Archive for October, 2011

How to Successfully Use Email Marketing

Sunday, October 30th, 2011

Subject: This is not spam!

Email marketing is the usage of email service providers to send out newsletters, promotions, or announcements to a customer base. There are at least 147 million email users that check their email everyday, which can be extremely beneficial for small businesses because such a wide targeted audience can be reached. When used appropriately, email marketing can be a highly effective form of communication. To be effective, email marketing should be an extension of your company and contain valuable information. Your business must take key steps in email marketing to be successful.

For a small business, the first key step is building a customer email list with the customers permission. This can be done by marketing your business at events and meetings, placing a link in your email signature and/or website, using social media outlets, or obtaining emails through phone calls. Once a customer list has been built, email service providers can be used to help manage your list and improve your delivery. The second key step is to set an objective, whether it’s to promote events, inform or relate to customers. The third key step is increasing the likelihood that a customer will open your email. The “from” line should contain a name that is recognizable or refer to your business and the “subject” line should be short and simple, roughly 30-40 characters including spaces.

Sephora is an example of a business that utilizes effective marketing. Though it is a larger company, similar concepts can be applied to your small business’ email marketing campaign.

Sephora begins the email with the subject: “A Surprise Inside,” which is effective because it entices the customer to open the email due to its mystery element. The “from” line is recognizable and contains brand equity. The format of the email is geared towards promotion because it highlights new products that the company offers. Sephora also uses the same style for their email marketing. This consistent form of branding allows customers to become familiar with the brand. At the end of the email, Sephora provides social media outlets that enable the customers to connect with the company on another level.

As a small business, it is important that you take into account the key steps for successful email marketing: build a strong customer base, set an objective, and form effective “subject” and “from” lines. These tools will enable your small business to reach your desired audience, and reinforce your brand identity. So remember, successful email marketing begins with you!

Comments welcome…

Note: The preceding post was written and researched by students in my Honors Marketing 351, Fall 2011 class, from the Mihaylo College of Business and Economics, Cal State Fullerton University, Fullerton California.  Many thanks to their time, talent, and contributions to both their career and this marketing blog.  Go Titans!

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How To Hit Your Target Market

Sunday, October 30th, 2011

A small business needs to determine their target market to be able to properly and successfully market to their target audience.  Some of the main things to consider when looking for your market are:

  • Geographics
    • Segmenting by location
    • Demographics
      • Sorting individuals by: age, gender, income, ethnic background, and life stage
      • Psychographics
        • Analyzing the way people choose to live their lives

To properly determine your small business’s target market, you have to know your product/service and how it fits into each segment of the market.  The best marketing plan will target a specific area based on the above segments.  It is important to carefully build your business around your target area based on the geographic location.

If your geographic area is defined by extreme weather conditions you should match your product to the customer’s needs. For example, in a hot environment it would be wiser to market ice cold lemonade instead of hot chocolate.  From a demographic standpoint, the average income of a neighborhood will be a determining factor in your products price.  A following website is a great tool to find the makeup of your target area (once on the site, click “zipcode look up”):

http://www.claritas.com/MyBestSegments/Default.jsp

Claritas will determine whether your small business satisfies consumer needs by defining the living standards of the surrounding area. Once you have selected the target group that would benefit the most from your product, it is important to know how to reach this audience.  Magazines successfully reach your target because they are made for specific consumer groups.  Often times, magazines have established targets such as “families” or “sports” and will reach that target market more effectively. The Daily Titan that is released every weekday on the California State University, Fullerton campus is specifically for students, highlighting local activities and events that appeal to the average college student.

A good illustration of appealing to a target market is seen in a recent Jack In The Box commercial. Jack In The Box emphasizes affordable prices which attract hungry and broke college students.  The commercial effectively relates to the college experience and attempts to satisfy the audience’s needs with the “Jumbo Deal”:

httpv://www.youtube.com/watch?v=beVJ8vHAPuc

The “Jumbo Deal” is an alternative to costly meals and influences students to buy from Jack In The Box.  Although this is an example of how a bigger company is applying advertising skills, the same concepts apply for your small business.  A company can potentially increase their sales by successfully marketing their product to their target consumer’s needs.

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Note: The preceding post was written and researched by students in my Honors Marketing 351, Fall 2011 class, from the Mihaylo College of Business and Economics, Cal State Fullerton University, Fullerton California.  Many thanks to their time, talent, and contributions to both their career and this marketing blog.  Go Titans!

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Metaphor Marketing

Sunday, October 30th, 2011

What’s your story?

Being able to answer that question, and convey it through metaphor can do wonders for your small business.

Metaphors are powerful because they tell stories that make connections based on the audience’s knowledge and prior understanding. Being able to convey a short, compelling story about your business through metaphor will allow your audience to create an instant relationship with your product or services, and make your advertisement much more memorable.

A good example of the usage of metaphor is State Farm’s ‘State of Chaos’ advertisement.

httpv://www.youtube.com/watch?v=OQs6EUry4EM

This advertisement’s usage of metaphor is great because it conveys State Farm’s story of giving home and car owners a sense of security, even when life’s disasters come their way.

In the commercial, a Killer Robot wreaks havoc on a suburban neighborhood. A man, whose home and car have been destroyed, however, is depicted as calm and without worry, relaxing on his Lazy Boy recliner. The metaphor demonstrates that State Farm gives you security and peace of mind, even when confronting life’s unforeseen mishaps. The robot represents the various forms of chaos that State Farm can protect you against – from car accidents, to natural disasters, and even the occasional Killer Robot.

The greatest benefit that metaphors can offer businesses is that they take something that is already part of their audiences understanding, and tie it into the story that they want to express. Whether or not that story happens to be protecting your car and home, all businesses can, and should use metaphor to help spread their story, and sell themselves.

Take a moment and come up with one short, compelling story you could use to sell your business, and try to find a metaphor that could help you convey it. You could be surprised by the results…

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Note: The preceding post was written and researched by students in my Honors Marketing 351, Fall 2011 class, from the Mihaylo College of Business and Economics, Cal State Fullerton University, Fullerton California.  Many thanks to their time, talent, and contributions to both their career and this marketing blog.  Go Titans!

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Restaurant Marketing: Cooking Up Promotional Success

Sunday, October 30th, 2011

Strategically promoting and advertising a small business to one’s target market is crucial. These two attributes are part of the promotional mix along with public relations and personal selling. These four features can be used interchangeably or alone. Zov’s Bistro & Bakery successfully executes the promotional mix by emphasizing sales promotion and advertising.  In a recent OC Register article titled Making Zov’s Jumble Cookies, Zov’s provides the recipe for their famous Jumble cookies  along with a “how to” video demonstrating the baking process.

Zov’s Bistro & Bakery did a phenomenal job in strategizing how to implement both sales promotion and advertising with this article. Incorporating a “how-to” video along with a standalone recipe connects the viewer to the brand of the small business and most importantly demonstrates the expected benefit of the restaurant’s baked goods and services. Including Zov’s very own recipe inspired by the head pastry chef, the restaurant is sampling their baked goods by allowing the viewer to bake the cookies at home. This method is effective for any small business because a video reaches more of the target market which further strengthens their products.

Furthermore, Zov’s Bistro & Bakery was able to focus on and promote to a niche target market by advertising their brand in the daily OC Register. Since Zov’s three locations are in Orange County, the newspaper advertisement successfully markets to the target customers: middle to high income locals, business people, and families. This method is effective because a newspaper ad is one of the fastest ways to increase sales. The key to this approach is to simply get the word out and reinforce brand awareness.

All in all, the success of any small business lies in the implementation of elements within the promotional mix. In Zov’s case, strategically promoting and advertising in the OC Register were their techniques of choice when deciding how to reach their target market. Remember; whatever promotional strategy a small business decides to use, marketing should always be a top priority to achieve growth and success.

http://www.ocregister.com/news/baking-272032-cookies-nuts.html

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Note: The preceding post was written and researched by students in my Honors Marketing 351, Fall 2011 class, from the Mihaylo College of Business and Economics, Cal State Fullerton University, Fullerton California.  Many thanks to their time, talent, and contributions to both their career and this marketing blog.  Go Titans!

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The Power of Successful Restaurant Marketing

Sunday, October 30th, 2011

The minute-long Hot Spud Café YouTube video is a close up of a potato being stuffed with signature toppings.  The ad includes strengths describing the immense amount of food and toppings that go into a potato at this restaurant; a healthy all-in-one meal which would appeal to the nearby college crowd. However, one weakness of the video is neglecting to show the variety of their menu. Another weakness is that the Midwestern American narrator is not a suiting voice for the Turkish potato restaurant. Additionally, it may help to add a brief explanation on Turkish cuisine so the customer has a cultural understanding of the Hot Spud Café.

httpv://www.youtube.com/watch?v=tECoWXDjrns

The identity, or brand, of The Hot Spud Café separates itself from other fast food establishments through the unique nature of its product.  According to our MKTG5 textbook, a brand is “a name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitor’s products.” (162)  The physical symbol for this restaurant is a potato, which is not very exciting.  Their product, however, is one of a kind and gives the Hot Spud Café a “product differentiation competitive advantage.” (20)  Nonetheless, they are still in competition with the local restaurants in the area.  Their target market is the consumer that is willing to try something different, or who is tired of the normal, everyday beverage, burger, and fries.  The nearby psychographic of adolescent college students seems like it was a prominent factor when choosing a location for the restaurant.  Below we analyzed the marketing mix (pages 25-26):

  • Product: We believe the owners did well in choosing a very specific product to help them gain an edge over the competition.
  • Price:  At $5.70 per potato, it is reasonably priced.  That’s cheaper than a chipotle burrito and is a larger portion.
  • Place: The placement of the restaurant (right around the corner from CSUF) could be a little better, but it’s great that it’s near a college campus with the demographic of college students primarily ranging from 18-22.  Students in this range often represent a niche psychographic of food enthusiasts.
  • Promotion: The restaurant needs help promoting their restaurant.  The homepage on the website is a wall of text, when it should be large pictures of their potatoes.  We prefer to eat potatoes, not paragraphs. Also, the YouTube video did not positively reflect the restaurant.

The Hot Spud Café will be able to reach a larger audience at a deeper level through segmentation (Atkins, 37).  Specifically, they should focus on their geographic, demographic, and psychographic segments. The restaurant is located less than a mile away from 35,000 Southern California college students.  If the Hot Spud Café advertises at Cal State Fullerton, Fullerton College, and even the nearby high schools by offering discounts to students, they will be able to fully utilize the marketing strategies of segmentation.

 

SWOT Analysis

Strengths: Healthy, All-in-one meal, Social Media Links, Unique Experience and Menu, Coupons for College Students, Menu Available Online, Imported King Edward Convection Oven, Large Portions for Low Price
Weaknesses: Limited to Potatoes/Hot Dogs, One Location, Not Open Late, Ideas Easily Imitated, No Mass Production, Cultural Barrier to Americans
Opportunities: Geographic Potato Eaters, Possible European Decent Demographics, “Food Truck Crowd” or Unique Food Seekers, College Philanthropic Events
Threats: Competing Diverse Restaurants, Restaurants That Appeal to Americans, Mobile Food Trucks, Competition in Geographic Region

Note: The preceding post was written and researched by students in my Honors Marketing 351, Fall 2011 class, from the Mihaylo College of Business and Economics, Cal State Fullerton University, Fullerton California.  Many thanks to their time, talent, and contributions to both their career and this marketing blog.  Go Titans!

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