Chapter 8: Building a powerful bootstrap marketing plan
Chapter 8: Building a powerful bootstrap marketing plan MGMT 3850
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This 4 page Class Notes was uploaded by Alora Lornklang on Thursday March 3, 2016. The Class Notes belongs to MGMT 3850 at University of North Texas taught by Brandi Everett in Spring 2016. Since its upload, it has received 577 views. For similar materials see Foundations of Entrepreneurship in Entrepreneurship at University of North Texas.
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Date Created: 03/03/16
MGMT 3850 Foundations of Entrepreneurship Chapter 8: Building a Powerful Bootstrap Marketing Plan A marketing plan identifies a company’s target customers and describes how that business will attract and keep them. Its primary focus is cultivating and maintaining a competitive edge for a small business. LO-1: Describe the principles of building a bootstrap marketing plan, and explain the benefits of preparing one. Marketing o The process of creating and delivering desired goods and services to customers; involves all of the activities associated with winning and retaining loyal customers. Bootstrap marketing strategies o Unconventional, lowcost, creative marketing strategies designed to give small companies an edge over their larger, richer, more powerful rivals. A bootstrap marketing plan should accomplish three objectives: o It should pinpoint the specific target markets the small company will serve o It should determine customer needs and wants through market research o It should analyze the firm’s competitive advantages and build a bootstrap marketing strategy around them to communicate its value proposition to the target market. A sound bootstrap marketing plan reflects a company’s understanding of its customers and acknowledges that satisfying them is the foundation of every business. LO-2 Explain how small businesses can pinpoint their target markets. Target market o The specific group of customers at whom a company aims its goods or services. Entrepreneurs must identify a specific market niche that has a specific need or “pain point” and tailor a solution, be it a product or a service, to address this need. A customerdriven marketing strategy is a powerful weapon for any company that lacks the financial and physical resources of its competitors. From market research, companies know their customers’ income levels, lifestyles, buying patterns, likes and dislikes, and even their psychological profiles—why they buy. LO-3 Discuss the role of the market research in building a bootstrap marketing plan and outline the market research process. Demographics o The study of important population characteristics, such as age, income, education, race, and others. Market Research o The vehicle for gathering the information that serves as the foundation for the marketing plan; it involves systematically collecting, analyzing, and interpreting data pertaining to a company’s market, customers, and competitors. By performing some basic market research, aspiring entrepreneurs and owners of existing small business can detect key demographic and market trends. How to Conduct Market Research o Step 1: Define the objective. o Step 2: Collect the data Individualized (onetoone) marketing: A system based on gathering individual data on individual customers and developing a marketing program designed to appeal specifically to their needs, tastes, and preferences. Primary research: Customer surveys and questionnaires, focus groups, social media conversations and monitoring, test market, daily transactions, other ideas Secondary research: Business directories, direct mail lists, demographic data, census data, forecasts, market research, articles, local data, the internet Data mining A process in which computer software that uses statistical analysis, database technology, and artificial intelligence finds hidden patterns, trends, and connections in data so that business owners can make better marketing decisions and predictions about customer’s behavior o Step 3: Analyze and interpret the data. o Step 4: Draw conclusions and act. LO-4: Describe how a small business can build a competitive edge in the marketplace using bootstrap marketing strategies. 14 Principles can help business owners create powerful, effective bootstrap marketing strategies Find a niche and fill it Use the power of publicity o Publicity Any commercial news covered by the media that boosts sales but for which a small company does not pay. o Write an article that will interest your customer or potential customers o Sponsor an event designed to attract attention o Promote a cause, etc. Don’t Just Sell; Entertain Strive to be Unique Build a community with customers Connect with customers on an emotional level Connect with customers on an emotional level o Unique selling proposition (USP) A key customer benefit of a product or service that sets it apart from the competition; it answers the critical question, every customer asks, “What’s in it for me?” Create an identity for yourself o Branding: Communicating a company’s unique selling proposition (USP) to its target customers in a consistent and integrated manner. Embrace Social Marketing o Connect with others as a person, not as a brand. Twitter users want to talk with people, not companies o Web site, blog, or a video about your company and its products or services. o Start a blog. o Create online videos o Host a special event Be dedicated to service and customer satisfaction o Consistently track all social media o Respond and take responsibility o The customer is always right o Never be defensive o Keep a database of all complaints and suggestions Retain Existing Customers o Customer experience management The process of systematically creating the optimum experience for customers every time they interact with the company Be Devoted to Quality o Total quality management (TQM) The philosophy of producing a highquality product or service and achieving quality in every aspect of the business and its relationship wit hthe customer, the focus in one continuous improvement in the quality delivered to customers. Attend to Convenience Concentrate on Innovation Emphasize Speed o Time compression management (TCM) A marketing strategy that relies on three principles: 1) Speeding products to market 2) Shortening customer response time in manufacturing and delivery 3) Reducing the administrative time required to fill an order
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