Marketing and Sales for Small Businesses How to spend your available funds wisely Bob Goedjen Silicon Valley SCORE

Marketing & Sales Overview  This segment will explain how to create a marketing plan and how selling is done  Elements of a Marketing Plan  Knowing your customers and their needs  Knowing your product’s or service’s value  Creating the marketing strategy  Creating the support tools  Budgeting and forecasting  Executing your sales plan

Who Are your customers going to be? Where Are they located? When Do they decide to buy your product or service? Why Do they “need” your product or service? How Will you find them or they find you? What Is your product or service worth? Do they have the resources to pay for it? Market Planning HIGH LEVEL VIEW

Marketing Plan  General description of your service or product  Customers; The specific ones you will focus on.  What issue/need do you solve/provide for them? (does it save time/money, make them happier?) Valuing your product/service. (price)  Competition; What alternatives do your customers have or who else can provide your solution to your customers?  How do you plan to reach them? (strategy)  A Marketing budget by month and sales forecast 

Your Focus Customers Demographics  Location, occupation, gender, ethnicity, income, hobbies, recreation, age, etc.  How many potential focus customers/orders are there? This becomes your “Served Market”  Are they “End Users” ? (if not also describe the “End Users”)  How, where, and when do they look for your products or services?  Low hanging fruit! Your first targets!

What is your Message? WWhen You provide a service: CCustomer needs assurance and you need credibility RReferences (from satisfied clients) LLicenses CCertifications DDetail description of what will be done and the time required as well as support you require of client GGuarantees LLiability Insurance

WWhen You provide a product: CCustomer is concerned about: PPerformance QQuality and reliability DDelivery PPrice or cost of ownership IIs price competitive? WWhat if it doesn’t work? OOptions of leasing, renting, return etc.

Can your customers understand it?

Pricing - How much do I charge?  How much value does the customer perceive?  Why do you need a price schedule?  What about payment terms? Up front charge?  Guarantees, policies on returns,  Discounts, Sales, introductory offers?  Lowering your price is always easier than raising!  Warning: PRICE may define VALUE in your customer’s mind

Tools to reach your target customers WWord of Mouth SShows, conventions, fairs, associations MMailers, brochures, business cards, PPromotions, free samples SSignage on your store or location! PPublic Relations, Articles mentioning your company AAlliances and referals AAdvertisements, listings SSalesmen, distributors, retail outlets, catalogs, web sites RRepetition! Help everyone remember your name or brand

Strategic Partnerships Must be WIN-WIN  Joint Product Development & Offerings  Special Joint Promotions  Joint trade show participation  Web site links, combined customer databases  Cross Market Selling  Literature  International partnerships  Combined shipping or other support activities

Marketing Revenue and Expense Budgeting  Marketing is responsible for forecasting sales! (by month)  Marketing is responsible for planning expenses (by month)  A very critical part of your business planning!

SALES Managing your program  Types of sales:  Business to Business selling  Business to Consumer selling  In store selling (Retail stores)  6 biggest mistakes made by sales persons

Preparation Is Key to Success  You have a marketing plan:  You have defined your potential customers Their Location, demographics, etc.  You know your product or service features  You have a price schedule, terms and conditions  You know who is your competition and their weaknesses  Your employees are trained & customer oriented?  You are ready to unleash a sales program!

Can Anybody Be a Successful Sales Person?  The Short Answer is Certainly!  Preparation (know your product/service description)  Positive Attitude of Confidence and Belief in what you are offering  Persistence  Practice your product/service description  Do not take Loss of Sale Personally (learn from every sale and lost sale) listen to your customer

Prospect Mining  Sales work is inefficient at best.  One on one sales time often is 20% or less of a full time sales person’s time  Optimize your time by filtering through lists of possible customers:  Take prospective customer lists and prune them for best chances  Plan visits to minimize travel and wait time  Follow up by phone if possible

Retaining Customers, Getting Them to Refer You to Others  Give them a bit more than they expect  Set proper and accurate expectations  Give them something more  Always ask for feedback and learn from it and ask for referrals if appropriate.  Leave your business card and brochure with them. Thank them for their business.  Follow up in weeks with thank you card  Consider an regular newsletter

Making the SALE  Be friendly, nice and sincerely interested in your customer  Emphasize benefits of buying and owning  Minimize natural buyer’s reluctance to make purchase decision  Money back or return privileges  Product or Price may not be available later  Guarantees, warrantees, assurances  Financing or credit

B to B versus B to C selling  More long term repeat relationships B to B  Dollar value per sale usually much larger  Investment in sales process longer and requires more time/cost investment  Buyer is usually more task orientated  Purchase is more planned and less impulsive  Decision sometimes made by more than one person and sometimes by a team

In Store Selling  Remember the purpose of stores is to make it convenient for customers to find, visit, see, learn and buy merchandise or services free of hassle, noise, delays, and frustration.  Therefore, customer service is number 1  Other attributes include: Clean, bright, well lighted building, easy to find merchandise, cheerful knowledgeable assistants, adequate inventories, recognition of repeat and good customers  Or Buy it on the Internet

Stores are for Convenience

Six Biggest Sales Mistakes 1.Sales person appears too much in a hurry (not listening to customer)  Customer will become defensive if rushed 2.Sales person is late to appointment, does not return calls or appears distracted. 3.Sales person not familiar with customer’s application 4.Quotation is not responsive to customer’s RFQ.

Six Biggest Sales Mistakes (Continued) 5.Sales person disagrees with customer  Customer is always “right” even when wrong  Customer may not have communicated well enough or miss-understood sales person  May be testing if sales really is interested in the customer’s business  Consider cost of being right but not getting sale. 6. Sales person continues to sell after getting customer’s decision to buy

Secrets of Successful Selling Good Planning and Persistence  Questions are often the best selling tool  When visit does not result in an immediate sale provide an excuse to see customer again  Ask the customer for names of others that might need product or service  Follow up and continue to show interest in customer as well as sale.

Silicon Valley SCORE

Who are we ?

Where are we ? Workshops and Seminars at 84 W. Santa Clara St., Suite 100 San Jose, CA Counseling Sites at Entrepreneur Center Many local Chambers of Commerce Web Page:

What can we do for you ?  One-on-One Counseling (unlimited number by appointment) no charge  Individual Counseling, normally two counselors for each client  Counseling, nationwide  Business Site Counseling  Business Assessment Program

What areas do we counsel?  Strategic & Tactical Business Planning  Marketing & Selling  Managing Programs  Reviewing Financial Data  Keeping Records

What areas do we counsel?  Hiring Personnel  Managing Staff & Volunteers  Serving Clients  Raising Funds  Writing and Obtaining Grants  We do not offer legal advice but may help you find such advice

What Training is available?  Startup/Existing Business Workshop  Nonprofit Workshop  Consulting & Contracts  Business Planning  Franchising  Taxes  10 Rules for Business  Cash Flow & Finances