Marketing Basics For Home Based Business Professionals

What is Marketing?
Marketing can be a confusing concept. Many people think that “marketing” is just another
word for “advertising.” Nothing could be further from the truth. Marketing encompasses advertising, sales,
product development, pricing, distribution, advertising, public relations, customer service, retailing and a host of
other activities. Marketing begins well before one initiates a sale, and continues long after the close. In
essence, everything that can influence public opinion of your company (which of course eventually influences
sales) is part of your marketing.

Whatever you do – be sure you do it well – to the best of your ability. Notice I didn’t say “perfect.” Don’t fall
into the trap of not making any decisions or moves until you think you can perform them perfectly.

Marketing attempts to make a profit by putting the customer’s needs first. Sales often puts the company’s
needs first with such ploys as, “I’ll give you 25% Off on this if you buy today, but today only.”

Home Business Tip:
Just because one has a very small home
business, does not mean these
principles don't apply...they do.

It is important to ask questions about
your customers needs and then see how
your product will fill that need.

Home Business Tip:
Find benefits to each of your products
features. Benefits sell, features do not.

Ask lots of questions

Test what you say in person and in your
ads. You will find that some of your
communications will be more effective
than others.

Home Business Tip:
This tip is so basic but is overlooked by
many part time home business owners.
Be professional...
Your Phone etiquette
Be Professional & Polite
Your Voice-mail
When Returning Calls
Always look professional

Be honest with people
Under promise – over deliver

Finding a niche and filling it.

Understanding the wants and needs of your customers
Find wants and fill them
Stop marketing makable products and start making
marketable products.
Make what you can sell, instead of trying to sell what you can
make.
Love your customer, not your product

Basic Steps in marketing
Identify your customers’ needs
Design products and/or services to meet those needs
Communicate information about those products and
services to your prospective buyers
Make your products and services available at times and
places convenient for your customers
Price them with an eye to costs, competition and your
customers’ willingness to buy

Market Research
One of the most information rich sources you already have is in
the minds of customers. Ask the last 10 people who bought from
you – why? Why did you buy from me? Let them talk. Find out if
it was because of your price, convenience, limited inventory or
sparkling personality.

I once had a client who replaced windows. He told me that
advertising doesn’t work. I asked to see some of his ads. Every
one of them focused on the benefit of beautifying a home. When I
asked why the last 10 customers bought from him, he thought
about it and said, “Hmm…they bought to cut down on noise.” We
created ads that addressed the sound solution and his response
went up over 300 percent! (no other ad reps had ever asked this
question)

Ask Yourself These Questions
Who buys our products or services now?
What are their ages, incomes and other characteristics?
Should we alter our product or service? If so, in what ways?
How are we perceived relative to our competitors?
What are the trends in our industry or service sector?
Should we enter this market?
To whom should we advertise? In what media?
What sales volume can we expect?
What are the best channels for distribution?
How should we package?
What price should we charge?

TARGET MARKETING:
Alternative – mass marketing
Market segmentation
Multiple segmentation – (two or more well defined groups)
Demographic segmentation (for example – geographic)
Social Factors (moms with kids – teenagers, etc.)
Behavioral Segmentation ( sports, restaurant preferences,
vacations, etc.)
Psychological factors (introverted, extroverted, etc.)

Selecting Market Segments
Be large enough and have enough purchasing power to be
profitable for you. (largest possible
homogeneous group worth reaching)
Have growth potential
Be measurable so you can gauge your results
Be accessible so they can reach you
Be actionable – (don’t target more groups than you have staff
to satisfy)
Be scalable

POSITIONING
Positioning is the process of finding your product or service’s
“most-wanted difference” and the most powerful and appealing
premise that can be presented to prospective buyers.

We've got the lowest price
We deliver
We pick you up
We offer the biggest inventory
We offer the most training
We give you points

Correlate what you offer with its perceived benefits.
Handled correctly accurate and creative positioning can be the
most critical element in your marketing mix.

Positioning your company: Two levels:
Company
Individual Products or Services

Positioning your products or services
DEBRIEF YOUR STAFF
(nothing’s worse than a great slogan or position that the
customers understand more than the employees)
Brainstorm with your staff – salespeople often have creative
answers)

STEPS TO DEVELOPING A MARKETING PLAN
Step One – Define your business
Step Two – Define your market
Step Three – Assess your competition
Step Four – Determine your method of distribution
Step Five – Establish your pricing policy
Step Six – Select your promotion and advertising approach
Step Seven – Summarize opportunities and issues
Step Eight – Analyze the issues
Step Nine – Establish objectives
Step Ten – Determine strategies
Step Eleven - Allocate budget
Step Twelve – Establish controls

Name six different demographic trends likely to impact your
business and briefly describe each one.

Home Business Tip:
Get well educated on your product
Use your own products or services
Get to know your competition

Home Business Tip:
Test and track the results of your
advertising. It is extra work, however, it's
the key to developing and effective
advertising strategy.

Test your audiences
Test your advertising vehicles
Track everything

Home Business Tip:
Take time to think about your unique
positioning points beyond what your
home business offers. This is
besides...what makes your product or
service unique.

What value can you offer? Sometimes,
just the fact you call people back in a
timely fashion can set you apart...that is
value by itself. Think beyond that.

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Marketing