Marketing 101

for SMEs

Entrepreneurship Unit
Department of Management Studies, FSS
Mr. Julian Henry
[email protected]

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Topics Covered
1. Marketing for SMEs
• What, Why and When its done

2. Market Research for SMEs

• The Macro Environment
• The Business Environment
• The Customer Segment

3. Market Strategies for SMEs

• Identify your Target
• Develop your Strategy
• Develop a Marketing Budget
• Monitor and Evaluation 2
Marketing for SMEs What,
Why, When
 Why is Marketing Important?
• It allows you to establish a relationship with your audience

• The relationship with your audience works in both directions

• It allows you to better understand how your audience feels

• It allows you to influence their behaviour / buying intensions

• Consumers make purchasing decisions based on how they feel

“Marketing is the action of promoting and selling

products or services, including market research
and advertising”
 When do you need to start Marketing Activities

1. IDEATION

2. MARKET ASSESSMENT

3. BUSINESS PLANNING

4. MARKET DEVELOPMENT

5. LAUNCH AND EARLY

GROWTH

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 Ideation to innovation
1. Make a rough Sample

2. Early Testing (Taste, Look & Feel, Market Test)

3. Refinement (Final Prototype / Sample)

4. Testing & Certification

5. Document Formula, Especially any Trade

Secrets

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 Business Model Canvas

KEY CUSTOMER
ACTIVITIES VALUE RELATIONS
PROPOSITION
PARTNER- CUSTOMER
SHIPS SEGMENTS

KEY CHANNELS
RESOURCES

COST DRIVERS REVENUE STREAMS

 Business Model Canvas

KEY CUSTOMER
ACTIVITIES VALUE RELATIONS
PROPOSITION
PARTNER- CUSTOMER
SHIPS SEGMENTS

KEY CHANNELS
RESOURCES

COST DRIVERS REVENUE STREAMS

Market Research
Market Research - Exploratory

CUSTOMER NEEDS, MARKET POPULATION,

PREFERENCES, DISTRIBUTION,
BEHAVIOUR DEMOGRAPHICS,
POLITICAL & CULTURAL
IDENTIFICATION,
ECONOMY

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Secondary Market Research

Involves mostly searching the internet for:

• Articles
• News Reports
• Statistical Report
• Economic Performance Reports
• Social Indicators
• Population Statistics
• Policy Documents
• Useful Websites
• Reports from Similar Countries
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 The Macro
Environment

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 The Macro Environment
Component Description
Demographics The size, growth rate, and age distribution, geographic distribution, the distribution of income
across the population, and trends in these factors.

Relevant if planning to export

Social Factors values, attitudes, cultural factors, lifestyles and consumer behaviour. Changes over time.

Political, legal, and Political policies and processes, regulations, compliance, labor laws, tax policy. Also includes the
regulatory factors political climate, and the strength of institutions such as the court system.

Natural environment Ecological and environmental forces such as weather, climate, climate change, and associated
factors like water shortages.

Technological Pace of technological change and technical developments, such as;

factors • genetic engineering
• the rise of the Internet,
• communication technologies
• Energy technologies

Global forces Globalisation; Conditions and changes in global markets; political events, policies on international
trade, sociocultural practices, rise of social media, pace of movement of goods,

General economic Rates of economic growth, unemployment, inflation, interest, trade deficits or surpluses, savings,
conditions per capita domestic product, and conditions in the markets for stocks and bonds affecting
consumer confidence and discretionary income.
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The Industry
Environment

Relevant when entering new market / or launching new product

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 Market Segmentation research
The Customer involves dividing your total potential customers into smaller
Segment groups and ‘Targeting that group’. The Segmentation is often
based on factors such as;

• Demographic Factors
o Age
o Gender
o Income bracket
o Education Level
o Geographic Residence

• Psychographic & Cultural Factors

o Lifestyle & Beliefs
o Attitude & Values
o Political Opinion
o Cultural Identification
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o Preferences, Likes, Dislikes
Identifying your ideal Customer Segment

Key to
• Customers from different segments understanding
tend to behave differently. the Customer

• Knowing these factors will help you to Key to Target

define your ideal customer base (i.e. Marketing
the Segment that’s easiest for you to
target)
Key to a Strong
• Will help you to better refine your Val. Proposition
product or service to meet the needs
of customers.
Key to Effective
Marketing
• Is important for ensuring that your
marketing and promotion message is
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effective.
Primary Market Research
On-line Surveys:
o Ask Customer Profile Questions (Age, Gender, Address, Income Bracket)
o Ask Customer preference questions (how, what, when, where, how much)
o Use response scale (Strongly agree to strongly disagree)
o Keep Survey Form to within a reasonable timeframe (5-10 minutes)
o Also: Monitor Social Media Traffic

Focus Groups:
o Keep the group small (8-10)
o Make sure you have a clear objective
o Choose the group carefully
o Don’t ask leading questions
o Keep the atmosphere light and Positive 17
Identifying your ideal Customer Segment

Customer Segments can also be

differentiated by Sector

Example:
Individual Consumers B2C
Private Sector Business B2B
Government Sector B2G

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 Market Survey – Simple Process
1. Establish your Market Hypothesis e.g.,
i. Your hypothesis that the Core Customer Segment is….
1. Main Demographics (e.g., age, gender, address, education, income, marriage status, etc.)
2. Main Psychographics (e.g., Beliefs, values, principles, take on environment, politics, etc.)
3. Situational (e.g., Employment, No. Kids, Married, Bread-winner, illnesses, concerns, pain-points, etc.)
ii. Rank the Features and Advantages of your idea that this segments values most.

2. Test your Hypothesis using a Survey Questionnaire:

i. Start with a Concept Note / or Sample that describes or demonstrates your idea.
ii. Create a questionnaire to test which features of the idea the responders prefer most.
iii. Make sure to capture a wide audience cross section in your survey sample.
iv. Ask questions to gauge the Value each person places on your Product Features example:
1. Quality / Performance Features
2. Functionality Features
3. Novelty Features
4. Pricing Features
5. Product Engagement (point of sale)
6. Marketing and Branding Strategy
7. Customer Experience Plan

3. Triangulate the results of 1 and 2 to validate or reject your hypothesis

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4. Draw conclusions and refine your BMC and strategy.
MARKET DEVELOPMENT /
MARKET-FIT STRATEGY

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Target your Audience
After segmenting the market and determined your
best fit market segment…. its time to really focus on
that segment

Advantages of Targeting
• Market Planning Efficiency
• You can build brand community
• Stronger Customer Loyalty
• Can be more profitable

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MARKET STRATEGY BASICS – 4Ps
Price
• Premium Product Pricing
• Low Cost Strategy

Product
• Product Variety
• Product Differentiation
• Low Cost Strategy

Place
• Distribution Strategy
• Point of Sale Strategy

Promotion
• Brand Development
• Advertising Strategy
• Promotions
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Position your Product - Price & Product Strategy

BROAD Cost management is critical

MARKET BROAD MARKET BROAD MARKET
LOW COST PROVIDER VARIETY PROVIDER

BEST COST
PROVIDER

NICHE MARKET
FOCUSE NICHE MARKET Branding is critical
HIGH INNOVATION
D LOW COST PROVIDER
PREMIUM PRICES
MARKET

LOW PRICE / LOW INNOVATION HIGH PRICE / HIGH INNOVATION

Porters Generic Strategies
( Placement ) Distribution Strategy / Marketing Channels

SALES &
SUPPLIERS OPERATION DISTRIBUTION AFTER SALES
MARKETING

Your value chain

What Supply Chain Strategy is Most Effective? How does your Market Segment determine the strategy?

 Suppliers
• You can offer supplier exclusivity, Storage Capacity, Bulk Purchasing, Co-branding, or Take-over
 Distribution
• You can establish multiple outlets, niche outlets, or wholesale (bulk purchase) or retail
• Point of Sale Strategy
• Store Front, On-Line Sales, Delivery Service
TRADE SHOWS & CONFERENCES

 Networking Opportunity

 Showcase your products

 Meet Investors & Buyers

 See the competitions

 Introduce your brand

 Establish Strategic Contacts

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 BRAND DEVELOPMENT
Develop your Brand Identity

1. Identify your Market Segment

2. Determine your Market Position
3. Develop your Market Strategy
4. Develop your Core Message
5. Create a Brand Logo / Brand Image
6. Expand your Digital Footprint (Website, Social
Media)

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MARKET DEVELOPMENT
PROMOTION STRATEGIES

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Digital Media

Digital Media
1. Build your Website
2. Mobile Friendly
3. Search Engine Optimisation
4. Develop an Email List
5. Youtube Videos
6. Facebook, Instagram

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Social Media – Market Opportunity

Global Users
• Active Social Media Users – Over 3Billion

In the Caribbean
• Population – 41M
• Connected to the Internet 16M
• Active Social Media Users – 9-10M
• Don’t drop your social skills just because
you hiding behind a computer
• People can see you (and your history)
• Have interesting things to say, but be29savvy
 Social Media Marketing - Basics
Creating your Message / Content
1. Who is the message intended for?
2. What’s the goal of your message?

 To Attract / Draw attention

• Post something Interesting but relatable to your audience

 To Promote your Value Proposition

• Create Attractive E-Brochures using the 4 Ps
o Product – Value Proposition, Visuals & Descriptions
o Promotion – Value added, Specials, etc.
o Price – Price Point, Price Comparison
o Place – Where / How to reach you
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Social Media Customer Leads Management
• Mostly Older Generation
• Gen-X and Millennials Contact Leads
• Still Prevalent in the Caribbean
Sale Conversions

• Millennials and Gen-Z

• Still Prevalent in the Caribbean
Contact Leads
• Posting Images

• Working Professionals
• Jobs, Conferences, News Articles, Contact Leads
Professional Achievements

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 Promotion Strategy
Influencers

Influencer marketing is generally more

authentic than corporate advertising:

•63% of consumers trust influencers’

opinions of products much more than
what brands say about themselves

•58% of people have bought a new

product in the past six months because
of an influencer’s recommendation

https://www.singlegrain.com/digital-marketing/digital-marketing-trends-2021/
Promotion Strategy
Coupons & Free Samples
• To raise awareness on new products
• To get people to try your product
• To get feedback / market test

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 Promotion Strategy
Cross Sell & Up-Sell

Cross Sell Up Sell

Marketing Budget
12 MONTH FORECAST Yr1 1 2 3 4 5 6
CASH INFLOWS
Sales Revenues
1 0 $0 $0 $0 $0 $0 $0
Market Strategy Planning 2 0 $0 $0 $0 $0 $0 $0
3 0 $0 $0 $0 $0 $0 $0
• Market Research
TOTAL CASH INFLOWS $0 $0 $0 $0 $0 $0

• Giveaways
CASH OUTFLOWS
• Advertising Costs Operating Expenses
• Brand development 1 Salaries & Wages $0 $0 $0 $0 $0 $0
2 Utilities $0 $0 $0 $0 $0 $0
• Trade show attendance 3 Property / Lease Expense $0 $0 $0 $0 $0 $0
4 Business Supplies $0 $0 $0 $0 $0 $0
5 Marketing & Promotions $0 $0 $0 $0 $0 $0
6 Other Critical Expenses $0 $0 $0 $0 $0 $0
1 Equipment & Vehicle Service $0 $0 $0 $0 $0 $0
2 Fuel / Gas Consumption $0 $0 $0 $0 $0 $0
3 Insurance $0 $0 $0 $0 $0 $0
4 Overseas Travel $0 $0 $0 $0 $0 $0
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When in a B2B Market
Segment

It’s a Business Pitch

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The Business Pitch

• A mini-presentation of your
business plan

• You only have a limited

amount of Time to present

• You will have to know what’s

most important to present

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Sometimes it’s an
Elevator Pitch (1 min)

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Sometimes all
you have is a
Few Seconds

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If you’ve done your BMC you have all the information you need to
make a Pitch

The Trick is Knowing what to say

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Key Elements of a Business
Pitch

1. Your Team

2. The Problem / Opportunity

3. Your Idea / Solution

4. The Market Assessment

5. Your Market Strategy

6. The Financial Analysis

7. Your Ask / Proposal

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 MI
ND
SE
T

The Entrepreneurship
Do you have it? Or Not?
 THANK YOU
UWI
ST. AUGUSTINE
CAMPUS

Questions
[email protected]
https://uwiventuresltd.com/
https://sta.uwi.edu/entrepunit/
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