Marketing the benefits of your energy efficient business. Gill Hutchinson, Federation of Small Businesses

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1 Marketing the benefits of your energy efficient business Gill Hutchinson, Federation of Small Businesses

2 Marketing - what s it all about?

3 Some Definitions Marketing (n) A loose assortment of fluffy activities intended to generate leads and enquiries and build customer loyalty. Major cause of frustration amongst business owners and directors Marketing plan (n) A list of marketing activities, usually made up of repeats from previous years, copies of competitor activities and the latest great new idea

4 How do many business leaders feel about marketing? Keep being sold silver bullets that don t deliver Not helping me reach my vision Not adding the value I need Not sure what Waste of money works and what doesn t

5 What should marketing be doing? Creating profitable demand (Sales is about converting demand) Good marketing feeds the sales pipeline (Good selling converts prospects into customers) Extending the lifetime value of customers by continuing to delight them - customer service, customer feedback, cross-selling, referrals and recommendations, account management etc, etc

6 A new definition Marketing (n) A structured programme of activities that delivers a predictable flow of quantified warm prospects into the sales pipeline with a measurable return on investment

7 Aardvark Marketing Building Blocks Business Plan Plan & Implementation Effective Affordable, Measurable Strategies Promotion, Pricing Communication, Product KPI Measurement Objectives Investment Beliefs Behaviours ROI Affordability Profile Customers Needs Competitive Advantage Meeting needs better Proposition Customer benefit

8 Customers Understanding who they are and what they need? Let s have some audience suggestions please!

9 Benefits of an eco friendly business Conserving precious resources: Water Energy Food Local agenda Lower transport costs Supporting your local community Using sustainable resources Energy Raw materials Corporate social responsibility agenda Supporting local charitable causes Being a responsible employer Providing free resources / time for your local community

10 Customer understanding Can you describe a typical customer in terms of age, gender or geographical location? What newspaper do they read, what car do they would drive, their house, their family, what TV programs they would enjoy, which radio station they would listen to, what social media do they use? B2B life stage, industry, ownership structure, geography Do you know about a typical customers income level, employment or social class? B2B Business size, profitability What is their life stage, attitudes, habits and interests? How important is it to them to buy green products or services? Are they motivated by a desire to be green or simply responding to a financial incentive? What is typical customer behaviour? How frequently do they buy from you? How much do they typically spend? How loyal are they?

11 Customer profiles Information - B2C Segment Information B2B Segment Age Established or start up Gender Location Income level Employment status Social Class Life stage Attitudes Habits Interests What would make their life better? What causes them pain? Development stage Classification Role / job title Location - work Location home Customer profile How do they compete? What would make their life better? What causes them pain? Social Media Social Media used

12 Top tip Ideas to try immediately Ask a few good customers why they buy from you Think about how to reach them what media do they consume, where do they go, what do they like? Follow up Customer survey sample customer views after the event Mystery shop sample customer views at the point of purchase

13 Proposition & competitive advantage What do you promise and how is it better than your competition? Does my product or service help with an immediate issue or a future issue? (pain now, pain in the future, pleasure now, future pleasure?) Competitor analysis List similar products or services that meet same need Competitive advantage Is being green a central desire or a nice to have addition?

14 Competitive advantage Cost Buying or manufacturing advantage None Service Convenience, expertise, added service Quality Relevant product advantage

15 A word about Pricing Reducing price is often a panic, and hits profits hard Customers buy on price when they perceive no difference in product or service Add value rather than reduce price Higher price creates expectation of higher quality

16 Customer needs vs. competitive edge Details Competitors Market: 1: 4: Brand: 2: 5: 3: 6: Customer Needs + + +/ : 2: 3: 4: 5:

17 For Moore s Positioning Statement Template (target customers) Who (have the following problem) Our product is a (describe the product or solution) That provides (cite the breakthrough capability) Unlike (reference competition) Our product/solution (describe the key point of competitive differentiation)

18 Proposition Transformers Improvers New approach, visionary, gives new value, resets the category Distinct points of superiority, includes removal of negatives Table Stakes The basics, without which we are not seriously in the game Table stakes are mandatory, few deliver Transformers, most do very well from Improvers

19 Top tip Ideas to try immediately Positioning statement - complete and share this with the senior management team Ask customers who else they considered buying from and why they bought from you Follow up Full competitor review New / enhanced product or service where are the market gaps and opportunities?

20 Aardvark Marketing Building Blocks Business Plan Plan & Implementation Effective Affordable, Measurable Strategies Promotion, Pricing Communication, Product KPI Measurement Objectives Investment Beliefs Behaviours ROI Affordability Profile Customers Needs Competitive Advantage Meeting needs better Proposition Customer benefit

21 Messaging or marketing objectives Address customer need WIIFM & WDID (call to action) 3 key messages refer to customer need & competitive advantage (structure who aimed at, what is need, what is message, what belief / behaviour change should result) Consistency Excitement

22 A word about audience Marketing is usually assumed to apply to customers and external communications Green credentials should be an integral part of the business plan as a whole. Therefore communication plans should apply to all employees, suppliers and stakeholders as well.

23 Marketing cycle Plan Refine Pilot or test if necessary Review Implement Measure

24 Simplified planning template Activity Q1 Q2 Q3 Q4 Advertising and PR Website, PPC, SEO (online) Social media Directories Events Networking Sponsorship Promotions

25 Aardvark Marketing Building Blocks Business Plan Plan & Implementation Effective Affordable, Measurable Strategies Promotion, Pricing Communication, Product KPI Measurement Objectives Investment Beliefs Behaviours ROI Affordability Profile Customers Needs Competitive Advantage Meeting needs better Proposition Customer benefit

26 Any questions?

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