Entrepreneurship and Small

Business Management
Guerrilla and Viral(growing) Marketing Strategies
and Techniques
Lecture#23&24

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 Guerrilla and Viral(flourishing) Marketing Strategies and
Techniques: Objectives

1. To Describe the components of a guerrilla marketing plan

and explain the benefits of preparing one.
2. To Explain how small businesses can pinpoint their target markets.
3. To Explain how to determine customer needs through market
research and describe the tools that entrepreneurs use to conduct
market research.
4. To Describe the guerrilla marketing strategies on which a small
business can build a competitive edge in the marketplace.
5. To Discuss the “Five** Ps” of marketing—positioning, product,
place, price, and promotion—and their role in building a successful
marketing strategy
6. To Describe Viral Marketing Techniques and give Examples

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 What is Marketing?
Marketing is the study and management of exchange relationships.
Marketing is the business process of creating relationships with and
satisfying customers.

“Secrets”

 Understand target customers’ needs, demands, and wants

before competitors can.
 Offer them products and services to satisfy those needs,
demands, and wants.
 Provide customers with quality, service, convenience, and value
so they will keep coming back.

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 Why Marketing is Critical?
1. To establish a customer market and build “brand”
2. To differentiate product or service to customers
3. Gain customer acceptance, trust and loyalty
4. Incite(stimulate) trial and usage
5. Companies must be able to switch marketing gears
quickly to attract new customer segments

Companies must be able to switch marketing gears quickly

to attract new customer segments

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 Developing A Winning Marketing Strategy
Three Vital Resources:
 People - the most important ingredient in a successful
marketing strategy.

 Information - the fuel that feeds the marketing engine;

without it, the marketing engine sputters(fazool) and stops.

 Technology - a powerful marketing weapon, but what

matters most is how a company integrates technology
into its overall marketing strategy.

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 Guerilla Marketing
Guerilla marketing acts as non-
traditional, grassroots, and captivating –
that gain consumers’ attention and build
awareness of the company.
Word-of-Mouth marketing, Buzz
marketing, and Viral Marketing.
grassroots(fundamental)
captivating (attract and hold the interest and attention)
Word-of-Mouth marketing (Oral or written recommendation
by a satisfied customer to the prospective customers of a good or
service.)
Buzz marketing, is the interaction of consumers and users of a
product

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 Guerrilla Marketing Principles

 Find a niche(suitable position in life or employment.)and fill it

 Don’t just sell; entertain – “entertailing”
 Build a consistent branding strategy
 Strive to be unique
 Connect with customers on an emotional level

Entertailing : A commercially-designed experience intended to

combine entertainment and retailing

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 Four Objectives of a Guerrilla
Marketing Plan
1. Pinpoint the target markets or groups that
your company will serve
2. Determine customer needs, wants, and
characteristics using primary and secondary
market research
3. Analyze your company’s competitive
advantages and build a marketing strategy
around them
4. Create a marketing mix that meets your
customers needs and wants

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 Pinpointing the Target Market
 First step: Identify the company's target market, the
group of customers at whom the company aims its
products or services.
 An effective marketing program depends on a
clear, concise definition of the firm's targeted
customers, not a “one-size-fits-all approach.”
 Key: Understanding target customers’ unique
needs, wants, and preferences.
 Opportunity: Increasing populations of multicultural
customers.

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 How to Become an Effective One-to-One
Marketer
Identify your best customers,
Enhance your products and
services by giving customers
never passing up the information about them and how
opportunity to get their names. to use them.

See customer complaints

Collect information on these for what they are - a
customers, linking their chance to improve
identities to their transactions. your service and
quality. Encourage
Successful complaints and then
One-to-One fix them!

Marketing

Calculate the long-term value Make sure your company’s

of customers so you know product and service quality
which ones are most desirable will astonish(surprise ) your
(and most profitable). customers.

Know what your customers’

buying cycle is and time your
marketing efforts to coincide
10 coincide :occur at the same time. with it - “just-in-time marketing.”
 Market Research

Market research is the vehicle for gathering the

information that serves as the foundation for the
marketing plan.
1. Define the Objective and Scope
2. Collect the Data
3. Analyze and Interpret the Data
4. Use the Information
5. Monitor the Results
6. Evaluate the Results

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 Collect the Data
Individualized (one-to-one) marketing
 a system of gathering data on individual customers
and then developing a marketing plan designed
specifically to appeal to their needs, tastes, and
preferences.
 Much valuable information about customers is
already hidden inside companies; the key is mining
it!
 Data Mining: A process in which computer software that
uses statistical analysis, database technology, and artificial
intelligence finds hidden patterns, trends, and
connections in data so business owners can make better
marketing decisions and predictions about customers’
behavior.
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 Relationship Marketing

Relationship Marketing
 Involves developing, maintaining, and managing
long-term relationships with customers so that they
will keep coming back to make repeat purchases.

 Steps:
 Build database of customer information
 Identify best and most profitable customers
 Retain your best, most loyal customers
 Develop lasting relationships with these customers
 Attract more customers like them

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 Focus on the Customer
 67% of customers who stop patronizing
(treat in a way that is apparently kind ) a business do so because an

indifferent employee treated them poorly.

96% of dissatisfied customers never complain
about rude or discourteous service, but...

 91% will not buy from that business again.

 100% will tell their “horror stories” to at least nine
other people.
 13% of those unhappy customers will tell their
stories to at least 20 other people.

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 Focus on the Customer

 Treating customers indifferently or poorly costs the

average company from 15% to 30% of gross sales!
 Replacing lost customers is expensive; it costs five
times as much to attract a new customer as it does to
sell to an existing one!
 About 70% of a company’s sales come from existing
customers.

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 The High Cost of Lost Customers

Spending Spending Spending Spending Spending

Spending $5 $10 $50 $100 $200 $300
weekly weekly weekly weekly weekly weekly
If you lose . . .

1 customer a day $ 94,900 $ 189,800 $ 949,000 $ 1,898,000 $ 3,796,000 $ 5,694,000

2 customers a day 189,800 379,600 1,898,000 3,796,000 7,592,000 11,388,000

5 customers a day 474,500 949,000 4,745,000 9,490,000 18,980,000 28,470,000

10 customers a day 949,000 1,898,000 9,490,000 18,980,000 37,960,000 56,940,000

20 customers a day 1,898,000 3,796,000 18,980,000 37,960,000 75,920,000 113,880,000

50 customers a day 4,745,000 9,490,000 47,450,000 94,900,000 189,800,000 284,700,000

100 customers a
day 9,490,000 18,980,000 94,900,000 189,800,000 379,600,000 569,400,000

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 The Customer Choice Process

 The provider must both understand and influence the

customer’s decision making process.
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 Product Diffusion Curve

Captures adoption behavior across segments, over time.

Rate of adoption varies due to factors such as product
complexity.
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 Pay Attention to Convenience

 Is your business conveniently located near customers?

 Are your business hours suitable to your customers?
 Would customers appreciate pickup and delivery services?
 Does your company make it easy for customers to buy on credit
or with credit cards?
 Are you using technology to enhance customer convenience?
 Are your employees trained to handle business transactions
quickly, efficiently, and politely?
 Do your employees use common courtesy when dealing with
customers?

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 Pay Attention to Convenience
 Does your company offer “extras” to make
customers’ lives easier?

 Can you adapt existing products to make them

more convenient for customers?

 Does your company handle telephone calls well?

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 Marketing on the World Wide Web
 With an attractive Web site, even the smallest companies can market
their products and services around the globe.
 The Web can be the “Great Equalizer” in a small company’s marketing
strategy.
 Only about 40% of small companies have Web sites.
 Result: Small businesses make nearly 50 percent of all retail sales in the
U.S., but they account for just 6% of online sales.
 As a marketing tool, the Web allows companies to engage customers in
an interactive rather than passive setting.
 Challenges:
 Attracting users to the company’s Web site
 Converting visitors into paying customers
 Top-selling items on the Web: Travel services, computers and
related products, books, consumer electronics, clothing, and music.

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 The Marketing Mix—5 P’s

Product
Place
Price
Promotion
Positioning

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 Products (and Services)
Products & services are defined by:
 Physical attributes
 Performance characteristics
 Pricing
 Branding
 Provide high-quality products/services
 Maintain high ethical standards
 Define the product/service clearly
 Treat employees well
 Make ads positive & informative
 Associate the company with a charity
 Be involved in the community

 Delivery

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 Place
 Type of business affects the location that
works
 Who are your customers?
 Where do they shop?

 Goal: Find a location affordable for you yet

also convenient for customers.

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 Promotion

 Using advertising + publicity to get your market

message to your customers

 Advertising (purchased): billboards, TV ads,

magazine ads

 Publicity (free): mentions in media such as articles,

stories on TV, etc.

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 What Does the Price Tell Consumers
About Your Product/Service?
 Strategies:
 Keystoning: doubling the costs
 Cost plus: cost plus profit margin
 Penetration: low price early in PLC
to gain market share
 Skimming: high price early in PLC

before competitors enter market

 Meet or beat the competition

 Mark-ups: Markup is the ratio between

the cost of a good or service and its selling price

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Public Limited Company
 Psychological Pricing Tactics

prestige odd/even
pricing pricing

Psychological
bundle price
pricing Pricing
lining
Techniques

multiple-unit promotional
pricing pricing

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price lining: The process used by retailers of separating goods into cost
categories in order to create various quality levels in the minds of consumers
Prestige pricing: The practice of pricing goods at a high level in order to give
the appearance of quality.
bundle pricing :In a bundle pricing, companies sell a package or set of goods
or services for a lower price than they would charge if the customer bought
all of them separately
Price promotions or promotional pricing is the salespromotion technique
which involves reducing the priceof a product or services in short term to
attract more customers & increase the sales volume.
.
 Positioning

 Positioning = Managing the product and its

presentation to fit a predetermined place in
the mind of the customer

 Positioning = Market + Competitive

Segmentation Differentiation

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 Product Adoption Lifecycle

Pragmatists Conservatives
Stick with the herd Move only when necessary

Visionaries
Move ahead of the herdgroup)
Skeptics
No way
Techies
“Try it”

The Chasm

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 Product (Service) Lifecycle Stages
Early Adopters Early Majority Late Majority
 Product innovation  Product proliferation  Market Maturity

 Build primary  Stake out dominant  Survive industry

demand market share shakeout

 Superior distribution /
 Market education  Channel availability
 Price skimming to development  Strong trade
fund growth  Product line promotions
extensions  Penetration pricing
 Achieve economic  Low-cost producer
scale

The Chasm
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 What is Viral Marketing?
1. Marketing techniques that use pre-existing social networks to produce
increases in brand awareness, through self-replicating viral
processes, analogous to the spread of pathological(preventive)
and computer viruses
2. MEME--An idea or concept that attains online popularity, is passed
from person to person, and becomes part of culture (somewhat like
an inside joke).

3. Involves media that is so engaging that it gets passed along from

person to person so that exposure grows exponentially.

 This type of marketing often takes the form of funny video clips, or interactive
Flash games, an “advergame”, images, and even text

 The internet is the primary setting for the vast majority of this kind of marketing,
but does exist on TV, print, cellphones, etc.

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 Advantages of Viral Marketing
Usually cheaper than traditional ad campaigns
Easy way for smaller companies to get their
name out in the mainstream
Has potential to become very popular

Disadvantages of Viral Marketing

 Typically has a short life span per campaign
 Low chance of being highly successful
 Can often backfire
 Fake advertising

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 Top Viral Marketing Film Clips

15 Biggest Viral Ads of 2013.htm

http://blog.hubspot.com/opinion/top-15-marketing-videos

 Evian Viral.htm
https://www.youtube.com/watch?v=pfxB5ut-KTs

 VOLVO VIRAL.htm
https://www.youtube.com/watch?v=M7FIvfx5J10

KMART VIRAL.htm
https://www.youtube.com/watch?v=I03UmJbK0 lA

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