Posts Tagged ‘marketing plans’
The 7 P’s of the Marketing Mix: A Tactical Marketing Plan for Your Small Business
Friday, March 21st, 2008
The tactical components of a marketing plan are referred to as the "Marketing Mix." Years ago, the Marketing Mix comprised of four elements (the Four Ps). But three more essentials have been added to the mix, completing the formula for a truly successful plan.
Price
Pricing requires a strategy, rather than just applying random numbers based on the competition. If you have a unique edge to a particular product or service (i.e. it is rare or extremely high quality), you can set your prices fairly high (premium pricing). The only disadvantage is that the high prices alert competitors to the product, causing them to jump in and offer the same items. If too many competitors horn in, you lose your unique edge and may have to come up with another plan.
Psychological pricing is another technique that can be used. This is where you price your goods in a way that the customer believes is a good deal. Pricing a product at $9.99 instead of $10.00 is considered psychological pricing, as is 4 for $1.
Other pricing strategies include economic, by which you would have the lowest, very minimum price, with no frills added to the product. Penetration pricing is pricing a product unreasonably low just to gain the majority of the market. Once most of the customers are yours, you raise the prices very slowly until they are at or above fair market.
Place
Place refers to how you obtain the product and how you get it to the customer. You will need to find a distributor. Will you use a single supplier or several to get the best price? Will you buy wholesale, through an agent or from the Internet? Considering "place" means finding the most convenient route from your product’s origin to its final destination, the customer.
Product
There are actually three parts of a product to consider. There is, of course, the physical, tangible product. But there is also the core, the emotional and psychological value of it. That emotion may be as simple as easing the customer’s purchasing stress by offering the product in bulk. Or it could be that it is the nicest product in the neighborhood or something unique that others don’t have. Another non-tangible part of the product is the added value after the purchase. This includes things like the product warranty and great customer service. All three parts of the product must be considered to produce the most positive results.
Promotion
Promotion involves all of the tools used to promote your business and its products-advertising, sales, promotions and public relations, among others. This is where you determine your advertising mediums, sales strategies, and the method of communicating your uniqueness to prospects.
People
Good marketing strategies must promote positive interaction with the people involved. The customers are very important, so being personable and understanding goes a long way. Train your employees to be excellent sales people and customer service representatives.
Physical Evidence
Another physical entity of marketing involves proving your existence through packaging, business cards, web pages, and other tangible promotional items. There are innumerable ways of leaving a trail, for your company name to turn up and not be forgotten. Plan these "name drops" ahead of time, being sure your business is imprinted on sales receipts, flyers, order forms, and other subtle methods of recognition.
Process
The marketing process is the entire experience the customer has with your business from first contact through the follow-up call. The process should be planned in such a way that every step is positive for the customer. If necessary, create a guideline or a flowchart to outline each step, running through all the possible scenarios that could interfere with the positive experience. Have a plan for those little snags, such as returns or order errors, so that they can be handled as smoothly as the original transaction. Planning the process step-by-step will ensure no surprises and exceptional feedback from the customer.
The seven Ps are not the only strategies to consider when developing a marketing plan. But they are the most important. Putting an extra focus on the essential "Marketing Mix" will definitely put you ahead of the game and lead your business to inevitable success.
Tags: advice, Cheryl Frost, Marketing, marketing plans, Marketing Your Business, small business, tips
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Common Mistakes Made by Exporters (and How to Avoid Them!)
Wednesday, February 13th, 2008
In a rush to get their products selling in an overseas market, many business owners fall prey to one or more common "exporting pitfalls". It’s understandable that a business owner is excited about the possibilities that a new, wide-open market can bring to the company, but it’s important to remember that exporting involves big money and big risk. In order to give your business the best chance at a successful exporting experience, it’s crucial to take note of the most common mistakes made by new exporters.
Exporting mistakes to avoid
Choosing overseas partners too quickly - Many times a company is so focused on the goal of getting their products overseas, that they form partnerships too quickly and rush into business relationships with people/companies they probably shouldn’t. Whether it’s a warehouse, distributors, or marketing companies, it’s imperative that you thoroughly check the background of each and talk with past clients, if possible. Just like in the U.S., there are plenty of people overseas who are in business to scam small business owners.
Failing to adapt product, packaging, or literature to foreign market - It seems like an obvious mistake to avoid, but thousands of companies (including big-name companies) have fallen into this trap. Perhaps they didn’t change the electrical adapter to fit a particular country’s outlet, or the packaging and instructions aren’t in the local language, or the wording was poorly translated , or packaging pictures, language or even the product name is considered offensive. There are plenty of things that can go wrong, so double check everything and have the finished product inspected by several people who are from the country you are exporting to.
Putting domestic customers before foreign customers - This is probably one of the easiest and most common exporting traps to fall into. If your product is a successful seller in the U.S., perhaps a good part of the reason is because of great customer service. While it may be more difficult to communicate with customers from a non-English-speaking country, it’s certainly not impossible. You could hire someone who speaks that language to answer e-mails and serve as the customer service contact, or you could outsource that job to an overseas company. It’s important to treat your foreign customers the same way as you treat your domestic customers, even if it means extra effort or expense on your part.
Failing to have a marketing plan in place - It’s funny, but some business owners think their products will magically sell in a foreign marketplace once they arrive at the port. It will take plenty of time and research to devise a marketing plan that details how your products will get into the hands of customers. It’s best to have this plan in place well before your goods are loaded onto the container ship, or else your products could end up sitting at the overseas port for months and months. If you’re unsure about marketing in a certain country, then it would be a good idea to hire someone in that country to help you with or oversee your marketing efforts there.
Taking these common mistakes into consideration could very well save you from future expenses and headaches. If you are new to exporting, then it is important that you are aware of all the risks involved and what you can do to avoid them. Exporting products can, no doubt, be a very lucrative business if done properly. Good luck!
Tags: Carrie Hinkel, Doing Business Internationally, exporting, exporting pitfalls, marketing plans, selling overseas
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Avoiding the Binge Marketing Trap
Tuesday, January 29th, 2008
More and more small businesses are unknowingly falling prey to a behavior known as "binge marketing". It’s basically a marketing plan that quickly goes into action out of panic after seeing slow sales. Then, when sales start to pick up, the marketing stops and it only goes back into action when sales dip back down again. Talk about a roller coaster ride of a business!
The main problem is that binge marketing is reactive rather than proactive. With a traditional marketing plan, there’s always some form of promotion going on. The amount of marketing will fluctuate - picking up before peak seasons - but it never goes into a true stage of dormancy. The key with a good marketing plan is consistency. With a steady stream of effective marketing strategies happening all throughout the year, your business should never even go into a rock-bottom sales lull that has you reaching for the panic button.
How to plan a successful year-round marketing plan
If you’ve been guilty of being a binge marketer in the past, don’t worry, you can get your marketing efforts back on track - and that doesn’t mean committing to a big budget either. A carefully planned out marketing strategy will bring in better results, more sales and reach a more targeted audience - and that translates into more profits for your business! Plus, having a set plan in place allows you to test various methods, track the response rate and sales and compare several tactics against each other - eventually honing in on the most effective marketing strategies for your company. Here are some tips to get your business back on track with a marketing plan that’s both consistent and successful!
Make a spreadsheet - If you want to get serious about marketing, you’ll first need to get organized. Based on your target market, list out the various ways marketing, PR and advertising can help you reach them - be creative in your ideas! You can then add in the cost for each, the frequency for each and the target market saturation. If you are on a limited budget, be sure to list plenty of ideas that are free.
Know your peak periods - Most businesses have several times throughout the year when sales pickup. Maybe it’s Christmas, Valentine’s Day, the beginning of spring, etc. Now that you’re planning a marketing strategy, you’ll want to capitalize on the period before the extra sales start coming in. A carefully planned set of ads or press releases can increase sales during that time by as much as 30%!
Devise a marketing plan - This will take some time, but your business will be rewarded with strong, predictable sales patterns. An ideal plan has some form of marketing going on every day of the year. If your business budget is tight, then save the more expensive marketing ideas for your pre-peak periods and use the free and low-cost ideas for the rest of the year.
Sure, it’s easy to fall into the "binge marketing" trap, but it’s just as easy to get yourself out! All you need to get started is some free time and creative ideas. Once you sit down, you’ll be surprised at how quickly your business’ marketing plan comes together.
Tags: advice, binge marketing, Carrie Hinkel, Marketing, marketing plans, Marketing Your Business, tips
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Advanced Basic Training for New Business Owners: Developing an Effective Marketing Plan
Thursday, January 17th, 2008
"The man, who on his trade relies, must either bust or advertise" was a quote that came from the 1700’s at the onset of advertising in this country. And there is no greater truism where marketing your business is concerned. I want to say that the quote comes from Thomas Payne, but I wouldn’t swear to it. But, it had such an impact on me when I first became interested in the advertising and marketing industry that I have never forgotten it.
This is the area of the six step process that I always enjoy the most and have a lot of fun with, not from a comical standpoint, but because this is my primary focus of financial endeavor. I’ve been around the advertising and marketing sector for over 17 years now, and have really gotten my feet wet in the three major media, (i.e. print, radio, and television), and now I’m becoming well versed in the online sector as well — and not because I’ve wanted to, but because I have had to.
Once it is public that you have opened (or are opening) a new business, be ready for another one of those shark attacks. You are about to be bombarded by reps from every media imaginable, telling you that their’s is the best avenue of advertising in the world. (There’s this word that starts with "bull" that oftentimes comes to mind here.)
Here are a few suggestions when considering where to advertise. At the outset, only look at print advertising, such as your local newspaper and telephone book. Realize that for the time being, radio and television advertising may not be affordable, so you may want to put those media on the back burner. As far as the phone book is concerned, stick with a liner ad in the white and yellow pages (categorized).
When you’re considering placement for your ad in the newspaper, think about the different sections in the publication and where your business fits the best. You can start with a sixth or eighth of a page ad for three months and do just fine. But don’t think that you can advertise a month or less and start doing a land office business. In most instances, it ain’t gonna happen. Here are some things to consider when it comes to spending your money on advertising.
Advertise for a minimum of 60 to 90 days. It will take that long for the buying public to get used to your business being there. And once they know you’re there, you need to keep your name visible. It’s called "market awareness".
Change your ads often. Run a different special each week, otherwise your ad gets stale and people won’t pay attention to it any more. Remember variety is the spice of life.
Advertise heavier when business is slow. The typical mindset amongst business owners is that advertising is an expense, not a necessity. So when times get tough, that’s one of the first things they pull the plug on. Here’s a tip, if most of the retailers out there do that, and you keep advertising, it looks like you’re still in business when the other ones have flown the coop. Gee, what a concept — market awareness. You have to keep your name out there.
In the coming weeks, I’ll be delving into these topics again on a more advanced level for businesses that are up and running successfully, and want to keep it that way.
Tags: advertising, Marketing, marketing plans, Marketing Your Business, Michael Rosenthal, Starting a Business
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