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SIMPLE STEPS FOR STARTING YOUR BUSINESS

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Session 3: Marketing Plan

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SIMPLE STEPS FOR STARTING YOUR BUSINESS

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[insert local sponsorship information here if relevant, otherwise delete this slide]

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ABOUT SCORE

SCORE volunteers are successful and experienced business executives

Seminars and workshops Free mentoring:

One-on-one
E-mail

Resources for small businesses:

[chaptername].score.org

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MENTORING LOCATIONS

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[Local mentoring locations will be provided on this slide.]

Please make note of this information in your manual.

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PROCESS ROADMAP

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One-on-One Mentoring

“Go or No-go” decision &�next steps with mentor

Mentoring/Build Business Plan

Session 1:�Startup Basics:

Session 2:

Business Concept

Session 3: Marketing Plan

Session 4:�Financial Matters

Session 3: Marketing Plan

Session 5:�Funding Options

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WORKSHOP BENEFITS

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Helps you develop your feasibility plan
Takes you through the decision-making process
Provides you with the information to help make a “go or no-go” decision on your business idea
Has the core information to create a complete business plan for bankers and investors
Gives you the key directions you need to get started

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NICE TO MEET YOU!

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Briefly tell us a bit about you in one minute or less:

Your name
Your business idea(s)
What you want to learn today

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AGENDA

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Branding
Marketing Strategy
Crafting your marketing message
Target markets and channels
Products/Services
Channels strategies
Marketing Methods
Social Media
Sales

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WHY MARKET?

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CREATING YOUR BRAND

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CREATING YOUR BRAND

Brand = Your Business’s Image

What do you want your business to be known for?

What makes it stand out from the crown?

Unique features
Special benefits
Limits and liabilities
Production and delivery methods
Suppliers
Intellectual property, special permits

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YOUR MARKETING PLAN/STRATEGY

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MARKETING MESSAGE

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Create a concise message about your products or services that describes how it:

Fulfills target customer needs

Quality
Price
Availability
Dependability (etc.)

Clearly identifies unique/key features
Can be consistently communicated in all marketing material and media

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MARKETING MESSAGE

We Are Planet Earth (business) searches the world offers for recycled, reused, and salvaged goods (products) to offer our environmentally-concerned customers (target customers), the best products resurrected from what would otherwise end up in a landfill.” (unique features).

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COMPONENTS OF YOUR MARKETING PLAN

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Identifying your target market
What are the unique features of your product/service
Marketing channels
Top marketing communication methods
Social media

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IDENTIFYING TARGET MARKETS

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Who will you sell to?

Channel position

Profile

Key demographics
Income level
Gender
Geographic

Buying habits and behavior

Market size and realistic penetration: growing or declining

Session 3: Marketing Plan

Identifying the target market is a critical step in creating a winning business strategy. To identify target markets or customers, you need to know their channel position, their profile – including demographics and behaviors, their market size, and a realistic penetration which will give the client a potential sale target. Think of all the possible target markets for your business, then reduce it to the critical few.

Ann’s Nursery Example – Identified three targets: 1. local retail nurseries, 2. internet gardeners, 3. distant retail nurseries.

Other Examples:

BBQ (sit down restaurant, Individual customers, carry-out only, large groups, catering, internet)
Jewelry Business (in-home sales, boutique shops, internet sales, national shows, retail location)

Ask the questions…..

- What & why do they buy?

- Where do they shop & how often?

- How much do they spend?

- Who buys? Individual Decision, Family Decision?

- What brands do they consider?

- Do price points & deals influence purchasing?

- How do they buy? Cash, Credit, Layaway

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TARGET MARKET COMPARISON AND SELECTION

Fills target customer needs
More profitable (considers cost and price)
More sales
Minimum channel conflict
Favorable competitive environment
Fits my vision and skills

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GROUP EXERCISE: TARGET MARKETS

General description
Target markets
Channel position
Demographics
Buying habits
Key needs vs. your products/services
Cost vs. profit
Sales size and estimate of your potential market penetration

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Session 3: Marketing Plan

You can use this outline to write a description of target markets for your business plan. Clients can use their worksheets as back-up documentation in the appendix of their feasibility plan draft.

Group Discussion and Exercise: Hand out both the target market worksheet and the comparison sheets. Provide one handout of both exercises for each of the client’s business ideas. Ask: Would anyone like to volunteer to discuss your target markets? Openly assist at least two students in understanding their market options. Once everyone understands the process, give the class 10 minutes to complete their own worksheets and write a descriptive paragraph.

In this exercise we will use only the target market sheet. List your target market options at the top. Students should be able to identify at least two. Start filling in the worksheet with the information that they already have, and make up information that they need to complete the worksheet. This temporary information can be changed to real facts with further research.

-Don’t worry, they will not come close to finishing it. They will be lucky to list their channel choices.

-Support each client and offer to help. Ask others to listen in as you ask the client first about their channel choices. Help them expand their options and make sure they understand how to get other information.

-Remind them to meet with their mentor to finish both worksheets.

Resources should respond to any individual questions during this time. Find out where clients are stuck and provide some advice; take only about 3 to 5 minutes per person. Near the end of the exercise, resources can share issues that might be pertinent to the whole group.

Time for Exercise: 10 minutes to complete worksheet and paragraph, plus an additional 15 minutes for group discussion about target markets.

Total Time: 25 minutes

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PRODUCT AND SERVICES

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Descriptions should include:

Special benefits
Unique features
Limits and liabilities
Production and delivery
Suppliers
Intellectual property, special permits

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This slide outlines what the client should have in their product/service description. Briefly describe what each means.

Special benefits relate to filling key customer needs and the unique features are how the client’s product or service does that. For example, provides best practices information for customers to help them transplant, grow and maintain their specialty plants.
Limits and liabilities relates to the client’s offering; the client needs to know their exposure and how they are going to protect themselves. Ann’s Nursery liability is limited to the purchase price of materials and the product guarantee follows industry norms—returns within one year of purchase.

They need to discuss how they will produce and deliver their product or service. If they have fairly complex operations, they should discuss it in the business structure section. Suppliers may have a major impact on the financial well-being of a business and that should be mentioned here. How a client establishes and protects intellectual property or obtains special permits also needs to be addressed in this section.

Group Exercise: Distribute the Product & Service Description Worksheet. Take 5 minutes to write a description of your products and services that answers the questions from the slide. Allow 5 minutes for discussion.

Total Time: 10 minutes

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MARKETING CHANNELS

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The path of goods, services and information to the customer.

Direct Sale: Business to Business/B2B
Producer to Distribution to Retailer
Direct Sale to Final Consumer/B2C
Internet
Associate Networks for Services

Session 3: Marketing Plan

In this section, explain channels and positions in those channels. Channels are “the path of goods, services and information to the customer.” Listed are a few of the common channels that businesses use. The client could sell a product or service directly to another business called “B2B” or they could offer a product to distributors who sell to retailers who then sell to the final consumers. They may be a retailer or producer that sells directly to the final consumer called “B2C,” or they may sell their product or service through the internet to anyone. They may be a service that sells their offering through an associate network.

Understanding channels helps the client in a number of ways. It allows them to see market segments that they might have missed, identifies multiple market segments to target, helps them set prices in order to avoid channel conflicts, and develops a marketing communication strategy.

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CHANNEL STRATEGY CHART

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	e-commerce Website	Amazon Seller	Shopify Store
Startup Costs	$1,200 -$3,700	$3000 for displays	$2000 for web page
Advertising	$1,200/year	$1,200/year	$1,200/year
Extras	Social media marketing; Google Ads	Amazon weekly, Fulfillment, Inventory, Premium Acct Services	Social media marketing, Google Ads, Fulfillment

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TOP MARKETING COMMUNICATION METHODS

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Advertising: online directories, sponsored social media, banner ads, mobile ads
Public relations: print, radio, blogs, podcasts
Collateral: print marketing materials, such as business cards, brochures, letterhead, signage, promotional giveaways
Digital marketing: Search Engine Optimization (SEO), Pay-Per-Click (PPC), affiliate, email, content marketing, social media, customer surveys
Product samples, special offers

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MARKETING METHODS: COLLATERAL

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Almost every business needs some type of marketing collateral—print materials that promote your business, such as business cards, brochures, flyers, trade show banners or in-store signage.

Based on your marketing strategy and how you plan to sell your product or service, determine which types of marketing collateral you need.

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MARKETING METHODS: TRADITIONAL ADVERTISING

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Print Ads:

Look for local print outlets.

Direct Mail:

Has made a comeback. Try postcards or 3rd-party direct�mail solutions.

Broadcast:

Cable ads may be an affordable option.

Public Relations:

You no longer need a formal press release.

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TRADITIONAL ADVERTISING

Although digital marketing is the optimal

approach to get results today, there are

still some traditional advertising methods

that work for small business owners.

● print ads:

Major metro newspapers

are not only expensive; they probably

won’t get you the results you’re looking

for. On the other hand, local city

papers are more affordable and often

offer promotional deals to attract local

businesses. Your town (or one nearby) may

also have a local magazine with advertising

opportunities. Ask about any special issues

that highlight specific occasions (graduation,

weddings, etc.) or industries.

● direct mail:

Depending on your target

market, mailing postcards, sales letters and

brochures can be effective, but may be costprohibitive

during your startup stage. Check

with local companies, such as Valpak, that offer direct mail solutions,

allowing you to insert an ad, coupon, or flyer. Contact your local post

office to learn what programs they offer for direct mail campaigns, such

as Every Door Direct Mail.

● broadcast:

Although radio and television advertising may not be

feasible for small companies, cable ads are often surprisingly affordable.

Also, check out podcast advertising opportunities. There are podcasts on

everything from food to fashion to murder. Podcast ad prices are almost

always negotiable and based on the number of listeners.

PUBLIC RELATIONS

Let the world know about your new business by telling the media

about it through public relations (PR). Develop a list of media people

who might be interested in your business, along with their contact

information. You don’t necessarily need to send a formal press

release—a brief email with news about your

business will suffice. However,

if you do want to create and distribute press

releases, websites such as CISION PR Newswire

(www.prnewswire.com), CISION PRweb

(www.prweb.com) and PRLog (www.prlog.

org) offer tools, tips and resources.

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ONLINE/DIGITAL MARKETING METHODS: WEBSITE

Even if you don’t plan to sell anything online, every business needs a website to build credibility, provide information and help prospective customers discover your company.

Your website should include your location, hours, address, phone number and email address.

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Even if you don’t plan to sell anything online, you need a business website to build credibility, provide information about your business

and help prospective customers discover your company when they’re searching for businesses like yours. There are many full-service website design companies that can handle everything, including registering your business domain name (the URL that users type in their browsers to reach your site), hosting your site on their servers, designing your site, and helping with online marketing.

Your business website should include your company’s location, hours of operation, address, phone number and an email address or email form to contact you. Include social share icons linking to your social media sites and detailed information about your products/services and use attractive photos and graphics. Optimize your website for search engines by using keywords in your website copy. Unless you’re an expert in Search Engine Optimization (SEO), you need to outsource or hire someone who knows how to get your website ranked on search engines. The algorithms are constantly changing, so you need someone with SEO experience.

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ONLINE/ DIGITAL MARKETING METHODS: LOCAL SEARCH

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Online local search directories such as Google My Business, Bing Places and Yelp help internet users find local businesses when they search online.

Visit local search directories to claim your free business listing, then fill out the required information such as address, hours of operation and phone number.

Be sure to add keyword-rich descriptions and photos to enhance your listing.

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ONLINE/ DIGITAL MARKETING METHODS: EMAIL

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Gather email addresses from prospective customers and use them to develop an email list
Once you have a list, send customers email newsletters on a regular basis or occasional marketing emails, featuring special offers or discount codes, notices of sales or news about upcoming events at your business
Be sure to abide by CAN-SPAM laws
Using an email marketing service provider can simplify email marketing. Your website hosting service may also provide email marketing assistance

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ONLINE/ DIGITAL MARKETING METHODS: ONLINE ADS

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Online advertising is a must, no matter what your business. One option is pay-per-click (PPC) advertising, which targets customers using specific keywords in the ads. You don’t pay unless customers click on the ad. You can place PPC ads using Google Adwords or Microsoft Ads
Place banner ads on niche websites that attract your target customers
Monitor the success of an online ad campaign using Google Analytics or other alternatives
Your web host might also have tools that show you where visitors to your website come from, what they do on your website and how many of them contact or buy from you

Session 3: Marketing Plan

Today online advertising is a must, no matter what your business. One option is pay-per-click (PPC) advertising, which targets customers using specific keywords in the ads. You don’t pay unless customers click on the ad. You can place PPC ads using Google Adwords (https://ads.google.com/home/#!/) or Microsoft Ads (https://about.ads.microsoft.com/en-us). You can also place banner ads on niche websites that attract your target customers; if you sell B2B products or services,

consider running banner ads on websites related to your target customers’ industries. It’s easy to monitor the success of an online ad campaign: Just use Google Analytics (https://marketingplatform.google.com/about/analytics/) or a Google alternative such as Heap (https://heap.io/) or Kissmetrics (https://www.kissmetrics.io/). Your web host might also have tools to show you where visitors to your website come from, what they do on your website and how many of them contact or buy from you.

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MARKETING METHODS BY BUSINESS CHANNEL TYPE

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Business to Business (B2B) for a product: Xerox
Business to Business (B2B) for a service: eFax
Business to Consumer (B2C) for a product: Nike
Business to Consumer (B2C) for a service: Merry Maids
Internet Sales: Amazon.com
The effectiveness of marketing methods will vary by target markets, sales channels and types of business. When planning your marketing mix, consider who you are selling to and how you sell.
Business to Business (B2B) for a product or service
Business to Consumer (B2C) for a product or service
Sales channel (direct sales, internet sales, etc.)

Session 3: Marketing Plan

Your marketing tactics will depend on whether you are marketing to business, to consumer or online. Let’s look at some examples…

Business to Business (B2B) for a product: Xerox

Xerox is one of the top providers of copiers to businesses. They are well known for developing a strong, aggressive sales force. They also have financing programs to make copiers affordable for businesses small and large.

Be sure to define each of these strategies for the class. For example, the term “direct sales” may be new to some people. �

Direct sales force, highly trained
Telemarketing
Business card, tri-folds and other collateral (promotional material)
Trade show booths
Trade magazine advertising
Public relations: articles in magazines and newspapers�

Business to Business (B2B) for a service: eFax

eFax allows users to send and receive faxes online, eliminating the need for a fax machine. The company does a lot of advertising online, and enlists channel partners to resell and promote services. Each eFax document is branded with the company logo for consistent recognition.

Internet advertising, banner ads
Channel partners, affiliate sales
Website, e-mail, social networks
Print advertising in trade magazines
Cross-promotion with partner services
All eFax messages are branded

�

Business to Consumer (B2C) for a product: Nike

Nike produces shoes and apparel for athletes, and persuades the consumer that he/she can achieve athletic performance with Nike products. They place a strong emphasis on paid advertising both in print and on television.

Brand is about athletic performance
Extensive print advertising
TV advertising
Celebrity endorsements
Sports arena advertising
Consistent, persistent branding

�

Business to Consumer (B2C) for a service: Merry Maids

Merry Maids is a national home cleaning franchise. They invest marketing dollars in print and direct mail advertising campaigns, and also utilize internet advertising.

Direct mail advertising
Business card, tri-fold brochures and other collateral (promotional material)
Print advertising in consumer publications
Advertising on vehicles
Internet advertising, pay-per-click

�

Internet Sales: Amazon.com�Amazon.com is the largest bookseller on the internet, and also sells video games, dvds, music, toys and household items. The company has traditionally avoided print advertising and instead relied on internet advertising and word of mouth. With the introduction of the Kindle, Amazon has begun advertising in magazines.

Website is optimized for the search engines (SEO)
Relies largely on word of mouth
Alliance partners and affiliate programs
Paid search engine advertising
E-mail marketing
Until recently, no print advertising

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ONLINE/ DIGITAL MARKETING METHODS: SOCIAL MEDIA

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SOCIAL MEDIA: FACEBOOK

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74% of American users check Facebook at least once a day
51% of American users check Facebook several times per day
People spend an average of 34 minutes per day on Facebook
80% of people access Facebook using mobile only (19% use both mobile & desktop)
For more here’s the latest Facebook statistics and Facebook demographics.

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SOCIAL MEDIA: INSTAGRAM

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63% of American users check Instagram at least once day
42% of American users check Instagram several times per day
Instagram use went up to an average of 30 minutes per day in 2020, (from 26 minutes per day in 2019)
People spent an average of 6 minutes 35 seconds per visit on Instagram in 2019
The latest Instagram statistics here & Instagram demographics

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SOCIAL MEDIA: TWITTER

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42% of American users check Twitter at least once day
25% of American users check Twitter several times a day
People spent an average of 10 minutes 22 seconds per visit on Twitter in 2019
Here’s a full list of 2021 Twitter statistics & Twitter demographics

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SOCIAL MEDIA: LINKEDIN

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9% of American users check LinkedIn at least once day
12% of American users check LinkedIn several times a day
57% of LinkedIn’s traffic is mobile
Here’s a full list of 2021 LinkedIn statistics & LinkedIn demographics

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SOCIAL MEDIA: PINTEREST

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Pinterest has about over 450 million monthly users
Great platform for retailers
It’s also a good platform for brands targeting women who represent six out of 10 Pinterest users

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SOCIAL MEDIA USAGE

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YouTube & Facebook dominate with 81% and 69% of Americans using these sites
40% of adults say they use Instagram & about 30% use Pinterest or LinkedIn.
About 25% say they use Snapchat, Twitter & WhatsApp.
TikTok is used by 21% of Americans, while 13% say they use the neighborhood-focused platform Nextdoor
TikTok is still on the rise with predictions reaches almost a billion active users. That's why it's the platform that the most SMBs want to learn more about
See TikTok 'Behind the Business' videos here

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GROUP EXERCISE: CREATING YOUR MARKETING MESSAGE

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Using the marketing message for We Are Planet Earth as an example, fill in the elements below that apply to your business.

Product/Service Offered
Target Markets
Unique Features
Customer Benefits

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GROUP EXERCISE : MARKETING STRATEGY CHART

Identify different target customers by channel
Add estimates by channel for:
One-time expenses
Monthly/annual expenses
Staff time expended
Pick a partner and share your strategy

Time: 10 minutes

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CREATING YOUR MARKETING MESSAGE

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Using the marketing message for We Are Planet Earth as an example, fill in the elements below that apply to your business.

Product/Service Offered
Target Markets
Unique Features
Customer Benefits

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SALES

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Asking someone to buy what is being offered

Marketing gets customers to the door; Sales brings in the money!
Effective sales requires attention, common sense and creative thinking
Prepare for sale cycle based on Marketing Plan
Know your company’s strengths and weaknesses
Know your competitor’s strengths and weaknesses
Never be satisfied with “Status Quo”

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KEEPING YOUR CUSTOMERS: (AND GETTING NEW ONES)

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When you have a new prospect…

Provide a WOW! Experience
Entice them to stay in touch
Social networks, email, mobile, events, direct mail
Engage people
Discussion, promotions, event, poll/survey, sharing information
Engagement = social visibility = new prospects!

Source: “Engagement Marketing: How Small Business Wins in a Socially Connected World” by Gail F. Goodman

Session 3: Marketing Plan

Providing a WOW Experience: remember your customers’ names and preferences, provide them with exceptional service they do not get anywhere else, etc.

Enticing them to stay in touch: When you create a great customer experience, you make it easier for customers to be receptive to doing business with you again, to remaining in touch with you, and to sharing their experiences with their networks. Email marketing, social media platforms (Facebook, LinkedIn, Google+, YouTube, Twitter). Ask them to connect with your business and entice them to opt in!

Engaging people: Engagement=sharing content that inspires your fans, followers, email subscribers, blog readers, and other online contacts to interact with you. Examples: “Liking” or “1+ing” your post or website, sharing your content on Facebook, Twitter, Google+, LinkedIn, Pinterest, or Instagram, visiting your business to make a purchase, or calling/emailing you to discuss a new project. When your audience participates, especially on social networks, it creates a buzz around you and your business: When your customers “Like,” comment, or share stories, their participation becomes visible to their networks (your new prospects!).

New prospects: When you engage your customers through social media in a way that drives participation, you create socially visible actions. Socially visible engagement puts your business or organization in front of a new audience: the social networks of your existing customers. Not only are they seeing and hearing about your business, they are hearing about it from a trusted source, giving you an implicit thumbs-up.

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SIMPLE STEPS FOR STARTNG YOUR BUSINESS

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Session 1: Startup Basics

Testing Your Business Ideas

Session 1 🡪 Startup Basics

Session 2 🡪 Business Concept

Session 3 🡪 Marketing Plan

Session 4 🡪 Financial Matters

Session 5 🡪 Funding Options

SIMPLE STEPS FOR STARTING YOUR BUSINESS

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TECHNOLOGY RESOURCES

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SCORE’s Business Technology resources are designed to help small businesses grow and prosper using technology to compete more effectively.

We provide you with FREE resources including:

Free online workshops
Free how-to guides

Topics include:

Creating a Technology Plan for Your Small Business
Building the Perfect Website for Your Small Business
Boosting Your Business Using Technology
Using Technology to Improve Your Cash Flow
Using Technology to Jumpstart Your Sales

www.score.org/business-tech-training

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HOMEWORK

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Complete the first draft of your feasibility plan.
Download the Financial Projections Template from the SCORE site:�http://www.score.org/startyourbusiness
Fill in the Comparison for Selection of Target Markets worksheet (from�your handout)
Bring a calculator

See you at the next session on Financial Matters

Session 3: Marketing Plan

Homework: Students should complete the first draft of their feasibility plan, refine what they worked on in class today, and finish up any areas that they didn’t yet complete. They should enlist the aid of their mentors. If evaluating multiple ideas, the clients should complete one feasibility plan for each idea so that they can examine the information and make the best decision on how to proceed.

Remind them to enlist the help of their SCORE counselor if needed.

Go to www.score.org. Click on Business Tools. Then click on Template Gallery. The 2^nd section from the top contains the 3 files you should download. They are under the label SCORE Financial Projections Template *UPDATED May 2010.* Save the files in your computer’s hard drive. For now, just review the documents and become somewhat familiar with them before the next session, where we will discuss them at length.

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HELP US, HELP YOU

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Please complete our workshop survey:

On a scale of 0 - 10, how likely is it that you would recommend this workshop to your friends and colleagues?
What is the primary reason for the answer you just gave us?
What is the most important improvement that would make you rate us closer to a 10?

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SIGN-UP

Sign up for the remaining workshops!

[Insert chapter registration information here, including website and costs]

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Session 3: Marketing Plan