Master mktg talk_rotary_12_march2013

Presented by:Ethan Chazin

PresidentThe Chazin Group

How to Master Your Marketing

The Chazin Group

Know Your Customers

Align Your Marketing, Sales & Business

Strategies for Success.

• Effective marketing is aligned with your overall business strategy.

• Your business strategy MUST guide your approach to marketing.

• Your marketing strategy needs to be aligned with your business strategy on 4 dimensions:– Goal Alignment– Resource Alignment– Activity Alignment– Implementation Alignment

Aligning Strategies

• Are your strategic and financial goals consistent with your marketing goals?

• Your goals can become misaligned due to:– Rapidly changing business goals (marketplace

circumstances.)

–Poor communication between your Departments.

– Lack of checkpoints to ensure both sets of your goals are in sync.

Goal Alignment

Aligning GoalsYour Business Goals Your Marketing Goals

Increase market shareBy 15% this year.

Increase sales to existing clients by 20%.

Acquire 2 competitors with combined 10-15% market share.

Acquire 400 new clients.

Discontinue 30% of your existing product portfolio.

Launch minor league baseball advertising campaign.

Form 3 strategic partnerships. Integrate outdoor ad campaign in Central/No. NJ

Aligning Goals  MARKETING’s YEAR-LONG “THEME”

CATEGORY STRATEGIESTarget Market

Positioning Statement

Offering to customers

Price Strategy

Distribution

Sales Strategy

Service Strategy

Promotion Strategy

Marketing Research

Any other component of your marketing plan

• Are the resources in your business and your allocated marketing resources consistent?

• Business allocates resources throughout the organization annually with $ for marketing as a % of annual sales (typically 1-2%.)

• Marketing spreads the money around as best it can to help you achieve your business goals.

Resource Alignment

5Ps & 2Is:Individualization& Interactivity

• MASS CUSTOMIZATION means you have the ability to send out customized communications with MANY of your customers simultaneously.

• Your customers decide how much interaction they have with you through:– Social media– User forums/online user communities– Chat & Messaging– Email– Website contacts

Individualization

• The extent/amount of 2-WAY communication between your customers and you.

• The Internet gives your customers the power to engage with you in a way never previously permitted.

• Shift from broadcast 1-WAY dialog (TV & radio) to an interactive marketing dynamic which fosters debate, exchanges, and…

…CONVERSATION!

Interactivity’s New Paradigm

3 Kinds of Product Exist: What Are Yours?

What is a “PRODUCT”

• Core Product Benefit: most basic value offered by your products.

• Basic/Actual: minimum product offering needed to deliver your core benefit.

• Augmented: Features that go beyond your customer’s basic expectations.

What is a “PRODUCT”

5 Customer Needs.What Are They?

• Stated inexpensive car• Real car with LOW operating cost• Unstated good service• Delight include a cool nav system• Secret your friends see you as a cool & savvy

consumer

FIVE Kinds of Needs

What Does Your SWOT Look like?

Pareto Lives

Long Live The Pareto Principle• Vilfredo Pareto: Italian Economist, Sociologist• Mathematical Formula Created In 1906 to

Explain Uneven Income Distribution In Switzerland

• Today Known as “80/20 Rule” – 1940s: Dr. Joseph Juran proved “In nearly allcases, a few (20 percent) are vital and many(80 percent) are trivial.– Universality: Can be Applied Equally to Any Endeavor (Business,

Academia, AND Career Center Goals!)– 20% of Your Clients Create 80% Business– 20% of Your Clients Place 80% of Orders

– 20% of Your Clients Purchase 80% of Your Stuff!!!

What is a “relationship” when you are talking about

organizations & customers?

A bond/connection between the customer and the organization.

3 Types of Client:Mercenary

LoyalistRaving Fan

4 Stages of theCustomer

Relationship Model

Moving Through the Relationship

• Awareness: Do they know if you even exist?• Exploration/Expansion through:– Attraction– Relationship Norms: patterns of behavior– Trust: can be established many ways– Power: Your organization’s ability to influence

potential customers.– Satisfaction: Required before they even commit to

engaging you in the Buyer/Seller process

Relationship Stages

• Commitment: Keep them SATISFIED or they dissolve “END” their relationship with you:– How much does each party contribute to the

relationship– How much each party invest in the relationship– The consistency in the exchange

• Dissolution: Goodbye– Better options come along for customers– You neglect your customers esp. online– A major failure i.e. poor service– Customers outgrow your offerings

Relationship Stages

You need different skills at different

stages of the sales process.

The Sales Process

Prospect     Marketing Skills

Sale        Solution Selling Skills

Repeat Customer Service Skills

ApostleRelationship Skills

Know Your Customers

• Customer relationships increase your

profitability 3 ways:– It costs less to service existing clients than to

generate new ones.– Existing clients are willing to pay a higher price for

your products and services.– Strong buyer-seller relationships increases the

likelihood that customers will share their personal information which can help you customize offerings and sell more effectively to them.

The Value in Relationships

• Define the “expected” lifetime value of your customer.

• The PARETO Principle matters.• You MUST have a database of past customer

purchases.• A profitable/unprofitable client today is an

unprofitable/profitable one tomorrow.• Consider how many referrals they give you.

RFVP: Recency, frequency, volume & profit.

Determining Customer Value

Know Your Customers

• Goal: Identify and Study Your Top 20: – Create a Profile To Match Your Top 20– Use the RFVP Profile:• Recency Of Them Doing Business With You• Frequency of Them Doing Business With

You• Volume of Business They Do With You• Profit They Contribute (conduct an ROI)

What’s a “Brand?”

Is a Brand a PROMISE?

Memorable Invaluable

Unique

Why Brands Matter

• Reduces the cost associated with searching for products internally (how much to think about them) and externally (how much to look for them)

• Define product/service qualities• Present product/service characteristics• Chance to “connect” with product maker• Sign of “perceived” quality…PRESTIGE• Help consumers organize their knowledge

about a product to clarify their decision-making and thus adds value to firms.

Brands Matter to Consumers

• Savvy customers• Brand proliferation• Media fragmentation– Cost– Clutter: 10-15 second spots join :30 & :60 spots– Fragmentation: Growth of independent stations &

cable– Technology: VCRs, Remote controls, TiVo

• Increased competition• Increased costs• Greater accountability by marketers to hit

short-term profit goals

Today’s Branding Challenges

• You achieve different outcomes from the “added value” attributed to a product as a result of marketing the brand.

• You can create value for the brand in many different ways.

• Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand.

• There are many different ways in which the value of a brand can be exhibited or exploited to benefit the firm.

Brand Equity

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The Chazin GroupSeek New Markets

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• How Long Does It Take to Follow Up on a Lead? Set a Company Policy

• Ask All Leads: How Did You Hear About Us?• Use Campaign Specific Reference Codes• Apply Unique Tel #s For Each Campaign to

Track Results• Utilize a Lead Capture/Management System

The Chazin GroupProspecting

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• Develop a Strategic Networking Plan For Identifying, Engaging and Converting Prospects

• Create a BEST Customer Profile• Launch a “Give to Get” Referral Strategy

The Chazin GroupSeek New Markets

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Where Are Your Referrals?

The Chazin Group

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• For Small Businesses New Business Comes One of 3 Ways: 50% from existing clients

35% are referrals from existing customers

15% from advertising efforts

85% of your NEW business comes from EXISTING business

The Chazin GroupThe Power of Referrals

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Expand Your Offerings

The Chazin Group

Reward, Recognize, Retain Your Top Clients

• Thank them.• Give gifts.• Discounts, coupons, special offers.• Honor outdated returns.• Encourage desired behavior.• Customer “Spotlights.”• Waive outstanding balances.

The Chazin GroupReward Them

• According to Inc. it costs 5-10X more to land a new client than it does to sell to an existing one.

• Existing clients spend 67% more than new ones.• Of the $48 billion worth of perceived value in

reward points and miles distributed by American businesses annually, 33% goes unredeemed by consumers.

• Companies lose money on time and effort, and customers get no more value from the businesses to which they are "loyal."

The Chazin GroupClient Loyalty Programs

7 Customer Loyalty Programs That Actually Add Value. Hubspot Blog, April 3, 2012

• Use a simple points system.• Tier it to encourage more client purchases.• Charge an upfront fee for VIP benefits.• Structure non-monetary benefits around

customer values.• Partner with other companies to offer all-

inclusive benefits.• Make a game out of it.• Scratch the program and offer awesome

benefits instead.

The Chazin GroupMaking Loyalty Work

• Maintain a robust database.• Keep in touch.• Encourage complaints.• Offer loyalty programs.• Do an amazing job!

The Chazin GroupClient Retention Program

• Create Action Plan to Develop Apostles:– Conduct needs assessment– Develop set of CUSTOMIZED solutions– Convince client to implement your recommendations– Review annually– Target of 12

Gaining Apostles

• Three Steps to Gaining Apostles:– Write down the names of your apostles– Write down what it takes to keep them– Write a list of clients to convert to apostles:

• 2X the Actual # Current Apostles• Follow Actions From Previous Step• Convert 50% Per Year Until Magic 12

Gaining Apostles

• Learn Your Prospect/Client’s Top Pain Points• What Challenges Do They Face• Deliver Value at Every Stage of the 4-Step Sales

Process• Exceed Their Wildest Expectations• Empower Every Employee to do the Same • Account Penetration Strategy• Create Policy of “Standards of Care”

Selling Best Practices

• Follow Customer Conversations Online• Align Sales, Marketing, & Product Management• Touch Them Several Ways• Focus Your Presentations in Their Problems• Become More Visible:– Attend Shows & Conferences– Write Articles– Facilitate Roundtables

Selling Best Practices