Building

Building a
a
Powerful
Powerful
Marketing
Marketing Plan
Plan

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

Building a Guerrilla
Marketing Plan

Marketing
The process of creating and delivering
desired goods and services to customers.
Involves all of the activities associated
with winning and retaining loyal
customers.

D&B Study
Just 1 in 5 small companies creates a
strategic marketing plan.
Most common sales method: Walk-in
traffic.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

Building a Guerrilla
Marketing Plan

Guerrilla marketing strategies

Unconventional, low-cost creative
marketing techniques that allow a
small company to wring more
bang from its marketing bucks
than do larger rivals.
Do not have to spend large
amounts of money to be effective.
Example: Borsheims

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

A Guerrilla
Marketing
Plan

1.
2.
3.

4.

Pinpoints the specific target

markets the company will serve.
Determines customer needs and
wants through market research.
Analyzes a firms competitive
advantages and builds a marketing
strategy around them.
Creates a marketing mix that meets
customer needs and wants.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

Pinpointing the Target

Market

One objective of market

research: Pinpoint the
company's target market, the
specific group of customers
at whom the company aims
its products or services.
Marketing strategy must be
built on clear definition of a
companys target customers.
Mass marketing techniques
no longer work.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

Pinpointing the Target

Market

Target customer must

permeate the entire business
merchandise sold,
background music, layout,
dcor, and other features.
Without a clear image of its
target market, a small
company tries to reach
almost everyone and ends up
appealing to almost no one!

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

Market Research

Market research is the vehicle for

gathering the information that serves as
the foundation for the marketing plan.
Never assume that a market exists for
your companys product or service; prove
it!
Market research does not have to be time
consuming, complex, or expensive to be
useful.

Web-based market research online surveys

Trend-tracking

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

Be a Trend-Tracker

Read many diverse current

publications
Watch top 10 TV shows
See the top 10 movies
Talk to at least 150
customers a year
Talk with the 10 smartest
people you know
Listen to your children and
their friends

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

Market Research
How to Conduct Market
Research:
Define the objective.
Collect the data.

Individualized (one-to-one)
marketing

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10

How to Become an Effective One-toOne Marketer

Identify your best customers,
never passing up the
opportunity to get their names.

Collect information on these

customers, linking their
identities to their transactions.

Enhance your products and

services by giving customers
information about them and how
to use them.

Successful
One-to-One
Marketing

Calculate the long-term value

of customers so you know
which ones are most desirable
(and most profitable).

Source: Adapted from Susan Greco, The Road to Oneto-One Marketing, Inc., October 1995, pp. 56-66.

See customer complaints

for what they are - a
chance to improve
your service and
quality. Encourage
complaints and then
fix them!

Make sure your companys

product and service quality
will astonish your customers.

Know what your customers

buying cycle is and time your
marketing efforts to coincide
with it - just-in-time marketing.

Market Research
How to Conduct Market Research:
Define the problem.
Collect the data.

Individualized (one-to-one) marketing

Data mining See Harrahs Entertainment

Analyze and interpret the

data.
Draw conclusions and act.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

12

Relationship Marketing
(Customer Relationship
Management)

Involves developing and

maintaining long-term
relationships with customers
so that they will keep coming
back to make repeat
purchases.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

13

Relationship Marketing
(Customer Relationship
Management)

Steps:
Collect meaningful customer information
and compile it in a database.
Mine the database to identify best
customers.
Use the information to develop lasting
relationships with best customers.
Attract more customers who fit the best
customer profile.
Stay in contact with customers between
sales.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

14

The Relationship Marketing

Process
If you have done
everything else correctly,
this step is relatively easy.
Superb customer service is
the best way to retain your
most valuable customers.

Sell,
Service,
and Satisfy

Analyze

Conduct detailed customer intelligence to

pinpoint most valuable customers and to learn
all you can about them, including their lifetime
value (LTV) to the company.

Build
Relationships
Based on what you have
learned, contact customers
with an offer designed for
them. Make customers feel
special and valued.

Connect
and
Collect
Learn

Make contact with most valuable customers

and begin building a customer database using
data mining and data warehousing techniques.

Learn from your customers by encouraging

feedback from them; develop a thorough
customer profile and constantly refine it.

Steps in CRM

Collect meaningful information on

existing customers and compile it in a
database.
Mine the database to identify the
companys best and most profitable
customers and their buying habits.
Use the information to establish lasting
relationships with these customers.
Attract more customers who fit the
profile of the companys best
customers.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

16

Four Levels of Customer

Sensitivity
Level 4: Customer Partnership. The company has embraced a customer service attitude
as an all-encompassing part of its culture. Customers are part of all major decisions.
Employees throughout the company routinely use data mining reports to identify the
best customers and to serve them better. The focus is on building lasting relationships
with the companys best customers.
Level 3: Customer Alignment. Managers and employees understand the customers
central role in the business. They spend considerable time talking about and with
customers, and they seek feedback through surveys, focus groups, customer visits, and
other techniques.

Level 2: Customer Sensitivity. A wall stands between the company and its customers.
Employees know a little about their customers but dont share this information with
others in the company. The company does not solicit feedback from customers.

Level 1: Customer Awareness. Prevailing attitude: Theres a customer out there.

Managers and employees know little about their customers and view them only in the
most general terms. No one really understands the benefit of close customer
relationships.

Guerrilla Marketing
Strategies

Find a niche and fill it.

Dont just sell; entertain.

Entertailing

Strive to be unique.
Connect with customers
on an emotional level.
Build trust
Define a unique selling
proposition (USP)

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

18

Unique Selling
Proposition

A key customer benefit of a

product that sets it apart from its
competition.
Answers key customer question:
Whats in it for me?
Consider intangible or
psychological benefits as well as
tangible ones.
Communicate your USP to your
customers often.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

19

Guerrilla Marketing
Strategies

Create an identity for

your business through
branding.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

20

Building a Brand

Relevance

High
Antes

Drivers

Features that are important

to customers but all
competitors provide them

Features that are both

important to customers and
are highly differentiated
from those of competitors

Every company in the market

must ante up on these
features.

Neutrals

Fools Gold

Features that are irrelevant

to customers

Features that are unique to

your company but do not
drive customers loyalty to
your product and services

These features are useless

when it comes to branding.

Lo
w

These are the attributes on

which a company must
focus to build its brand.

Dont make the mistake of

trying to build a brand on
these features!

Lo
High
Differentiation
w
Source: Adapted from What Really Matters in Building a Brand, The McKinsey Quarterly, May 2004, www.mckinseyquarterly.com/newsletters/chartfocus/2004_05.htm

Guerrilla Marketing
Strategies
Create an identity for
your business through
branding.
Start a blog.
Focus on the
customer.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

22

Focus on the
Customer

67 percent of customers who stop

patronizing a business do so because an
indifferent employee treated them poorly.
96 percent of dissatisfied customers
never complain about rude or
discourteous service, but...
91 percent will not buy from that
business again.
100 percent will tell their horror
stories to at
least nine other
people.
13 percent of those unhappy customers
will tell their stories to at least 20
other people.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

23

Focus on the
Customer

Treating customers indifferently or poorly

costs the average company from 15%
percent to 30 percent of gross sales !
Replacing lost customers is expensive; it
costs seven to nine times as much to attract
a new customer as it does to sell to an
existing one!
About 70 percent of a companys sales come
from existing customers.
Because 20 percent of a typical companys
customers account for about 80 percent of
its sales, no business can afford to alienate
its best and most profitable customers and
survive!

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

24

Principles of Customer Experience Management

(CEM)
In every customer interaction
Intimate
Intimateunderstanding
understandingofofeach
eachcustomers
customers
needs,
wants,
preferences,
and
peculiarities
needs, wants, preferences, and peculiarities
Personal,
Personal,customized
customizedmessages
messagesininmarketing,
marketing,
sales,
service,
and
advertising
sales, service, and advertising
Consistent,
Consistent,courteous,
courteous,and
andprofessional
professional
treatment
by
everyone
in
the
company
treatment by everyone in the company
Responsive,
Responsive,rapid
rapidhandling
handlingofofrequests,
requests,
questions,
problems,
and
complaints
questions, problems, and complaints
Helpful
Helpfulinformation
informationand
andadvice
advicedelivered
delivered
proactively,
where
appropriate
proactively, where appropriate
Involvement
Involvementofofcaring,
caring,well-trained
well-trainedpeople
people
rather
than
strict
reliance
on
technology
rather than strict reliance on technologyfor
for
service
delivery
service delivery

Satisfied,
Satisfied,loyal,
loyal,
repeat
(and
repeat (and
profitable)
profitable)
customers
customers

Long-term
Long-termview
viewofofthe
thecompany/customer
company/customer
relationship
rather
than
a
focus
relationship rather than a focuson
onmaking
makingaa
sale
sale
Emphasis
Emphasison
onsustaining
sustainingan
anongoing
ongoingrelationship
relationship
built
on
trust
and
respect
built on trust and respect
Frequent
Frequentand
andvisible
visibledemonstrations
demonstrationsofof
commitment
commitmenttotonurturing
nurturingthe
thecompany/customer
company/customer
relationship
relationship

Source: Adapted from Wake-Up Call: To Fix CRM, Fix the Customer Experience Now!,
BearingPoint White Paper (www.bearingpoint.com, Fall 2005, p. 5.

Focus on the
Customer

Companies that are successful at

retaining their customers
constantly ask themselves (and
their customers) four questions:
1. What are we doing right?
2. How can we do that even better?
3. What have we done wrong?
4. What can we do in the future?

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

26

Guerrilla Marketing
Strategies
Create an identity for
your business through
branding.
Start a blog.
Focus on the

Be devoted to quality.
customer.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

27

Devotion to
Quality

Study: 60 percent of customers who

change suppliers do so because of
problems with a companys products or
services.
World-class companies treat quality as
a strategic objective, an integral part of
the company culture.
The philosophy of Total Quality
Management (TQM):

Quality in the product or service itself.

Quality in every aspect of the business and
its relationship with the customer.
Continuous improvement in quality.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

28

How Do Americans
Define Quality in a
Product?

Reliability (average time between

breakdowns)
Durability (how long an item lasts)
Quality
Ease of use
Known or trusted brand name
Low price

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

29

How Do Americans
Define Quality in a
Service?

Tangibles (equipment,
facilities, people)
Reliability (doing what you
say you will do)
Responsiveness (promptness
in helping customers)
Assurance and empathy
(conveying a caring attitude)

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

Quality

30

Guerrilla Marketing
Strategies
Create an identity for
your business through
branding.
Start a blog.
Focus on the
customer.
Pay attention to
convenience.
Be devoted to quality.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

31

Attention to
Convenience

Is your business conveniently

located near customers?
Are your business hours suitable
to your customers?
Would customers appreciate
pickup and delivery services?
Do you make it easy for
customers to buy on credit or
with credit cards?

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

32

Attention to
Convenience

Are your employees trained to handle

business transactions quickly, efficiently,
and politely?
Does your company offer extras that
would make customers lives easier?
Can you bundle existing products to make
it easier for customers to use them?
Can you adapt existing products to make
them more convenient for customers?
Does your company handle telephone calls
quickly and efficiently?

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

33

Guerrilla Marketing
Strategies

Concentrate on
innovation.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

34

Concentration on
Innovation

Innovation

The key to future success.

One of the greatest strengths of
entrepreneurs. It shows up in the
new products, techniques, and
unusual approaches they introduce.

Entrepreneurs often create new

products and services by
focusing their efforts on one
area and by using their size and
flexibility to their advantage.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

35

Guerrilla Marketing
Strategies

Concentrate on innovation.

Be dedicated to
service and customer
satisfaction.

Survey: 46 percent of
customers had walked
out of a store within the
past year because of
poor service.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

36

Dedication to
Service

Goal: to achieve customer astonishment!

Listen to customers.
Define superior service.
Set standards and measure
performance.
Examine your companys
service cycle.
Hire the right employees.
Train employees to deliver
superior service.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

37

Dedication to
Service
(continued)

Goal: to achieve customer astonishment!

Empower employees to offer

superior service.
Treat employees with respect and
show them how valuable they are.
Use technology to provide
improved service.
Reward superior service.
Get top managers support.
View customer service as an
investment, not an expense.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

38

Guerrilla Marketing
Strategies

Concentrate on innovation.
Be dedicated to service and
customer satisfaction.

Emphasize speed.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

39

Emphasis on
Speed

Use principles of time compression

management (TCM):

Speed new products to market

Shorten customer response time in
manufacturing and delivery
Reduce the administrative time
required to fill an order.

Study: Most businesses waste 85 to

99 percent of the time required to
produce products or services!

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

40

Emphasis on
Speed

Re-engineer the process rather

than try to do the same thing - only
faster.
Create cross-functional teams of
workers and empower them to
attack and solve problems.
Set aggressive goals for production
and stick to the schedule.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

41

Emphasis on
Speed

Rethink the supply chain.

Instill speed in the company
culture.
Use technology to find
shortcuts wherever possible.
Put the Internet to work for
you.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

42

Marketing on the
World Wide Web

An essential business tool

- Even the smallest
companies can market
their products and
services around the globe.
The Web can be the
Great Equalizer in a
small companys
marketing program.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

43

Marketing on the
World Wide Web

About 70 percent of
small companies have a
Website, double the
number in 2002.
Web marketing strategy
must emphasize small
companys strengths
and core competencies.

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

44

The Marketing Mix

Product
Place
Price
Promotion

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

45

Stages in the Product Life

Cycle

Introductory stage

High
Costs

Chapter 8: Guerrilla Marketing Plan

Copyright 2008 Prentice Hall Publishing

46

Stages in the Product Life

Cycle

Introductory stage
Growth and acceptance stage

High
Costs

Chapter 8: Guerrilla Marketing Plan

High
Sales
Costs
Climb

Copyright 2008 Prentice Hall Publishing

47

Stages in the Product Life

Cycle

Introductory stage
Growth and acceptance stage
Maturity and competition stage

High
Costs

Chapter 8: Guerrilla Marketing Plan

Sales
Climb

Profits
Peak

Copyright 2008 Prentice Hall Publishing

48

Stages in the Product Life

Cycle

Introductory stage
Growth and acceptance stage
Maturity and competition stage
Market saturation stage

High
High
Costs
Costs

Chapter 8: Guerrilla Marketing Plan

Sales
Climb

Profits
Profits
Peak
Peak

Sales
Sales
Peak
Peak

Copyright 2008 Prentice Hall Publishing

49

Stages in the Product Life

Cycle

Introductory stage
Growth and acceptance stage
Maturity and competition stage
Market saturation stage
Product decline stage

High
High
High
High
Costs
Costs
Costs
Costs
Chapter 8: Guerrilla Marketing Plan

Sales
Climb

Profits
Profits
Peak
Peak

Sales
Sales
Peak
Peak

Copyright 2008 Prentice Hall Publishing

Sales
Sales&&
Profits
Profits
Fall
Fall
50

Channels of Distribution
Consumer Goods
Manufactur
er

Consumer

Manufactur
er

Manufactur
er

Manufactur
er
Chapter 8: Guerrilla Marketing Plan

Retaile
r

Wholesale
r

Wholesale
r

Wholesale
r

Copyright 2008 Prentice Hall Publishing

Consumer

Retaile
r

Consumer

Retaile
r

Consumer

51

Channels of Distribution
Industrial Goods
Manufactur
er

Manufactur
er

Chapter 8: Guerrilla Marketing Plan

Industrial User

Wholesale
r

Copyright 2008 Prentice Hall Publishing

Industrial User

52