1. New Mexico Broadband Program Internet Tools for Small Business Success
Module 4
Introduction to Online Marketing

2. Internet Tools for Small Business Success Class Series
Search Engine Optimization
E-Commerce
Intro to Social Media Marketing
Facebook & Twitter
Social Media Administration
Linked In
Terminology & Planning
Communication & Collaboration
Accounting & Finance
Introduction to Online Marketing
E-Newsletters
Websites & Blogs
This module is the fourth in a series of twelve classes that teach how to use Internet tools to increase the success of a small business.

3. Primary Business Components
Planning
Operations
Accounting & Finance
Sales & Marketing
Hiring
Accounting
& Finance
Operations
Planning
The twelve classes are structured around the five major components involved in running a small business.
These five major components are: Planning, Operations, Finance and Accounting, Sales and Marketing, and Hiring. Each of the 12 modules in this training series falls under one of these categories.
This module is the fourth in the series and it falls under the Sales and Marketing component. This module is an Introduction to Online Marketing and it provides a basic overview of marketing, describes the differences between traditional marketing methods and online marketing, and offers some basic tips for online marketing.
Management & Hiring
Marketing
& Sales

4. Terminology Discussion & Demonstrations How This Class Works
This class will cover terminology and offers a combination of discussions, demonstrations, and hands-on exercises.
Hands-on Exercises

5. Class Framework Divided into Core Business Elements
Internet Tools for each Element
Terminology
Realm of tools
Choosing the right tool for your business
Getting Started

6. Today’s Class Goals Understand basic marketing terminology and
concepts
Review the 4 P’s of marketing and how they
are affected by online marketing
Begin the online marketing section of your
business plan
Write your online marketing
description
Learn basic online marketing tips
Here are the goals for today’s class.

7. Terminology
Marketing The process by which companies determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development.
First, let’s talk about the definition of marketing.

8. Terminology
Customer
A current or potential buyer or user of the products or services of an individual or organization, called the supplier, seller, or vendor.
Here is the definition of a customer.

9. Competition Rivalry in business for customers or markets.
Terminology
Competition Rivalry in business for customers or markets.
Companies that offer the same or similar products as you do are your competitors. When you decide to market and/or sell your products over the Internet, your competition expands exponentially.
Many companies think that they have no competition – that the product or service they offer is completely unique and that customers will see it the same way. This is almost never the case.
Think about all the words customers may use to describe your product or service, and type a few of them into Google and hit return to search for results. All of the results are your competition, at least your competition in the minds of your potential customers.

10. Thinking about your competition
Using the Internet and the handout provided, name six competitors and list their websites, and any social media sites such as Facebook or Twitter. Competitor Website Social Media 1.) 2.) 3.) 4.) 5.) 6.)
As mentioned on the previous slide, think about all the words customers may use to describe your product or service. Type a few of them into Google search box and hit return. All of the results are your competition, or at least your competition as viewed by the minds of your potential customers.
(Instructor note: Give students the handout where they can list six of their competitors, their competitors website addresses, and any social media marketing such as Facebook or Twitter). Tell students that they can look up this information on the internet using a search engine. The best way for them to start is to type in search terms for the products or services that they are offering. The search results are their online competition).

11. Distribution Strategy
Terminology
Distribution Strategy
The process of making a product or service available for use or consumption
by a consumer
or business user.
Now, let’s go back an talk about a few more terms.
A distribution strategy defines how you are going to create and satisfy demand for your products, how you are going to move products from point of creation to points of consumption, in a cost-effective manner, and how you are going to manage your brand.

12. “Marketing creates meaningful relationships.”
The Marketing Process
Marketing:
1.) identifies likely customers
2.) reaches likely customers where they already are
3.) offers customers a value exchange
4.) delivers and satisfies or dissatisfies
5.) Repeat
“Marketing creates meaningful relationships.”
The process of marketing is the same whether you are using traditional marketing methods such as newspaper ads, flyers, radio, or TV spots, or whether you are using electronic newsletters, blogs, or Facebook.

13. Terminology Target Market
A Target Market is the specific group of consumers
to which a company wants to sell
its products and services
and to whom it directs
its marketing efforts.
Not all products and services are meant for all types of consumers. A Target Market is the specific set of consumers a company wants to sell its products and services to, and to whom it directs its marketing efforts.

14. Terminology
Targeted Segments Groups of people separated by distinguishable and noticeable aspects.
Getting a detailed picture of who you will be selling to is a good starting point when thinking about an online marketing strategy. Specific sets of consumers (target market) can be further subdivided into targeted segments. These segments include geographic, socio-economic, psychographic, and behavioral.

15. Target markets can be separated into these segments:
geographic - where they are located
demographic/socio-economic -people of similar gender, age, income occupation, education, sex, household size, age, and stage in the family life cycle
psychographic - similar attitudes, values, and lifestyles
behavioral - occasions, degree of loyalty, relationship to a product
Getting a detailed picture of who you will be selling to is a good starting point when thinking about an online marketing strategy. Specific sets of consumers (target market) can be further subdivided into targeted segments. These segments include geographic, socio-economic, psychographic, and behavioral.

16. Sales and Marketing Strategies
The 4 P’s of marketing and how they are affected by online marketing
(Instructor Note: When this slide comes up, ask the class if anyone knows the “4P’s of Marketing). Once you get some answers, click again and a graphic showing the 4P’s will come up.)

17. 4P’s Online Considerations
Product
You may need a different product mix
Price
Heavy price competition
Place
You can choose: NO online sales, SOME online sales, ONLY online sales
Promotion
New marketing METHODS, but that’s all they are
The PRODUCTS you sell in your store or from your office, may not be the same ones you sell online. For example, there may not be much demand for a very low cost item that you will cost more to ship than the cost of the item.
Online sales opens a world of opportunities, but it also opens up a world of competition. There is heavy PRICE competition online and you have to be aware of the prices your competitors charge in exchange for the value they offer the customer. Price competition is heaviest where the product or service you are offering is the same as offered elsewhere. For example, if you are selling white t-shirts, you will have more competition that if you are selling a one-of-a-kind painted t-shirts.
When considering selling products and services over the Internet, you need to consider the PLACES you will sell. You can choose to sell only out of “brick and mortar” stores and/or at live event such as trade shows and art fairs, only over the internet, or you can combine both of these. Keep in mind that creating and maintaining an Internet store AND a brick and mortar store requires twice as much effort.
Online PROMOTION is a new marketing method, but that’s all it is – learning to work with new tools. The basic marketing concepts remain the same.

18. Marketing Plan A roadmap Your target market
Your target segment or customer
Your product’s value to your target customer
How you will convey this value to your customers
How you will delight them
Repeat sales
If you don’t have a marketing plan, now’s a good time to begin one. If you already have a marketing plan that includes “traditional” marketing methods, it’s a good idea to update it when you decide to add online promotion and social media marketing to the mix.
A marketing plan helps you to determine your “target” market, that is, who is most likely to buy your product, how to find them, and how to differentiate your product or service so that it stands out your competition.

19. Beginning your Marketing Plan
Using the handout provided:
1. Describe your TARGET MARKETS. Give specific demographic or other segmentation information.
2. Explain your VALUE PROPOSITION. A VALUE PROPOSITION explains why someone should buy from your company rather than another one.
Remember the slide with the Market Segmentation information? In the first part of this exercise, please describe your target market.
Who will buy your product and how are they segmented?
Where do they live? Are they active online?
What do they do online? What is their income level?
For example, if you design and manufacture high-end children’s clothes for fancy events, who will buy your product? Are they more likely to live in big cities, or in rural areas? Are your customers more likely to make a high income? What lifestyles are they likely to have? What type of behavior do they exhibit? Are they more likely to go to the theater and symphonies or to the movies?
• geographic- where they are located
• demographic/socio-economic – people of similar gender, age, income occupation, education, sex, household size, age, and stage in the family life cycle
• psychographic - similar attitudes, values, and lifestyles
• behavioral - occasions, degree of loyalty, relationship to a product
(Instructor note: Ask a few people in class to volunteer to read what they’ve written).

20. Online Promotion Tools
Contact list or database
Photographs
Electronic Newsletters
Websites
Blogs
Here are a some basic ways to market your products and services online.

21. Where will you reach your customers?
Print media
1.)
2.)
3.)
4.)
Online media
1.)
2.)
3.)
4.)
Using the handout provided, list the marketing methods you will use to reach your target market. Online marketing methods to choose from are:
Websites, blogs, Facebook, Twitter, electronic newsletters, , YouTube, etc. You may not know enough about some of these tools yet, so take your best guess. We will be talking about specific online marketing tools in upcoming classes.

22. How much will you spend? Print media 1.) 2.) 3.) 4.) Online media 1.)
Using the handout provided, list how much you plan on spending on each of the marketing methods you listed in the previous exercise.
If you are already in business, how much money did you spend on marketing last year?
Did you place ads in the newspaper? On TV or the radio?
If you want to add some new online marketing methods to your plan such as creating a website, will you add more money to your marketing budget?
Or, will you replace a marketing method you are using now in order to pay for the cost of the website?
If you are starting a new business, estimate the total amount of money you plan to spend on marketing each year.

23. Basic Promotion Tips
Know your audience and remember to reach them “where they are”
As you continue the classes in this series and you learn about websites, blogs, and different types of social media, be thinking about which of these tools will appeal to target market (customers).
For example, if you sell a product that seniors purchase, you may not want to spend a lot of time or money on social media marketing. However, if your product or service is for seniors, but it’s something THEIR CHILDREN will buy for them, such as senior care facilities, your target market is to the children of seniors, then they are probably of an age to be Internet saavy and you will want to think about using social media marketing.

24. . Basic Promotion Tips Be consistent in your look and message Words
Logo
Colors
Consistency in your look and your message is called Branding. Remember that it’s better to create and use one message – like McDonalds uses “I’m loving it” than many messages. Also remember to use one logo and color scheme. For example, when you see a golden arch, don’t you automatically think of McDonalds?

25. Gather testimonials & email addresses.
Basic Promotion Tips
Gather testimonials & addresses
Nothing is more powerful than a testimonial or success story from someone that has is happy with or has benefited from your product or service. Don’t forget to gather testimonials from happy customers. If you are going to quote them and use their name, you will need to ask for their permission to do so.
Also, don’t forget to gather addresses. This is equivalent to the old way of gathering names and addresses for a mailing list. You must ask for permission to send marketing s to your customers or potential customers, otherwise it is considered “spam”. We will talk more about the “dos and don’ts” of marketing in the E-Newsletter module.

26. Talk to an Expert, Join Now, Go to our website
Basic Promotion Tips
Create calls to action
A basic marketing concept that people tend to forget is the CALL TO ACTION.
While you have your prospect ‘s attention, ASK THEM TO DO SOMETHING! A call to action promotes a sense of urgency. Here are some examples of calls to action. Every type of marketing, whether it is a radio or TV ad, a newspaper ad, or a promotion in an electronic newsletter, should have a call to action.
Click Here, Call now, Buy today, Register now, Contact now, Buy now, Sign-up now , Offer expires, Reserve Now, Request for Free Quote,
Talk to an Expert, Join Now, Go to our website

27. .
Basic Promotion Tips
Send customers to your place of business - your website
Remember that your goal is to get customers and prospects to the place where they can find out more. That place is your website.

28. Basic Promotion Tips Put your email and website address on EVERTHING!
Your is your electronic business card and your website is analogous to your catalog and/or store. Put your address and your website address on all your marketing material – whether it’s a newspaper ad, a TV ad, or an electronic newsletter or Facebook page.

29. Review of Class Goals Understand basic marketing terminology and
concepts
Review the 4 P’s of marketing and how
they are affected by online marketing
Begin the online marketing section of your
business plan
Write your online marketing
description
Learn basic online
marketing tips
Here are the class goals that we talked about at the beginning of today’s training. Did we meet them?
You should now be able to list the “4Ps” of marketing and how they are affected by online marketing methods. You thought about your competition, your target market, and how much money you have to spend on online marketing.
Finally, we covered some basic online tips that you should keep in mind as you begin.
Thank you for coming to class and we hope you join us for “E-Newsletters”, the fifth session in the Internet Tools for Small Business Success series.

30. We appreciate the time you spent with us
We appreciate the time you spent with us. We hope to see you at the next training!
These materials were created collaboratively by the New Mexico Department of Information Technology, Fast Forward New Mexico, and the New Mexico State Library, under grants provided by the National Telecommunications and Information Administration. These materials are not to be used for profit. Connecting you to a world of opportunities