CHAPTER 8

Building a Powerful Bootstrap

Marketing Plan

Copyright © 2011 Pearson Education

Building a Powerful Bootstrap Marketing Plan

• Marketing
– The process of creating and delivering desired goods
and services to Beneficiaries .
– Involves all of the activities associated with winning and
retaining loyal beneficiaries .
Social Marketing
– A Practice is guided by ethical principles. It seeks to integrate
research, best practice, theory, audience and partnership insight,
to inform the delivery of a segmented social change
programs that are effective, efficient, equitable and sustainable.
Ch.
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Bootstrap marketing Plan

Bootstrap marketing strategies:

 Are unconventional, low-cost, and creative
marketing techniques that allow a small enterprise to
realize a greater return from its marketing investment
than larger rivals.

 Do not require large amounts of money to be effective –

just creativity.

Ch.
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 A Bootstrap Marketing Plan
1. Pinpoints the specific target markets the enterprise will
serve.
2. Determines beneficiaries needs and wants through market
research.
3. Analyzes a enterprise’s competitive advantages and creates a
marketing strategy to build a competitive edge.
4. Helps to create a marketing mix that meets customer needs
and wants.

Ch.
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Foundation Stage

1-5
1/3 Pinpointing the Target Market
 One objective of market research: Pinpoint the enterprise's target
market, the specific group of beneficiaries at whom the
enterprise aims its products or services.
 Marketing strategy must be built on clear definition of a enterprise’s
target beneficiaries .
 Target beneficiary must permeate the entire enterprise – merchandise
sold, background music, layout, décor, and other features.
 Without a clear image of its target market, a small enterprise tries
to reach almost everyone and ends up appealing to few.

Ch.
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 2/3 Market Research
 Market research is the vehicle for gathering the information
that serves as the foundation for the marketing plan.

 Never assume that a market exists for your company’s

product or service; prove it!

 Market research does not have to be time consuming,

complex, or expensive to be useful.
 Web-based market research – online surveys

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 Trend-tracking

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 (continued)
2/3 Market Research

How to Conduct Market Research:

1. Define the problem.
2. Collect the data.
• Individualized (one-to-one) marketing
• Data mining
3. Analyze and interpret the data.
4. Draw conclusions and act.

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Ch.
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 3/3 Tracking Trends

 Read many diverse current publications

 Monitor blogs and newsgroups
 Watch the top 10 TV shows
 See the top 10 movies
 Talk to at least 150 beneficiaries in person a year
 Talk with the 10 smartest people you know
 Listen to your children and their friends

Ch.
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Guerrilla Marketing Principles (continued)

• Create an identity for your business through branding.

• Embrace social networking.
• Start a Social media too
• Create online videos.
• Focus on the customer.
• Be devoted to quality.
• Pay attention to convenience.
• Concentrate on innovation.
• Be dedicated to service and customer satisfaction.

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• Emphasis to Speed
Ch.
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How to Become an Effective One-to-One Marketer
Identify your best customers,

Ch. 8: Building a Powerful

never passing up the
opportunity to get their names.

Successful

Marketing Plan
Collect information on these
One-to-One
customers, linking their
Marketing
identities to their transactions.

Calculate the long-term value

of customers so you know

which ones are most desirable
(and most profitable).
Know what your customers’
buying cycle is and time your
marketing efforts to coincide
with it - “just-in-time marketing.”
Make sure your company’s
product and service quality
will astonish your customers.
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See customer complaints
for what they are - a
chance to improve
your service and
quality. Encourage
complaints and then
fix them!

Source: Adapted from Susan Greco,

Enhance your products and “The Road to One-to-One Marketing,”
services by giving customers Inc., October 1995, pp. 56-66.

information about them and how

to use them.
 Create an identity for your business through
branding……Building a Brand : In addition to the text
High
“Antes” “Drivers”
Features that are important to Features that are both important
Beneficiaries but all to beneficiaries and are highly
competitors provide them differentiated from those of
competitors
Every enterprise in the
market must “ante up” on These are the attributes on which
Relevance

these features. an enterprise must focus to build

its brand.

“Neutrals” “Fool’s Gold”

Features that are irrelevant to Features that are unique to your
Beneficiaries enterprise but do not drive
benfeciaries ’ loyalty to your
These features are useless product and services

8 - 12
when it comes to branding.
Don’t make the mistake of trying
to build a brand on these
Low features! Ch.
8:
Low Differentiation High Buil
Source: Adapted from “What Really Matters in Building a Brand,” The McKinsey Quarterly, May 2004, www.mckinseyquarterly.com/newsletters/chartfocus/2004_05.htm
ding
 Focus on the END USER
Only 6% of Beneficiaries who experience a problem contact the
company to complain.
• 31% tell family members, friends, and colleagues about their negative
experience.
• 6% of those people tell their “horror stories” to six or more people.
• For every 100% of customers who have negative experiences with an
enterprise, the company stands to lose 32 to 36 current customers or
potential customers.
• Because 20% of a typical enterprise’s customers account for about 80% of
its sales, no business can afford to alienate its best and most profitable
customers and survive!

Ch.
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 Focus on the Customer
(continued)

 Because 20% of a typical company’s customers account for

about 80% of its sales, no business can afford to alienate its
best and most profitable customers and survive!
 Research shows that repeat customers spend 67% more than
new customers.
 Attracting new customers costs the typical business seven to
nine times as much as keeping existing customers.

Ch.
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Customer Breakdown

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 Devotion to Quality
 Study: 60% of customers who change suppliers do so because of
problems with a enterprise’s products or services.
 Global Impact enterprises treat quality as a strategic objective, an
integral part of Enterprise Culture.
 The philosophy of Total Quality Management (TQM):
 Quality in the product or service itself.
 Quality in every aspect of the ENTERPRISE and its
relationship with the beneficiary
 Continuous improvement in quality.

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Ch.
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Attention to Convenience
The average U.S. work week is 42.5 hours, an increase from 37.5 hours in
2003.
• Is your enterprise conveniently located near beneficiaries?
• Are your enterprise working hours suitable to your beneficiaries?
• Would enterprise appreciate pickup and delivery services?
• Do you make it easy for beneficiaries to buy on credit or with credit
cards?
• Does your enterprise handle telephone calls quickly and efficiently?
• Are your team members trained to handle enterprise operations and
transactions quickly, efficiently, and politely?
• Does your enterprise offer “extras” that would make beneficiaries’ easier?

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 Dedication to Service
Goal: To achieve beneficiaries astonishment!

 Listen to beneficiaries.
 Define “superior service.”
 Set standards and measure performance.
 Examine your company’s service cycle.
 Hire the right employees.
 Train employees to deliver superior service.
 Empower employees to offer superior service.
 Treat employees with respect and show them how valuable they are.
 Use technology to provide improved service.
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 Emphasis on Speed
 Use principles of time compression management (TCM):
 Speed new products to market
 Shorten beneficiaries response time in processing or manufacturing
and delivery
 Reduce the administrative time required in paper cycle .
 Rethink the supply chain.
 Instill speed in the enterprise culture.
 Use technology to find shortcuts wherever possible.
 Put the Internet to work for you.
 Re-engineer the process rather than try to do the same thing - only faster.
 Create cross-functional teams of workers and empower them to attack and
solve problems.
 Set aggressive goals for production and stick to the schedule.
Ch.
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Principles of Customer Experience Management (CEM)
In addition to the text
Every Beneficiary interaction should be:

• Intimate
• Personal
• Consistent, courteous, and professional
• Responsive Satisfied,
loyal,
• Helpful information and advice
repeat
• Involvement of caring, well-trained people
(and profitable)
• Long-term relationship view customers
• Emphasis on sustaining an ongoing
relationship
• Nurturing the company/customer
relationship Source: Adapted from “Wake-Up Call: To Fix CRM, Fix the
Customer Experience Now!, BearingPoint White Paper
(www.bearingpoint.com, Fall 2005, p. 5.
 Social Networking
 Social networks sites, such as Facebook and Twitter , allow
entrepreneurs to connect with potential and existing
customers at little or no cost.
 More than half of Facebook users are over the age of 25.
 These sites now offer business survey tools and advertising
functions for promotional purposes.

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Online Videos
 Study: 19% of Internet users watch online videos every day.
 Online video guidelines:
 Think “edutainment.”
 Be funny.
 Connect with current events.
 Involve customers.
 Keep it short.

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 The Marketing Mix

The marketing mix is a business tool used in marketing and

by marketers. The marketing mix is often crucial when
determining a product or brand's offer, and is often
associated with the four Ps: price, product, promotion, and

8 - 23
place.
The Marketing Mix

Place

Promotion
 (continued)
Stages in the Product Life Cycle

 Introductory stage
 Growth and acceptance stage
 Maturity and competition stage
 Market saturation stage
 Product decline stage

8 - 25
High
High Profits Sale Sales &
High Sales
Sales Profits
Profits Sales
Sales
Costs
Costs
Costs Climb
Climb Peak
Peak s
Peak
Profits Ch.
Peak Peak Fall
Peak 8:
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 The Product Life Cycle

Ch. 8: Building a Powerful Marketing Plan 81 -- 26

26
 Ch. 8: Building a Powerful
Marketing Plan
8 - 27
FIGURE 8.4 Time between Introduction of Products

1 - 27
Place:
Channels of Distribution Consumer Goods

Ch. 8: Building a Powerful

Marketing Plan
Manufacturer
Consumer

Manufacturer Retailer Consumer

8 - 28
Manufacturer Wholesaler Retailer Consumer

Manufacturer Wholesaler Wholesaler Retailer Consumer

Place:
Channels of Distribution Industrial Goods

Ch. 8: Building a Powerful

Marketing Plan
Manufacturer
Industrial User

8 - 29
Manufacturer Wholesaler Industrial User
Price
 A key factor in the decision to buy
 Focus attention on non-price competition
 Free trial offers
 Free delivery
 Lengthy warranties
 Money back guarantees

Ch. 8: Building a Powerful Marketing Plan 81 -- 30

30
 Promotion
 Goal: To inform and persuade.
 Through advertising and other communication
techniques.
 Create an image.
 “Marketing is not a battle of products; it is a battle of
perceptions.”

Ch. 8: Building a Powerful Marketing Plan 81 -- 31

31
Conclusion
 A bootstrap marketing plan offers the entrepreneur
significant benefits.
 Target marketing is key.
 Create a competitive and edge through customer focus,
quality, convenience, innovation,
service and speed.

Ch. 8: Building a Powerful Marketing Plan 81 -- 32

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 Video 8.1

33
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 CHAPTER 9

E-Commerce
and the Entrepreneur

Copyright © 2011 Pearson Education

The Internet:
Changing the Face of Business

 Successful companies embrace the Internet as a mechanism for transforming

their companies and for changing everything about the way they do business.
 Business basics still apply online.
 In the world of e-commerce, company size matters less than speed and
flexibility.
 There are more than 2.4 billion Internet users worldwide. By 2017, online sales
and Internet activity will account for or influence 60% of total retail sales in the
United States.
 Research shows:
 80% of global shoppers research products online.
 84% of the world’s online population has used the Internet to make a
purchase.
 79% of consumers trust online reviews as much as personal
recommendations.

9 - 35 Ch. 9: E-Commerce and the Entrepreneur

Benefits of Selling on the Web
In addition to the text
 Opportunity to increase revenues and profits
 Ability to expand into global markets
 Ability to remain open 24 hours a day, seven days a week
 Capacity to use the Web’s interactive nature to enhance customer service
 Power to educate and inform
 Ability to lower the cost of doing business
 Ability to spot new business opportunities and capitalize on them
 Ability to grow faster
 Power to track sales results and Conversion rate – the percentage of
customers to a Web site who actually make a purchase.

9 - 36 Ch. 9: E-Commerce and the Entrepreneur

Ch. 9: E-Commerce and the Entrepreneur 91 - 37
 Factors to Consider Before Launching into E-
Commerce
 How a company exploits the Web’s interconnectivity and the opportunities it creates to
transform relationships with suppliers, customers, and others is crucial to its success.

 Web success requires a company to develop a plan for integrating the Web into its
overall strategy.

 Developing deep, lasting relationships with customers takes on even greater

importance.

 Creating a meaningful presence on the Web requires an ongoing investment of

resources – time, money, energy, and talent.

 Measuring the success of a Web-based sales effort is essential to remaining relevant to

customers whose tastes, needs, and preferences constantly change.

Ch.
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Assessing You Company’s Online Potential

1. Does your product have broad appeal to customers everywhere?

2. Do you want to sell your product to customers outside of your immediate

geographic area?

3. Can the product you sell be delivered conveniently and economically?

4. Can your company realize significant cost advantages by going online?

5. Can you draw customers to your company’s Web site with a reasonable
investment?

9 - 39 Ch. 9: E-Commerce and the Entrepreneur

 10 Myths of E-Commerce
Myth 1: Online customers are easy to please.
Myth 2: If I launch a site, customers will flock to it.
Myth 3: Making money on the Web is easy.
Myth 4: Privacy is not an important issue.
Myth 5: The most important part of an e-commerce effort is technology.
Myth 6: I don’t need a strategy to sell online.
Myth 7: Customer service is not important.
Myth 8: Flashy Web sites are better than simple ones.
Myth 9: It’s what’s up front that counts.
Myth 10: Its too late to get on the Web.

Ch. 9: E-Commerce and the Entrepreneur

10 Myths of E-Commerce

Myth 1: Online customers are easy to please.

Experienced online shoppers tend to be unforgiving and quick

click to another site if their shopping experience is difficult or
they cannot find the products and information they want.

9 - 41 Ch. 9: E-Commerce and the Entrepreneur

Myth 2: If I launch a site, customers will flock to it.
You will definitely lack funds to build a dynamic interactive website
with possibilities of creating data bases and customer profiling
process ex: Dubbizle

Myth 3: Making money on the Web is easy.

The power of Substitutes is enormous , Differentiation is huge
Why you ??? ( Competitive advantage )
Ex : Try different sizes , return option , cash on delivery

Ch. 9: E-Commerce and the Entrepreneur

Promotion Is the Key!

 Include your URL on everything related to your business

 Provide phone and e-mail contact information
 Create Web-based newsletters
 Write articles that link to your company’s Web site
 Sponsor online activities
 Establish a blog , groups , pages, mobile applications …etc

9 - 43 Ch. 9: E-Commerce and the Entrepreneur

Myth 4: Privacy Online
Pew Internet Report:
If online companies were able to alleviate customers’
online privacy and security issues, the percentage of
online buyers would increase from 66% to 73%.

9 - 44 Ch. 9: E-Commerce and the Entrepreneur

Myth 5: The most important part of
an e-commerce effort is
technology.
 Understand the underlying business...
 …then use technology to develop an online business
model that provides customer value in a profitable way.

Ch.
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Myth 6: I don’t need a strategy.
 An online strategy is critical to success
 Define the target audience
 Understand customers’ needs and wants
 Create a strategy to set
your site apart from others

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Myth 7:
The Importance of Customer Service on the Web

Who said Customer service is not important ?

 Study: 22% of online shoppers expect higher levels of
customer service than they do offline.
 Concern:
 Nearly 90% of online shopper reported they have had problems
completing an online transaction.
 84% of these shoppers said they would share their negative
online shopping experience with others!

 Example : 24 / 7 communication

9 - 47 Ch. 9: E-Commerce and the Entrepreneur

Myth 7:
The Importance of Customer Service on the Web

 Study: 58% of Web shoppers who fill their online

shopping cars abandon them without checking out.
 Reasons:
 Shipping and handling charges too high
 Total purchase higher than expected
 Desire to compare final price before buying
 Inability to contact customer service representative
 Forgot user name or password for Web site

9 - 48 Ch. 9: E-Commerce and the Entrepreneur

 FIGURE 9.3 Reasons for Abandoning Online Shopping Carts

Ch. 9: E-Commerce and the Entrepreneur 91 - 49

 (continued)
10 Myths of E-Commerce

Myth 8: Flashy Web site are better than simple sites.

 Fast download times increase sales potential
Myth 9: It’s what’s up front that counts.
 Order systems and support are critical
Myth 10: Its too late to get on the Web.
 Web opportunities still exist

9 - 50 Ch. 9: E-Commerce and the Entrepreneur

Strategies for E-Success
 Focus on a market niche.
 Develop a community.
 Attract visitors by giving away “freebies.”
 Make creative use of e-mail, but avoid becoming a
“spammer.”
 Make sure your Web site says “credibility.”
 Make the most of the Web’s global reach.
 Promote your site online and offline.
 Develop an effective search engine optimization (SEO)
strategy.

Ch. 9: E-Commerce and the Entrepreneur

Search Engine Strategies
 Natural (organic) Listings –
Arise as a result of “spiders,” powerful programs search
engines use to crawl around the Web.
 Paid (sponsored) Listings –
Short text ads with links to the sponsoring company’s Web
site.
 Paid Inclusion –
When a company pays a search engine for the right to
submit either selected pages or its entire Web site content
for listing.

9 - 52 Ch. 9: E-Commerce and the Entrepreneur

The Purchase Funnel and Ways to Improve
the Shopping Experience

Copyright © 2016 Pearson 9- 53

Education Ltd
 Designing a Killer Web Site/ Page
 Understand your target customer.
 Give customers what they want.
 Select an intuitive domain name that is consistent with the
image you want to create for your company and register it.
 Short
 Memorable
 Indicative of a company’s business
 Easy to spell
 Make your Web site easy to navigate.
 Add wish list capability and Create a gift idea center.
 Use online videos and Build loyalty by giving online customers
a reason to return to your Web site.
 Establish hyperlinks with other businesses, preferably those
selling complementary products. Ch.
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Com
merc
9 - 54
 (continued)

Designing a Killer Web Site

 Include an e-mail option an a telephone number on your site.
 Give shoppers the ability to track their orders online.
 Offer Web shoppers a special all their own.
 Follow a simple design.
 Create a fast, simple checkout process.
 Assure customers that online transactions are secure.
 Establish reasonable shipping and handling charges and post them up
front.
 Confirm transactions.
 Keep your site updated.
 Test your site often.
 Consider hiring a professional to design your site

9 - 55 Ch. 9: E-Commerce and the Entrepreneur

Tracking Web Results
 Web Analytics – tools that measure a Web site’s
ability to attract customers, generate sales, and
keep customers coming back.
 Only about 40% of e-businesses use Web
analytics strategically to refashion their Web
sites.
 Commerce metrics
 Visitor segmentation measurements
 Content reports
 Process measurements

9 - 56 Ch. 9: E-Commerce and the Entrepreneur

Measuring Online Performance

 Recency –
The length of time between customers’ visits to
a Web site.
 Click-through Rate (CTR) –
The proportion of people who see a company’s
ad online and actually click on it.

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 FIGURE 9.3 E-Mail Open and Click-Through Rates by the Day of the Week

Ch. 9: E-Commerce and the Entrepreneur 91 - 58

 (continued)

Measuring Online Performance

 Cost per Acquisition (CPA) –

The amount it costs to generate a purchase (or a
customer registration).
 Conversion (browse-to-buy) ratio –
The proportion of visitors to a site who actually make
a purchase.

9 - 59 Ch. 9: E-Commerce and the Entrepreneur

Ensuring Web Privacy
 Take an inventory of the customer data collected.
 Develop a company policy for the information you
collect.
 Post your company’s privacy policy prominently on your
Web site and follow it.
 Virus detection software
 Intrusion detection software
 Firewall

9 - 60 Ch. 9: E-Commerce and the Entrepreneur

 Conclusion

 Know what you need to know before launching into

e-commerce
 Assess the basic strategies to follow
 Know what works on Web sites
 Track results and
listen to customers

Ch. 9: E-Commerce and the Entrepreneur 91 - 61

 Video 9.1

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