Marketing Plan for the Independent Inventor

Many first-time business owners think that by simply placing an ad in a local newspaper or a commercial on a radio or a television station, customers will automatically flock to purchase their product or service. This is true to a certain extent. Some people are likely to learn about your invention and try it, just out of curiosity. But hundreds, even thousands, of other potential customers may never learn of your business. Do develop an adequate marketing program. What you as a potential business owner must do is maintain a thorough understanding of your marketing program, and use it to extract advantages from the marketplace. Go over different strategies and techniques until you understand how to apply them to get the results you desire. Remember, your aim is not only to attract and keep a steady group of loyal customers, but also to expand your customer base by identifying and attracting, new customers and to reduce risks by anticipating market shifts that can affect your bottom line.

The Four P's of Marketing

To help you accomplish this aim, your marketing plan should include strategies typical of any marketing plan. The plan should especially include what marketers dub as the four P's of Marketing:

• PRODUCT
• PRICE
• PLACE
• PROMOTION

Review your plan. Make certain it contains the strategies listed below and on the next page and then determine how these strategies will be applied by you. Include a brief explanation for
each strategy.

Describe Your Target Market

• By age
• By sex
• By profession or career
• By income level
• By educational level
• By residence

Identify and describe your customers (target market) by their age, sex, income/educational levels, profession/career and residence. Know your customers better than you know anyone - their likes, dislikes, expectations. Since you will have limited resources target only those customers who are more likely to purchase your product. As your business grows and your customer base expands, then, you may need to consider modifying this section of the marketing plan to include other customers.

Identify Your Competition

• By market research data
• By demand for product
• By your nearest direct and indirect competitors
• By the strengths and weaknesses of competitors
• By an assessment of how competitors businesses are doing
• By a description of the unique features of your product
• By the similarities and dissimilarities between your product and competitor's
• By a pricing strategy for and comparison of yours and the competition's

Identify the five nearest direct competitors and the indirect competitors. Start a file on each identifying their weaknesses and strengths. Keep files on their advertising and promotional materials and their pricing strategies. Review these files periodically determining when and how often they advertise, sponsor promotions and offer sales.

Describe Your Product

Try to describe the benefits of your goods from your customer's perspective. Emphasize its special features - i.e., the selling points. Successful business owners know or at least have an idea of what their customers what or expect from them. This type of anticipation can be helpful in building customer satisfaction and loyalty.

Develop A Marketing Budget

• For your advertising and promotional plan
• For costs allocated for advertising and promotions
• For advertising and promotional materials
• For a list of advertising media to be used

Operating an effective marketing plan requires money, so you will have to allocate funds
rom your operating budget to cover advertising, promotional and all other costs associated with marketing. Develop a marketing budget based on the cost for the media you will use, and the cost for collecting research data and monitoring shifts in the marketplace.

Describe Location (Place)

• description of the location
• advantages and disadvantages of location

Again, try to describe the location of your business from your customer's perspective. Describe its assets -- i.e., the convenience, whether or not public transportation is accessible, the safety aspects - street lighting, well lit parking lot or facility, decor, etc. Your location should be built around your customers, it should be accessible and should provide a sense of security.

Develop Pricing Strategy

• pricing techniques and brief description of these techniques
• retail costing and pricing
• competitive position
• pricing below competition
• pricing above competition
• price lining
• multiple pricing
• material costs
• labor costs
• overhead costs

Although your pricing strategy may be based on the strategy devised by others, you should study this plan and the strategies used by competitors. That way you will acquire a thorough understanding of how to price your product, and you can determine if your prices are in line with competitors, if they are in line with industry averages and what adjustments you can make to bring them in line.

The key to success is to have an well-planned strategy, to establish your policies and to constantly monitor prices and operating costs to ensure profits. Keep abreast of changes in the marketplace because these changes can affect your bottom line.

Develop an Effective Promotional Strategy

• advertising media
• print media (newspaper, magazine, classified ads, Yellow Pages advertising, brochure)
• radio
• television
• networking
• business cards
• tee shirts, hats, buttons, pens

Develop a promotional strategy that uses various media for promoting your business. Monitor the different media identifying those that most effectively promote your business. Concentrate on developing material for these formats that clearly identifies your services, its location and price.

Since financial institutions weigh the soundness of your marketing plan when deciding whether your business is a good risk for their money, it is important that you prepare and present credible market data that shows there is a need in the community for your business and that demonstrates your ability to compete.

How to develop a marketing concept

Unfortunately, there is still a misunderstanding about the word marketing. Many people, including top executives, use it as a sophisticated term for selling. Marketing representative is commonly used in ads to recruit salespeople. Actually, marketing is a way of managing a business so that each critical business decision is made with full knowledge of the impact it will have on the customer.

Here are some specific ways in which the marketing approach differs from the classic, or sales, approach to managing a business.

1. In the classic approach, engineers and designers create a product, which is then given to salespeople who are told to find customers and sell the product. In the marketing approach, the first step is to determine what the customer needs or wants. That information is given to designers who develop the product and finally to engineers who produce it. Thus, the sales approach only ends with the customer, while the marketing approach begins and ends with the customer.

2. The second major difference between the sales and marketing approaches is the focus of management. The sales approach almost always focuses on volume while the marketing approach focuses on profit.

In short, under the classic (sales) approach the customer exists for the business, while under the marketing approach the business exists for the customer.

The marketing concept is a management plan that views all marketing components as part of a total system that requires effective planning, organization, leadership and control. It is based on the importance of customers to a firm, and states that:

All company policies and activities should be aimed at satisfying customer needs.
Profitable sales volume is a better company goal than maximum sales volume.
In order to conduct a successful marketing program you must be able to answer the following questions:

What type of business are you in (manufacturing, merchandising or service)?

What is the nature of your product(s) or service(s)?

What market segments do you intend to serve? (Describe the age, sex, income level and life-style characteristics of each market segment.)

What strategies will you use to attract and keep customers?

• Product

• Price

• Place

• Promotion

• Persuasion (personal selling)

What is your unique selling proposition (USP)?

Who is your competition, and what will you do to control your share of the market?

Preparing for a Recession: How to Survive a Recession

Here are a few things that you can do to stay ahead during a recession and maintain the success of your small business.

Improve Customer Service

Make sure that each and every customer gets special treatment and leaves your store or office satisfied that you have delivered much more than what was expected.

Your employees should also understand that tough times require a gentler touch and your customers need to be treated as VIPs now more than ever.

Since all your competitors may be selling the same products that you are, it will be your satisfied customers who will not only bring in repeat business, but also new customers.

Improve Your Knowledge and Skills

Now would be a good time to build on your knowledge and learn new skills regarding the technical and financial aspects of your business. Your customers should be impressed with your product knowledge.

This not only will enhance your reputation as an expert, but will also ensure that they come to you if they run into difficulties.

Control Your Expenses

Now is the time for you to tighten up the controls on all your expenses, especially those that are not crucial to keeping your business going. It certainly is not a good time to indulge in luxury items; that can wait until the situation improves.

You should also split large expenses into smaller ones so that they become more manageable. Even when purchasing inventory, try to get longer credit periods or better rates by comparing prices offered by different suppliers.

Start Accepting Payments by Credit Card

If you are dealing in consumer goods, then you probably already have a credit card machine; but if you are dealing in industrial items and do not have the ability to process credit card date, then now would be a good time to make that change.

Many of your smaller customers might need to pay you by credit card if they are experiencing a cash flow problem. Recent surveys have shown that more people are using credit cards as a way to deal with the financial downturn.

Lower Your Profit Margins

Keeping in mind that it will only be temporary, this is a good time to lower your profit margins. Notify your existing and potential customers that you are making this move.

You’re going to need more sales to make up the difference, and their goodwill is more important than ever. You can always raise your prices once the recession shows signs of easing.

Use the Power of the Internet

Use the Internet to advertise your products. In comparison to traditional media such as newspapers and television, the cost is very reasonable.

Hire experts who can ensure that your firm is always on top in product searches, and make your website attractive and interactive.

Motivate Your Staff

Your staff should be made aware of your business’ situation in the current recessionary market. They will be motivated to work extra hard to achieve the desired results, if they are convinced that their participation can save the business - and their jobs.

You should also put in extra effort and hours, so your staff will know that you are going the extra mile yourself.

Use these ideas and seek others on your own so your small business will survive the downturn. Only businesses with a solid foundation and foresight survive the inevitable bad times that go along with managing a business. You want to be one of them.

MARKETING GUIDE : GUIDE TO SUCCESFULL FOR BUSINESS MARKETING

One great need of small business managers is to understand and develop marketing programs for their products and services. Long term small business success depends on the ability to maintain a strong body of satisfied customers while continually increasing this body with new customers. Modern marketing programs build around the marketing concept, which directs managers to focus their efforts on identifying, satisfying, and following up the customer's needs - all at a profit.

THE MARKETING CONCEPT
The marketing concept rests on the importance of customers to a firm. All company policies and activities should be aimed at satisfying customer needs while obtaining a profitable rather than maximum sales volume.

To use the marketing concept, a small business should:

• Determine the needs of their customers (marketing research).
• Develop their competitive advantages (market strategy).
• Select specific markets to serve (targetmarketing).
• Determine how to satisfy those needs (marketing mix).
• Analyze how well they've served their customers, and then return to step 1 (marketing performance).

MARKET RESEARCH
The aim of market research is to find out who the customers are, what the customers want, where and when they want it. This research can also expose problems in the current product or service, and find areas for expansion of current services to fill customer demand. Market research should also encompass identifying trends that may affect sales and profit levels.

Market research should give you more information, however, than just who your customers are. Use this information to determine matters such as your market share, the effectiveness of your advertising and promotions, and the response to new product developments that you have introduced into the market.

For once, small business holds an edge. While larger companies hire professionals to do their research, small business managers are close to their customers. They can learn much more quickly the likes and dislikes of their customers and can react quickly to change in customer buying habits.

What to look for, Market research should investigate four areas: customers, customer needs, competition, and trends. The research conducted should answer questions like:

Customers. Identify their:

• Age
• Income
• Occupation
• Family size
• Marital status
• Residence
• Interests and hobbies

Customers wants

• Is the product needed for a limited time (diapers, for example)?
• Are customers looking for quicker service?
• Do customers want guarantees with the products?
• Will customer come frequently (for example a grocery store) or seldom (a car dealership)?
• Are customers looking for a wider distribution or more convenient locations?

Competition

• What is the competitions' market share?
• How much sales volume do they do?
• How many similar firms exist?
• What attracts customers to them?
• What strengths do they advertise?

Trends. Are there:

• Population shifts? (Baby boom, for example) Legal or regulatory developments?
• Changes in the local economic situation?
• Lifestyle changes? (single parents, working women, smaller family size)

Where to get it
There are two general sources of information that can be gathered: data already available and data that can be collected by the business.
The following sources may provide already accessible data:

• Local area Chamber of Commerce
• Trade associations in the line of business
• Professional market research services
• Local library

Data can also be obtained by the business' own research efforts through the following means:

• Telephone surveys
• Local and national newspapers
• Surveys sent by mail
• Questionnaires
• Local TV and radio stations
• Interviewing
• Customer service cards

Market research doesn't have to be sophisticated and expensive. While money can be spent to collect research data, there are many inexpensive ways to collect this data that are easily accessible to the small business owner. Several of these methods are:

Employees.

This is one of the best sources of information about customer likes and dislikes. Usually employees work more directly with customers and hear complaints that may not make it to the owner. They are also aware of the items customers request that the business doesn't offer. They can probably also give a pretty good customer profile from their day-to-day contacts.

Customers.

Talk to the customers to get a feel for you clientele, and ask them where improvements can be made. Encouraging and collecting customer comments and suggestions is an effective form of research. By asking the customers to explain how the product could improve to fill their needs, constructive market research is done, as well as instilling customer confidence in the product.

Competition.

Monitoring the competition can be a valuable source of information. Their activities may provide important information about customer demand that were overlooked, and they may be capturing part of the market by offering something unique. Likewise, small business owners can capitalize on unique points of their products that the competition does not offer.

Company records and files.

Looking at company records and files can be very informative. Look at sales records, complaints, receipts, or any other records that can show you where your customers live or work or how and what they buy. One small business owner found that addresses on cash receipts allowed the pinpointing of customers in his market area. With this kind of information he could cross reference his customers' address and the products they purchased. From this information he was able to check the effectiveness of his advertising placement. However, realize that this information represents the past. Present or future trends may mean that past information is too obsolete to be effective.

Your customers' addresses alone can tell you a lot about them. You can pretty closely guess your customers' life-style by knowing what the neighborhoods they live in are like. Knowing how they live can give you solid hints on what they can be expected to buy.
In addition, check returned items to see if there is a pattern. Check company files to determine which items sell best, and which sell poorly.
The key to effective marketing research is neither technique nor data it's useful information. Customers likes and dislikes are shifting constantly so this information must be timely. It's much better to get there on time with a little than too late with a lot.

A MARKET STRATEGY
With the research information gathered, the next step is to develop a market strategy. Use this information to determine areas where the competition doesn't adequately fill consumer demand or areas where a new product or different product promotion would capture part of the market.
A new business may capture a significant market share by aiming their market strategy on areas not focused on by the competition.
Some examples of the various areas of emphasis include offering a:

• Better or wider distribution
• Specialized instead of a broad product line (or vise versa)
• Lower price
• Modified product (improved)
• Better value for the consumers money (quality)
• More dependable product or service
• Customer support service

As a new business can enter an industry and capture a share of the market, an established business can use the same strategies to increase their market share as well.

TARGET MARKETING
When the marketing strategy is developed, determine with which customer group this would be most effective. For example, a "better value for the money" may be more appealing to the "family" consumer group while a "wider distribution" would be more attractive to consumers who travel. Remember that different market strategies may appeal to different target markets. Therefore, apply the collected data to choose the combinations that will work best. The market is defined by different segments.
Some examples are:

• Geographic: Specialize products to customers who live in certain neighborhoods or regions, or under particular climates.
• Demographic: Direct advertising to families, retired people, or to the occupation of consumers.
• Psychographic: Target promotion to the opinions or attitudes of the customers (political or religious, for example).
• Product benefits: Aim marketing to emphasize the benefits of the product or service that would appeal to consumers who buy for this reason in particular (low cost or easy access, for example).
• Previous customers: Identify and promote to those groups who have purchased the product before.

THE MARKETING MIX
Before the marketing mix decision is made, determine what purpose these marketing efforts are going to serve. Are they to:

• Deepen the customer base?
• Increase the market share? If so, by how much?
• Increase sales? If so, by how much?
• Reach new geographic markets?
• Increase customer traffic?
• Sell remaining inventory to prepare for a new product line?

After these objectives are established, determine a date for accomplishing the objective. The marketing mix allows owner-managers to combine different marketing decision areas such as products and services, promotion and advertising, pricing, and place to construct an overall marketing program.

Products and Services
Use the product or service itself as a marketing resource. Having something unique provides motivation behind advertising. While the ideas mentioned under market strategy apply here, another option is to change or modify the product or service. Additional attention may be given to a product if it has changed color, size, or style, while a service may draw similar attention by modifying the services provided. Remember sales and promotional opportunities are generated by product differentiation.

Promotion and Advertising
With a marketing strategy and clear objectives outlined, use advertising to get the message out to customers.
Advertising can be done through:

• The yellow pages
• A press release
• Sponsoring a civic event or activity
• The newspaper
• Billboards or posters
• Flyers or handbills
• Direct mail advertising
• The radio

One element of advertising is promotional activities. These activities not only advertise, but they offer added incentive for customer patronage.
Some examples are:

• 2 for 1 offers
• Coupons
• Special sale prices
• Rebates
• Sweepstakes
• Give-aways

Try to reach the largest number of people with the money allocated to advertising and promotion. This may be accomplished by using several different methods of advertising. Remember to be creative and implement ideas.

Pricing
Determining price levels and pricing policies is the major factor affecting revenue. Factors such as the demand for the good, the market price, and customer responsiveness to price changes influence the price levels. Other factors such as a convenient location or more personalized service may allow a small business to charge a higher price. Make sure your price is competitive, however, by checking to see what competitors' prices are.

Place
The manufacturer and wholesaler must decide how to distribute their products. Working through established distributors or manufacturers' agent generally is most feasible for small manufacturers. Small retailers should consider cost and traffic flow as two major factors in location site selection, especially since advertising and rent can be reciprocal. In other words, low-cost, low-customer traffic location means you must spend more on advertising to build traffic.
The nature of the product or service also is important in locational decisions. If purchases are made largely on impulse (e.g., flavored popcorn), then high customer traffic and visibility are critical. On the other hand, location is less a concern for products or services that customers are willing to go out of their way to find (e.g., restaurant suppliers). The recent availability of highly segmented mailing lists (purchased from list brokers, magazines, or other companies) has enabled small businesses to operate anywhere - and serve national or international markets.

MARKETING PERFORMANCE
After the marketing mix decision is implemented, the next step is to evaluate performance. With a detailed list of company objectives, monitor how well the decisions are developing.
Evaluate objectives such as:

• Market share. Has the increased share been captured?
• Sales Volume. Was the increase reached?
• Strategy. Did the combinations of target markets and strategy work effectively? Which ones didn't?

Also, evaluate the following decisions and others:

• Did advertising efforts reach the target groups?
• Were promotions timely?
• Did customers respond to sales, coupons, or rebates?

Additionally, consider the following:

• Is the company doing all it can to satisfy the customer?
• Do the employees make sure the customer's needs are truly satisfied, leading to the vial repeat purchase and customer loyalty?
• Is it easy for customers to find what they want at a competitive price?
• If these objectives were not reached, what were the reasons?
• If they worked well, what elements were most effective?

By evaluating performance after decisions, there is reference for future decision-making, based on past results. In addition, periodically assess customers' feelings and opinions toward the business and how well their needs are being satisfied. This can be done through surveys, customer comment cards, or simply by asking them, "How are we doing?"
Assessing performance and asking for customer input brings us back around market research again. Your marketing plan is a continuous effort to identify and adapt to changes in markets, customer taste, and the economy for the success of your small business.

4 Ways to Overcome Marketing Challenges Forever

For most small business owners, marketing is an overwhelming concept. They need marketing solutions that ensure a smooth-running, profitable business yet most don't know where to begin or how to focus their efforts.

90% of small businesses don't even have a marketing plan. It's difficult to reach your destination if you don't know where you're going!

If you're a small business owner looking for ease, focus and marketing success, we recommend that you focus on just 4 tactics:

1. Establish a memorable and unmistakeable brand identity:

   The secret to business success is determined by your ability to powerfully communicate your business with laser precision and your ability to deliver a clearly-defined and consistent experience.

   In a nutshell... it's called branding, and, when done right, it ensures a thriving business with all the customers and profits you need. The secret is to establish a powerful brand identity that sings distinction. And establish that identity before you launch any marketing activities.

2. Create a deep connection with your core target audience - your potential raving fans!

   Who wants and needs what you have to offer? The only wrong answer is "everyone." If you're a pediatrician, you may see infants and children. Are they your target audience? No! They are your patients, but it's the parents you need to connect with to get the kids in your door. And it's not just any parents - it's a definite group of parents.

   In marketing, you get a lot more "bang for your buck" if you focus your spending on a well-defined group of people that you enjoy working with. The better you define this group, the more effective your marketing can be.

3. Design compelling offerings that pull customers in like a magnet.

   80% of all purchase decisions are based on emotion. It's your job as a marketer to know how your customers want to feel and to get them to visualize how your services can meet their needs. People want to know, "What's in it for me?" Tap into the emotion and create offerings that touch your customers.

4. Craft A Personal, Workable Marketing Plan

   Marketing is everything you do to make your product or service more visible, more desirable and more profitable. Your marketing plan will clearly define the big picture and provide focus and direction based on the 4 'P's of Marketing - product, price, place/distribution and promotion.

   Since 90% of small business owners do not have a plan, you'll have a leg up on your competition by crafting your personal, workable marketing plan to ensure that you reach your business goals.

Following these 4 criteria will transform any small business into a money-making machine guaranteed to grow your client list, sales and profits. The upfront work is the secret to a million-dollar business, literally and figuratively.

PRODUCTS & MARKET PLANNING

Tens of millions of dollars and hundreds of man-years are often spent developing a new telecom product. How can you be sure that your product will be successful, that it matches your market needs? We analyze your prospective or existing product line for proper match to the marketplace. We have a unique insight into what the Telecom service providers as well as the Telecom users want, need and most importantly, what they are willing to pay for.

Having completed over 3000 personal interviews with major Telecom users worldwide in just the last few years, we know how to get to the right person, ask the right questions, and process the results to reach valid conclusions. Based on this experience as well as new interviews completed for a specific new assignment, we recommend product or service features, market entry timing and distribution approaches. We can assist our supplier clients and service provider in these areas:

• Market demand requirement studies
• Market distribution planning
• Detailed product or service feature planning
• Market research programs
• Product program reviews
• Manufacturing cost estimating
• Service implementation business case development

Examples:

• Evaluated the viability on world market for existing products and strategies for a major Asian telecom supplier. - This resulted in its decision to eliminate several products and expand five product markets into other Asian, and Latin American countries.
  
  
• Recommended to a major vendor that it withdraws from the US central office switching market.
  
  
• Development of functional specifications: PABX, key systems, central office, data terminal devices, OSS/BSS systems, voice messaging services, switching systems, OSS/BSS suites.