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MT-01
A Marketing Plan SCORE Chapter 570 |
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Nine
Out of Ten Businesses Will Fail |
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"Every year hundreds of new businesses come
into existence. Of these, nine out of ten will fail, often within the first year
of operation. And the majority will cease to exist within five
years."--------------------- Joel Kurtzman1 The lack
of a good marketing plan can often be the chief cause of their demise. The
Marketing Plan A sound marketing plan must address
three major components in this order: [1] What do you have to sell? a) Sell the benefits,
NOT the features. The sizzle not the steak. b) What benefits
will my customer or client get from my service? c) Why should they choose
me over my competition? [2] Who are you going to sell it
to? a) Target, Target,
Target. b) Are they big enough
or small enough to benefit? c) Can they afford my
product or service? d) Are they in my
service area? [3] How are you going to sell it? Only after you can
successfully answer the first two can you now decide which media etc. that
you are going to use to get your message across. a) What media does my
target read or listen to? b) Where do they shop,
congregate, recreate, travel ? c) What trade
publications do they have? d) Should I create
professional stationery, business cards, brochures, Flyers, etc.? e) Will a professional
Logo help? The Mouse
Trap The old
cliché "Build a better mousetrap and the world will beat a path to
your door" is not as simple as it sounds. First, the world has to
know that you have built the better trap. Then they need to know where to
find your door. This is marketing. Successful vs Super Successful: "Individual
entrepreneurs Don't succeed ( some just survive), teams do succeed."
---------------- Edward Roberts2 Roberts
goes on to say we found that the larger size of the founding group the
greater was their likelihood of success. A company's chances of success went
up dramatically from a sole-founded company to a four founder company. As you
went from one, to two, to three, to four founders, you had dramatic upward
chances of success. Especially if one of the founders had marketing
skills. Find a Need
and Fill it: The
surest road to success is to find a need and fill it............... Again, Benefits,
what needs do my buyer or clients have? a) Is he/she working too long? Can
your product or service save labor? b) Are there health
considerations? Can your product or service relieve some pressure? c) Financial problems? Will
your product or service produce more profit? d) Family considerations? Will
your product or service give me more time with the family? e) Keeping up with the Jones? Will
your product or service improve my image? Know Your
Competition: Before
you can develop a workable marketing plan you must recognize and evaluate
your competition... Keep in
mind that your competition need not be someone selling the same products or
offering the same service as you do, but anyone competing for the same dollar
or the your clients time. Example:
Joe owns a
bowling alley, one of only two in the area. He already has a significant part
of the Pie. (The bowling business in the area) Should Joe continue to advertise
or promote his location or should he endeavor to grow the Pie by marketing to
Movie fans, Skaters, Concert goers, even Readers and Knitters, expounding the
benefits of learning to bowl. He can thereby
increasing the size of the Pie to make his big slice even bigger? Remember,
he is really competing for those few hours of leisure time that some of us
have at the end of the day. He might even enlist the cooperation of the other
alley in town to promote the many benefits of bowling. Remember, the benefits
not the features. Example:
Jane will
open a Tea Room. She realizes that most people need to eat breakfast, lunch,
and dinner every day, Her target will primarily be
the lunch crowd. There are ten Fast Food franchises in the area all competing
for the same thing, the lunch time dollar. Her competition is
not another Tea Room, but anyone competing for that same dollar. She
should do a Competitor Analysis. ( A
template is available in our office. ) She must discover the strengths
and weaknesses of each competitor before she can successfully develop her
marketing plan. Is her eating place healthier? More relaxing? Fast efficient
waitress service? Comfortable seating? Larger menu? A change of pace? Etc.
Etc. She might also promote the idea of adding a fourth eating habit, the
afternoon Tea, a product not available from the competition. Which ever
approach she chooses, Remember, the benefits not the features. Quality
Always Counts. Remember
that the best marketing will always be "Word of Mouth" Do a good
job and they will tell their neighbor Do a bad job and they will tell the
whole neighborhood. A satisfied customer/client is your best asset.
Keep in touch with them, check on their satisfaction, ask them for input, reward them for their continuing support. Treat them like
a king and they will spread the news faster than any media you use.
1 Joel Kurtzman: Mr. Kurtzman is chairman of the Kurtzman
Group. Formerly editor of the Harvard Business
Review and business editor and columnist for the New York Times,
he lives in 2 Edward Roberts: Mr. Roberts is David Sarnoff Professor
of Management of Technology, Sloan School of Management, MIT |
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