Introduction to Entrepreneurship: Know How to Sell Stuff By: Venture Highway

Objectives Discuss the importance of crafting an effective marketing message Describe the marketing activities entrepreneurs can use to get their message out Describe the cost effective strategies used to market ideas Introduce sales strategies used to generate revenue Describe the meaning and importance of customer lifetime value

The Secrete of Good Messaging Know How to Sell Stuff Section 1: Craft Your Message The Secrete of Good Messaging The secret of good messaging isn’t really a secret. But it is harder to do than it sounds. Effective marketing messages are: Focused on the target market Simple and easy to remember Good at conveying specific value or benefits Good at connecting customers to a company New Message Share an example of effective entrepreneurs who are great at delivering messages about their products. Use the iPod and Steve Jobs example from section 9.1 of the course notes. Show the video example as well.

The Secrete of Good Messaging Know How to Sell Stuff Section 1: Craft Your Message The Secrete of Good Messaging Example: Let’s think about Apple iPod’s introductory messaging of “1,000 Songs in Your Pocket” when it first entered the mp3 market. Did it meet the criteria of an effective marketing message? Apple didn’t just want to reach people who knew what MP3s were, they wanted to engage music lovers 1,000 songs in your pocket is so simple and easy to remember that most people still do, even though it’s been over ten years since the iPod was introduced

Engage in Marketing Activities Know How to Sell Stuff Section 2: Get The Word Out Engage in Marketing Activities Once you figure out your value proposition, you have to get the word out to your target market. Marketing activities include: Website, Videos, podcasts, Advertisements, Articles, Blogs, Emails, Brochures, Catalogs, Event and Tradeshows Discuss the importance of engaging in activities to get the word out about your business.

Engage in Marketing Activities Know How to Sell Stuff Section 2: Get The Word Out Engage in Marketing Activities Good marketing, regardless of the activity chosen will: Convey what the product is Highlight its value proposition Let potential customers know where to either purchase it or get more information about it

Know How to Sale Stuff Section 2: Get The Word Out Marketing Mix The number and type of marketing activities you choose to engage in is often called a “marketing mix.” The amount of money you have to spend is often a big determinant of marketing mix. Describe how a “marketing mix” strategy could be beneficial for an entrepreneur. Reference the article “7 P’s of a Marketing Mix“ article in section 9.2 of the course notes.

Cost Effective Marketing Know How to Sale Stuff Section 2: Get The Word Out Cost Effective Marketing Other cost effective strategies to market ideas include: Networking Word of mouth Social Networking SMS Marketing Business Cards Discussion Forums Expound upon each cost effective strategy used in marketing. Reference the notes below from section 9.2. Cost Effective Strategies to Market Ideas Networking: Engage in conversations with others and regularly keep in touch with people you meet. Word-of-Mouth: Offer your existing clients incentives for introducing new customers to your products and services. Social Networks: Manage no more than 2-3 online social networks that reaches your target audience. SMS Marketing: Utilize SMS (short message service) within mobile communications, a website, and other web based applications that will give business updates to your customers. Business Cards: A business card is somewhat of an older method for message delivery, but still an effective means for getting the word out. Discussion Forums: Participating in online industry discussion forums are good strategies for spreading the word about your business.

Know How to Sell Stuff Section 3: Sales Strategies Making The Sale Once a potential customer hears about your product they’ll take steps to check it out in more detail. For example: They may come to your store They may browse your website Your marketing strategies may prompt customers to make a sale. Discuss how various marketing strategies puts entrepreneurs in a position to make a sale.

Know How to Sell Stuff Section 3: Sales Strategies Channels and Process Two factors which will make a big difference in how many sales you are able to make are sales channel and sales process. See the next slide for details.

Know How to Sell Stuff Section 3: Sales Strategies Channels and Process The sales channel is the path by which an organization offers products and services to its customers and generates revenue for the business. The sales process is the methodology used to sale products and services, but should be differentiated from marketing. Describe the sales channel and sales process in detail. Engage in a conversation about each. Reference the notes listed in section 9.3 of the course outline.

Know How to Sell Stuff Section 3: Sales Strategies 7 Stage Sales Process Davies (2010) advances a (7) stage sales process that includes: Understanding customer demands Developing a solution: Evaluating the solution with the customer Negotiation and contracts Deals lost along the way Closing the deal Building a sales funnel Discuss the importance of each stage within the sales process. Also, discuss remind the class that some companies may use fewer steps in their process and that entrepreneurs may be responsible for all steps in the process due to lack of resources as a new business. For instance, Starbucks is a well established company and has a wealth of resources available to use. Reference the detailed notes in section 9.3, as well as the video link listed.

Know How to Sell Stuff Section 4: Customer Lifetime Value Customer Loyalty A business owner doesn’t want a customer to buy just once. You want them to buy again and again so that you can recoup the initial cost of getting them to buy just once. Entrepreneurs should look at the lifetime value of a customer. Engage in a class conversation about the importance of customer loyalty and why this should be a goal for entrepreneurs. Describe some of the current customer loyalty programs that local companies may use. For example, grocery stores or repair shops.

Know How to Sell Stuff Section 4: Customer Lifetime Value What is Customer Lifetime Value? Customer lifetime value is the worth of a customer over the lifetime of their relationship with a company. Example: A company wants to build a long-term relationship with customers. They may offer loyalty incentives or other discount for repeat customers. Discuss the importance of the customer lifetime value. Reference the notes in section 9.4, as well as the video link to reinforce your arguments. You may want to show the infographic example for Starbucks.