marketing-guide-for-startups_eng

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03... Introduction

04... The environment that surrounds American startups

05... Elements necessary for thriving startup

06... Winner personality

09... The idea

12... Research

15... The plan

18... Be different

21... Identify your client

23... Beat the competition

25... Online presence

29... Avoid these common mistakes

32... Get to know us

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Starting a business can be a dream-like experience; the goal is to turn this vision into a sustainable reality.

Creating a startup is also a methodic process that requires intelligence, creativity, hard work, consistency, and

dedication. If it wasn't the case, everyone who tries would be an accomplished entrepreneur. However, there is a

powerful reason to embark on this journey; succeeding in the business world is, ultimately, a gratifying experience

that only those who have lived it can fully understand.

An emerging business, also known as startup, requires intelligence, because research, analysis, and planning are

indispensable to build strong foundations. Similarly, creativity is necessary; it's the element necessary to think

outside the box and create something unique. It isn't until we have fully immersed in the development process that

we realize the amount of effort involved; in fact, entrepreneurs often work extra time without the corresponding

economic compensation. The latter also entails consistency, an important quality that keeps us persistent and

patient until the expected results are achieved. Finally, being disciplined and committed leads us to make

decisions and react to the benefit of the startup.

Before we start, it is necessary to clarify and reaffirm the meaning of marketing to discard inaccurate perceptions.

Marketing does convey "sales" and "promotion"; the term, however, involves much more. Marketing is a process

of researching, planning and executing the concept, pricing, promotion, and distribution of ideas, goods, services,

organizations and events, while addressing needs identified in a particular market. In doing so, relationships must

be created with the consumer and organizational objectives should be equally considered.

In this sense, as entrepreneurs, our ultimate job is to provide somebody with a solution to a problem or an

opportunity to satisfy a want or need. However, when launching a startup, everything seems to get complicated.

There is no real formula for success per se; however, we can rely on a series of elements that every startup

needs to succeed.

Through this book, we want to provide you, entrepreneur, with a guide so you get familiar with the foundations of

strategic marketing for startups; we hope it helps you prepare a more solid, strongly-founded and, above all,

promising project.

- MHigh

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The environment that surrounds American startups

El principal obstáculo de las PYMES es "La falta del conocimiento del mercado, la

falta de experiencia y la falta de información de la competencia" (Comisión Europea, 2013)

Small and midsized

business generate 65% of

the jobs in the U.S.

Startups have a 00%

surivival rate

Only 9% of the startups

invest on proper research

programs.

Only 35% of the active

companies monitor their

customers' opinions.

7 out of 10 startups

cannot survive past the 2-

year period.

00% of the companies in

the U.S. correspond to

the small and midsized

business category.

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A creative, intuitive, and ambitious personality represents the triggering element of business development. These qualities help the entrepreneur

perceive a world full of possibilities, setting the stage for the conception of the idea. This idea, eventually, must evolve until it becomes a well

fundamented and promising company. To do so, the idea requires validation, which is obtained through research. This systematic investigation

provides useful information to sustain the idea. The plan, reliant on creative and strategic thinking, determines the path, personality, concept, and

structure, as well as virtually every element that will shape the emerging company. Finally, through the proper online exposure, the newly-

established business connects with its target market. This methodic process represents the most efficient way to launch a company, one with real

chances to succeed.

The Elements

1. Winner Personality 2. The Idea 3. Research 4. The Plan 5. Online Presence

Other Important Elements

PROMOTIONAL MATERIALS

Never leave your house without a business card and, if possible, a brochure or samples of your product or

service. You never know when you'll find a prospect interested in your offer. For branding purposes, these

promotional materials must reflect the personality of your startup. Similarly, they must take your audience into

consideration; the latter must be defined in your business plan. [See page 15]. Make sure these tangible

promoters of your startup are high-quality to give a positive first impression.

LEGAL, ADMINISTRATIVE, AND STRATEGIC SUPPORT

Don't embark on this journey unprepared. It is important you consider every aspect of the development of your

organization. An accountant, for example, will help you prepare a solid and reliable financial plan. Likewise, the

accountant will help you see the foundation of your startup from a different perspective to find possible

deficiencies or weaknesses. Legal advice is necessary to understand the legal structure of your startup and to

avoid potentially-destructive risks in the future. Finally, strategic support will strengthen your market analysis,

strategic planning, and the development of marketing programs and campaigns. ■

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When we think of successful businessmen, names like Bill Gates and Steve Jobs instantly come to our minds, and important questions arise. How

could they realize their dreams? How did they beat obstacles? The business world, similar to life itself, is complicated and presents challenges

that must be overcome; these men, like many others, achieved just that. As entrepreneurs, we often wonder if we have what it takes to launch a

successful business. To reduce and weaken these insecurities, we can apply self-analysis to be sure we possess these characteristics and

qualities, all of which embody the personality of a successful entrepreneur.

First off, none of this can happen without a winner's personality. We must

feel passionate about our startup and what it does. Ambition, too, takes a

critical role. Due to fear or lack of motivation, many entrepreneurs never

leave their comfort zone, a situation that limits the potential of any project.

Likewise, a winner's personality refers to maintaining a positive attitude,

friendly and reliable. The success of a startup ultimately depends on the

ability to understand and influence people; therefore, knowing how to

deal with different personalities represents a valuable asset.

VISION

Successful entrepreneurs perceive opportunities, where most people

don't. They also possess innovative, creative, and visionary attributes that

help them instantly think outside the box. In this sense, they have the

capacity to identify or even create needs within a determined niche. Once

they have conceived an idea, they visualize ways to bring it to life. This

type of entrepreneurs perceives a different world, one without

boundaries; frequently, they see opportunities where others see

complications and limitations.

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PASSION

Entrepreneurs have a passion for the products and services they sell and/or for the mission of their

organization. They work countless hours, quite often without proper economic compensation, only driven

by this distinctive fervor for making things happen. They are motivated by the satisfaction of knowing they

are serving a purpose which, frequently, improves or enriches the lives of people. This passion is also the

fuel that winners use to persevere, particularly during rough times, when everything seems to go wrong

and the easiest way out is giving up.

SELF-TRUST

Self-trust is an essential value in the world of business. It entails two aspects, ensuring that a need in the

market exists and believing the intellectual capacity to meet this demand is at one's disposal. Self-trust is

also a motivational element; it leads us to believe that we possess a good idea, one that is worth

pursuing. With self-trust, investing our time and money to turn our project into a reality seems the right

thing to do. Nonetheless, self-trust in business is not purely instinctive; truly successful entrepreneurs

validate their ideas by researching, planning, and testing the sustainability of their ideas.

TENACITY

Despite obstacles, successful entrepreneurs stay determined, with dedication and perseverance, until

they turn their dream into a reality. They face failure wisely and boldly; after a misstep, they start over with

the same devotion, determination, and commitment. After all, failure tends to provide valuable lessons.

Businesswoman and CEO of YouTube Susan Wojcicki claims, "At the end of the day, both men and

women who become CEOs have showed tenacity and hard work to succeed in their careers." Wojcicky

adds, "It takes not just skills but also extreme dedication and commitment. And regardless of gender,

CEOs are measured by the same criteria – the growth and success of the business.

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FLEXIBILITY

Entrepreneurs who possess a winner's personality hardly ever let changes in the market and the

subsequent challenges take over. They strive to master the art of adapting and responding to the ever-

changing conditions of the market. Facing this type of adversities wisely, they recognize when times

change and the offer must be modified to meet the new demands of the market. This characteristic is

necessary during the initial stages of business development. Frequently, a business plan undergoes

several revisions and even suffers mayor changes; in some cases, the original idea is drastically

modified; this flexibility, however, helps businesses meet the demand of their target market. It helps them

thrive and survive.

TOLERANCE TO AMBIGUITY

Fear of failure and humiliation and the uncertainty caused by a lack of a salary or a quality medical

insurance are relatively normal feelings. Nevertheless, in certain situations, this negativity is not powerful

enough to make us desist; it won't interfere with our determination to transform our dream into a reality.

This quality certainly makes us extraordinary. Tolerance to ambiguity entails being capable of taking risks

and fully understanding that sometimes mistakes are made and things don't always go the way they are

planned. A winner's personality is comprised of the ability to not let fear and uncertainty stop us or

diminish our enthusiasm for our project. It also entails acting intelligently and cautiously. ■

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Evidently, the entire journey begins with the idea. In this sense, two types of entrepreneurs exist, those who already possess an idea, which they

feel attached to and passionate about, and those who simply look for an opportunity to start a business. To undertake a new company or

organization, you don't have to become an inventor overnight, but it is necessary that you provide something different and, at some degree,

unique.

GET TO KNOW YOU

The initial stage to conceive a brand-new idea corresponds to a thorough

introspective. You must identify and recognize your weaknesses and

strenghts, as an individual and as a professional; this process equally

reveals talents, interests, and areas of expertise. Moreover, you need to

determine how devoted you are to this particular idea and to the value it

represents.

Entrepreneurs often get immersed in the field; once the idea becomes an

actual project, they spend their time thinking of ways to improve it, talking

about it to entice people, or working hard to make it tangible. Because

entrepreneurship entails devotion to this idea, you should not only be a

connoisseur, but also an enthusiast of the subject.

In order to exemplify, the formation of the idea, suppose you know an an

aspiring entrepreneur who has great taste for international food and enjoys

interaction with people. He might have also identified his lack of ability

running numbers and technical aspects. With this self-analysis, he has

already discarded implausible ideas, discovering the areas where he can

actually succeed.

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FOCUS ON YOUR MARKET

Equally important, you must study and understand your market. After all, the foundation of contemporary

marketing is to think from the perspective of the market or, more specifically, the client. Consequently, it entails to

respond to needs perceived within a specific niche in the market. The previously-mentioned intuitive personality

helps the entrepreneur identify and think of ways to solve or address a problem or opportunity in the market.

In some cases, conversations with family members, friends, colleagues or even strangers generate opportunities,

by unveiling potential business ideas. Back to our previous example, suppose the aspiring entrepreneur has

noticed a need for fast food, due to the number of offices in the surroundings. His friends probably complained of

the poor-quality restaurants in the surroundings. He might have also realized that his potential market was

economically affluent, which he identified as an opportunity. Putting all the pieces together, he defines the

foundation of his idea based on demand for more sophisticated fast food for discerning palates.

THINK OUTSIDE THE BOX

Creativity frequently helps an entrepreneur see things and situations differently and think outside the box. This

quality allows him to think of solutions and find different ways to present a product or service. In the beginning, the

idea should be clear enough to disclose possible issues, not to be discouraging but to strengthen the idea.

Similarly, the main idea is reinforced with other subsequent idea for distribution, promotion or even the personality

of the emerging brand. Back to our example, the new entrepreneur might have thought of free shipping for

multiple orders, because he knows that office workers usually eat their meals together and tend to order from the

same supplier.

SIMPLICITY WORKS

A sustainable idea tends to be easy to explain. This simple description will communicate the value of the offer

from the target market's perspective. Ask yourself, what will my company offer? What value does it have? In our

hypothetical scenario, the entrepreneur could say, "I offer fast food with international variety that differs from

typical low-budget fast food, to please the more demanding taste." Certain aspects of this offer will change, as

more information is gathered throughout the following stages of the formation of the startup.

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As we previously mentioned, there is no need to reinvent the wheel. We do, however, must present a variation to

an existing product or service. Likewise, we can take an existing idea to a new market where that product or

service might not be available yet. Once we know our abilities, specialty and aspirations, as well as a clear

understanding of our market, it is time to take the idea to the next level. Quite often, the two groups of

entrepreneurs we mentioned ignore how to make this idea tangible. To do so, the startup process proceeds

through research. ■

Inspiring Ideas

Beachbody, which sells intensive workout

programs on video, achieved positioning using

an innovitive promotion, product, and

distribution strategy. The company fostered a

community of striving athletes which, in turn,

represent a source of viral propaganda.

Similarly, Beachbody launched a "coaching"

program that strengthened the quality of the

programs and improved distribution methods.

During the 1990s, Starbucks played a critical

role in the re-conceptualization of coffee

shops, as centers of social reunion. It relied on

the atmosphere of its locations to attract and

retain clients. Startbucks also innovated by

producing coffee that fulfilled conociours'

needs. By selling franchises, Starbucks

achieved a source of recurring income and

improved its distribution methods.

Subway has over 42,000 restaurants in

approximately 108 countries. The company

presented an existing product, sandwiches,

differently. After failing to achieve its 32-

restaurant-opening goal, the company began

selling franchises, which catapulted sales and

boosted the brand's exposure worldwide.

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An overwhelming number of entrepreneurs believe that, to create a successful startup, "the idea" alone suffices, discarding the research and

planning process as part of the development of the project. In these cases, the decision-making process depends almost entirely on assumptions

and preconceptions. For a startup, it means investments are very likely to be futile. Bad decisions and the subsequent slow economic activity can

virtually cause any organization to fail.

In order to avoid this scenario, wise entrepreneurs depend on research, which provides

them with the tools for appropriate and intelligent decision making. This process, which in

business entails consumer and market research, ultimately guides the idea to its full

conception.

In the end, the chances of making good decisions improve when the right information is

provided at the right time. Business executives and entrepreneurs rely on market and

consumer research to provide the information they need to make effective decisions

regarding the organization's current and future activities. The reliability of this information

is crucial; in fact, according to numerous statistics, an appalling number of enterprises fail

or cannot reach their full potential because they simply don't know their market and its

participants.

Regularly, the marketing research process begins with the definition of the problem,

implementation of exploratory research, and formulation of a series of hypotheses. It

continues through research design, recollection of primary and secondary data, and,

finally, interpretation of the information obtained. The market and consumer research

procedure ends with the formulation of a solid strategy that will guide and influence most

of the decisions made from this point forward.

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EXACTLY WHAT TYPE OF INFORMATION CAN BE OBTAINED THROUGH RESEARCH?

Through proper market research, we get to know the economic, cultural, and social climate that surrounds

the company. Similarly, this process helps us determine if there is in fact need and interest for our offer and

if the value we propose is indeed attractive to our market. This study also provides specific data about other

critical aspects: Industry, competitors, trends, perspectives, and future projections, among others. One of

the foundations of research is to get information that will help us identify and understand our prospects, also

known as target market.

DESIGNING THE CONCEPT OF THE COMPANY

Countless businesses lack awareness of their customers' wants and needs; therefore, they sell what they

think represents an attractive value proposition. Quite often customers do not respond the way it was

expected. The insight provided by market and consumer research is critical to properly define our products

and services, as well as other fundamental elements, including pricing, distribution, promotional channels,

industry positioning, and competition.

MEETING YOUR CLIENT

Knowing the potential buyers also provides with valuable tools to build a solid marketing strategy. First, we

obtain information that can be used to approach our target market effectively, including interests, income,

motivations, age ranges, sex, and many other elements to engage that particular group. Emotional aspects

and persuasive elements are equally taken into consideration.

APPLYING OUR KNOWLEDGE

By knowing the potential client, we find the most adequate and cost-effective ways to reach the right

audience and deliver effective advertising messages. For instance, the information gathered through

research is used to develop marketing messages that actually respond to the audience's interests,

ideologies, and behavior. Similarly, it helps marketers pick the right medium. After all, organizations must

reach the right audience, not just "anyone" randomly. In doing so, they will save money in advertising that

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reaches people who are actually likely to respond actively. For small and midsized businesses, it means

their online-based campaigns and programs, such as pay-per-click, have better chances to produce high

ROI.

Furthermore, through a deep understaning of the client, businesses optimize their operations and avoid

mistakes. They identify the type of activities that must be performed to satisfy the clients' needs and wants.

On the other hand, the lack of awareness often alienates the real prospects, by making them feel

unappreciated and misunderstood. Quite often, we find companies whose pricing strategies do not match

their target clients' budget: they focus on expensive products when their actual customers are price-

conscious or viseversa.

As a case in point, one of our clients, a partner in a Mexican food chain located in the Midwest, realized that

his efforts to increase sales proved futile. The restaurant's actual market was not consistent with the market

they targeted. Through market research, he realized that, among other findings, his average client was

economically affluent and looked for places to eat more accordingly to his lifestyle.

A clear understanding of the targeted client opens a world of possibilities for a startup, while reducing risks

and increasing the chances to succeed. This tool also helps to create a product or offer that will be

appropriate for the market and clients intended. In many cases, we might discover we have what it takes to

reach an even bigger or more lucrative market than the one first contemplated. Finally, it optimizes

advertising programs to generate high ROI. ■

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The personal and professional satisfaction that running a successful business provides, not to mention the personal economic gain, is enough

incentive to venture into this exciting world. Unfortunately, many entrepreneurs only visualize cash flowing and customers falling from the sky,

ignoring the path that will lead them to that scenario.

A solid and promising startup emerges from a business plan. This document isn't mere protocol, as many amateur entrepreneurs believe; it

integrates every defining element that will guide the path, performance, and objectives of the organization. Because of the impact of the document

in every single activity, it must be updated at least every year. That being said, a business plan solely based on intuition and assumptions will be

weakly fundamented and, most likely, will produce futile results.

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Hence, this plan must be supported by the results obtained through market research and a proper organizational

analysis.

A standard model for a successful business plan simply does not exist, as every organization possesses different

needs and characteristics. However, there are certain elements that do have to be present in virtually every

organization, including organizational analysis, financial plan, description of products and services, legal structure,

short- and long-term objectives, sales projections, and competitive analysis, among many others. Strategic

marketing plays a critical role in business development; as a result, the business plan integrates exhaustive

market analysis and a subsequent marketing and sales component. Due to its nature, this book focuses on

strategic marketing elements.

IMPLEMENT STRATEGIC MARKETING

The terms marketing and advertising often get mixed up in the context. Although marketing does involve

promotional activities, marketing extends to other essential areas, such as pricing, distribution, and product

development. The marketing plan also examines the startup's positioning strategy within a determined market,

though a clear statement of the type of product or service offered, the value it provides, pricing tactics, branding

elements, etc. Professor Nancy Stephens from Arizona State University says that marketing helps entrepreneurs

establish successful value propositions. Business want to attract and retain customers and "[they] do that through

the marketing functions."

Strategic marketing also involves the analysis and definition of the target market, taking demographics,

psychological and socioeconomic aspects into consideration; in doing so, this study discloses a comprehensive

profile of the target consumer. Finally, the marketing plan integrates a scrutinizing perspective into the industry,

competitors, the market, as well as other crucial elements. Concepción Acosta García, owner of the business-

development coaching agency AMCAP, explains that "statistics often reveal that 7 out of 10 startups fail within a

3-month period, mostly because they don't know the marketing strategies necessary to achieve successful

positioning in the industry, or even a proper introduction in the market."

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LACK OF PLANNING

An appalling number of small and mid-sized businesses consider strategic planning irrelevant or only appropriate

for large corporations. They believe it all comes down to “let’s see how it flows.” According to recent statistics

provided by the information services firm CB Insights, 9 out of 10 small and midsized startups fail. The same

study revealed that the number-one reason for failure, cited by 42% of polled startups, is the lack of a market

need for their product. Meanwhile, pricing issues, lack of business model, poor advertising, and bad locations

constituted other critical factors.

Numerous businessmen and women don't fully comprehend the extent of the impact that marketing has upon

business development. Based on this misunderstanding, their marketing activities focus almost entirely on the

promotional aspect. By limiting the marketing efforts to a radio ad or a shiny outdoor sign, they overlook important

aspects, which could jeopardize future revenue, as well as the organization's stability and sustainability.

Moreover, this simplistic approach tends to set the stage for fatal investments, especially when the current market

tends to be extremely tough for emerging businesses, all of which desperately require a solid strategy to compete.

Starting a company without a proper marketing strategy often leads to negative consequences. Ignoring the

market's characteristics, the industry, and the organization's insights (Finances, situation, projections, etc)

constitutes the formula for a failed project. As entrepreneurs, we must rely on a solid plan, which provides a clear

perspective of the surroundings, as well as our weaknesses and strengths In short, planning strategically shows

the path for success. ■

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Differentiation plays a vital role in business development and marketing. An effective differentiation strategy provides consumers with enough

incentives to choose us over our competitors or substitutes. A differentiation strategy should clearly answer the question: Why should customers

buy from us? What is it special from our sales proposition?

HAVE A PLAN

In order to define what makes us or could make us different, we must

understand our target market’s psyche. In this sense, our organization

must know its niche before even considering planning a differentiation

strategy. We cannot emphasize a particular feature of our value

proposition or change or modify our marketing strategy if the consumers’ wants, needs, and motivations have not been clearly identified.

Renowned economist and international marketer Daniel Park, PhD

asserts the nature of differentiation and value proposition; which are

ultimately defined by the customer and not by the supplier. In other

words, the consumers’ opinions in regards to the overall value of a

product or service, particularly when compared to that of competitors, are

what ultimately make an offer and its inherent features valuable or not.

Dr. Park also describes the "supply chain and the product experience" as

the two emerging determinants of value and "potential source of

renewable differentiation." Small and mid-sized organizations must

further define their position within a given industry. It is through strategic

analysis that businesses ascertain internal and external factors, which

include a scrutiny of the competitors’ organizations.

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HOW DO WE KNOW WHAT CUSTOMERS WANT?

To answer this question, marketers and entrepreneurs rely on

information obtained through the research process [See page 12]. For

the most part, mere intuition is not enough and, when relied upon

entirely, represents a major risk. In fact, investing on professional

market research will likely save us time and money and will enhance

our changes of reaching the appropriate niche. By conducting research,

facts and numbers literally guide us in the right direction. Research

unveils customers’ preferences, needs, desires, purchasing behavior,

effective persuaders, etc, all of the ingredients required to make an

effective differentiation strategy.

BE UNIQUE

Bernie Charland, a recognized marketing consultant from Canada,

points out the core of differentiation: Having something distinctive to

sell, being memorable, and standing out from the crowd. Following a

basic rule of contemporary marketing, a business must fulfill a need to

justify its existence and guarantee profitability; whereas differentiation

helps businesses stand out from the competition, it also provides them

with a reason to exist.

Finally, comprehensive knowledge of the market and the competiton is

indispensable for strategic thinking, in the same way that information

and creativity are vital to strategize successfully. Frequently, small and

mid-sized organizations differentiate well through the following forms:

Differentiation Techniques

#1 Service

Certain items and services can be more valuable through an outstanding customer service. This

strategy can benefit businesses in which the business-client interaction is inherent and price is

not the ultimate determinant factor, such as restaurants, boutiques, car repair shops, etc.

#2 Convenience

Providing easy access to products and services will make a difference; these include location,

payment and distribution methods, and helpful customer care, among others. Similarly,

personalized solutions can help us differentiate as these save customers’ time and effort; for instance, businesses often keep customers’ records, which help the sales personnel anticipate to their clients’ needs and shopping preferences.

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#3 Value

It refers to the overall shopping experience which, quite often, influences consumers’ shopping preferences. Value includes tangible and intangible elements, such as the product or service

itself –quality, symbolic consumption, etc- and customer service –personal attention, friendliness,

reliability, etc. Having a superior shopping experience induces customers’ recommendations and, over time, leads to customer loyalty.

#4 Price and Variety

Small and mid-sized organizations quite often cannot use these two tactics to achieve successful

differentiation, as large corporations possess more resources to offer better prices and variety.

Then again, depending on the type of products or services being sold, providing competitive

prices and reasonable variety added to another differentiation strategy will be enough incentive

for the consumer.

#5 Specialization

Organizations can outperform large corporations through specialization; chain businesses' need

to present variety precludes them from focusing on specific niches; small and mid-sized

businesses, on the other hand, can reach a particular niche and center all of their time, efforts,

and economic resources to satisfy the needs. Of course, the niche must be large enough to

guarantee a reasonable number of prospects.

#6 Exclusivity

Offering exclusive or unique products or services is the ultimate differentiator. Local restaurants,

for example, beat competitors –including large corporations- by offering distinctive cuisine. ■

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The triumph of every campaign and marketing program depends on the profound understanding you possess of your ideal client and your ability to

communicate with him/her effectively. First off, trying to sell a specific range or products and services to "everyone" indistinctibly is simply

unfeasible, because everyone has different tastes, interests, needs, purchasing habits, ideologies, etc. Therefore, focusing on one segment of the

population can save you valuable resources, as all your efforts concentrate on attracting and persuading only those more likely to find your offer

relevant. Also, because your marketing message speaks directly to this ideal client, you have better chances to communicate successfully. Now,

you might be wondering, how can identify my ideal client?

SCRUTINIZE YOUR PRODUCTS AND SERVICES

First, carefully scrutinize your products and services and find the unique

value these provide. You should also determine the problem you are

helping your market to solve and the benefits your offer presents. Second,

consider the segment of the population most likely to benefit from your offer

or to feel engaged by it. At this point, you can start establishing parameters:

Demographics, socioeconomic, psychological, etc.

BEGIN RESEARCH

Avoid assumptions. Recurring to these false beliefs leads us to make

decisions based on wrong information. Begin by scrutinizing people

representative of the market you plan to target. This step provides essential

information for the success of your company with minimum cost. Through

the internet, now it is easier to have access to valuable information so you

get to know more about your industry, the market, competitors and your

potential client. This information should eventually be valitated by results

obtained through the research process.

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The information available is often insufficient to meet the specific needs of a research program, which leads us to conduct

primary research. For this purpose, surveys, interviews, focus groups, and observation methods, among many other tools,

can be used. Before taking any action, you need to know the type of research studies available and recognize the ones

more appropriate for the organization and the research objectives. In order to prepare a market and consumer research

program, marketers often consider information requirementes, analytics methods, resources available, and the target

market's characteristics, amont other critical aspects. Conducting formal research can be a time-consuming and

expensive process. Therefore, as investment increases, so does the need to request specialized assessment.

CREATE A PROFILE OF YOUR PROSPECT

Upon completion of the research process, you should possess a major understanding of your market. Consequently, this

information is applied to create a thorough profile of your target costumer, also known as target market or buyer persona.

This profile includes specific aspects, such as demographic, socioeconomic, psychological and psychographic.

Demographic information includes age, sex, location, marital status, etc. Socieconomic data involves social and economic

factors. Psychological and psychographic aspects unveil critical elements, such as purchasing behavior, motivators,

interests, values, lifestyles, hobbies, attitude, and more. The profile of your customer helps you communicate better, find

appropriate venues to reach them and, overall, present a more engaging offer.

DETERMINE WHERE YOU WILL FIND YOUR PROSPECT

After you identify critical aspects of your target market, take some time to discover where they spend time on- and offline.

What type of social platforms do they use…Facebook, Twitter, LinkedIn, Instagram? What websites do they visit

regularly? Do they check their e-mail regularly? Do they connect through mobile devices? Also, take into consideration the

locations and geographical areas where they are located. This information results crucial to determine a suitable location

to run business operations and to launch promotional geographically-segmented campaigns.

MONITOR RESULTS

Once you have gathered the information necessary to identify your target market, you'll have the tools to approach your

audience successfully. Remember that, when making decisions, you must have your target market in mind; because the

market changes constantly, monitor the results you obtain regularly to make any necessary adjustments. Your hard work

must pay off through positive return on investment. ■

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Clearly understanding his abilities, the game, and his opponent, a successful entrepreneur strategically plans every move. Similar to a box match,

a winner develops his aptitudes by training rigorously and staying alert during the fight. These tactics also become vital during the formulation of a

successful and winning marketing strategy. Lack of preparation exposes our weaknesses and wastes our strengths, the same way being caught

off guard can leave us vulnerable. In both scenarios, the opponent is given the chance to take advantage to win by knock-out. These are some

tactics to strategize and beat the competition.

KNOW YOUR OPPONENT

Before a match, a fighter studies his opponent in an attempt to find weaknesses to exploit.

This tactic also applies to business planning. There are countless methods to know your

competitors’ “Achilles’ heel.” The internet facilitates the process as websites, social media

pages, e-mails, and other media can be used for this purpose. Analyze the value

proposition and their marketing approach as if you were a customer, trying to find

deficiencies and a competitive advantage. Then, look at them from your own perspective: Is

there something you could add to your proposition that will make your offerings more

valuable and convincing?

STAY ALERT

During the combat, the fighter anticipates the attack and nimbly dodges out of the way;

similarly, he takes advantage of his opponent’s brief moments of distraction to knock him out. In business, it means you must stay alert to changes in the market and emerging

trends. Successful entrepreneurs do constant research and apply the results into their

marketing practices. Quite often, they find out what their competitors do and use that

information. If the competitor reacts to these changes and incorporates any new trend

before you do, he’ll have more changes to win.

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EXPLOIT YOUR ABILITIES

To win a match, the boxer exploits his strengths and diminishes his weaknesses.

Likewise, to succeed, all the marketing efforts of a successful business focus on the

elements that make it different and superior. Besides using research data, play the devil’s advocate to identify strong qualities, as well as flaws, perceived by your audience; then,

design a strategy that minimizes or compensates these apparent deficiencies.

CONNECT WITH THE AUDIENCE

A successful fighter listens to his corner and makes adjustments to his strategy to beat his

adversary. Similarly, businesses pay attention to customers. Businessmen and women

who know their audience do so by obtaining regular feedback. They know the degree of

customer satisfaction achieved, as well as the type of marketing that draws attention

effectively. Don’t make assumptions and take time to listen. In most cases, the entrepreneur’s point of view differs considerably from that of the customers. Besides conducting formal research, authentic conversations with individuals that represent our

target market can provide us with lots of useful ideas. This interaction represents one of

the main functions of social media for businesses.

Lastly, to win, the fighter must first win in his own mind. He must firmly believe in his own

talent. After all, winners possess a winning mentality. The same advice applies to

entrepreneurs whose preparation and talent will determine how high they can get. After a

match, the entrepreneur walks away triumphant, yet knowing he must be prepared for

new adversaries. ■

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With a solid project, sustained by a business plan, the entrepreneur must show his products and services to the world. The Internet provides this

opportunity. Therefore, establishing a dynamic online presence has become, and will continue to be, an essential piece of the marketing puzzle.

The website continues to be the central medium to attract, entice, and convert an audience; because of the popularity of mobile devices, mobile-

friendly websites are in high demand. Social media are equally important, so are other methods of electronic communication, such as Skype. Most

importantly, a powerful online presence is one planned and developed upon consideration of a broad marketing strategy.

AN INTELLIGENT WEBSITE

Having a website does not encompass everything. A website should be a marketing tool

rather than an expense. It must be developed to meet short- and long-term objectives. By

not having a marketing specialist involved in the planning phase, many entrepreneurs

and decision makers overlook this fact. Prior to the start of the development process, the

marketing aspect must be considered; in other words, the organizational goals and the

purpose of the site should be reviewed to establish a feasible action plan.

In this context, the website acts as the central piece in the execution of any digital

strategy; it's the medium that receives the visitors and through which we entice them and,

ultimately, transform them into leads. However, certain criteria must be met. First off, the

website must be easy to find by the target audience, a task accomplished through a

search engine optimization strategy.

Also, once the visitor navigates through the site, he/she must be aware of the next step.

An optimal website guides the visitor to take action, leading him/her to request more

information, test a product or service, or contact a sales representative.

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Furthermore, a website serves as an electronic representative of the organization, one that enables

relationships with potential customers; a website usually contains important information, as well as

educational and persuasive material. The visual aspect and the structure are equally important. A cheap-

looking website or one crammed with grammatical errors and visible technical deficiencies gives a

negative impression. The design should be catchy, simple, and easy to navigate, and the structure must

make it possible for people to navigate easily. Doing so will increase the possibility the site will draw

people’s attention and influence their purchasing behavior.

SEARCH ENGINE OPTIMIZATION (SEO)

Approximately 90% of all online traffic comes from search engines, such as Google and Bing. Therefore,

having the website optimized to appear in search results represents a major part of any internet-based

marketing strategy. It’s how our site will be found.

Search engine optimization is a broad and complex subject, but these key points explain critical concepts

and principles to understand its foundation. First off, SEO techniques focus on improving the visibility of a

website throughout different search engines, and the success of an SEO strategy can be determined by

the website's ranking. As with any other form of digital marketing, the type of traffic to attract must be

defined and studied, including the target audience's characteristics as individuals and Internet users.

Contrary to popular belief, SEO is a field separated from web development. A web developer by himself is

unlikely to possess the skills necessary to properly optimize a website. SEO also changes drastically and

frequently. Therefore, SEO strategies must be reviewed and updated on a regular basis; sometimes, an

element considered particularly relevant in the SEO world becomes useless; even worse, in some cases,

incorporating outdated techniques can cause penalties by search engines, like Google.

INBOUND MARKETING PROGRAM

Inbound marketing is smart online positioning. As internet marketing soars higher, traditional advertising

methods, such as radio ads and newspapers, continue to lose some relevance. Nowadays, launching

online-based ad campaigns is a rather common promotional practice. However, these outbound methods

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tend to be expensive, and they don't take advantage of all the different channels the Internet puts at one's

disposal. Inbound marketing, as a digital strategy, is an innovative alternative. This methodology uses

several channels for online positioning in a more effective and economic way.

Inbound marketing refers to the digital marketing technique that helps organizations be found, convert

and delight an audience, and analyze results. With inbound marketing, organizations grab the attention of

an audience by creating and presenting engaging and persuasive content; the visitors are, in turn,

conducted to a website where they are guided to take action. In doing so, they turn into prospects. In

short, the goal is to create quality leads that, through proper nurturing, will convert into clients. Although

paid advertising is encouraged, inbound marketing focuses primarily on organic positioning.

The structure of an inbound marketing strategy makes use of all the digital channels available: Search

engine optimization, content, e-mail, landing pages, and social media, among others. Evidently, planning,

designing, developing, and maintaining these media can be a time-consuming and expensive task.

Therefore, successful inbound marketing programs emerge from a solid digital marketing strategy, which

takes into consideration the audience, as well as the organizational objectives and resources available.

Through an inbound marketing strategy, the previously mentioned tools follow a well-defined marketing

purpose. Social media, for instance, foster and maintain online communities and lasting relations with the

target audience. E-mail becomes critical to ensure the delivery of informative and promotional messages,

which tend to have high conversion rates. Content, such as blogs, videos, and images, turns into a

magnet that attracts a segmented audience to the digital platforms. Finally, the website is the medium

that receives the audience, provides information, persuades, and ultimately produces quality leads. ■

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Starting a business combines two rather contrasting emotions: excitement and anxiety. Sure, you may be filled with ideas, goals, and

expectations; but fears, doubts, and unforeseen issues tend to soon burst the bubble. Not surprisingly, entrepreneurs encounter multiple traps

along the way. However, a safer path exists, one that keeps entrepreneurs from unnecessary risks; as we have learned, this safe path is one that

is known, analyzed, understood, strategized, and implemented with precaution, intelligence, and creativity.

1. - LACK OF PLANNING

The misconception of an idea constituting or substituting a proper plan represents

new businesses’ most common mistake. According to the U.S. Small Business

Administration (SBA), only 70% of the new businesses in the United States

survive two years in the market.

These statistics reflect the deficient strategic planning characteristic of small and

midsized businesses. These entities must define vital aspects that often make a

significant difference in their performance, such as customer acquisition and

retention, pricing, and promotion strategies. Relying entirely on the “feeling” that an idea is profitable is certainly never enough, and this basic approach should be

avoided. The best way to prevent risks is by supporting the business idea through

a well-defined business plan, one solid enough to convince any potential investor.

2. - NOT TAKING YOUR MARKET INTO CONSIDERATION

Marketing concepts and strategies should not be simplified either. Frequently,

inexperienced entrepreneurs base their offers on the value they perceive, not

considering their customers' opinions; they fail to substantiate the demand for

their products or services. Know your market. In the end, marketing is the core of

any business operation.

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First, understanding your market's needs and motivations, as well as their perception of your business and its

products and services, is essential. Doing so helps you not to waste resources targeting people who will not be

interested. Likewise, understanding the characteristic purchasing behavior of your target market prepares you to

really communicate with your leads and persuade them. You must determine how you are going to approach

them, while giving them reasons to do business with you.

3. - GET OVERWHELEMED BY THE ECONOMIC CLIMATE

Whereas the unstable and emaciated economic environment may easily discourage new entrepreneurs, thinking

negatively and focusing on the risks will not produce positive results. If you are too afraid, you should wait;

otherwise, your thinking will be highly influenced by fear and doubts. You must focus on the opportunities that a

weak economy represents. For instance, this climate reduces costs for businesses as suppliers, vendors, and

outsourcers often reduce prices and increase financing opportunities. Similarly, federal aid makes financing less

complicated. From a marketer’s point of view, during rough times, the demand for particular goods and services shift, creating countless opportunities for those who take the time to understand the market.

4. - DEPENDING ENTIRELY ON YOURSELF

Although reducing costs might seemingly improve the financial performance of an organization, it could

inadvertently shrink opportunities and efficiency. Do not assume you can do it all. Consider leaving important

aspects to experts; justify this investment by understanding how this decision can be beneficial. Accountants, for

example, will give you a clear picture of your assets and liabilities, presenting information that will lead to informed

and smart decisions. Similarly, a business/marketing consultant will solidify and fortify your strategies, helping you

maximize your opportunities considerably, optimize your business’ future operations to make them more profitable, and reduce threatening risks. Finally, leaving the visual elements to amateurs will damage the image of

your business, making it look cheap and highly unprofessional, which tends to provide poor outcomes.

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5. - NOT THINKING OF MONEY

Think about the numbers and your wallet. Only entrepreneurs realize how fast money tends to slip away during

the initial stages of business development. For many, working full-time with no constant income represents a

major disadvantage. Starting a business as a part-time project, while keeping a full-time job, may considerably

reduce the stress and pressure. Also, try to find contractors and outsourcing companies that adjust their products

and services to your specific needs and budget (I.e. Printing, Internet, Telephone, etc). This way, you will stay

within your budget, and unnecessary expenses will be avoided. Having an investor may be a feasible idea; the

decision depends on the cost of running the business, your budget, and your long-time expectations.

6. - NOT PERFORMING A FINANCIAL PLAN

Likewise, a startup, just like an existing business, must have financial data available; for a startup, it must contain

projections of profits, operation expenses, sales, etc. This projection should be realistic and anticipate potential

changes in supply and operational costs. Unfortunately, many entrepreneurs take a rather simplistic let's-see-

what-happens business approach; unforeseen and recurring expenses can swiftly consume your economic

resources and, in doing so, cause your business to fail.

7. - NOT KNOWING YOUR COMPETITORS OR IMMITATE THEM

Understanding your competitors’ in a deeper level provides valuable information that can be applied during the development of strategies. By discerning your competition, you will be able to create differentiation, a tool that

helps businesses stand up from the crowd. This analysis and scrutiny of your competitors' approach comes in

handy; however, copying these strategies can be detrimental. Besides turning your company into a shameless

imitator, doing so will most likely weaken your strategic planning. After all, every organization differs from one

another in its capabilities, resources, human capital, market characteristics, and so on.

The final advice is to be your most fervent believer. Trust your guts and defend your idea. Be confident but not

cocky. ■

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MHigh is a Marketing firm that provides small and midsized

businesses with consultation and integrated digital marketing

services. In MHigh, we specialize in digital marketing, professional

consultation, and website design and development.

The mission of MHigh is to provide small and midsized businesses

with strategic support in marketing activities and help them achieve

exposure, competitiveness and profitability.

The vision of MHigh is to become a leading and revolutionary

Marketing firm within its niche by achieving permanent partnerships

with motivated entrepreneurs and designing effective and creative

campaigns.

Our clients operate in Mexico and United States within a wide range

of industries, which include retail, professional-service providers, and

nonprofits, among others. Join them!

FOLLOW US

+ Facebook: http://www.facebook.com/mhighenlinea

+ LinkedIn: http://www.linkedin.com/company/mhigh

+ Skype: Skype: mhigh.net1

Our achievements include an average of…

+ 155% more unique visitors after implementing inbound marketing

+ 80% more leads through optimized websites

+ 34% more sales for our clients’ companies

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ARTICLES AND RESEARCH

Ivan Badyr Salcedo

Marketing Specialist

Badyr specializes in Strategic Marketing and

Business Development, holding a degree in

Business Administration and Management and a

degree in English Literature. Badyr’s experience includes advising businesses in both product-

and service-oriented industries, involving companies in the United

States, Mexico, and The Netherlands.

Miriam Salcedo

Marketing Strategist

Miriam enjoys the business-and-client interaction

and, therefore, understands the importance of

organizations’ public image and communication methods. She specializes in persuasive

strategies and strategic marketing; Miriam holds

a degree in Business Administration with emphasis on Marketing

Promotions, having worked and collaborated in profit and non-profit

organizations in the United States and Mexico.

DISCLAIMER

Visit our website to know our disclaimer, which applies to the content provided in this book. All content included on this book, including images and text, is the property of MHigh, S.C. Mexico, MHigh.net and its content suppliers, except when rights from third parties are indicated. The concept of the firm and the content presented in this book are original and protected by Copyright laws of the United States of America, including the DMCA. Any other use, including the reproduction, modification, distribution, transmission, republication, display, or performance of the content on this site is strictly prohibited. Neither this website nor any portion of it may be reproduced, duplicated, copied, sold, resold, or otherwise exploited for any commercial purpose that is not expressly permitted by MHigh.

CREDITS

Dess, G., Lumpkin, G.T. & Eisner, A.B. (2010). "Strategic analysis." Strategic Management: Creating competitive advantages. McGraw-Hill, NY. 2-38

Fernandez, D. (2010). "5 problemas de las Pymes para el éxito". CNN Expansion. June, 2010

http://www.cnnexpansion.com/emprendedores/2010/07/21/ser-exitoso-sin-morir-en-el-intento

Griffith, E. (2014). "Why startups fail, according to their founders". Fortune Magazine.

http://fortune.com/2014/09/25/why-startups-fail-according-to-their-founders/

Hernández, K. (2011). "La importancia de la planeación en las empresas". PYME Empresario.

http://www.pymempresario.com/microempresas/la-importancia-de-la-planeacion-en-las-empresas/

Kurtz, D. & Boone & L. (2006) "Market Research, Decision support systems, and sales forecasting." Contemporary Marketing. Thompson, Mason, OH.

Morales, A.G. (2013). "La falta de estrategias de marketing, provoca el cierre de las empresas". AMCAP

http://www.alcalorpolitico.com/informacion/la-falta-de-estrategias-de-marketing-provoca-el-cierre-de-empresas-capacitadora-amcap-114317.html

Marker, G. (2013). "Casi la mitad de las PyMEs mexicanas fracasan por una mala gestión". Gestion.

http://www.gestion.org/estrategia-empresarial/35717/casi-la-mitad-de-las-pymes-mexicanas-fracasan-por-una-mala-gestion/

Martinez, J.C. & M.C. Sanchez (2012). "La industria del conocimiento como brazo impulsor del desarrollo de las Pymes." Ideas CONCYTEG.

http://concyteg.gob.mx/ideasConcyteg/Archivos/79_2_MARTINEZ.pdf

Park, D. "Differentiation – Are Product, Brand and Service Still Enough?" B2B International

Rampton. J. (2014). "5 Personality Traits of an Entrepreneur." Forbes.

Soriano, C. (2011). "El 80% de las pymes fracasa antes de los cinco años y el 90% no llega a los diez años. ¿Por qué?" GestioPolis.

http://www.gestiopolis.com/canales5/emp/ochentapy.htm

Rampton, J. (2014). "5 Personality Traits of an Entrepreneur". Forbes.

http://www.forbes.com/sites/johnrampton/2014/04/14/5-personality-traits-of-an-entrepreneur/

Robinson, J. (2014). "The 7 Traits of Successful Entrepreneurs." Entrepreneur.

http://www.entrepreneur.com/article/230350

Wheeler, L. (2005). "Market Differentiation - Or Why Would Anybody Buy From You?" Firelight Web Studio

http://searchwarp.com/swa18648.htm

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activities? Thinking of you, we present an assessable and simple marketing program. We offer constant support,

continuous analysis, and scrutiny of results to protect your investment, besides designing a proposal and subsequent

plan based on your goals, budget, and audience.

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