Entrepreneurial Marketing and Brand Management :Entrepreneurial Marketing and Brand Management Presented by Francine F. Carb, MBA October 16, 2008


Key to Marketing :Key to Marketing Knowing the needs & wants of customers Building a strategy to serve customers External Opportunities& Threats Niche Internal Strengths & Weaknesses Know the niche market you are uniquely qualified to serve


Marketing and the Purchase Decision :Marketing and the Purchase Decision Target market Perceived NeedReferral EvaluationPromotionsTrials Marketing ProgramsField Sales PeopleMass MarketingPublic RelationsWord-of-Mouth Purchase Consideration Awareness Real need or wantEmotional “Hook”Impulse


Marketing strategy :Marketing strategy Marketing strategy and actions must promote the company’s core values and “Brand” to be aligned with the company strategy. Marketing initiatives and sales activity shape a company and brand strategy by getting market feedback Marketing strategy is important because it ties the company to its customers in a logical way Sales activity/”feet on the street” closes the loop


Marketing plan :Marketing plan Detailed plan of who you are targeting to purchase your product or service, at what price, through which channels, and with the support of what kinds of sales and advertising. Includes a strategy, a communications mix, methods for measuring success, attention to staffing/resources, and costs. Included in the marketing functional strategy section of the business plan.


What is a Brand? :What is a Brand? A brand is the sandbox that your company “plays” in It is a company’s “Personality” and its “Reputation”


A Brand Creates Value :A Brand Creates Value Harley Davidson Coca Cola Nike Designer Brands


Why Managing Your Brand Matters :Why Managing Your Brand Matters Branding, by its very nature is not optional. If you do not position yourself in people’s minds, they will do it for you. … Peter Drucker Graphics © 2002-2007CattLeLogos Brand Management Systems LLC


Why Your Brand is Important for Sales :Why Your Brand is Important for Sales People need to be aware of who you are People need to willing to consider buying from you You need the tools to “close” the sale You brand addresses all three of these phases of the sales process.


Who Defines Your Brand? :Who Defines Your Brand? Your Brand is defined by how well you deliver against customer expectations and perceptions, ie. “THE PROMISE”


Who Influences Your Brand? :Who Influences Your Brand? Customers Sales Marketing Customer Service Delivery People and Distributors Workers Receptionist Product Performance Competitors


Two Views of UPS :Two Views of UPS Jean’s They’re great! No problems with service. Donna English. She tracks me down. I love them! Rhonda’s They’re terrible! Left stuff in the rain. They’ve lost deliveries. Different driver every day. I hate them! Brand Loyalty is created or lost based on Personal Experience


The ABC’s of Good Branding :The ABC’s of Good Branding Is for APPROPRIATE


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Slide 15:Know your audience – Make a connection


Cultural Communication Issues :What you doHow you do it ContextInformation implied bylocation, manner, behavior Cultural Communication Issues ContentInformation explicitly stated: Details, data, words, images What you say


Two Definitions Of Image :Two Definitions Of Image The Visual Image:The visual components of your Brand Identity: logo, web site, signage, marketing materials, product design The Contextual Image:An impression created by your behavior and appearance; your reputation


Visual Image is NOT Just the Logo :Visual Image is NOT Just the Logo Everything that is used around the logo also contributes to your “image” Mailers, Printed Brochures Web layout, components, interface Color schemes, Fonts Graphics Flow charts Are all of these consistent with your brand vision?


The “Other” Image :The “Other” Image © 2002-2007CattLeLogos Brand Management Systems LLC


Think the Intangibles Don’t Matter? :Think the Intangibles Don’t Matter? At the drive-in teller at the bank, the sign has withdrawal spelled incorrectly. The customer thinks, “If they are that careless with their signs, how will the treat my money?”


Low-cost strategy :Low-cost strategy Problem of even lower-cost competitors Difficult to keep costs down – especially for small firms Reduced flexibility Finding markets where there is space for a low-cost competitor Establishes your brand as “low-cost” = “low quality”


Product/service differentiation :Product/service differentiation Differentiate what is sold Branding, quality, innovation, style and image Two common patterns: High margins/low share (Mercedes): focus on status, production efficiencies less important Slightly lower margins but high share (many branded items like Coca-Cola, Nike) Works by reducing rivalry, substitutes & buyer power Main objective of differentiation: make the short list


Market segmentation/focus :Market segmentation/focus Serve a small segment Focus refers to following the trends of an audience Oshkosh emergency trucks Specialty steel Micro breweries Focused low-cost/low-price Works by reducing rivalry, reducing substitutes Main objective: redefine the market served


Product Positioning :Product Positioning QUALITY PRICE


Exercise: Choose and defend a marketing strategy :Exercise: Choose and defend a marketing strategy Low Cost/Low Price Product Differentiation Market Segmentation (Focus) Your own…why?


Market Mix :Market Mix The job of the CMO


Marketing mix :Marketing mix The right mix of marketing and sales support elements that... Supports your strategy. Fits your capabilities. Doesn’t break your budget. Shared advertising Public relations Networking Training Etc.


Promotion :Promotion “Any form of persuasive communication designed to inform consumers about a product or service and influence them to purchase these goods or services.” Direct selling -- mail, internet, sales representatives Promotions -- try it, you’ll like it Advertising -- direct response, targeted, blanket Public relations -- word of mouth (events), media coverage, editorial content Marketing communications Networking


Marketing communications :Marketing communications Web Sites Blogs Newsletters Brochures Catalogs White papers Press Releases “Brand Package” Business cards Business plans Annual report Logos


What’s Happening in the Market? :What’s Happening in the Market? Customers can hardly hear you >1,500 marketing messages a day Customers are skeptical Everybody is claiming “the best ____” Customers are connected Electronic communication Professional meetings Buyer are more educated And have more choices


Value proposition :Value proposition Clear statement of benefits to the customer Need to understand your target market Needs Wants Includes: Unique selling points Quantification of the value to the customer of those points


Price setting: A make or break decision :Price setting: A make or break decision Assess demand How sensitive will customers be to price changes? Analyze competition What’s the going price? Will competitors respond to a price cut? Set pricing objectives Target return, market share, long-term profits, quick investment recovery, etc What will the dogs eat?


The ABC’s of Good Marketing :The ABC’s of Good Marketing U Is for Unique


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Slide 35:Stand Out from the Herd


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Networking :Networking Traditional Chambers of commerce Business associations Trade associations Customer groups Volunteer work On-line Social Networking Face book My Space Linked In


Sales promotions :Sales promotions Coupons & Discounts Trade Shows Samples Contests Free giveaways Key chains, mugs, calendars etc.


Advertising :Advertising Newspapers, magazines, radio, internet, television, yellow pages, direct mail Analyze the strengths & weaknessesof the medium Which medium will target your customers? What is your advertising budget? What is the cost per million (CPM)?


Publicity :Publicity Articles in newspaper Interview on radio or television Coverable events Newsletters White papers Speaking engagements & white papers Volunteer (boards & local committees) FREE, powerful, hard to control


Guerilla Marketing :Guerilla Marketing Used by entrepreneurs and small business Targeted, low-cost strategies that change the rules of the game Examples: Product: Midwifery, punk music – both embedded in movements Price: Free web services (to drive advertising) Promotion: message in a fortune cookie Place (distribution):with Donald Trump, celebrity endorcements, sports figures


Guerillas Are More Clever :Guerillas Are More Clever Compete on your terms: Define your niche Sell to it


Strategies For Guerillas :Strategies For Guerillas Everyone you market to is a human being first, and a customer second. Use a pro to do your marketing – amatuer marketing loses sales Aim for a relationship, not a sale


The ABC’s of Good Branding :The ABC’s of Good Branding Is for Believable


Slide 46:No Bull Luxury Tractors © 2002-2007CattLeLogos Brand Management Systems LLC


Slide 47:Make sure you can deliver what you promise!


It’s All About Expectations :It’s All About Expectations Promise less … Deliver more Airline Schedules Contractor


Make Your Message Memorable :Make Your Message Memorable Make it easy for your customers to become your best Sales People Develop a Story that is easy for people to remember and repeat Find an “emotional connection” Pay attention to the “implicit” message – the context, the body language


Exercise: Value proposition :Exercise: Value proposition List unique selling point(s) Articulate the benefit referred to by each USP Quantify or otherwise capture the value of each benefit for the client Test, review, refine


Blowing the branding: :Blowing the branding: Bad names Alu-Fanny foil wrap (France) Atum Bom tuna (Portugal) Happy End toilet paper (Germany) Pschitt lemonade (France) Zit lemonade (Germany) Clairol, a hair products company, introduced the "Mist Stick", a curling iron, into Germany only to find out that, in German, “mist” is slang for manure.


Lost in Translation :Lost in Translation Electrolux, a Scandinavian vacuum manufacturer, used this ad in the U.S.: "Nothing sucks like an Electrolux." The Dairy Association's huge success with the campaign "Got Milk?" prompted them to expand advertising to Mexico. Their Spanish translation read: "Are you lactating?" In Italy, a campaign for "Schweppes Tonic Water" translated the name into the much less thirst quenching "Schweppes Toilet Water."


Lost in Translation :Lost in Translation


The ABC’s of Good Branding :The ABC’s of Good Branding C Is for Consistency and Clarity


Slide 55:Keep monitoring your marketing to make sure that your images, messages, and value stay consistent!


Become a “Meme” :Become a “Meme” A self-explanatory symbol that communicates an entire idea. Memes are simple, easy to remember words, actions, or images that capture the minds of the general populace.


Messages… :Messages… Can you hear me now? How do you spell relief? The Nightime Sniffling Sneezing Coughing Aching Stuffyhead Fever So You Can Rest Medicine. We bring good things to life. You’re in good hands with … You’re fired!


Building the “Buzz” :Building the “Buzz” Fundamentals have to be in place: The right product and service You need an interesting story that other people can remember and repeat You need to be visible and recognizable in whatever you do Keep your customers involved


Placement/Distribution :Placement/Distribution The “bridge” to reaching customers Sales Channels Distributors, retailers, value added resellers Issues/norms: Sales cycle (time of year, length) Expected materials, order forms, support, etc. Sales force implications Inside vs. outside sales people Quotas and territories Compensation and commissions Coverage


Effective distribution :Effective distribution Complementary, strategic channels Clear objectives for each channel that facilitate measures of success “Increase number of stores carrying our product by 25%” “Keep 90% of our current customers this year” “Increase sales volume to 100 largest accounts by 20%” Budget & timeline Detailed outline of required logistics Sensitive measures of success, and methods for absorbing and adjusting to data


Sales team :Sales team People Experience, reach Team structure Support structure Sales plan Marketing intelligence Incentives Materials Logistics Training Leadership


Exercise: Placement/ Distribution :Exercise: Placement/ Distribution How will you deliver your product or service to your customers? Channels Sales support Marketing support Logistics Costs Measures of success/feedback loops


Values-led marketing mix :Values-led marketing mix “ Values-led marketing…promotes products and brands by integrating social benefits into many different aspects of a business enterprise.” - Ben & Jerry’s Product: Organic ingredients purchased from alternative suppliers; creative, recyclable packaging Pricing: Premium with lots of giveaways & donations Placement: Regional, country stores, youth scoop shops Promotion: Music festivals, free samples, advocacy, public relations