Marketing Definition Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. -American Marketing Association (AMA)
Marketing Definition planning and executing Marketing is about thinking before doing conception, pricing, promotion, and distribution 4 Ps of Marketing: Product, Price, Place, Promotion individual and organizational objectives Needs vs. Wants Satisfying, not creating
Marketing Objectives Thinking before doing includes asking: What do you want to achieve? How will you know when you have achieved your goal? Think S.M.A.R.T. Example of a marketing objective: To enter the Vancouver market for automobile repairs and capture 5% of the market share within one year.
Marketing Objectives How do you set a marketing objective? 1. Conduct a situational analysis to find out whats measurable, achievable, and realistic 2. Set specific goals and a time limit to achieve those goals Exercise: Take 5 minutes to think about your business and set one marketing objective.
Situational Analysis Includes Competitive Analysis, SWOT and 5 Force Analysis Competitive Analysis answers: Who are your direct and indirect competitors? Who are your main competitors and why? What advantages and disadvantages does your business have against those competitors? SWOT addresses your Strengths, Weaknesses, Opportunities, and Threats 5 Force Analysis addresses Suppliers, Buyers, New Entrants, Substitutes, and Rivalry Strong / Weak industry
Competitive Analysis Direct Competitors: Rival companies providing products / services within the same market (ex. Mars candy bars direct competitors include other candy bar manufacturers) Indirect Competitors: Companies providing products / services in a different market but are seen as an alternative choice (ex. Mars candy bars indirect competitors include chips and other snack manufacturers)
Competitive Analysis How do you decide which are your primary and secondary competitors?
SWOT Strengths and Weaknesses are INTERNAL You have control over what happens Opportunities and Threats are EXTERNAL You do NOT have control over what happens
SWOT Example New software development firm Strength: Staff includes a team of the nations 10 top computer engineers (for a software development firm). Weakness: No brand awareness as a new market entrant. Opportunity: Canadian government is providing each new software development firm up to $500,000 in interest-free loans. Threat: Several competing well-known software development firms in Canada including companies x, y and z.
SWOT Exercise Create a SWOT analysis for McDonalds 4 groups – 2 teams / group Point-form 5 points for each category Focus on the main strengths, weaknesses, opportunities, and threats 15 minutes
Target Markets Target Market: the specific group of customers that a company aims to capture. They have been identified as people with needs or wants that can be met with the products or services from this company. Why does a company specify a target market? How does a company define a target market?
Target Market Segmentation Demographics – segregation by demographic variables (ex. age, gender, family size) Psychographics – segregation by lifestyle, personality, culture, social class (ex. VALS – Values and Lifestyles) Geographics – segregation by geographic location (ex. city, neighbourhood) Socio-Economic Status – segregation by income, education, occupation (sometimes this information is categorized as demographics or psychographics)
Target Market Exercise Define your business target market Include: Demographics (ex. age, gender, family size) Psychographics (lifestyle, personality, culture, social class) Geographics (ex. city, neighbourhood) 5 minutes
4Ps of Marketing Product: What are you selling? Price: How much are you charging? Place: Where / How are you going to sell your product / service? Promotion: How are you going to get people interested? The What, Where, and How are dependent on Who youre targeting.
Unique Selling Points What separates your product / service from your competitors? Why should a customer purchase from you rather than a competitor? Can be seen in the product itself and the place where the product is available but usually seen in the way the product is promoted – product positioning (ex. Coca Cola)
Chocolate Exercise Your team has decided to sell chocolate in the GVRD. Your task is to: Develop (a) chocolate product(s) Decide where and when to sell your product(s) Define your target market Identify your main competitors Identify your unique selling proposition 30 minutes A team representative will present your decisions.
The 10 Step Selling Process 1. Prospecting 2. Pre-approach 3. Approach 4. Presentation 5. Trial Close 6. Determine Objections 7. Meet Objections 8. Trial Close 9. Close 10. Follow-up
Prospecting Lead Names of people who may want to buy your product Where can you find leads? Referrals Cold/warm calling Trade shows Web sites List and directories
Prospecting Qualified Prospect Ask if this person is MAD? Money to buy? Authority to buy? Desire to buy? How do you tell if someone is MAD? Ask the referral Research their company Know the industry Speak with non-competing salespeople
Prospecting 3 Criteria of Prospecting 1. Customize 2. Concentrate 3. Call back Goal Setting 1. Leads called per day 2. Prospects called & appointments made 3. Appointments/sales made
Pre-approach Planning your sales call and presentation Builds confidence Develops goodwill Creates professionalism Increases sales Be a strategic problem solver Understand needs, develop creative solutions, arrive at a mutually beneficial agreement
Pre-approach Sales Call Planning 1. Call objective (specific, measurable, beneficial) 2. Research customer and create profile 3. Develop customer benefit plan (FAB statements) 4. Plan sales presentation
FAB Statements FAB stands for Features Tangible or intangible characteristics Advantages Performance characteristics Benefits What it can do for the customer Your unique selling proposition (USP)
Sales Call Planning Exercise Youre going on your first sales call selling the Nintendo Wii/Playstation 3/XBOX 360 to Future Shop. Plan your sales call by writing down a script. Introduce yourself and your company State the purpose of the call Respond to: I dont think I need it Ask for the meeting, reinforcing benefits Confirm any other details 10 minutes A team representative will present your decisions.
Approach 3 Objectives of the Approach 1. Build rapport 2. Capture buyers attention 3. Generate interest You have to prove you are worth the prospects time and attention!
Approach Customize your approach to the customer 1. Introductory 2. Complimentary 3. Referral 4. Premium 5. Product 6. Showmanship 7. Customer Benefit 8. Curiosity 9. Opinion or Survey 10. Shock
Approach Active Listening Show genuine interest Clarifying questions Let the prospect talk Eye contact Types of Questions 1. Information Gathering 2. Probing 3. Confirmation 4. Summary
Presentation Customer Benefit Plan 1. FABs 2. Marketing plan Resell/use Non-product FABs 3. Business proposition Value/cost Payment terms
Presentation The Sales Presentation Mix 1. Persuasive Communication Logical reasoning, suggestions, trial closes 2. Prospect Participation 3. Evidence Statements 4. Visual Aids 5. Dramatization 6. Demonstrations
Trial Close Determines how close the prospect is to buying Salesperson is asking for an opinion What do you think so far? Can you see how this might improve your sales? Attempt when the prospect gives you a signal that he/she is interested in your product Use it early and often
Determine Objections Objections are opposition or resistance to information or to the salespersons request Welcome objections! Occur at any time and often Usually you should handle objections as they occur, but sometimes you need to postpone objections
Determine Objections Types of Objections 1. Stalling (No Hurry) 2. No Need 3. No Money 4. No Confidence 5. Hidden
Meet Objections 4 Steps to Handling Objections 1. Acknowledge 2. Identify and Clarify 3. Meet the Objections 1. Postpone 2. Anticipate 3. Boomerang 4. Condition of Sale 5. Direct Denial 6. Indirect Denial 7. Third Party Answers 4. Trial Close
Trial Close At this point of your sales call, you would use another trial close to see if your prospect still has questions or concerns about your product/service. If they do not, you can attempt to close the sale!
Close Definitive request of the order Close when buyer is in conviction stage Earn the right to close Ask for order and be silent Closing Clues 1. Verbal 2. Nonverbal
Close Closing Techniques 1. Alternative Choice 2. Assumptive 3. Compliment 4. Summary of Benefits 5. Balance Sheet 6. Urgency 7. Premium 8. Puppy Dog 9. Direct Appeal
Follow-up Creates goodwill and opens doors Contact customers frequently and regularly Promptly handle complaints Always do what you say you will do Sincerely thank the customers
Coffee Shop Exercise Your team has just opened a new coffee shop downtown across from a Starbucks. You offer the same drinks at the same prices. Develop a basic marketing campaign outline. Think of the 4 th P: Promotion. $5,000 marketing campaign budget Advertisement in local paper costs $1,000 Direct mail to local homes costs $2,000 + any sales promotion costs (ex. coupon for $x off) Cost to hire a street team member is $15 / hour Tip: Think of one Big Idea 30 Minutes A team representative will present your decisions.
Marketing Research Qualitative Research Quantitative Research Primary vs. Secondary Research
Marketing Career Opportunities Agency: Marketing, Creative, Advertising Creative, Direct Marketing, Sales Promotion, Internet Marketing, Public Relations, International Marketing, Branding & Design, Client-Side: In-House Marketing Team, Marketing Representative Marketing Research Database Marketing Public Relations Firms Event Marketing …and the list goes on!