1. ‘Marketing’

2. Business Start-Up Programme
Welcome
to the
Business Start-Up Programme
Workshop 2
‘Marketing’
Your Notes
_____________________________________________________________________

3. Workshop Links Business Planning The Essentials Front Page
Why start a business?
Viability assessment
Marketing
Management control
Legal issues
Funding
Business Planning
Front Page
Executive Summary
The Business
Market
Operations
Finance
SWOT Analysis
Action Plan
Marketing
Product & service
Place
Price
Promotion
Your Notes
_____________________________________________________________________
Finance
Profit & Loss
Cash flow
Balance sheet

4. Product Place Price Promotion Marketing – The 4 Ps
Start-up Workshops
Marketing
Business Plan
Action Plan
On-going Support
Product
Be clear about what you’re selling
Know your customers.
Sell at a profit.
Make promotion work.
Place
Price
Your Notes
_____________________________________________________________________
Promotion

5. Product & Services Promotional Message!! Product & Services Place
Start-up Workshops
Marketing
Business Plan
Action Plan
On-going Support
Product & Services
Have a clear idea about your product & service offer.
Think about what the customer is buying, not what you’re selling.
Ensure you have the skills to provide both product and service.
Look for unique selling points to differentiate from your competitors
Protect something Unique.
Place
Price
Your Notes
_____________________________________________________________________
Promotion
Feed into your
Promotional Message!!

6. Product & Services Competitor Analysis
My Company
Competitor 1
Competitor 2
Competitor 3
Strengths
- Qualified
- Market Knowledge
- Data base
- Established
- Market knowledge
- Contract customers
Weaknesses
- Job costing
- Financial Mgt.
- Not known
- Selling
- Capacity
- Complacent
- Customer service
- Bad reputation
- Dissatisfied workers
Price
+ 10%
Your Notes
_____________________________________________________________________

7. Product & Services Example: Landscape Gardener Product Offer
Skills Needed
- Design
- Building/paving
- Installation of electrical power
- Horticulture
- Garden maintenance
- Design software
- Planning Legislation
- Legislation, approvals
- Planning (Listed Trees etc)
- Knowledge of plants etc
Service Offer
Customer Requirements
- Responsive
- Accessible
- Reliable
- Flexible
- Value for money
- Warranty
- Quote request followed within 24hrs
- 24/7
- Turn up & deliver as promised
- Exceed their expectations
- Quality
- Peace of mind
Your Notes
_____________________________________________________________________

8. Confirm that there is sufficient demand to reach your sales targets
Place
Start-up Workshops
Marketing
Business Plan
Action Plan
On-going Support
Product & Services
Profile the characteristics of your customers
Understand your customer’s expectations
Locate and quantify the number of your potential customers and competitors
Know your market share
Confirm how your customers will access your product
Place
Price
Your Notes
_____________________________________________________________________
Promotion
Confirm that there is sufficient demand to reach your sales targets

9. Place – Customer Profile (B2B)
Example: Landscape Gardener
Customer Characteristics
Research Areas
- Type/Sector
- Annual Sales
- Profitability/credit rating
- Number of employees
- Premises
- Standard Industry Classification (SIC code)
- Schools/Councils/Businesses
- Profitable/Busy
- Capable of paying bills
- N/A
- Premises with grounds
Customer Expectations
Research Areas
- Accreditations
- Contracts
- Licences
- Standards
- Buying behaviour
- Legislation
- Electronic trading
- Horticultural/ building qualifications
- Terms & conditions of trade
- N/A
- Professional (presentation/image)
- Frequency of purchase
- Health and safety/insurance
- On-line orders/invoices/direct banking
Your Notes
_____________________________________________________________________

10. Place – Customer Profile (B2C)
Example: Landscape Gardener
Scope of Product Offer
Research Areas
- Type/Sector
- Disposable income
Premises
Geography
- General public
- Ability to pay
Property with gardens
North West
Scope of Service Offer
Research Areas
- Accreditations
- Contracts
- Licences
- Standards
- Buying behaviour
- Legislation
- Electronic trading
- Qualified
- Terms & conditions of trade
- N/A
- Professional (presentation/image)
- Frequency of purchase
- Health and safety/insurance
Your Notes
_____________________________________________________________________

11. Place – Locate & Quantify Customer Numbers
Information research sources:
Telephone directories/yellow pages/Thomson directories
Government Council Economic Development Units/Office of National statistics
Trade organisations
Libraries/Press
Market research organisations
List brokers
Research results Business to Business (B2B)
Location
Source
No. of Customers
No. of Competitors
Local (St Helens)
Regional (Lancs.)
National
Internet ?
50 (
607 (
13 (
100 (
Research results Business to Consumer (B2C)
Location
Source
No. of Customers
No. of Competitors
Local (St Helens)
Regional (Merseyside.)
National
Internet ?
15K (
462K (
13 (yell.com)
100 (yell.com)
Your Notes
_____________________________________________________________________

12. Place Customer Access to Product
Mail order (Catalogue/call centres)
Store/your premises
Internet (e-bay)
Their premises.
Sales representative
Image/perception
Your Notes
_____________________________________________________________________
Cost Implications?

13. Price Product & Services Place Price Promotion
Start-up Workshops
Marketing
Business Plan
Action Plan
On-going Support
Understand market conditions in relation to supply and demand.
Check what your customer is prepared to pay.
Check competitor pricing.
Know your break even and cover your costs
Add premium for added value.
Monitor conversion rates from quotes to orders.
Product & Services
Place
Price
Your Notes
_____________________________________________________________________
Promotion
Optimise profitability keeping abreast of market conditions and being flexible in pricing.

14. Price – Break Even & Cost Plus
Calculating Break Even:
By Value :
Total Overhead (Fixed Costs) ÷ Gross Profit %
£25000 ÷ 45%
Break even sales = £55,556
By Number of Orders:
Break even sales - £55,556
Average order value £10
Break even unit sales = 5555 units
Calculating Cost Plus:
Labour cost +
Material Cost
Overhead Charge =
Total cost
Profit
Selling Price
Your Notes
_____________________________________________________________________

15. Use promotions to achieve sales targets
Start-up Workshops
Marketing
Business Plan
Action Plan
On-going Support
Use a clear message, emphasise product and service features and benefits
Use unique selling points in promotional materials
Use logos and branding to give a professional image
Check competitor promotional methods
Work within budgets
Monitor the impact and return on investment
Product & Services
Place
Price
Your Notes
_____________________________________________________________________
Promotion
Use promotions to achieve sales targets

16. Promotion – Features & Benefits
Service Offer
Your Notes
_____________________________________________________________________

17. Sales Conversion Rate (%)
Promotion – Impact
Customer Contact
Remote
Personal
Cost (£)
Sales Conversion Rate (%) 0%
10%
20%
30%
Your Notes
_____________________________________________________________________
Remote
(<1%)
Internet
(1-3%)
Target Marketing
(4-7%)
Tele-sales (10-15%)
Sales Rep (25-30%)
WOM (>30%)
Yellow pages
Mail shot
Press ad
SEO
PPC
Journal
Direct Mail

18. Promotion – Work With Budgets
Campaign
Details
Costs
Circulation
Conversion
Enquiry
Cost / enquiry
Remote
Local Press
4 line
£100
25K
< 1%
0 - 25
£ £100
Tele-sales
Cold Calling
List
£58 / day
50 / day
10% - 15%
5 - 7
£4 - £6
Sales
Sales Rep.
Appt.
£135 / day
6 / day
25% - 30%
2 – 3
£46 - £67
Your Notes
_____________________________________________________________________
Target
Direct Mail
£870 1K
4% - 7%
£12 - £21

19. Promotion – Measure Impact
Request for quotation
Build estimate & send quotation
Customer order decision
Plan & deliver promotion campaign:
Decide on budget.
Calculate no. of contacts to achieve sales targets
Identify target customers
Decide on promotional method
Set up data base to monitor response.
Record customer response:
Record date,
Customer,
Contact details,
Nature of request
Record your response:
Record date quote sent, product information and cost
Record customer response:
Record date of order decision.
Use Impact Reports:
Time taken for each stage of the process.
Number and value of request for quotations
Number, value and frequency of orders.
Conversion rates for contact to request for quote and placement of order
Average value of quotes and orders/£1 of promotional cost
Your Notes
_____________________________________________________________________

20. Keep Your Customers Customer Service: Getting one new customer costs
Be responsive
Understand their requirements and working methods
Do what you promise and exceed their expectations
Look after them and solve their problems
The answer is yes- now what was the problem
Getting one new customer costs
much more than the cost of
keeping an existing one.
Your Notes
_____________________________________________________________________

21. Moving on? Marketing is not just advertising and selling!
How often should you do it ?
Routine
Budget
Measure
Customers and competitors are ever changing.
Make sure you’re always up to date.
Your Notes
_____________________________________________________________________

22. Keep in touch with each other, chat and network on Linked in.
Join the ‘Business Start Up Group’ and then join ‘The Workshop Group’ subgroup to keep in touch!