• Marketing and Lead Generation


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    • Abstract: All business starts with marketing "Marketing is not only much broader than selling, it ... Marketing presents your company's image to the. public. Marketing vs. Advertising ...

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Marketing and Lead Generation
Better Buildings by Design Conference
Burlington, Vt
Feb 8-9, 2006
Dick Kornbluth
EnTherm Inc
[email protected]
All business starts with marketing
“Marketing is not only much broader than selling,
it is not a specialized activity at all. It
encompasses the entire business. It is the whole
business seen from the point of view of the final
result, that is, from the customer’s point of view.
Concern and responsibility for marketing must
therefore permeate all areas of the enterprise.”
– Peter Drucker, People and Performance
(Harper & Row, 1977)
• Marketing presents your company’s image to the
public.
Marketing vs. Advertising
Advertising
“The non-personal presentation or promotion by
a firm of its products to its existing or potential
customers”
– Laura Schneider “Your Guide to Marketing”
http://marketing.about.com/cs/advertising/a/marketvsad.ht
m
Marketing
“Marketing is essentially about marshalling the
resources of an organization so that they meet the
changing needs of the customer on whom the
organization depends”
– Adrian Palmer, Principles of Marketing, (Oxford
University Press, 2000)
Marketing includes:
1. Advertising
2. Market research
3. Media planning
4. Public relations
5. Product pricing
6. Distribution
7. Customer service and support
8. Sales strategy
9. Community involvement
Why do you market? To grow your
business:
• By acquiring more customers
• By selling additional services to the
customers you already have
• By adding additional services to
potential new customers
• Increasing your prices for your existing
services
The Marketing Plan- Key Stages
• Analysis
• Objectives
• Strategies
• Tactics
• Control
Stage One- Situation Analysis
Describes what is happening in markets
in which your company competes, and
your company’s products, services and
distribution trends
Situation Analysis
• Components
– Macroenvironment
• Demographics
• Economic Trends
• Political trends
• Social Trends
• Cultural Trends
– Material supply
– Market Situation
• Geographic size
• Market share
• Segmentation
Situation Analysis
– Internal trends
• Sales volume by month and annually for each
product or service
• Revenue and profitability trend for each
product or service, market segment and type of
customer
– Description of products and services
Situation Analysis
– Competitive situation
• Who are your competitors?
– Key competitors: Provide similar product or
services.
– Leader organizations: Most successful competitors.
• How big are they?
• How large a market share do they have?
• Product quality comparisons
• What are their marketing strategies?
• What is their marketing spending?
Situation Analysis
– Target buyer
• Who are your customers?
• Can they be segmented based on common
characteristics or demographics?
– Age
– Income
– Urban vs rural
– Occupation
– Family size
– Home ownership
Situation Analysis
• Qualify each consumer segment by size,
frequency, profitability or any other grouping
that makes sense in your industry
• For each segment, especially the largest and/or
most profitable segments, ask about the
consumers in them:
– Who are they? What are their demographics?
– What services or products do they buy?
– How do they buy these products or services?
– Why do they buy these products or services? What
are their wants and needs?
Situation Analysis
– Product situation
• What are the products or services you
currently provide?
• What are the strengths and weaknesses of the
current products or services compared to the
competition?
• What new products and services are you
considering providing?
• What are your organization’s capabilities of
providing these new products or services?
• How would these new products or services
compare to the competitions?
• What is your pricing for your
products/services?
• What is the net profit for each product/service
you provide
SWOT Analysis
• Internal
– Strengths
– Weaknesses
– Factors
» Company culture
» Company image
» Organizational structure
» Key staff
» Access to materials
» Position on the experience curve
» Operational efficiency
» Operational capacity
» Brand awareness
» Market share
» Financial resources
SWOT Analysis
• External
– Opportunities
» Chance to introduce a new product or service
that can generate big returns
– Threats
– Factors
» Customers
» Competitors
» Market trends
» Suppliers
» Partners
» Social changes
» New technology
» Econonic environment
» Political and regulatory environment
SWOT Analysis
– Rules for SWOT analysis
• Be realistic about strengths and
weaknesses of your organization
• Analysis should distinguish between
where your organization is today and
where it could be in the future.
• Be specific. Avoid grey areas.
SWOT Analysis (cont’d)
• Always analyze in relation to your
competition; i.e. better or worse than the
competition.
• Keep your SWOT analysis short and
simple.
• SWOT is subjective.
Stage Two – Objectives
– Answers the question: Where do we want to go?
– Purposes:
• To enable the company to control its marketing
plan.
• To help motivate staff of your company to
reach a common goal.
• To provide a consistent, agreed-upon focus for
all functions of your organization.
SMART Objectives
– All objectives should be SMART
• Specific
• Measurable – Quantifiable
• Achievable –
• Realistic -Do you have the resources to make the
objective happen?
• Timed – State when you will achieve the goals.
SMART Objectives
– Examples
• Profitability Objectives
– To achieve a 40% gross profit on all
services by the end of the fiscal year.
• Market Share Objectives
– To get 50% of the home performance market
by the end of 2006
SMART Objectives (Cont’d)
• Promotional Objectives
– To increase the name recognition of our
company from 2% of the public to 10% of
the public by June of 2006.
• Growth Objectives
– To increase revenues by 50% in the next
two years
Stage Three – Strategies
Three components:
• Segmentation
• Targeting
• Positioning
Strategies - Segmentation
– Definition: Identification of subsets of buyers
within a market who share similar need and who
demonstrate similar buying behavior.
– For each segment that is defined ask:
• Can you make a profit from it?
• How easy is it to get into the segment?
• Can you obtain realistic data to measure its
potential?
Strategies - Segmentation
• Analyze the segment by:
– Geography
– Lifestyles and beliefs
– Economic class
– Demography: age, sex, etc
Strategies - Targeting
Three types of targeting
• Single segment with single product
• One product for all segments
• Multiple products for multiple segments
Strategies - Positioning
How your product or service is perceived by your
target segment in the market.
Customer’s perception of your product or service in
relation to its competitors.
Remember:
People make buying decisions
for one of two reasons: to
increase pleasure or reduce
pain; and reducing pain is a
much greater motivator than
increasing pleasure.
Strategies - Positioning
• Six-Step Framework
– What position do you currently own?
– What position do you want?
– Whom do you have to defeat to own the position you
want?
– Do you have the resources to do it?
– Can you persist until you get there?
– Are your tactics supporting the positioning objective
you set?
The Marketing Mix
Stage Four – Tactics
• Tactics are the actions you take to
convert your strategies into sales.
– Marketing Mix - Four P’s
• Price
• Place
• Product or service
• Promotion
Tactics
– Advertising
• Print
– Newspaper
– Direct Mail
» Target to job site neighborhoods
– Inserts
• Radio
– Commercial
– Public radio sponsorship
• TV
• Billboard
• Trade Shows
• Telemarketing
– Public Relations
• Press releases
• Articles in newspapers and magazines
– Daily newspapers
– Pennysavers
– Weekly newspapers – Business, Senior Citizens
• Give seminars
– Professional organizations
– Public
– Referrals
• New Customers
• Existing customers
Lead Sources 2003
Total $3,421,264 100%
Telemarketing $651,648 19.0%
Referral $545,392 15.9%
Yellow Pages $473,513 13.8%
Prev Customer $385,952 11.3%
Home Show $270,847 7.9%
Prev Customer Referral $237,218 6.9%
Radio $174,566 5.1%
Real Estate Referral $141,171 4.1%
Job Site $101,817 3.0%
Salesman Self-Generating $90,501 2.6%
NYSERDA $75,476 2.2%
Community Development $49,058 1.4%
Direct Mail $48,663 1.4%
TV $38,869 1.1%
Showroom $36,270 1.1%
Other $31,105 0.9%
Employee Referral $30,983 0.9%
Internet $30,915 0.9%
Newspaper $7,300 0.2%
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Series1
Job Signs
Job Signs
www.patriotsigns.com
Patriot Signs Price List
Radio Commercials
“Window” Commercial “Oil” Commercial
TV Commercials
News Stories
News Stories
Gwen Davis
Home Shows
How to Make Home Shows Work
• Purpose is to get prospects’ names and phone
numbers
• Don’t try to sell anything
• Need to distract and entertain children
– Give away balloons, kazoos, etc
• If booth is large enough, design booth to be open
– You want people to come in, get close to your
displays
Public Relations
Get Articles Written
Give Seminars
• Target Audiences
– Groups that need continuing education credits
• Real Estate Companies
• Real Estate Appraisers
• Home Inspectors
• Architects
• Code Officials
– Homeowners
• Rent a room at a hotel and advertise Free Seminar
Give Seminars
ASHI Seminar2005.htm
Truck Signs
Stage Five – Control
• Need to constantly monitor performance of
marketing strategy and tactics
– Analyze return on investment
– Leads generated / $ spent on promotion
» Cost/lead
– Sales $ realized / $ spent on promotion
» Lead cost/sale
» Expressed as %


Use: 0.4447