Marketing for Success

Plan, Prepare, ProsperMarketing for Success

Supporting your success

Marketing for Success

8.45 am Coffee/ Arrivals

9.00 am Introductions

Targeting the best customers for your business

10.30 am Morning Tea

10.45am Targeting continued

Branding for success

12.30 pm Lunch

13.00 pm Branding continued

Touchpoint marketing

14.30 pm Afternoon tea

14.45 pm Touchpoint continued (inc social media)

16.45 pm Close

Agenda

2

Outcomes for Today

1. Get clear on what marketing is and how to

improve yours.

2. Identifying the best target customers for you.

3. Understand ‘branding’, and how to build a

stronger brand.

4. How to use ‘touchpoints’ to build your brand

and increase sales and profits.

1

Take time to work on our business

Production

Management

Business

Management

Strategic Planning Roadmap

Current StateQuantitative/

Qualitative

Barriers

The Gap345 Km

Critical Success

Factors

Our Preferred

Future

1. Perception is reality.

2. Customers don’t buy products; they buy the

benefits and consequences that the product

provides them.

3. Market research is insurance against the

fantasies of business owners and managers

as to what is going on in the customer’s mind.

Marketing – the hard truth!

6

Customers make you busy.

The right customers make you successful.

Your thoughts?

The hard truth!

6

The Bow-Tie model of marketing

Change

their minds

so they

choose you

What’s

going on

in their

minds?

Selecting

the best

customers

for you

Practical Marketing Marketing & Sales

Efforts

Strategic Target

MarketingWhere, when and

how to compete

Change

their minds

so they

choose you

What’s

going on

in their

minds?

Selecting

the best

customers

for you

Practical Marketing Marketing & Sales

Efforts

Strategic Target

MarketingWhere, when and

how to compete

STRATEGIC MARKETING – SELECTING THE BEST TARGET CUSTOMERS FOR YOUR BUSINESS

• Most small businesses have limited dollars,

resources and time for marketing.

• You select the products to sell. You also

choose the customers to do business with

‘Whether you choose or choose not to choose …

you are still making a choice!’

• How do you choose which customers to do

business with currently?

Strategic Marketing is about focusing

8

Strategic Marketing is about focusing

8

What is your ideal Target Market?

Ensure you select the best

customers for your business!

Matching business competencies with customers

Best at one of the above competencies

Above average at one of the

other above competencies

Just average at the other

three competencies

1

2

3

Most businesses

successful in the

long-term are:

Best Quality Best Experience Best Service Most Convenient Lowest Price

The Myth of Excellence…

Target Customer

Alignment

Which business competency do

you need to focus on to be

successful with them?

Match (H/M/L) with your

current business

competency

Coles and

Woolworths

Gourmet fresh food

markets

Restaurants/cafes

Own retail shop

IGA and / or local

supermarkets

Catering industry

Farmers markets

Interstate and export

markets

Question : Do you need to change your target customers?

OR your business competencies?10

Matching business competencies with customers

Marketing Priorities

1. Which customers to

prioritise?

2. Which products to

prioritise?

TOTAL SALES $ 450,000 By Customer Sales by customer

IGA $ 115,800

Herdsman Fresh $ 58,000

Boatshed $ 31,000

Weekend markets around Perth $ 26,000

North-West Roadhouses $ 25,500

By Product Sales by product

Product A $ 210,000

Product B $ 18,000

Product C $ 16,000

Product D $ 20,000

11

Marketing Priorities

1. Ensure existing

successSupport sales of

products and to

customers / groups of

customers accounting

significant % of Net

Profit.

START HERE!

2. Then target

growth

12

To build a better Business…TOTAL NET PROFIT $ 30,000

By Customer:Profit by customer $

Profit by customer %

IGA $ 10,800 36%

Herdsman Fresh $ 6,800 23%

Boatshed $ 3,800 13%

Weekend markets around Perth

$ 2,600 9%

North-WestRoadhouses

$ 1,900 6%

By Product:Profit by product $

Profit product %

Product A $ 19,800 66%

Product B $ 2,400 8%

Product C $ 1,300 4%

Product D $ 1,100 4%

… assume your net profit margin is 10% of your turnover

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-5

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1

-4

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-20

-10

0

10

20

30

40

50

Your business’s

Net Profit margin is

actually an average of

the Net Profit margin

made on every

single sale

during this period

What customers and products are making you successful?

And which make you unsuccessful?

Profit driven approach to target marketing

Profit driven approach to target marketing

Identify your BEST customers,

products or services – those

generating well above your

average profit margin

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16 18

2824

18

28

3

-5-1

612

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1

-4

-20

-10

0

10

20

30

40

50

-20

-10

0

10

20

30

40

50

Rest are ‘average’

customers

ID your WORST ones too

… those with below

average profit margins

Identify the Customers & Products which will make you more Successful

… assume your net profit margin is 10% of your turnover

To build a better Business…

Marketing for Success

First focus your marketing

on keeping your BEST

customers. Then on

attracting more like them

To build a better

Business

Change your average

products, or how you do

business with your average

customers, to increase your

profit margin on each sale

Stop, or significantly

change, your WORST

products, or the way you do

business with your WORST

customers

…assume net profit margin is 10% of your turnover

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1618

28

24

18

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8

3

-5

-1

6

12

47

11

1

-4

-20

-10

0

10

20

30

40

50

% M

arg

in

Each Customer or Product

Three very different Marketing Challenges

Attract New Customers

GrowCurrent Customers

ReactivateEx- Customers

Your business

Three Marketing Plans Needed

Marketing to attract new

customers

Marketing to grow

lifetime value of each

existing Customer

Marketing to reactivate

ex-customers

How many target customers

are aware you exist?

Increase how long they

remain your customer.

Are willing to do business

with you again.

How many know enough to

know you are relevant to

them?

Buy more at a time when

they buy. Buy more

often.

Prefer your product to their

existing supplier’s.

How many genuinely like and

want what you are offering?

Buy other products and

services you offer.

Motivated to contact you

about what is possible.

How many prefer you over

your competitors?

Pay a higher price for

what they buy over time.

Actually buy from you again.

How many can easily buy your

products from you?

Trade up to higher priced

options you offer.

How many actually take action

and have contact with you?

Buy more from you &

less from your

competitors.

How many actually then

proceed to make a purchase?

Recommend new

customers to you.

18

Strategic Sweet Spot for a Business

Competitorsofferings

Customersneeds

Company’scapabilities

Sweet

Spot

Strategy canvas – Southwest Airlines

The strategic profile of southwest airlines differs dramatically from

those of its competitors in the short – haul airline industry

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Price Meals Lounges SeatingChoices

HubConnectivity

FriendlyService

Speed FrequentDeparture

De

live

ry o

f o

ffe

rin

gs

fro

m b

us

ine

ss

es

Customer purchase criteria (factors)

Car Southwest Other Airlines

Poor

Excellent

Note: How Southwest's profile has more in common with the car’s than with the profile of other airlines.

Strategy canvas – Wal-Mart

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2

3

4

5

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8

9

10L

ow

price

s

Se

lectio

n -

ca

tego

rie

s

Re

liab

lep

rice

s

In-s

tock

Qu

alit

y

Co

nve

nie

nce

Sele

ction -

within

ca

tego

rie

s

Sa

les h

elp

Am

bie

nce

De

live

ry o

f o

ffe

rin

gs

fro

m b

us

ine

ss

es

Customer purchase criteria (factors)

Mom & pop stores Wal -Mart Sears

Poor

Excellent

The strategic profile of Wal-Mart differs dramatically from those of its

competitors in the retail industry

Create your strategy canvas

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2

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5

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? _______ ? _______ ? _______ ? _______ ? _______ ? _______ ? _______ ? _______

De

live

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f o

ffe

rin

gs

fro

m b

us

ine

ss

es

Customer purchase criteria (factors)

Poor

Excellent

1. What does this mean for you & your business?

2. Re-allocating and prioritising your marketing $

3. Which customers and products to focus on?

4. Changing how to do business so each customer is

profitable or an ex-customer.

5. How to calculate profits generated by each

customer, product, and types of customers?

Goals / Key Initiatives / Actions for the above?

So for YOUR Strategic Plan?

16

Remember to write SMARTT Goals

S

M

A

R

T

T

Specific

Measurable

Achievable

Relevant

Targeted

Timeframe

Change

their minds

so they

choose you

What’s

going on

in their

minds?

Selecting

the best

customers

for you

Practical Marketing Marketing & Sales

Efforts

Strategic Target

MarketingWhere, when and

how to compete

BRAND MARKETING – BRANDING TO BUILD SALES, PROFITS AND BUSINESS VALUE

What just happened when you saw each photo?

How Brands Work

It’s your brand in a customer’s mind that determines:

1. Whether they buy from you (or a competitor).

2. How much they are willing to pay for your product.

3. How loyal they are, and how good they are to work with.

4. Whether they recommend you to others.

Your Brand determines your Sales & Profits

23

What is a brand?

Feelings

they have

about you

Judgements

they have

come to

about you

Their

conclusions

about whether

you are relevant

to them

Category

they have

placed you

in -

importanceBRAND

55

Your brand is how you are different

Generic GenericExtras associated

with you that make

you a different &

better / worse choice

than an average

category member

Standard

features and

benefits

associated with

your product

category E.g. a bottle of wine

STEP 1 :

What is it like?

STEP 2:

How is it different?

What is your Red currently? How are you clearly

different, better & more attractive in your target

customers’ minds?

But what if you have no Red or are mostly Green?

How do your customers choose between you &

your competitors?

What are your PODs currently?

Your Points of Difference (‘PODs’)

Ways that the customer sees you as different & better to competitors that matter to them

Collectively, ‘PODs’ explain every sale you make

Competitor’s bucketsYour bucket of sales

Customers’ $$$

Brand Equity Model

BRAND SALIENCE

BRAND

RESONANCE

CONSUMER

JUDGMENTS

CONSUMER

FEELINGS

BRAND

PERFORMANCEBRAND

IMAGERY

Facts about your

performance and

justification for

these facts

Images, memories,

experiences and

associations between

you and other things

Customers start by stereotyping you, in terms of grouping you

with other things you are like (brand salience).

What sort of

relationship they will

have with you?

Customer determines

the appropriate role for

you in their life going

forward.

56

What desirable things

are going to happen

for you in your life as a

result of you buying my

product / from me?

Specific to the

product?

For the customer’s

organisation?

For the buyer

personally?

What could happen to

you if you don’t choose

me? (Pain)

What are you going to

miss out on that you

want if you don’t buy my

product? (Craving)

What undesirable things

could happen to you if

you buy from someone

else? (Fear)

What facts do you need

to know to believe my

fairy tale & horror movie?

- 3rd party (certification,

awards, etc.)

- 2nd party evidence

(testimonials, client

lists, suppliers)

- 1st party proof (very

important info the

customer MUST

know)

FAIRY TALE HORROR MOVIE DOCUMENTARY

Your Brand is like a Movie Festival

26

A brand is represented by / associated with a physical name,

picture, logo, jingle +/or symbol that:

1. Clearly identifies the seller to the buyer.

2. Clearly differentiates you from others.

3. Triggers your “brand” within the

customer’s mind when seen / heard etc.

4. Becomes something attractive about you

in its own right. For example, jingle, logo, key picture

used etc.

Importance of Brand Logo and Name

28

Importance of brand logo and name

1

Symbolare usually used as

a secondary or

alternative logo, but

because they simple

and compact, they

downsize well and

are great for quick

recognition.

Lettermarksare similar to symbols,

but they’re exclusively

typographic. they

represent a company

through a simple mark

that uses the initials of

a company’s name.

Emblemlogo is great for

businesses whose

name is too long,

hard to pronounce, or

not very distinct, and

it also assigns equal

importance to every

word in a company’s

name.

Wordmarksare often styled or

altered in away

differentiates it from a

plan font, or

sometimes a new font

might be created

specifically for the

logo.

Combinationmark logo is the best of

both worlds; it spells out

a company’s name

while associating it with

a visual icon.

How to build and strengthen a brand

1. Identify your points of difference.

2. Identify the key consequences, benefits and outcomes your customers

want.

3. Identify your ideal BRAND RESONANCE – the role you play in your

customers’ lives.

4. Identify your customers JUDGMENTS.

5. Identify your customers FEELINGS.

6. Identify the key FACTS your customers need to create the

JUDGMENTS and FEELINGS.

7. What EXPERIENCES do your customers need to create the

JUDGMENTS and FEELINGS?

8. What CATEGORY do you want your target customer to place you in?

Often relates to what business competencies you have chosen.

1

Think of your ideal customer:

Look through your FEELINGS and JUDGEMENTS.

Draw a line from each of these to each FACT and IMAGES /

ASSOCIATION that generates it. Its OK to link a Fact or

Image / Association with more than one Feeling or

Judgement.

Are there any Judgements or Feelings that are not

adequately explained? Add to your brand if so.

Does Your Brand Make Sense?

38

1. Outline your best / target customers to the group around

you. Then work through your revised brand with them.

2. Add useful feedback to your brand.

3. Review theirs. Based on your experiences, suggest

additional brand attributes (FACTS, FEELINGS,

JUDGEMENTS, IMAGES and ASSOCIATIONS) or an

alternative CATEGORY OR ROLE they may want to

consider for their brand.

Group Branding Review

39

1. What does this mean for you? What might a Goal /

Key Initiative / Action relating to building a strong

brand for your business look like?

2. Your ability to build an attractive brand in the minds of

your customers is critical to success:

• Higher price paid, more sales, referrals, loyalty

3. How to confirm your Target Brand?

• Staff input, customer input, supplier input?

So for Your Strategic Plan?

40

Remember to write SMARTT Goals

S

M

A

R

T

T

Specific

Measurable

Achievable

Relevant

Targeted

Timeframe

Change

their minds

so they

choose you

What’s

going on

in their

minds?

Selecting

the best

customers

for you

Practical Marketing Marketing & Sales

Efforts

Strategic Target

MarketingWhere, when and

how to compete

PRACTICAL MARKETING – HOW WILL YOU CHANGE CUSTOMERS MINDS SO THEY CHOOSE YOU?

Your CURRENT ‘brand’

For You to be Successful…

What’s happening

currently in thereWhat you need to be

happening in there

Change

their minds

so they

choose you

What’s

going on in

their minds?

Selecting

the best

customers

for you*

Key Question:

Regardless of whether you are targeting a new, existing or ex-customer, when is the only opportunity you have to change your target customer’s mind?

Answer:

Every time they come into contact with you, your product, or something to do with you.

Marketing that works is about using these ‘touchpoints’ to both build your brand, and generate sales NOW.

Touchpoint Marketing

42

Three type of Touchpoints:

1. Before a customer starts buying from you.

2. During process of buying and using you.

3. After a customer has bought from you.

Spend your money and improve the ones that have the

biggest impact. Then the next one…

Touchpoint Audit

48

Touchpoints : Pre, During & Post-purchase

Different Touchpoints for Customers & End-users

Loyalty

Programs

Newsletter

On-line

community

Product

Service

Perform

Advertising

Deals &

Promotion

Sales Pitch

Marketing

Collaterals

Purchase

Experience

Pre- Purchase

Experience

Post- Purchase

Experience

Just examples – so many more!

Ease of

Purchase

Logistics

Staff

Customer

Service

Ambiance

Décor

Facilities

Product

Service Offer

Brainstorming Marketing Tools

Marketing

Tools

61

FOR EACH BUSINESS ON YOUR TABLE:

1. List all your current Pre-Purchase Touchpoints.

2. Brainstorm what other great touchpoints you could use

to change your target customers’ minds, and get more

of the key Facts and Images into their minds.

Identifying Your Key Touchpoints

46

For each of your Pre-Purchase touchpoints:

1. Score it from 1–5 on its importance / impact on

customers.

2. Score each from -3 to +3 on well you are doing it

currently.

3. Asterisk those touchpoints to focus on NOW:

• Either High Importance AND Low Performance or

• High Importance, not using it currently.

4. Include how you are going to optimise these

Touchpoints in your Strategic Plan.

Touchpoint Audit

48

Pre-purchase touchpointsImportance

(1-5)

Performance

(-3 to +3)

Currently using:

Other good touchpoints we could use:

Pre-purchase Touchpoints

Suggestion:

Repeat the exercise for During Purchase touch-points, and After Purchase

touch-points, with your marketing team when you get back to your business.

47

Pre-purchase touchpointsImportance

(1-5)

Performance

(-3 to +3)

Shop street signage 1.5 -2

Vehicle signage 2 1

Product Packaging 5 1

Website 4 1.5

Brochure 4 3

Technical catalog 2 3

Trade show stall 2 1

Sales rep appearance and manner at events 5 3.5

Samples during in-store promotions 5 -1

Social media presence 2 -1

Industry magazine advertising 2 3

Word of mouth referrals 5 1

Yellow Pages 1.5 -2

Touchpoint Audit

49

Go visit your brand:

1. Which ONE judgement is NOT happening as strongly

as you would like at the moment?

2. Which ONE feeling is NOT happening as strongly as

you would like at the moment?

3. Write each of them on a stikit note and bring it back to

your table.

Final Exercise Today!

50

What touchpoints can you use to make each of

these happen?

On your tables, brainstorm the touchpoints each of you

could use to “brand” these Feelings and Judgements in

the minds of your target customers.

Are Your Touchpoints Living Your Brand?

51

1. Add Goals / Key Initiaitves / Actions about doing a

Touchpoint Audit, and using this to revise your

marketing focus and spend.

2. Are there any key brand messages that you are not

communicating well at the moment?

3. How can you use your Touchpoints to better get

these key Feelings and Judgements happening in the

minds of your target customers?

So for Your Strategic Plan?

52

Remember to write SMARTT Goals

S

M

A

R

T

T

Specific

Measurable

Achievable

Relevant

Targeted

Timeframe

It’s very important to define the measurement tools that will be used

for each campaign. For example:

• Google analytics (web traffic)

• Email open rates

• Sales

• Social media engagement

• Email subscribers

• Media mentions (Google alerts)

• Coupon codes

• Return on investment

Your Return on Investment

52

(sales growth – marketing cost)

marketing cost

Your Return on Investment

52

=

Simple ROI calculation:

Campaign attributable ROI calculation:

(sales growth – marketing cost)

(marketing cost – average organic sales)

return on

investment

=return on

investment

Summary of the day:

1. What marketing is and how to improve yours.

2. How to identify the best target customers for you.

3. Getting ‘branding’, and how to build a strong brand.

4. Using ‘touchpoints’ to build your brand and increase sales.

53

Final Thought …

It is not the strongest of the species that

survive, nor the most intelligent,

but the one most responsive to change.

– Charles Darwin 54