MODULE 506 CONNECTING WITH YOUR CUSTOMER AND MARKET Contact Person Dr. Mario Denton Crown Financial Ministries Marketplace Programme Director for Africa Africa Director for FCCI (The Fellowship for Companies for Christ International) CEO STRONG MESSAGE BUSINESS CONSULTANT Let's keep the good marketplace vibes alive. Let's network. Tel (w) + 27(0) 82 88 29903. E-mail address: mario@crown.org.za Website: www.crown.org.za and click on marketplace E-mail address: marden@mweb.co.za website: www.strongmessage.co.za Skype: mario.denton
Table of Contents 1. Foundation 2. Who is your customer? 3. Marketing and advertising 4. Application Case study 5. Success contract
Connecting with your customer and market “With good will render service, as to the Lord, and not to man� Ephesians 6:6 NASB Who Is your Customer? -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Who should be your customer? ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------I.
Defining your customer allows you to effectively focus you efforts on acquiring the best customer prospects
“Do horses run on rocks? Or does one plow them with oxen?” Amos 6:12 NASB II.
Steps to identifying your best customer base
“…Mosses saw that Aaron had let the people get completely out of controland much to the amusement of their enemies…” Exodus 32:25 NLT A. Understanding your business “Be diligent to know the state of your flocks and attend to your herds” Proverbs 27:23 NKJ B. What is my business mission, why does the business exist? ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------“Where there is no vision the people parish…” Proverbs 29:18 KJV 1. Identifies what customers you can attract
2. The first step in targeting customers a. Why is targeting important?
b. We all have limited time and money
c. Focus is particularly important
d. A riffle shot carefully aimed will hit target better then a blind shotgun blast C. What do I do well that others can not do well? “There are varieties of gifts, but the same Spirit� 1 Corinthians 12:4 NASB 1. Every business must understand it’s strengths 2. Why? -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------3. What is my competitive advantage? ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------4. Study the Market The Lord to Mosses: “Send out for yourself men so that they may spy out the land in Canaan…” Numbers 13:2 NASB “Then Joshua son on Nun secretly sent two spies… Go look over the land,’ he said, ‘especially Jericho” Joshua 2:1 NIV King Solomon wrote: “It is not good for a person to be without knowledge, and he who makes haste with his feet errs” (Proverbs 19:2, NASB). A. Why? B. A business needs to understand competition -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Why? “Suppose a king is about to go to war against another king. Will he first not sit down and consider whether he is able with ten thousand man to oppose the
one coming against him with twenty thousand? If he is not able, he will send a delegation while the other is a long way off and will ask for terms of peace” Luke 14:31-32 NIV “…When Micah saw that they were too strong for him, he turned and went back to his house” Judges 18:26 NASB “…You are now about to cross the Jordan to go in and dispossess nations greater then you…the people are strong and tall…” Deuteronomy 9:1 NIV
1. Determine the strengths of Competitors i. Determine what each does well ii. Rate Your strengths against competitors strengths iii. Determine how you compare iv. Identify your competitive advantage v. Determine who are your best prospects 2. Determine the weaknesses of Competitors a. Rate your strengths against competitors weakness b. Determine your best prospects 3. Competitive advantages of Goliath 1 Samuel Chapter 17
a. Size- 9 feet, 6 inches tall- sign him up for the Suns b. Armor- weighed about 125 pounds c. Number of weapons, a sward, spear and javelin in that time most warriors carried only one weapon d. Size of weapons- spear like a weavers beam e. Training- he has been a warrior from his youth f. More staff- he had a shield bearer 4. Weaknesses of Goliath a. Pride- he distained David, looking down at any competitor is prideful and dangerous b. Exposed head c. Slower moving 5. Strengths of David a. Faith in God – He (God) will deliver me from Philistine , the battle is the Lords b. Prayer c. Experience fighting lions and bears
d. Faster moving- not carrying heavy weapons- he declined to use Saul’s heavy sward, David ran quickly toward the battle line e. Skill is using a sling 6. Weaknesses of David a. Lack of military training b. Lack of armor c. No staff d. Smaller in size e. Less strong Likewise, we need to understand competitors in the marketplace C. Profile your Target Customer “…I run in such a way, as not without aim; I box in such a way as not beating air” 1 Corinthians 9:26 NASB Why? 1. Steps to defining your customer a. Outline your competitive advantage
b. Determine based on customer needs what customers will be attracted c. Determine based on your weaknesses and competitors strength who is not your customer (1.)
Restaurants and quick stop stores sell fountain
2. Results of Determining target customers a. Allows you to focus every effort on reaching the best prospects b. Allows you to develop every aspect of your business around servicing and marketing to the top tier of prospects D. Defining Your Image “…The Lord does not look at the things man looks at. Man looks at the outward appearance, but the Lord looks at the heart”1 Samuel 1:16:7 NIV 1. Craft your image based on your target customer 2. Present the image that your target customer will expect Be consistent in maintaining your image c. Facility d. Furnishings e. Décor
f. Advertising g. Appearance of staff h. Product presentation i. Service level j. Selection of merchandise k. Letter head, forms
E. Defining your service level “…I will sing praise to your name and fulfill my vows day after day” Psalm 61:8 NIV 1. Different organizations will have different levels of service Match your service level with your target market i. What service level does your target customer expect?
2. Determining what service level customers are willing to pay 3. Insure you deliver products and services as promised 4. Defining the price point
“The buyer haggles over the price, saying it’s worthless, then brags about getting a bargain” Proverbs 20:14 NLT
A. Your cost of providing a product or service is not relevant to the customer
B. Market based pricing 1. What is the customer willing and able to pay? 2. How important is price in the decision?
III.
Marketing and Advertising
“Neither do people light a lamp and put it under a bowl. Instead they put it on its stand, and it gives light to everyone in the house” Matthew 5:15 NIV
A. All marketing must be aimed at your target customer “Does a bird fall into a trap on the ground when there is no bait in it? Does a trap spring up from the earth when it captures nothing at all?” (Amos 3:5, NASB) 1. Determine what method or methods will reach your target customers
2. Ask: How does this ad hit my target customer? 3. Create
advertising
that
highlights
your
competitive
advantage
B. One shot adds do not work C. Quality is Key D. Seven questions to answer before creating advertising 1. What is your product or service? 2. What is your target market? 3. Who are your principle competitors? 4. What is the key benefit of your product? 5. What is your competitive advantage? 6. What is the one concept you want the reader of the advertisement to get? 7. What action do you want the reader to take as a result of the advertisement? IV.
Application A. Write out your mission statement, why your organization exists
B. Define you competitive advantage C. Define your target customers D. Define the image you want to present to customers E. Define the service level you intend to deliver to customers F. Define the price customers are willing to pay G. Establish an advertising budget and focus to reach new customers
Case Study
CASE STUDY — “Connecting with Customers”
Delta Heating, Plumbing and Cooling Russ was the owner of Delta Heating, Plumbing and Cooling outside of New Orleans, Louisiana. He had 10 work crews with trucks servicing clients, but was struggling to gain enough customers. He advertised in the Yellow Pages with a big ad and on Christian radio and secular radio stations. Flyers, designed by his printer, were mailed out twice a year. He also used some cable TV spots and newspaper advertising, with a budget of $95,000 annually. His service area was a 300 square mile region just south of New Orleans and he operated out of a service facility near the center of that region.
The key competitive advantages were: •
Fast response time given the number of crews available
•
Highly experienced crews, average 8 years of experience
•
The firm had been in business for 65 years and had created loyal customers
•
Very High customer service ratings (94% satisfaction rate)
•
Received the “Best of the Bayou” award for the last 4 years in a row
•
High inventory of parts and equipment in stock
The key competitive disadvantages were: •
Some competitors were lower priced
•
Higher overhead to keep 10 crews on the road
•
Some competitors were nationally franchised, creating customer referrals from national advertising
Because New Orleans is growing south toward the Delta Heating, Plumbing and Cooling service area, competing firms were beginning to spring up closer and closer to his area. Russ considered opening a branch closer to the city to service the growing customer base. However, his research showed that there were already 40 businesses servicing this expanding region, including several national chains with large advertising budgets. In addition, many contractors were willing to cut prices sharply just to keep crews busy. As a result, prices were very competitive. Russ knew that pricing was an issue with some customers, but he also knew that his loyal customers were more interested in solid, reliable service.
Regarding Russ’s current advertising, every marketing approach was different. The Christian radio ads stressed Russ’s Christian values while the secular radio ads talked about Russ being one of the “good ole boys” who has provided service for 65 years. The newspaper ads touted sales and seasonal inspection programs while the TV ads showed Russ and his crew installing equipment. (Russ had 4 different TV ads rotating.)
Questions to consider: •
Should all of the greater New Orleans area Russ’s target customer?
•
What advice would you give Russ on targeting customers?
•
Should he open a branch closer to New Orleans?
•
What message should he develop for advertising to his customers?
•
How could he unify his advertising?
Dig deeper and learn more (Optional) This section includes various support material for further inspiration and encouragement and relates to the material covered in this section ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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Progress Report James 1:22-25 “Do not merely listen to the word, and so deceive yourselves. Do what it says. Anyone who listens to the word but does not do what it says is like a man who looks at his face in a mirror and, after looking at himself, goes away and immediately forgets what he looks like. But the man who looks intently into the perfect law that gives freedom, and continues to do this, not forgetting what he has heard, but doing it-- he will be blessed in what he does.� (NIV) Name and Number of Module ________________________________________ Participant’s Name: ________________________________________ The Biblical Truths (Principles) I learned from this module: ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------I intend to apply this Truth (Principle) in my business by: --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------________________________
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Participant
Date
Acknowledgement Steve Marr consults with business and organizations bringing a national and international perspective to achieve improved vision, focus, quality, and management effectiveness in today’s competitive environment. Effective practical assistance is provided to the business person or ministry leader. Steve’s radio feature “Business Proverbs is heard on worldwide, including armed Forces Service radio For more information visit www.stevemarr.org
Material adapted by Dr. Mario Denton Mario is the International Field Continental Programme Director – Market-place for Crown Africa, the Africa Director for FCCI (The Fellowship for Companies for Christ International) and the CEO of Strong Message Business Consultancy. He is an international teacher and industrial psychologist and uses his strong academic and corporate background and his uniquely effective coaching to help people tap into their inner being; to utilise their strengths and expand their skills
to make a difference in the workplace. He and his wife, Mariene, are based in Cape Town, South Africa, and are blessed with three grown sons.
Servant Copyright. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by an information storage and retrieval system without permission. Regarding permission to reprint material from this material, please write to Dr Mario Denton: Unless otherwise noted, Scripture quotations are from The Holy Bible, English Standard Version, copyright Š 2001 by Crossway Bibles, a division of Good News Publishers. Used by permission. All rights reserved