session 4: marketing you idea (part 2)

To target a market, first we categorize (segment) then go after (position). To segment a market, there are variable to consider:
- Geographic (ie. selling umbrellas in Arizona)
- Demographic (age, income, # of kids, gender, education, etc)
- Psychological (opinions, interests; changeable depending on marketing ie. diamonds, Burberry, Lexus)
- Product Use (common, ie. shoes, minivans)

To analyze this, Craig explained the segment chart:
- imagine 2 intersecting axis
- plot the market
- identify where you’ll position yourself


Craig also explained the Product (and services) Life Cycle. Through the introductory stage, you’ll spend time teaching the benefits of your business and raising awareness. Sales start to take-off and this is the growth period, you’ll notice competition start to pop up through this stage as well. As your business matures sales will slow but profits are high. Then comes decline, where sales and profits start to drop and promotional dollars start getting cut. Ultimately, you want to tapper the decline stage.
The Life Cycle can be visualized in a graph:

Once you’ve given some thought to who your customer is, start looking at the 4Ps: Product, Price, Place and Promotion. All intertwined elements to a sound marketing plan.
Product (or service) is where you really want to differentiate yourself within the market. A very important element where you can make that crucial first impression, but don’t get carried away. An example of this is perfume, where you need to say everything about your product without actually experiencing it – based on design and packaging. This is a chance to really appeal to the customer’s emotional side.
Price is a difficult concept to master. You don’t want to undervalue yourself, but it won’t take your customers long to realize that you overcharge either. You can do trial rates, matching or other promotions. There’s also the psychological aspects like charging $4.99 instead of $5.
Promotions are the more obvious elements of the marketing plan. Consider four types of promotion: advertising, personal selling, sales promotion and public relations.
Advertising is any form of paid promotion. TV, radio, newspaper are the default advertising, but there’s a world of opportunities out there. Consider sports events, maps, tourism or sponsoring the Chinook Entrepreneur Challenge.
Personal selling may be cliché, but word-of-mouth is a hugely important and influential means of promotion, not to mention a great chance to practice your presenting skills and your enthusiasm will come through. You can look at upselling or listing specials to clients as personal selling techniques too.
Public relations are anything you to build goodwill in the community, and likely you haven’t paid for it. (ie. Tim Hortons Tim Bits Hockey)]
THINK OF MARKETING BEYOND ADVERTISING
(but at the end of the day it must benefit the company)
Finally, Place. How are you going to get your product into the consumer’s hands? Or how will you get them in the front door of your business? You really need to look at who your customer is…not necessarily your consumer. For example, Proctor & Gamble’s customer is Wal-Mart and London Drugs, not you and I (we’re the consumer).

Next week’s session is Finance 101. See you then!