CHAPTER 8

Building
Building aa Powerful
Powerful
Bootstrap
Bootstrap Marketing
Marketing Plan
Plan

Copyright © 2011 Pearson Education

Building a Powerful Bootstrap
Marketing Plan

• Marketing
– The process of creating and delivering
desired goods and services to Beneficiaries .
– Involves all of the activities associated with
winning and retaining loyal beneficiaries .
– A solid business plan needs to contain both a
financial plan and a marketing plan

Ch.
8:
Bui
ldin
Bootstrap marketing Plan

Bootstrap marketing strategies:

 Are unconventional, low-cost, and
creative marketing techniques that allow
a small enterprise to realize a greater return
from its marketing investment than larger
rivals.

 Do not require large amounts of money to be

effective – just creativity.

Ch.
8:
Bui
ldin
 A Bootstrap Marketing Plan
1. Pinpoints the specific target markets the
enterprise will serve.
2. Determines beneficiaries needs and wants
through market research.
3. Analyzes a enterprise’s competitive advantages
and creates a marketing strategy to build a
competitive edge.
4. Helps to create a marketing mix that meets
customer needs and wants.

Ch.
8:
Bui
ldin
Foundation Stage

1-5
1/3 Pinpointing the Target
Market
 One objective of market research: Pinpoint the
enterprise's target market, Target beneficiary
must permeate the entire enterprise – merchandise
sold, background music, layout, décor, and other
features.
 Without a clear image of its target market, a small
enterprise tries to reach almost everyone and
ends up appealing to few.

 Target market: the specific group of

customers at whom the company aims
its products or services.
 Marketing strategy must be built on a clear
definition of a company’s target customers.

Ch.
8:
Bui
ldin
 2/3 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

company’s product or service; prove it!

 Market research does not have to be time

consuming, complex, or expensive to be useful.

8-7
 Web-based market research – online surveys
 Trend-tracking
Ch.
8:
Bui
ldin
 (continued)
2/3 Market Research

How to Conduct Market Research:

1. Define the problem.
2. Collect the data.
• Individualized (one-to-one) marketing
• Data mining
3. Analyze and interpret the data.
4. Draw conclusions and act.

8-8
Ch.
8:
Bui
ldin
 2/3 Tracking Trends

 Read many diverse current publications

 Monitor blogs and newsgroups
 Watch the top 10 TV shows
 See the top 10 movies
 Talk to at least 150 beneficiaries in person a year
 Talk with the 10 smartest people you know
 Listen to your children and their friends

Ch.
8:
Bui
ldin
3/3 Building a Competitive Edge
 Bootstrap marketing principles:
 Find a niche and fill it.
 Use the power of publicity.
 Don’t just sell; entertain!
 Strive to be unique.
 Build a community with customers.
 Connect with customers on an emotional level.
 Build trust.
 Define a unique selling proposition
(USP).

Copyright © 2016 Pearson 8- 10

Education Ltd
Unique Selling Proposition
 A key customer benefit of a product or
service that sets it apart from its
competition.
 Answers key customer question:
“What’s in it for me?”
 Consider intangible or psychological
benefits as well as tangible ones.
 Communicate your USP to your
customers often.

Copyright © 2016 Pearson 8- 11

Education Ltd
Building a Competitive Edge

 Create an identity for your business

through branding.
 Branding: communicating a USP to
the target market in a consistent and
integrated manner.

Copyright © 2016 Pearson 8- 12

Education Ltd
 Create an identity for your business through
branding……Building a Brand : In addition to the text
High
“Antes” “Drivers”
Features that are important to Features that are both important
Beneficiaries but all to beneficiaries and are highly
competitors provide them differentiated from those of
competitors
Every enterprise in the market
must “ante up” on these These are the attributes on which
Relevance

features. an enterprise must focus to build

its brand.

“Neutrals” “Fool’s Gold”

Features that are irrelevant to Features that are unique to your
Beneficiaries enterprise but do not drive
benfeciaries ’ loyalty to your
These features are useless

8 - 13
product and services
when it comes to branding.
Don’t make the mistake of trying
to build a brand on these
Low features! Ch.
8:
Low Differentiation High Bui
Source: Adapted from “What Really Matters in Building a Brand,” The McKinsey Quarterly, May 2004, [Link]/newsletters/chartfocus/2004_05.htm
ldin
How to Become an Effective One-to-One
Marketer
Identify your best customers,

Powerful Marketing
never passing up the
opportunity to get their names.

Ch. 8: Building a
Collect information on these Successful
customers, linking their One-to-One
identities to their transactions. Marketing

Calculate the long-term value

of customers so you know

8 - 14
which ones are most desirable
(and most profitable).
Know what your customers’
buying cycle is and time your See customer complaints
marketing efforts to coincide for what they are - a
with it - “just-in-time marketing.” chance to improve
your service and
Make sure your company’s quality. Encourage
product and service quality complaints and then
will astonish your customers. fix them!

Source: Adapted from Susan Greco,

Enhance your products and “The Road to One-to-One Marketing,”
services by giving customers Inc., October 1995, pp. 56-66.

information about them and how

to use them.
Guerrilla Marketing Principles (continued)

• Create an identity for your business through branding.

• Embrace social networking.
• Start a Social media too
• Create online videos.
• Focus on the customer.
• Be devoted to quality.
• Pay attention to convenience.
• Concentrate on innovation.
• Be dedicated to service and customer satisfaction.

8 - 15
• Emphasis to Speed
Ch.
8:
Bui
ldin
 Focus on the END USER
Only 6% of Beneficiaries who experience a problem
contact the company to complain.
•31% tell family members, friends, and colleagues about their
negative experience.
•6% of those people tell their “horror stories” to six or more
people.
•For every 100% of customers who have negative experiences
with an enterprise, the company stands to lose 32 to 36
current customers or potential customers.
•Because 20% of a typical enterprise’s customers account for
about 80% of its sales, no business can afford to alienate its
best and most profitable customers and survive!

Ch.
8:
Bui
ldin
 Focus on the Customer
(continued)

 Because 20% of a typical company’s customers

account for about 80% of its sales, no business
can afford to alienate its best and most profitable
customers and survive!
 Research shows that repeat customers spend
67% more than new customers.
 Attracting new customers costs the typical
business seven to nine times as much as keeping
existing customers.

Ch.
8:
Bui
ldin
Customer Breakdown

1 - 18
 Devotion to Quality
 Study: 60% of customers who change suppliers do so
because of problems with a enterprise’s products or
services.
 Global Impact enterprises treat quality as a
strategic objective, an integral part of Enterprise Culture.
 The philosophy of Total Quality Management
(TQM):
 Quality in the product or service itself.
 Quality in every aspect of the ENTERPRISE and
its relationship with the beneficiary

8 - 19
 Continuous improvement in quality.

Ch.
8:
Bui
ldin
Attention to Convenience
The average U.S. work week is 42.5 hours, an increase from
37.5 hours in 2003.
•Is your enterprise conveniently located near beneficiaries?
•Areyour enterprise working hours suitable to your
beneficiaries?
•Would enterprise appreciate pickup and delivery services?
•Doyou make it easy for beneficiaries to buy on credit or
with credit cards?
•Does your enterprise handle telephone calls quickly and
efficiently?
•Are your team members trained to handle enterprise
operations and transactions quickly, efficiently, and
politely?
•Does your enterprise offer “extras” that would make Ch.
beneficiaries’ easier? 8:
Bui
ldin
 Dedication to Service
Goal: To achieve beneficiaries astonishment!

 Listen to beneficiaries.
 Define “superior service.”
 Set standards and measure performance.
 Examine your company’s service cycle.
 Hire the right employees.
 Train employees to deliver superior service.
 Empower employees to offer superior service.
 Treat employees with respect and show them how valuable
they are.
 Use technology to provide improved service. Ch.
8:
Bui
ldin
 Emphasis on Speed
 Use principles of time compression management (TCM):
 Speed new products to market
 Shorten beneficiaries response time in processing or
manufacturing and delivery
 Reduce the administrative time required in paper cycle
.
 Rethink the supply chain.
 Instill speed in the enterprise culture.
 Use technology to find shortcuts wherever possible.
 Put the Internet to work for you.
 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. Ch.
8:
Bui
ldin
 Principles of Customer Experience Management
(CEM)
In addition to the text
ery Beneficiary interaction should be:

••Intimate
Intimate
••Personal
Personal
••Consistent,
Consistent,courteous,
courteous,and
andprofessional
professional
••Responsive
Satisfied,
Satisfied,
Responsive
loyal,
loyal,
••Helpful
Helpfulinformation
informationand
andadvice
advice repeat
repeat
••Involvement
Involvementof
ofcaring,
caring,well-trained
well-trained (and
(and profitable)
profitable)
people
people
customers
customers
••Long-term
Long-termrelationship
relationshipview
view
••Emphasis
Emphasison onsustaining
sustainingan
anongoing
ongoing
relationship
relationship
••Nurturing
Nurturingthe
thecompany/customer
company/customer
Source: Adapted from “Wake-Up Call: To Fix CRM,
Fix the Customer Experience Now!, BearingPoint
White Paper ([Link], Fall 2005, p.
relationship
relationship 5.
 Social Networking
 Social networks sites, such as Facebook and
Twitter , allow entrepreneurs to connect with
potential and existing customers at little or no
cost.
 More than half of Facebook users are over the
age of 25.
 These sites now offer business survey tools and
advertising functions for promotional purposes.

Ch.
8:
Bui
ldin
Online Videos
 Study: 19% of Internet users watch online
videos every day.
 Online video guidelines:
 Think “edutainment.”
 Be funny.
 Connect with current events.
 Involve customers.
 Keep it short.

Ch.
8:
Bui
ldin
 The Marketing Mix

The marketing mix is a business tool used in

marketing and by marketers. The marketing
mix is often crucial when determining a product
or brand's offer, and is often associated with the

8 - 26
four Ps: price, product, promotion, and place.
The Marketing Mix
 The marketing mix definition is simple. It is
about putting the right product or a
combination thereof in the place, at the right
time, and at the right price. The difficult part
is doing this well, as you need to know every
aspect of your business plan.

 As we noted before, the marketing mix is

predominately associated with the 4P’s of
marketing, the 7P’s of service marketing, and
the 4 Cs theories developed in the 1990s.

1 - 27
The Marketing Mix –
4Ps

Place

Promotion
The New Model of 7 Ps

1 - 29
P - Product
 A product is an item that is built or produced to satisfy the
needs of a certain group of people. The product can be
intangible or tangible as it can be in the form of services or
goods.
 You must ensure to have the right type of product that is in
demand for your market. So during the product
development phase, the marketer must do an extensive
research on the life cycle of the product that they are
creating.
 A product has a certain life cycle that includes the growth
phase, the maturity phase, and the sales decline phase. It is
important for marketers to reinvent their products to
stimulate more demand once it reaches the sales decline
phase.

1 - 30
P - Product
In developing the right product, you have to answer the following
questions:
What does the client want from the service or product?
How will the customer use it?
Where will the client use it?
What features must the product have to meet the client’s needs?
Are there any necessary features that you missed out?
Areyou creating features that are not needed by the client?
What’s the name of the product?
Does it have a catchy name?
What are the sizes or colors available?
How is the product different from the products of your
competitors?
What does the product look like?

1 - 31
 (continued)
Stages in the Product Life Cycle

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

8 - 32
High
High Profits Sale Sales
Sales&&
High
High Sales
Sales Profits
Profits Sales
Sale
Sales
Costs
Costs Peak ss Profits
Profits Ch.
Costs
Costs Climb
Climb Peak
Peak Peak
Peak
Peak Fall
Fall 8:
Peak
Bui
ldin
 The Product Life Cycle

Ch. 8: Building a Powerful Marketing Plan 81- -33

33
 Powerful Marketing
Ch. 8: Building a
8 - 34
FIGURE 8.4 Time between Introduction of Products

1 - 34
 P - Price
 When setting the product price, marketers should consider
the perceived value that the product offers. There are three
major pricing strategies, and these are:
 Market penetration pricing
 Market skimming pricing
 ME too pricing

 Here are some of the important questions that you should

ask yourself when you are setting the product price:
 How much did it cost you to produce the product?
 What is the customers’ perceived product value?
 Do you think that the slight price decrease could significantly increase your
market share?
 Can the current price of the product keep up with the price of the product’s
competitors?

Ch. 8: Building a Powerful Marketing Plan 81- -35

35
Price
 A key factor in the decision to buy
 Focus attention on non-price competition
 Free trial offers
 Free delivery
 Lengthy warranties
 Money back guarantees

Ch. 8: Building a Powerful Marketing Plan 81- -36

36
P- Place
 Placement or distribution is a very
important part of the product mix
definition. You have to position and
distribute the product in a place that is
accessible to potential buyers.
 This comes with a deep understanding of
your target market. Understand them
inside out and you will discover the most
efficient positioning and distribution
channels that directly speak with your
market.

Ch. 8: Building a Powerful Marketing Plan 81- -37

37
P- Place
 There are many distribution strategies,
including:
 Intensive distribution
 Exclusive distribution
 Selective distribution
 Franchising

Ch. 8: Building a Powerful Marketing Plan 81- -38

38
Place:
Channels of Distribution Consumer Goods

Powerful Marketing
Ch. 8: Building a
Manufactur
er Consumer

Manufactur
Retailer Consumer

8 - 39
er

Manufactur Wholesale Retaile

er r Consumer
r

Manufactur Wholesale Wholesale Retaile

er r r Consumer
r
Place:
Channels of Distribution Industrial
Goods

Powerful Marketing
Ch. 8: Building a
Manufactur
er Industrial User

8 - 40
Manufactur Wholesale
er Industrial User
r
 P - Promotion
 Goal: To inform and persuade.
 Through advertising and other
communication techniques.
 Create an image.
 “Marketing is not a battle of products; it is a
battle of perceptions.”

Ch. 8: Building a Powerful Marketing Plan 81- -41

41
 P - Promotion
 Promotion is a very important component of marketing as it can boost brand
recognition and sales. Promotion is comprised of various elements like:
 Sales Organization
 Public Relations
 Advertising
 Sales Promotion
 Advertising typically covers communication methods that are paid for like
television advertisements, radio commercials, print media, and internet
advertisements. In contemporary times, there seems to be a shift in focus
offline to the online world.
 Public relations, on the other hand, are communications that are typically
not paid for. This includes press releases, exhibitions, sponsorship deals,
seminars, conferences, and events.
 Word of mouth is also a type of product promotion. Word of mouth is an
informal communication about the benefits of the product by satisfied
customers and ordinary individuals. The sales staff plays a very important
role in public relations and word of mouth.

Ch. 8: Building a Powerful Marketing Plan 81- -42

42
 P - People
 Of both target market and people directly related to the business.
 Thorough research is important to discover whether there are enough
people in your target market that is in demand for certain types of
products and services.
 The company’s employees are important in marketing because they
are the ones who deliver the service. It is important to hire and train
the right people to deliver superior service to the clients, whether
they run a support desk, customer service, copywriters,
programmers…etc.
 When a business finds people who genuinely believe in the products
or services that the particular business creates, it’s is highly likely
that the employees will perform the best they can.

Ch. 8: Building a Powerful Marketing Plan 81- -43

43
 P - Process
 The systems and processes of the organization affect the execution of
the service.
 So, you have to make sure that you have a well-tailored process in
place to minimize costs.
 It could be your entire sales funnel, a pay system, distribution system
and other systematic procedures and steps to ensure a working
business that is running effectively.
 Tweaking and enhancements can come later to “tighten up” a
business to minimize costs and maximize profits.

Ch. 8: Building a Powerful Marketing Plan 81- -44

44
 P – Physical Evidence
 In the service industries, there should be physical evidence that the
service was delivered. Additionally, physical evidence pertains also to
how a business and it’s products are perceived in the marketplace.
 It is the physical evidence of a business’ presence and establishment.
A concept of this is branding. For example, when you think of “fast
food”, you think of McDonalds

 When you think of sports, the names Nike and Adidas come to mind.
 You immediately know exactly what their presence is in the
marketplace, as they are generally market leaders and have
established a physical evidence as well as psychological evidence in
their marketing.
 They have manipulated their consumer perception so well to the point
where their brands appear first in line when an individual is asked to
broadly “name a brand” in their niche or industry

Ch. 8: Building a Powerful Marketing Plan 81- -45

45
Conclusion
 A bootstrap marketing plan offers the
entrepreneur significant benefits.
 Target marketing is key.
 Create a competitive and edge through
customer focus, quality, convenience,
innovation,
service and speed.

Ch. 8: Building a Powerful Marketing Plan 81- -46

46
 Video 8.1

47
1 - 47