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8/6/2019 Kanab Marketing Seminar
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SteveCarwell
Market ingGuerilla Style
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SteveCarwell
Presented By:
Steve
Carwell
801-979-8400
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What is Marketing?
American MarketingAssociation (AMA):
"Marketing is the process ofplanning and executing the
conception, pricing,promotion and distributionof ideas, goods and servicesto create exchanges thatsatisfy individual and
organizational goals."
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Agenda 6 Marketing Traps
3 Levels of a Product
Product Life Cycles
1 Page MarketingPlan
Power of 1%
Guerilla Tactics
Yellow Page Ads
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Six Marketing Traps
That could cost you a
FORTUNE
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Six Marketing Traps
1.The Positioning StatementTrap
2.The Trap of Lying
3.Business Alignment Trap4.Random & Scattered Efforts
Trap
5.No Marketing Plan Trap
6.Measurement Trap
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Positioning Statements
1.Who are you
2.What business are you in
3.For whom (who do you serve)
4.Whats needed by the market
5.Against whom do you compete
6.Whats different about yourbusiness
7.What unique benefit(s) do you
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Invisible???
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Lying
To yourself
To your boss & co
workers To your prospects
& customers
http://images.google.com/imgres?imgurl=http://www.peppitext.de/WiCoDisney/Pinocchio-0050_1.gif&imgrefurl=http://www.peppitext.de/WiCoDisney/&h=400&w=410&sz=6&tbnid=r8Mfgz1kOz0J:&tbnh=117&tbnw=120&start=5&prev=/images?q=pinocchio&hl=en&lr=http://images.google.com/imgres?imgurl=http://www.peppitext.de/WiCoDisney/Pinocchio-0050_1.gif&imgrefurl=http://www.peppitext.de/WiCoDisney/&h=400&w=410&sz=6&tbnid=r8Mfgz1kOz0J:&tbnh=117&tbnw=120&start=5&prev=/images?q=pinocchio&hl=en&lr=http://images.google.com/imgres?imgurl=http://www.peppitext.de/WiCoDisney/Pinocchio-0050_1.gif&imgrefurl=http://www.peppitext.de/WiCoDisney/&h=400&w=410&sz=6&tbnid=r8Mfgz1kOz0J:&tbnh=117&tbnw=120&start=5&prev=/images?q=pinocchio&hl=en&lr=8/6/2019 Kanab Marketing Seminar
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Random & ScatteredMarketing Efforts
When business slows down =panic
Keep a little more cash,
market less
Lots of different looks,colors, messages
Try all sorts of media + allthe stations
Marketing is nobodys job
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Business Alignment
Customer needs drive
Marketing Plans which must alignwith
Sales Plans which must align with
Business Plans which must alignwith
Corporate strategies that alignwith
Corporate cultures that align with
Shareholder strategies
Shifts?
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7-Step Marketing Build-Up
1.Understand your market &competition
2.Understand your customer
3.Pick a niche market
4.Develop your marketing message
5.Determine your marketing tools
6.Set sales and marketing goals
7.Develop your marketing budget
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Metrics Only 38% of US companies
measure Measurements Metrics
Benchmarks
Measuring MarketingResponsibilities
1.Acquiring customers
2.Keeping customers
3.Adding perceived value &equity
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Developing YourProduct
(And Services)
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3 Levels of a ProductFor many a product is simply the tangible, physical entity
that they may be buying or selling. You buy a new car andthat's the product - simple! Or maybe not. When you buy acar, is the product more complex than you first thought? Inorder to actively explore the nature of a product further, letsconsider it as three different products - the CORE product,
the ACTUAL product, and finally the AUGMENTED product.These are known as the 'Three Levels of a Product.' So whatis the difference between the three products, or moreprecisely 'levels?'
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The ACTUAL product is the tangible, physical product.
You can get some use out of it. Again with the carexample, it is the vehicle that you test drive, buy andthen hopefully collect if its a Z06 vette!
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The AUGMENTED product is the non-physical part ofthe product. It usually consists of lots of added value,for which you may or may not pay a premium. So whenyou buy a car, part of the augmented product would bethe warranty, the customer service support offered bythe car's manufacture, and any after-sales service.
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Product Life Cycles
The Product Life Cycle (PLC)is based upon the biological life cycle.
For example,a seed is planted (introduction);it begins to sprout (growth);it shoots out leaves and puts down roots as it
becomes an adult (maturity);after a long period as an adult the plant begins toshrink and die out (decline).
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Product Life Cycles
In theory it's the same for a product. After a period ofdevelopment it is introduced or launched into the market;it gains more and more customers as it grows; eventuallythe market stabilizes and the product becomes mature;then after a period of time the product is overtaken bydevelopment and the introduction of superior competitors,
it goes into decline and is eventually withdrawn. However,most products fail in the introduction phase. Others havevery cyclical maturity phases where declines see theproduct promoted to regain customers.
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ProductLife Cycles
IntroductionThe need for immediate profit is not a pressure. The productis promoted to create awareness. If the product has no orfew competitors, a skimming price strategy is employed.Limited numbers of product are available in few channels ofdistribution.
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GrowthCompetitors are attracted into the market with very
similar offerings. Products become more profitable andcompanies form alliances, joint ventures and take eachother over. Advertising spend is high and focuses uponbuilding brand. Market share tends to stabilize.
ProductLife Cycles
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ProductLife Cycles
MaturityThose products that survive the earlier stages tend tospend longest in this phase. Sales grow at a decreasingrate and then stabilize. Producers attempt to differentiate
products and brands are key to this. Price wars andintense competition occur. At this point the marketreaches saturation. Producers begin to leave the marketdue to poor margins. Promotion becomes morewidespread and use a greater variety of media.
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Product
Life CyclesDeclineAt this point there is a downturn in the market. For examplemore innovative products are introduced or consumertastes have changed. There is intense price-cutting andmany more products are withdrawn from the market.Profits can be improved by reducing marketing spend andcost cutting.
PLC Problems
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Be Careful
PLC ProblemsIn reality some productsdont follow such aprescriptive cycle. The
length of each stage variesenormously. The decisionsof marketers can changethe stage, for example frommaturity to decline by
price-cutting. Not allproducts go through eachstage. Some go fromintroduction to decline. It isnot easy to tell which stagethe product is in.Remember that PLC is likeall other tools. Use it toinform your gut feeling.
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Build a
7-SentenceMarketing Plan
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7 Sentence Marketing Plan
1. Tell the purpose of
your marketing, plainand simple.
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7 Sentence Marketing Plan
2. Tell the benefits that
your customers willderive from yourproducts or services.
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7 Sentence Marketing Plan
3. Explain your target
audience.
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7 Sentence Marketing Plan
4. This is the only long
sentence it shouldbe a list, listing themarketing weapons
you will be using.
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7 Sentence Marketing Plan
5. State your niche in
the marketplace your positioningcompared with all the
competitors.
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7 Sentence Marketing Plan
6. Describe your
companys identity,the real personalityof your organization.
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7 Sentence Marketing Plan
7. Tell your budget,
which should beexpressed as apercentage of your
projected grossrevenues.
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Sample 7 Sentence PlanAs an example, let's consider a
hypothetical adventure-travelcompany we'll call Peak
Experience. Peak Experience offersriver, hiking, and Jeep trips in theRockies and the Sierra Nevada.
Here's how the company's 2010marketing plan might look:
Peak Experience
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Peak ExperienceMarketing Plan:
Peak Experience wants tomotivate people to send for its
free video by calling a toll-free
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PeakPeak
ExperienceExperience
We'll do that bystressing ourvisually stirring
river andbackcountrytrips, ouraffable andknowledgeableguides, and ourdelicious food.
Marketing Plan:
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Marketing Plan:
Our travel company wants to reachadventurous males and females, bothsingles and couples, age 34 to 59, with
sufficient discretionary income for our
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Peak Experience MarketingPlan:
We will use a wide variety of marketing tools,
including the toll-free number, press kits,postcard mailings, a Web site, speeches, printedbrochures, video brochures, a referral program, anewsletter, a schedule of classified ads in travel
publications, and a onetime ad in a regionaledition of a national magazine (with reprints wecan use in our brochure); we'll also use articlespenned for travel publications, marketingarrangements with a network of travel agencies,
cable-TV spots in selected U.S. markets, posters- Our niche: we
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PeakExperience
MarketingPlan
Our niche: weprovide adventuretravel with
luxurious service.
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Peak Experience Marketing Plan:As a company, we radiate
excitement and
conscientiousness, blended with
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Because we want to grow our
company substantially, in 2010we will invest an aggressive10% of sales in marketing.
Peak
ExperienceMarketing
Plan:
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Target Marketing
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Focus on Benefits
How much can it save your customers?
How much can it earn for your
customers?
What intangible benefits mightcustomers realize, and is it possible to
quantify these benefits?
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For My Consulting Company:
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For My Consulting Company:
To Save:
Money
Time
Effort
Resources
To Increase:
Income
Investments
Future
Personal
To Reduce:
Expenses
Taxes
Liabilities
Trouble
To Improve:
Productivity
Abilities
Confidence
Appearance
Peace of
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Marketing is Not
A Department
A Title
An Activity
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All Advertising is
Marketing
But all Marketing is NOT
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All Public Relations is Marketing
But all Marketing is NOT
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Marketing is an Expectationof everyone in the Company
The Result is aPerceptionin the minds of our target audiences
That Perception TriggersAction
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Marketing
911
What are we doing now?
What should we be doing?How should we do it?
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Market Research?
Marketing Budgets?Measures of
Effectiveness?
M a rk e tin g9 1 1
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So, Lets Do
Some Basic
Thinking
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ey Drivers of Profitability Price
Fixed Costs
Variable Costs
Volume of Transactions
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ater?r Steam?
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:ompany X
Revenue $2,500,000Cost of sales 1,700,000
Gross profit 800,000
Fixed expenses 700,000
Net profit 100,000
Gross profit margin 32%
Net profit margin 4%
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t IS he !OMBINATION A 1%
improvement inall 4 key drivers
results in a40.42% increase
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ey Drivers of Profitability Price
Fixed Costs
Variable Costs
Volume of Transactions
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y prices up%y 10 howuch businessould I lose?
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ustomers couldafford toose withouteing any worseff?
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or this,usiness
he answers %4
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Guerrilla
Marketing
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Principles
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Advantages:
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Advantages
Flexible because of small scale nature can beadapted quickly, relatively easy to respondto change
Low Cost one of the founding principles ideal for institutions who do not havemassive marketing budgets
Targeted designed to reach the target
market reduces waste and ineffectiveness
Simple many of the methods are simple andeasy to use and implement ideal for smallorganizations
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Non-Traditional Methods
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The Nokia Series 60 is used todemonstrate how the telephone devicecan be used to take pictures, send themwirelessly to another phone or directlyto a computer and posted to theInternet. Such devices open up new
opportunities for low cost marketingopportunities and with the advent of 3Gtechnology could increase theseopportunities.
Title:COMDEX Computer Technology Trade Show.
Copyright: Getty Images, available from EducationIma e Galler .
Non-Traditional
Methods1999
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Your Kid Need Violin Lessons?
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Non-Traditional Methods
Offering free seminars and talks getsyou and your programs known
Offering free advice & consultations
Finding a way of generating mystery andintrigue to involve students
Peer marketing putting people ofsimilar interests together to generateinterest in the program, e.g. one claim
for downloading music is that it opensup the chance for new music to bediscovered and later purchased
Using Twitter or SMS text messaging
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Word of Mo th
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Word of Mouth
Roach Baiting getting the customersmessage/brand across by the use of anactor behaving as a normal customerin the hope of getting the messagepassed on.
Undercover Marketing also known asbuzz marketing similar to above. Useof paid actors to actively promote theprogram in a variety of situations or
leaving cheat-sheets in high profileplaces to get them seen/used/noticed.
Live commercials paying for livecommercials in an appropriate setting,
e.g. getting a group of young people to
'Illegal' Methods
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Bill stickers
Spray paint logos
Graffiti Ads
(Some of these may not be strictlyillegal but may border on being so
not embraced by all guerrilla
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Why Your Yellow Page Ads
DontWork
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Yellow Page Ads thatD t W k
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Dont Work
Method you clutter up your ad with predictablewords & bland photos
Be concise. Tell your complete story byeliminating everything you can possiblyeliminate.
Dump the ego photos and use eye-grabbingimagesthat reinforce the emotional factors thatdrive their decision-making process.
Make sure your ad will excite the readers senses
& strike an emotional chord.
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Thanks to: http://www.max-effect.com
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Yellow Page Ads thatDont Work
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Dont Work
Image your ads look sloppy, disjointed,confusing or crowded, or maybe the ads justpump up your ego, or they take a shot at
your competitionYou must instantly convey quality,
professionalism and value. Breathing roomor white space will help increase the eye-stopping power of your ad and it adds atouch of class to your image.
Your sole objective with this ad is togeneratea phone call.
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Hes Relaxed,Warm,FriendlyApproachableandLooks Credible
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Note: this ad doesnt talk about settlement money, instead it talks aboutmaking you feel a whole lot better.
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AttentionGrabbing
Target MarketFOCUS
Market?
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WhostheirTarg
etMarket?
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Before
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After
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Thank
You!and Good Luck withyour Marketing!