Southern Entrepreneurship Program

SOUTHERN ENTREPRENEURSHIP PROGRAM

Master Teacher of Entrepreneurship (MTEnt) ProgramJames B. WilcoxCenter for Economic and Entrepreneurship EducationThe University of Southern Mississippi

Overview of the Training Program Day 3 – Marketing and the Business

Plan Working with Mentors Understanding Effective Marketing Advertising and Publicity Successful Selling International Opportunities The Exit Strategy Business Plan Review Engaging Entrepreneurs in the Classroom Assessment

Identifying Community Entrepreneurial Champions and Resources for Success

CREATING A POOL OF EXPERTS/MENTORS

The purpose of this exercise is to develop a list of contacts and potential experts/mentors to participate in the SEP program.

Purpose

In order to assist teachers to teach the concepts of small business development, it may be required for additional experts to be brought into the classroom to assist in instruction and provide additional resources to participants.

Similarly, each participant is encouraged to identify a mentor(s) to assist in their business development.

Justification

These individuals provide assistance to participants on the basis of their interaction and feedback on business plans, business development, and business operation.

To this end, identifying potential experts/mentors may satisfy these needs.

It is reasonable to expect that many of these potential experts/mentors will emerge from the Community Coalition.

Justification

Split the group into smaller groups of 3-5 individuals

Ask each team to write a list of all individuals with skills that may be used in guiding instructors and participants in business development.

Encourage the participants to be as specific as possible in identifying the skill set(s) that each potential expert/mentor brings to the process.

The Exercise

Ask the teams to get as specific as possible.

If individuals represent different locales, group the teams according to the locales.

Provide 10-15 minutes to conduct this exercise.

Bring the group back together and encourage a representative from each group to share their list.

The Exercise

Compare listings across groups to compile a master list.

Note the duplications listed.

The Exercise

Once the list is completed, the group must complete action plans as to how the expert/mentor pool will be constructed. Specifically, the group should identify the following:

Constructing Action Plans

What is the best course of action for contacting and inviting list members to participate in the expert/mentor pool?

When will the contacts be made? Where will the interactions take place?

Constructing Action Plans

Who will contact the list members? How will the experts/mentors interact

with the teachers and/or participants? Why has this strategy been chosen over

others?

Constructing Action Plans

Safety Working with participants Ownership Expectations of participants and mentors Utilization in lectures and classes Panel discussions

Issues to Consider

Assistance with business plans Key experts Areas of interest Utilization of resources Sources of funding Others?

Issues to Consider

The construction of this pool of resources will enable teachers to provide a wider variety of learning experiences for the participants.

These individuals may also provide leadership and mentorship to the participants’ fledgling business efforts.

This will increase the likelihood of sustainability of the initiative.

Synopsis

Overview of the Training Program Day 3 – Marketing and the Business

Plan Working with Mentors Understanding Effective Marketing Advertising and Publicity Successful Selling International Opportunities The Exit Strategy Business Plan Review Engaging Entrepreneurs in the Classroom Assessment

WHAT IS MARKETING?

Marketing

Identifying and responding to customer needs Marketing – satisfying the customer at a profit – the art

of getting the customer to come to the product Meet your customer’s needs to gain their loyalty Marketing explains the

benefits of a product

The marketing vision drives all business decisions

Marketing establishes your brand

Branding in Marketing

Focus your brand Ford’s examples

Costly failure – the Edsel Marketing success – the Mustang

How to Build Your Brand

Choose a business/product name that is easy to remember, describes your business, and establishes mind share (the degree your business comes to mind when a customer needs something)

Create a logo that symbolizes your business to the customer

Develop a good reputation Create a brand personality Communicate your brand

personality to your target market

Side Notes

Represent your brand Mind share vs. market share

Name Ideas Market research in key areas Recommendations from poets, etc.

Generated Interest Secrecy

Promotion The Edsel Show

Bing Crosby & Frank Sinatra Bob Hope Louis Armstrong

What Went Wrong?

Ford’s Lesson – Edsel Mustang“Whereas the Edsel had been a car in search of

a market it never found, here was a market in search of a car. The normal procedure in Detroit was to build a car and then try to identify its buyers. But we were in a position to move in the opposite direction – and tailor a new product for a hungry new market.”- Lee Iacocca (Ford president during Mustang creation)

The 4 “P”s

1. Product - should meet or create a consumer need

“The top 10 in-demand jobs in 2010”2. Place - where customers who need it do

their shopping Feature areas: end caps, promotional area,

freestanding fixtures, windows, walls, POS3. Price - low enough so the public will buy it

yet high enough for the business to make a profit

4. Promotion - consist of advertising, publicity, and promotional items

Success

The Basics of Business Success How can you tell if your promotions are

working? Philanthropy can bring positive publicity

Cause-related marketing – social, environmental, or political cause

MARKET RESEARCH

Performing Research

Listen to the consumer Tangible market demographics Types of market research

Surveys General research Statistical research Industry research

Your research method is important

Performing Research

Market research questions Research your market before you open

your business Do you know ten people who love your

product? You may have a winner Make market research ongoing Who is in your market segment? Market research avoids costly mistakes

DEVELOPING YOUR MARKETING MIX

Purpose of Marketing

Marketing communicates with customers Price – what it says about your product

Lexus BMW Honda Ford Hyundai

3 Steps of Developing a Marketing Plan

1. Consumer analysis2. Market analysis3. The marketing mix

The next few slides describe each step in more detail

Step 1 – Consumer Analysis

Market segments – made up of consumers

Successful segmenting – The Body Shop Anita Roddick “Masstige”

Step 2 – Market Analysis

5 ways to analyze a market1. Location – where you live (five miles)2. Population – demographics 3. Personality – conservative/liberal,

lifestyle, etc.4. Behavior – brand loyalty, responsiveness

to price, etc.5. Income – $30,000-$60,000 range vs.

$10,000-$30,000

Step 3 – The Marketing Mix

Value pricing – not just price cutting – balance between quality and price

Retailers’ rule of thumb – Keystoning – doubling resale price

Other pricing strategies Cost-plus – figure in all costs and add desired profit

margin Penetration strategy – based on initial low price to

gain market share Skimming strategy – seeks to charge a high price

during a products’ introductory phase when it has no competitors

Meet or beat the competition – common strategy in service businesses (airlines do it all of the time)

BREAK-EVEN ANALYSIS: CAN YOU AFFORD YOUR MARKETING PLAN?

The Break-Even Point

When sales (revenues) and costs are equal, there is no profit or loss

Break-Even Analysis

It will help you know when your business will sell enough units to cover its costs

Break-even units formula:

Fixed Operating Costs Gross Profit Per Unit

= Break-Even Units

Ex: $1000 Fixed, $70 Price, $50 Variable

Overview of the Training Program Day 3 – Marketing and the Business

Plan Working with Mentors Understanding Effective Marketing Advertising and Publicity Successful Selling International Opportunities The Exit Strategy Business Plan Review Engaging Entrepreneurs in the Classroom Assessment

ADVERTISING AND PUBLICITY

Advertisements vs. Publicity

Ads cost money; publicity is free Advertisement – paid announcement that a

product or service is for sale Publicity – attention paid to a business by

the media Together, advertisements and publicity are

called promotion

Publicity

Publicity provides credibility for your business Publicity is valuable because customers are

more likely to believe it than advertising How to get publicity

Pitch letters Press releases (follow up by phone) Special events (invite media) Working with the chamber of commerce or

economic development agency

What’s Your Story?

Get stories written about your business What has happened to you? Did you have to overcome any

obstacles? Is your product/service unique? Is your product/service something the

community needs? How has your business changed/helped

your community?

The Double Bottom Line

The bottom line refers to the last line on the income statement (net profits)

Another set of issues related to community improvement include: Protect the environment Help the community Treat employees with respect

Double bottom line is making a profit and improving society

The Media