarketingRelationship Marketing
(Customer Relationship Management)(Customer Relationship Management)

Involves developing and maintaining Involves developing and maintaining
long-term relationships long-term relationships with customers so with customers so
that they will keep coming back to make that they will keep coming back to make
repeat purchases.repeat purchases.

7. Copyright 2008 Prentice Hall Publishing 7Chapter 8: Guerrilla Marketing Plan
Relationship MarketingRelationship Marketing
(Customer Relationship Management)(Customer Relationship Management)

Steps:Steps:

Collect meaningful customer information and Collect meaningful customer information and
compile it in a database.compile it in a database.

Mine the database to identify “best” customers.Mine the database to identify “best” customers.

Use the information to develop lasting Use the information to develop lasting
relationships with “best” customers.relationships with “best” customers.

Attract more customers who fit the “best” Attract more customers who fit the “best”
customer profile.customer profile.

Stay in contact with customers between sales.Stay in contact with customers between sales.

8. Copyright 2008 Prentice Hall Publishing 8Chapter 8: Guerrilla Marketing Plan
Guerrilla Marketing StrategiesGuerrilla Marketing Strategies

Find a niche and fill it.Find a niche and fill it.

Don’t just sell; entertain.Don’t just sell; entertain.

Strive to be unique.Strive to be unique.

Connect with customers on an Connect with customers on an
emotional level. emotional level.

Build trustBuild trust

9. Copyright 2008 Prentice Hall Publishing 9Chapter 8: Guerrilla Marketing Plan

Create an identity for your Create an identity for your
business through branding.business through branding.
Guerrilla Marketing StrategiesGuerrilla Marketing Strategies

10. Building a BrandBuilding a Brand
HighHigh
LowLow
LowLow HighHigh
DifferentiationDifferentiation
R
e
l
e
v
a
n
c
e
R
e
l
e
v
a
n
c
e
““Antes”Antes”
Features that are important Features that are important
to customers but all to customers but all
competitors provide themcompetitors provide them
Every company in the market Every company in the market
must “ante up” on these must “ante up” on these
features.features.
““Drivers”Drivers”
Features that are both Features that are both
important to customers and important to customers and
are highly differentiated are highly differentiated
from those of competitorsfrom those of competitors
These are the attributes on These are the attributes on
which a company must which a company must
focus to build its brand.focus to build its brand.
““Fool’s Gold”Fool’s Gold”
Features that are unique to Features that are unique to
your company but do not your company but do not
drive customers’ loyalty to drive customers’ loyalty to
your product and servicesyour product and services
Don’t make the mistake of Don’t make the mistake of
trying to build a brand on trying to build a brand on
these features!these features!
““Neutrals”Neutrals”
Features that are irrelevant Features that are irrelevant
to customersto customers
These features are useless These features are useless
when it comes to branding.when it comes to branding.
Source: Adapted from “What Really Matters in Building a Brand,” The McKinsey Quarterly, May 2004, www.mckinseyquarterly.com/newsletters/chartfocus/2004_05.htm

11. Copyright 2008 Prentice Hall Publishing 11Chapter 8: Guerrilla Marketing Plan

Start a blog. Start a blog.

Focus on the customer.Focus on the customer.
Guerrilla Marketing StrategiesGuerrilla Marketing Strategies

Create an identity for your Create an identity for your
business through branding.business through branding.

12. Copyright 2008 Prentice Hall Publishing 12Chapter 8: Guerrilla Marketing Plan

67 percent of customers who stop patronizing a 67 percent of customers who stop patronizing a
business do so because an indifferent employee business do so because an indifferent employee
treated them poorly.treated them poorly.

96 percent of dissatisfied customers 96 percent of dissatisfied customers never never
complain complain about rude or discourteous service, about rude or discourteous service,
but...but...

91 percent will 91 percent will notnot buy from that business buy from that business
again.again.

100 percent will tell their “horror stories” to at 100 percent will tell their “horror stories” to at
least least nine other peoplenine other people..

13 percent of those unhappy customers will 13 percent of those unhappy customers will
tell their stories to at least tell their stories to at least 20 other people20 other people..
Focus on the CustomerFocus on the Customer

13. Copyright 2008 Prentice Hall Publishing 13Chapter 8: Guerrilla Marketing Plan
Focus on the CustomerFocus on the Customer

Treating customers indifferently or poorly costs the Treating customers indifferently or poorly costs the
average company from average company from 15% percent to 30 percent of 15% percent to 30 percent of
gross salesgross sales!!

Replacing lost customers is expensive; it costs Replacing lost customers is expensive; it costs
seven to nine timesseven to nine times as much to attract a new as much to attract a new
customer as it does to sell to an existing one!customer as it does to sell to an existing one!

About 70 percent of a company’s sales come from About 70 percent of a company’s sales come from
existing customers.existing customers.

Because 20 percent of a typical company’s Because 20 percent of a typical company’s
customers account for about 80 percent of its sales, customers account for about 80 percent of its sales,
no business can afford to alienate its best and most no business can afford to alienate its best and most
profitable customers and survive!profitable customers and survive!

14. Principles of Customer Experience Management (CEM)Principles of Customer Experience Management (CEM)
• Intimate understanding of each customer’s
needs, wants, preferences, and peculiarities
• Personal, customized messages in marketing,
sales, service, and advertising
• Consistent, courteous, and professional
treatment by everyone in the company
• Responsive, rapid handling of requests,
questions, problems, and complaints
• Helpful information and advice delivered
proactively, where appropriate
• Involvement of caring, well-trained people
rather than strict reliance on technology for
service delivery
• Long-term view of the company/customer
relationship rather than a focus on “making a
sale”
• Emphasis on sustaining an ongoing relationship
built on trust and respect
• Frequent and visible demonstrations of
commitment to nurturing the company/customer
relationship
In every customer interaction
Satisfied, loyal,
repeat (and
profitable)
customers
Source: Adapted from “Wake-Up Call: To Fix CRM, Fix the Customer Experience Now!,
BearingPoint White Paper (www.bearingpoint.com, Fall 2005, p. 5.

15. Copyright 2008 Prentice Hall Publishing 15Chapter 8: Guerrilla Marketing Plan
Focus on the CustomerFocus on the Customer
Companies that are successful at retaining Companies that are successful at retaining
their customers constantly ask themselves their customers constantly ask themselves
(and their customers) four questions:(and their customers) four questions:
1. What are we doing right?1. What are we doing right?
2. How can we do that even better?2. How can we do that even better?
3. What have we done wrong?3. What have we done wrong?
4. What can we do in the future?4. What can we do in the future?

16. Copyright 2008 Prentice Hall Publishing 16Chapter 8: Guerrilla Marketing Plan

Be devoted to quality.Be devoted to quality.
Guerrilla Marketing StrategiesGuerrilla Marketing Strategies

Create an identity for your business through branding.Create an identity for your business through branding.

Start a blog. Start a blog.

Focus on the customer.Focus on the customer.

17. Copyright 2008 Prentice Hall Publishing 17Chapter 8: Guerrilla Marketing Plan
Devotion to QualityDevotion to Quality

Study: 60 percent of customers who change Study: 60 percent of customers who change
suppliers do so because of problems with a suppliers do so because of problems with a
company’s products or services. company’s products or services.

World-class companies treat quality as a World-class companies treat quality as a
strategic objective, an integral part of the strategic objective, an integral part of the
company culture. company culture.

The philosophy of Total Quality Management The philosophy of Total Quality Management
(TQM):(TQM):

Quality in the product or service itself. Quality in the product or service itself.

Quality in every aspect of the business and its Quality in every aspect of the business and its
relationship with the customer.relationship with the customer.

Continuous improvement in quality.Continuous improvement in quality.

18. Copyright 2008 Prentice Hall Publishing 18Chapter 8: Guerrilla Marketing Plan

Pay attention to convenience.Pay attention to convenience.
Guerrilla Marketing StrategiesGuerrilla Marketing Strategies

Create an identity for your business through branding.Create an identity for your business through branding.

Start a blog. Start a blog.

Focus on the customer.Focus on the customer.

Be devoted to quality.Be devoted to quality.

19. Copyright 2008 Prentice Hall Publishing 19Chapter 8: Guerrilla Marketing Plan
Attention to ConvenienceAttention to Convenience

Is your business conveniently located near Is your business conveniently located near
customers?customers?

Are your business hours suitable to your Are your business hours suitable to your
customers?customers?

Would customers appreciate pickup and Would customers appreciate pickup and
delivery services?delivery services?

Do you make it easy for customers to buy Do you make it easy for customers to buy
on credit or with credit cards?on credit or with credit cards?

20. Copyright 2008 Prentice Hall Publishing 20Chapter 8: Guerrilla Marketing Plan
Attention to ConvenienceAttention to Convenience

Are your employees trained to handle business Are your employees trained to handle business
transactions quickly, efficiently, and politely?transactions quickly, efficiently, and politely?

Does your company offer “extras” that would Does your company offer “extras” that would
make customers’ lives easier?make customers’ lives easier?

Can you bundle existing products to make it easier Can you bundle existing products to make it easier
for customers to use them?for customers to use them?

Can you adapt existing products to make them Can you adapt existing products to make them
more convenient for customers? more convenient for customers?

Does your company handle telephone calls quickly Does your company handle telephone calls quickly
and efficiently?and efficiently?

21. Copyright 2008 Prentice Hall Publishing 21Chapter 8: Guerrilla Marketing Plan

Concentrate on innovation.Concentrate on innovation.
Guerrilla Marketing StrategiesGuerrilla Marketing Strategies

22. Copyright 2008 Prentice Hall Publishing 22Chapter 8: Guerrilla Marketing Plan
Concentration on InnovationConcentration on Innovation

Innovation Innovation

The key to future success.The key to future success.

One of the greatest strengths of One of the greatest strengths of
entrepreneurs. It shows up in the new entrepreneurs. It shows up in the new
products, techniques, and unusual products, techniques, and unusual
approaches they introduce.approaches they introduce.

Entrepreneurs often create new products Entrepreneurs often create new products
and services by focusing their efforts on and services by focusing their efforts on
one area and by using their size and one area and by using their size and
flexibility to their advantage.flexibility to their advantage.

23. Copyright 2008 Prentice Hall Publishing 23Chapter 8: Guerrilla Marketing Plan

Concentrate on innovation.Concentrate on innovation.
Guerrilla Marketing StrategiesGuerrilla Marketing Strategies

Be dedicated to service and Be dedicated to service and
customer satisfaction. customer satisfaction.

Survey: 46 percent of customers had Survey: 46 percent of customers had
walked out of a store within the past walked out of a store within the past
year because of poor service.year because of poor service.

24. Copyright 2008 Prentice Hall Publishing 24Chapter 8: Guerrilla Marketing Plan

Concentrate on innovation.Concentrate on innovation.

Be dedicated to service and Be dedicated to service and
customer satisfaction.customer satisfaction.
Guerrilla Marketing StrategiesGuerrilla Marketing Strategies

Emphasize speed.Emphasize speed.

25. Copyright 2008 Prentice Hall Publishing 25Chapter 8: Guerrilla Marketing Plan
Emphasis on SpeedEmphasis on Speed

Use principles of time compression Use principles of time compression
management (TCM):management (TCM):

Speed new products to marketSpeed new products to market

Shorten customer response time in manufacturing Shorten customer response time in manufacturing
and deliveryand delivery

Reduce the administrative time required to fill an Reduce the administrative time required to fill an
order.order.

26. Copyright 2008 Prentice Hall Publishing 26Chapter 8: Guerrilla Marketing Plan
Emphasis on SpeedEmphasis on Speed

Re-engineer the process rather than try to Re-engineer the process rather than try to
do the same thing - only faster.do the same thing - only faster.

Create cross-functional teams of workers Create cross-functional teams of workers
and empower them to attack and solve and empower them to attack and solve
problems.problems.

Set aggressive goals for production and Set aggressive goals for production and
stick to the schedule.stick to the schedule.

27. Copyright 2008 Prentice Hall Publishing 27Chapter 8: Guerrilla Marketing Plan
Emphasis on SpeedEmphasis on Speed

Rethink the supply chain.Rethink the supply chain.

Instill speed in the company culture.Instill speed in the company culture.

Use technology to find shortcuts wherever Use technology to find shortcuts wherever
possible.possible.

Put the Internet to work for you. Put the Internet to work for you.

28. Copyright 2008 Prentice Hall Publishing 28Chapter 8: Guerrilla Marketing Plan
Marketing on the Marketing on the
World Wide WebWorld Wide Web

An An essentialessential business tool - business tool -
Even the smallest companies Even the smallest companies
can market their products and can market their products and
services around the globe.services around the globe.

The Web can be the “Great The Web can be the “Great
Equalizer” in a small Equalizer” in a small
company’s marketing company’s marketing
program.program.

29. Copyright 2008 Prentice Hall Publishing 29Chapter 8: Guerrilla Marketing Plan
Marketing on the Marketing on the
World Wide WebWorld Wide Web

About 70 percent of small About 70 percent of small
companies have a Website, companies have a Website,
double the number in 2002.double the number in 2002.

Web marketing strategy must Web marketing strategy must
emphasize small company’s emphasize small company’s
strengths and core strengths and core
competencies. competencies.

30. Copyright 2008 Prentice Hall Publishing 30Chapter 8: Guerrilla Marketing Plan
The Marketing MixThe Marketing Mix
PProductroduct
PPlacelace
PPricerice
PPromotionromotion

31. Copyright 2008 Prentice Hall Publishing 31Chapter 8: Guerrilla Marketing Plan
Stages in the Product Life CycleStages in the Product Life Cycle

Introductory stageIntroductory stage
High
Costs

32. Copyright 2008 Prentice Hall Publishing 32Chapter 8: Guerrilla Marketing Plan
Stages in the Product Life CycleStages in the Product Life Cycle

Introductory stageIntroductory stage

Growth and acceptance stageGrowth and acceptance stage
High
Costs
High
Costs
High
Costs
Sales
Climb

33. Copyright 2008 Prentice Hall Publishing 33Chapter 8: Guerrilla Marketing Plan
Stages in the Product Life CycleStages in the Product Life Cycle

Introductory stageIntroductory stage

Growth and acceptance stageGrowth and acceptance stage

Maturity and competition stageMaturity and competition stage
High
Costs
Sales
Climb
Profits
Peak
High
Costs
Sales
Climb
Profits
Peak

34. Copyright 2008 Prentice Hall Publishing 34Chapter 8: Guerrilla Marketing Plan
Stages in the Product Life CycleStages in the Product Life Cycle

Introductory stageIntroductory stage

Growth and acceptance stageGrowth and acceptance stage

Maturity and competition stageMaturity and competition stage

Market saturation stageMarket saturation stage
High
Costs
Sales
Climb
Profits
Peak
Sales
Peak
High
Costs
Sales
Climb
Profits
Peak
Sales
Peak

35. Copyright 2008 Prentice Hall Publishing 35Chapter 8: Guerrilla Marketing Plan
Stages in the Product Life CycleStages in the Product Life Cycle

Introductory stageIntroductory stage

Growth and acceptance stageGrowth and acceptance stage

Maturity and competition stageMaturity and competition stage

Market saturation stageMarket saturation stage

Product decline stageProduct decline stage
High
Costs
Profits
Peak
Sales
Peak
Sales &
Profits
Fall
High
Costs
Sales
Climb
Profits
Peak
Sales
Peak
High
Costs
Sales
Climb
Profits
Peak
Sales
Peak

36. Copyright 2008 Prentice Hall Publishing 36Chapter 8: Guerrilla Marketing Plan
Channels of DistributionChannels of Distribution
Consumer GoodsConsumer Goods
Manufacturer
Manufacturer
Consumer
Retailer Consumer
Manufacturer
Retailer ConsumerWholesaler Wholesaler
Manufacturer
Retailer ConsumerWholesaler

37. Copyright 2008 Prentice Hall Publishing 37Chapter 8: Guerrilla Marketing Plan
Channels of DistributionChannels of Distribution
Industrial GoodsIndustrial Goods
Manufacturer
Industrial User
Manufacturer
Wholesaler Industrial User