clow imc03 media ppt 14

14 The Pasta House Co. • Why was the Pasta House successful? • What is your opinion of their “neighborhood marketing program”? • What do you think of their involvement with elementary schools? • What small business in your area has been successful? Why do you think they have been successful? © 2007 by Prentice Hall 14-1 14 IMC for Small Businesses and Entrepreneurial Ventures Chapter Overview •Starting a company: market analysis •Finding customers •Advertising small businesses •Making customers advocates © 2007 by Prentice Hall 14-2 EXHIBIT 1 4. 1 Challenges to New Businesses • Consumers are not aware • Consumers are cautious about a new company • Advertising and promotional clutter • Small marketing budget • Impact of negative word-of-mouth communications © 2007 by Prentice Hall 14-3 FIGURE 14.1 The Market Analysis © 2007 by Prentice Hall 14-4 Target Market Analysis Butcher’s Block • Good/Service • Consumer need • Business need • Market niche © 2007 by Prentice Hall 14-5 Target Market Analysis Franchises Good/Service Geeks on Call http://www.geeksoncall. com VIPDesk Consumer Need Business Need http://www.vipdesk.com Market Niche © 2007 by Prentice Hall 14-6 Finding Customers • Locate customers • Make it easy for customers to reach the new company • Reduce purchase risk • Limited marketing dollars –Marketing budget  3-5% © 2007 by Prentice Hall 14-7 Building an Ethical Reputation • Word-of-mouth communication – Negative – Positive • Ethical issues – Reciprocal relationships – Hiring away employees – Reporting income © 2007 by Prentice Hall 14-8 Ethnic Target Markets • Growth of minorities • Effective strategy includes – Create or participate in special events – Personalize products – Target ethnic media – Review all messages © 2007 by Prentice Hall 14-9 Guerrilla Marketing Mentality – not different method Requires energy and imagination Based on psychology and human behavior Grows through existing customers and referrals • Aims messages at individuals and small groups. • Uses marketing to gain customer consent • Examines how the company can help “you” (the customer) © 2007 by Prentice Hall 14-10 • • • • Guerrilla Marketing Techniques • • • • • Trade shows Sponsorships Public relations events Alternative media Lifestyle marketing © 2007 by Prentice Hall 14-11 Helping Customers Reach the Company • • • • Traditional methods Web sites Networking Lifestyle marketing © 2007 by Prentice Hall 14-12 Reducing Purchase Risk • Samples – Free first consultations • • • • Coupons Price discounts Referral discounts Money-back guarantees © 2007 by Prentice Hall 14-13 Advertising for Small Business Branding • Television • Radio • Newspapers • Magazines • Billboards • Internet © 2007 by Prentice Hall 14-14 Radio Advertisement An advertisement by Junior Fitness Academy. Click on speaker to play ad. © 2007 by Prentice Hall 14-15 Tips to Marketing on a Shoestring • • • • • Survey best practices in your industry. Become visible in your community. Invite the local newspaper editors to lunch. Support local community-based initiatives. Advertise only if you can afford at least six consecutive times. • Write an article in your local newspaper. • Collect e-mail addresses for online marketing. • Create a Board of Advisors. Nancy Michaels, “The Top 10 Ways to Market Your Franchise on a Shoestring,” Franchising World, Vol. 37, No. 2 (February 2005), pp. 33-34. © 2007 by Prentice Hall 14-16 Build on Local Community Pride. © 2007 by Prentice Hall 14-17 Making Customers Advocates • • • • • Database management Direct marketing Personal selling Trade promotions Consumer promotions © 2007 by Prentice Hall 14-18 A Consumer Promotion by a Local Business. © 2007 by Prentice Hall 14-19