Chapter 15

prudencecoatInternet and Web Development

Nov 18, 2013 (3 years and 4 months ago)

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Chapter 15

Developing An
Entrepreneurial


Marketing Plan

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Learning Objectives


Discuss the role of the product adoption/diffusion
curve for marketing strategy


Explain how to create an effective marketing plan


Discuss the forms of advertising and promotion that
entrepreneur can tap


Describe the role of publicity


Explain how entrepreneurs can employ new media
to their advantage


Discuss the role of personal selling in a marketing
strategy

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The Product Adoption/Diffusion Curve


Groups customers into categories based on
how quickly they adopt a new product


Innovators



Early
adopters



Early majority


Late majority


Laggards


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Figure 15.2: New Product
Adoption/Diffusion Curve

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Figure 15.3: The Technology
Adoption
-
Diffusion Curve

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The Marketing Plan


Details the strategies and tactics that will create
customer awareness


Builds a brand and a develops a loyal customer
base


Provides a consistent message to the customer
and creates an opportunity for the entrepreneur
to make a sale

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The Marketing Plan (continued)


Steps prior to writing the marketing plan


Define the approach to the market


Message


Differentiation tactics


Channel strategies


Performance goals


Define the value proposition


Analyze and rank the marketing options


Establish sales and marketing goals
(SMART)


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The Marketing Plan (continued)


The marketing plan in one paragraph


Contents


Purpose of the marketing plan


Benefits of the product/service


The target market


The market niche


The marketing tactics


The company’s convictions and identity


The percentage of sales represented by the marketing
budget


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5 P’s of Marketing


People


Product


Price


Place


Promotion


Advertising and promotional goals


The media plan


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Marketing Plan Outline


One
-
paragraph overview of the marketing plan


Key marketing issues that will affect company
success


Launch objectives and milestones


Brand strategy


Strategic alignment


Assessing effectiveness


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Advertising and Promotion


Advertising is employed to pull the product
through the distribution channel (Pull strategy)


Promotion tends to be more price
-
focused or
incentive
-
focused (Push strategy)




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Push vs. Pull Strategy

Factors to Consider


Use Advertising (Pull)


Use Promotion (Push)


Price sensitivity

Not effective

Effective

Brand loyalty

High loyalty

Low loyalty

Need for information

High need

Low need

Risk


switching costs, learning
curve

High risk for customer

Low risk for customer

Product life cycle stage

Growing or mature

New product or declining
product

Market status

High market share

Low market share

Purchasing pattern

Predictable

Unpredictable

Contribution to profit

Above average

Below average

Differentiation

Strong differentiation

Little differentiation

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Advertising Media


Print


Newspapers


Magazines


Direct marketing (direct mail, telemarketing)


Yellow Pages


Signs


Broadcast Media


Radio


Television



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Taking Advantage of Publicity


Publicity and word
-
of
-
mouth (referrals) are two
of the most effective entrepreneurial marketing
tools around because they don’t cost the
company any money


Require a compelling story


Network with the media


Issue a press release

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Constructing an Effective

Press Release


Contents:


Date


Name of contact person


Phone number


Release date


Descriptive headline


Release information


The who, what, where, when, and why


Photo/Illustration


Explanatory note regarding why the release was
sent



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Getting Customer Referrals


Ask satisfied current customers


Take a customer to lunch to get ideas


Do a global Internet search on rumors


Conduct in
-
depth third party
interviews


Administering an open
-
ended online
survey


Host an online discussion


Create a customer advisory board

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Giving It Away


When the customer is likely to return


The cost for each additional item is low and
margins are high


When customers need to try the
product/service in order to risk the money to
buy it


When samples of the product/service can be
offered at a large event

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Internet Marketing and New Media


Internet advertising will be a $26 billion dollar
market in 2009


Traditional media boundaries disappearing


Barriers to content creation have been
breached


New challenges and opportunities for
entrepreneurs


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Internet Marketing and New Media
(continued)


Social Media


Search Engine Marketing


Affiliate Programs


Privacy Issues



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Personal Selling


Become a value
-
added company by
tailoring products to meet customer’
needs


Improve personal selling skills


What do customers want from the
sale?


Give them what they want


Trade shows and exhibits


Expose products


Network on site and after the show


Rent a hospitality suite

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Customer Relationship
Management


CRM is a system for gathering/using customer
information which combines


Technology


Training


Business strategy


The CRM system contains


Names


Addresses


Attributes of people who are likely to
purchase

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Identifying and Rewarding

the Best Customers


For many companies 24 percent of its
customers account for 95 percent of its
revenues


Calculate lifetime customer value

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Complaint Marketing


A dissatisfied customer will probably tell at
least nine other people about the problem


Complaints should be viewed as opportunities
for continual improvement


Satisfaction surveys