Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc.

Publishing as Prentice Hall 8-1

 Building a
Guerrilla Marketing Plan
 Marketing
 The process of creating and delivering desired
goods and services to customers.
 Involves all of the activities associated with
winning and retaining loyal customers.
 A solid business plan needs to contain both a
financial plan and a marketing plan.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8-2
 Building a
Guerrilla Marketing Plan
Guerrilla marketing strategies:
► Are unconventional, low-cost, and
creative marketing techniques that allow
a small company to realize a greater
return from its marketing investment than
do larger rivals.
► Do not require large amounts of money
to be effective – just creativity.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8-3
 A Guerrilla Marketing Plan
1. Pinpoints the specific target markets the
company will serve.
2. Determines customer needs and wants
through market research.
3. Analyzes a firm’s competitive advantages
and creates a marketing strategy to build a
competitive edge.
4. Helps to create a marketing mix that meets
customer needs and wants.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8-4
 Pinpointing the
Target Market
 One objective of market research: Pinpoint
the company's target market, the specific
group of customers at whom the company
aims its products or services.
 Marketing strategy must be built on a clear
definition of a company’s target customers.
 Example: Hot Mama

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8-5
 Pinpointing the
Target Market
 Target customer must permeate the entire
business – merchandise sold, background
music, layout, décor, and other features.
 Without a clear image of its target market,
a small company tries to reach almost
everyone and ends up appealing to few.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8-6
 Market Research
 Determining customer needs.
 Demographics
 Market research is the vehicle for gathering the
information that serves as the foundation for the
marketing plan.
 Never assume that a market exists for your company’s
product or service; prove it!
 Market research does not have to be time
consuming, complex, or expensive to be useful.
 Web-based market research – online surveys
 Trend-tracking

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8-7
 Tracking Trends
 Read many diverse current publications
 Watch the top 10 TV shows
 See the top 10 movies
 Talk to at least 150 customers a year
 Talk with the 10 smartest people you know
 Listen to your children and their friends

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8-8
 Market Research

How to Conduct Market Research:

1. Define the objective.
2. Collect the data.
 Individualized (one-to-one) marketing
 Primary research
 Secondary research

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8-9
 Market Research (continued)

How to Conduct Market Research:

1. Define the problem.
2. Collect the data.
 Individualized (one-to-one) marketing
 Data mining
3. Analyze and interpret the data.
4. Draw conclusions and act.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 10
 Relationship Marketing
(Customer Relationship Management)
In addition to the text

Involves developing and maintaining long-

term relationships with customers so that
they will keep coming back to make repeat
purchases.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 11
 Relationship Marketing
(Customer Relationship Management)
In addition to the text
Steps:
 Collect meaningful customer information and
compile it in a database.
 Mine the database to identify “best” customers.
 Use the information to develop lasting
relationships with “best” customers.
 Attract more customers who fit the “best”
customer profile.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 12
The Relationship Marketing Process
If you have done everything
else correctly, this step is
relatively easy. Superb
Analyze
customer service is the
best way to retain Sell,
your most valuable
customers. Service, Conduct detailed customer intelligence to
& Satisfy pinpoint most valuable customers and to
learn all you can about them, including
their lifetime value (LTV) to the company.

Build
Connect
Relationships
&
Collect
Based on what you have
learned, contact customers
Make contact with most valuable customers
with an offer designed for
them. Make customers feel
Learn and begin building a customer database
special and valued. using data mining and data warehousing
techniques.

Learn from your customers by encouraging

feedback from them; develop a thorough
customer profile and constantly refine it. In addition to the text
Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 13
 Steps in CRM
In addition to the text

 Collect meaningful information on existing

customers and compile it in a database.
 Mine the database to identify the company’s
best and most profitable customers and their
buying habits.
 Use the information to establish lasting
relationships with these customers.
 Attract more customers who fit the profile of the
company’s best customers.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 14
 Four Levels of Customer Sensitivity
In addition to the text

Level 4: Customer Partnership

Level 3: Customer Alignment

Level 2: Customer Sensitivity

Level 1: Customer Awareness

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 15
 Guerrilla Marketing Principles
 Find a niche and fill it.
 Use the power of publicity
 Don’t just sell; entertain!
 “Entertailing”
 Strive to be unique.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 16
 Guerrilla Marketing Principles (continued)

 Connect with customers on an emotional

level.
 Build trust
 Define a unique selling proposition (USP)

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 17
 Unique Selling Proposition
 A key customer benefit of a product or
service that sets it apart from its
competition.
 Answers key customer question: “What’s in
it for me?”
 Consider intangible or psychological
benefits as well as tangible ones.
 Communicate your USP to your
SP
customers often. U
Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 18
 Branding and a USP

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 19
 Guerrilla Marketing Principles
(continued)

 Create an identity for your business

through branding.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 20
 Building a Brand In addition to the text
High
“Antes” “Drivers”
Features that are important Features that are both
to customers but all important to customers and are
competitors provide them highly differentiated from those
of competitors
Every company in the
market must “ante up” on These are the attributes on
Relevance

these features. which a company must focus to

build its brand.1

“Neutrals” “Fool’s Gold”

Features that are irrelevant to Features that are unique to
customers your company but do not drive
customers’ loyalty to your
These features are useless product and services
when it comes to branding.
Don’t make the mistake of
trying to build a brand on
Low these features!

Low Differentiation High

Ch. 8: Adapted
Source: Buildingfrom
a Powerful Marketing
“What Really Matters in Plan Copyright
Building a Brand,” © 2014Quarterly,
The McKinsey Pearson Education,
May Inc. Publishing as Prentice Hall
2004, www.mckinseyquarterly.com/newsletters/chartfocus/2004_05.htm 8 - 21
 Guerrilla Marketing Principles (continued)

 Create an identity for your business

through branding.
 Embrace social marketing.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 22
 Social Media Used as
Marketing Tools

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 23
 Embrace Social Marketing
 Social networks sites, such as Facebook,
LinkedIn, and Twitter, allow entrepreneurs
to connect with potential and existing
customers at little or no cost.
 44% of entrepreneurs use social media to
connect with existing and potential
customers.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 24
 Benefits of Social Media
Marketing

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 25
 Guerrilla Marketing Principles (continued)

 Create an identity for your business

through branding.
 Embrace social networking.
 Start a blog.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 26
 Blogging
 Nearly 134 million people in the U.S. read
blogs and 39% of companies use blogs as
part of their marketing strategies.
 Economical and effective online
communication.
 Blog Guidelines:
► Be honest, balanced, and interesting.
► Post blog entries consistently so that
readers have a reason to return.
► Ask customers for feedback.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 27
 Blogging
(continued)

► Strive to cultivate the image of an expert

or a trusted friend on a topic that is
important.
► Use services such as Google Alerts that
scan the Web for a company’s name and
send e-mail alerts when they find posts.
► Promote the blog via e-mail and
promotional Web Sites.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 28
 Guerrilla Marketing Principles (continued)

 Create an identity for your business

through branding.
 Embrace social networking.
 Start a blog.
 Create online videos.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 29
 Online Videos
 YouTube reports that visitors view 3 billion
videos per day.
 Online video guidelines:
► Think “edutainment.”
► Be funny.
► Post videos on multiple social media sites.
► Involve customers.
► Keep it short.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 30
 Guerrilla Marketing Principles (continued)

 Create an identity for your business

through branding.
 Embrace social networking.
 Start a blog.
 Create online videos.
 Host a special event.
 Focus on customer satisfaction.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 31
 Focus on Customer
Satisfaction
Surveys show 79% of unhappy customers tell others
about their experiences.
 48% of shoppers say they won’t patronize stores
where they know others have had negative
experiences.
 For every complaint a company receives, 17 other
complaints go unspoken.
 Disgruntled customers often post their experiences
online.
 80% of shoppers have changed their

minds about a purchase after reading

negative information
©
online.
Ch. 8: Building a Powerful Marketing Plan Copyright 8 - 32
2014 Pearson Education, Inc. Publishing as Prentice Hall
 Focus on Customer
Satisfaction
To achieve stellar customer service and
customer satisfaction:
► Examine your company’s service cycle
► Set standards and measure performance
► See customer complaints as a mechanism
for improving customer service
► Listen to customers
► Define superior service

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 33
 Focus on Customer
Satisfaction
► When you create a negative customer
experience, apologize and fix it – fast
► Empower employees to offer superior
service
► Train employees to deliver superior
service
► Hire the right employees

► Get top managers’ support

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 34
 Focus on Customer
Satisfaction
► Treat employees with respect and show
them how valuable they are
► Use technology to provide improved
experience
► View customer service as an investment,
not an expense
► Reward superior service

► Give customers an unexpected

surprise
Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 35
 Principles of Customer Experience Management (CEM)
In addition to the text
Every customer interaction should be:
•• Intimate
Intimate
•• Personal
Personal
•• Consistent,
Consistent,courteous,
courteous,and
andprofessional
professional
•• Responsive
Responsive
Satisfied,
Satisfied,
•• Helpful
Helpfulinformation
informationand
andadvice
advice
loyal,
loyal,
•• Involvement repeat
repeat
Involvementofofcaring,
caring,well-trained
well-trainedpeople
people
•• Long-term (and
(andprofitable)
profitable)
Long-termrelationship
relationshipview
view
•• Emphasis
customers
customers
Emphasison onsustaining
sustainingananongoing
ongoing
relationship
relationship
•• Nurturing
Nurturingthe
thecompany/customer
company/customerrelationship
relationship
Source: Adapted from “Wake-Up Call: To Fix CRM, Fix the
Customer Experience Now!, BearingPoint White Paper (
www.bearingpoint.com, Fall 2005, p. 5.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 36
 Guerrilla Marketing Principles (continued)

 Create an identity for your business

through branding.
 Embrace social networking.
 Start a blog.
 Create online videos.
 Host a special event.
 Focus on customer satisfaction.
 Retain existing customers.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 37
 Retain Existing Customers
 A company must land 12 to 20 new customers
to offset the impact of one lost loyal customer!
 Research shows that repeat customers spend
67% more than new customers.
 Attracting new customers costs the
typical business seven to nine times
as much as keeping existing customers.
 Practice customer experience management.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 38
 Retain Existing Customers
(continued)

Companies that are successful at

retaining their customers constantly ask
themselves (and their customers) four
questions:
1. What are we doing right?
2. How can we do that even better?
3. What have we done wrong?
4. What can we do in the future?

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 39
 Guerrilla Marketing Principles (continued)

 Create an identity for your business

through branding.
 Embrace social networking.
 Start a blog.
 Create online videos.
 Host a special event.
 Focus on customer satisfaction.
 Retain existing customers.
 Be devoted to quality.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 40
 Devotion to Quality
 World-class companies treat quality as a
strategic objective, an integral part of company
culture.
 The philosophy of Total Quality Management
(TQM):
► Quality in the product or service itself.
► Quality in every aspect of the business and its
relationship with the customer.
► Continuous improvement in quality.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 41
 How Do Americans Define
Quality in a Product?
 Reliability (average time between
breakdowns)
 Durability (how long an item lasts)
 Ease of use
 Known or trusted brand name
 Low price

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 42
 How Do Americans Define
Quality in a Service?
 Tangibles - equipment, facilities, people
 Reliability - doing what you say you will do
 Responsiveness - promptness
in helping customers
 Assurance and empathy -
conveying a caring attitude

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 43
 Guerrilla Marketing Principles (continued)

 Create an identity for your business through

branding.
 Embrace social networking.
 Start a blog.
 Create online videos.
 Host a special event.
 Focus on customer satisfaction.
 Retain existing customers
 Be devoted to quality.
 Pay attention to convenience.
Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 44
 Attention to Convenience
Successful companies go out of their way to make sure
it’s easy for customers to do business with them.

Questions to ask:
► Is your business conveniently located near customers?

► Are your business hours suitable to your customers?

► Would customers appreciate pickup and delivery

services?
► Do you make it easy for customers to buy on credit or
with credit cards?
► Do your employees treat customers with courtesy?

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 45
 Attention to Convenience
(continued)
► Are your employees trained to handle business
transactions quickly, efficiently, and politely?
► Does your company offer “extras” that would
make customers’ lives easier?
► Can you bundle existing products to make it
easier for customers to use them?
► Can you adapt existing products to make them
more convenient for customers?
► Does your company handle telephone calls
quickly and efficiently?

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 46
 Guerrilla Marketing Principles (continued)

 Concentrate on innovation.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 47
 Concentration on Innovation
 Innovation
 The key to future success.
 One of the greatest strengths of
entrepreneurs. It shows up in the new
products, techniques, and unusual
approaches they introduce.
 Entrepreneurs often create new products
and services by focusing their efforts on
one area and by using their size and
flexibility to their advantage.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 48
 Guerrilla Marketing Principles
(continued)

 Concentrate on innovation.
 Emphasize speed.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 49
 Emphasis on Speed
 Use principles of time compression
management (TCM):
► Speed new products to market
► Shorten customer response time in
manufacturing and delivery
► Reduce the administrative time required to fill
an order.
 Study: Most businesses waste
85 to 99% of the time required
to produce products or services!

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 50
 Emphasis on Speed
(continued)

 Re-engineer the process rather than try to

do the same thing - only faster.
 Create cross-functional teams of workers
and empower them to attack and solve
problems.
 Set aggressive goals for
production and stick to
the schedule.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 51
 Emphasis on Speed
(continued)

 Rethink the supply chain.

 Instill speed in the company culture.
 Use technology to find shortcuts wherever
possible.
 Put the Internet to work for you.

Ch. 8: Building a Powerful Marketing Plan Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8 - 52