Presentation on theme: "‘Marketing’. Welcome Business Start-Up Programme Workshop 2 to the ‘Marketing’"— Presentation transcript:
Welcome Business Start-Up Programme Workshop 2 to the ‘Marketing’
Workshop Links Business Planning Front Page Executive Summary The Business Market Operations Finance SWOT Analysis Action Plan The Essentials Why start a business? Viability assessment Marketing Management control Legal issues Funding Marketing Product & service Place Price Promotion Finance Profit & Loss Cash flow Balance sheet
Marketing – The 4 Ps Marketing Start-up Workshops Business PlanAction PlanOn-going Support Product Place Promotion Price Be clear about what you’re selling Know your customers. Sell at a profit. Make promotion work.
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. Feed into your Promotional Message!! Product & Services Place Promotion Price Marketing Start-up Workshops Business PlanAction PlanOn-going Support
Product & Services Competitor Analysis My CompanyCompetitor 1Competitor 2Competitor 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 Price0+ 10%
Product & Services Product OfferSkills 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 OfferCustomer 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 Example: Landscape Gardener
Place Confirm that there is sufficient demand to reach your sales targets 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 Product & Services Place Promotion Price Marketing Start-up Workshops Business PlanAction PlanOn-going Support
Place – Customer Profile (B2B) Customer CharacteristicsResearch 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 - N/A Customer ExpectationsResearch 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 Example: Landscape Gardener
Place – Customer Profile (B2C) Scope of Product OfferResearch Areas - Type/Sector - Disposable income -Premises -Geography - General public - Ability to pay -Property with gardens -North West Scope of Service OfferResearch 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 - N/A Example: Landscape Gardener
Place – Locate & Quantify Customer Numbers Telephone directories/yellow pages/Thomson directories Government Council Economic Development Units/Office of National statistics Trade organisations Libraries/Press Market research organisations List brokers Information research sources: Research results Business to Business (B2B) LocationSourceNo. of CustomersNo. of Competitors Local (St Helens) Regional (Lancs.) National Internet ? 50 (www.sthelens.gov.uk) 607 (www.lancashire.gov.uk) ? 13 (www.yell.com) 100 (www.yell.com)www.yell.com ? LocationSourceNo. of CustomersNo. of Competitors Local (St Helens) Regional (Merseyside.) National Internet ? 15K (www.sthelens.gov.uk)www.sthelens.gov 462K (www.lancashire.gov)www.lancashire.gov ? 13 (yell.com) 100 (yell.com) ? Research results Business to Consumer (B2C)
Place Customer Access to Product Mail order (Catalogue/call centres) Store/your premises Internet (e-bay) Their premises. Sales representative Image/perception Cost Implications?
Price Optimise profitability keeping abreast of market conditions and being flexible in pricing. 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 Promotion Price Marketing Start-up Workshops Business PlanAction PlanOn-going Support
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
Promotion Use promotions to achieve sales targets 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 Promotion Price Marketing Start-up Workshops Business PlanAction PlanOn-going Support
Promotion – Features & Benefits FeaturesBenefits Service Offer
Promotion – Impact RemotePersonal Sales Conversion Rate (%) Remote (<1%) 10%20%30%0% Target Marketing (4-7%) Sales Rep (25-30%) Cost (£) Customer Contact Tele-sales (10-15%) WOM (>30%) Internet (1-3%) Yellow pages Mail shot Press ad SEO PPC Journal Direct Mail
Promotion – Measure Impact Promotio n 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
Keep Your Customers Customer Service: 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.
Moving on? How often should you do it ? 1.Routine 2.Budget 3.Measure Customers and competitors are ever changing. Make sure you’re always up to date. Marketing is not just advertising and selling!
Keep in touch! 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!