Chapter 7 The Marketing Plan
 “When you create colors that survive centuries of blistering sunshine and still remain brilliant, you’re probably onto something. Which is why we wanted to discover how the ancient Mayans pulled it off. After much rigorous research scientific analysis, we unlocked their secret.”
 The opening sentences from the Mayan Pigments home page capture your attention immediately. When you click on the video icon, music and visuals carry you to a locale and time unfamiliar and exotic. The visionaries at Mayan Pigments want you to get excited not only about their products, but also about their products’ almost mystical origins.
 Thoughts of marketing strategies were not running through the minds of Lori Polette Niewold and Russell Chianelli when they visited the Mayan ruins in Mexico. As research chemists specializing in materials science, they were fascinated by the chemical compositions that were able to survive all that nature could throw at them. In the 1990s, when Lori was a doctoral student and Russ was her advisor, they attended an academic conference in Mexico and took time for a tour of Mayan archeological sites. The vivid colors triggered their scientific curiosity. They returned to their laboratory and eventually emerged with what they labeled Maya Blue, a pigment that was not heave metal-based, yet exhibited high-performance properties, including chemical resistance, temperature stability, and light stability. And it was earth-friendly and nontoxic.
 Continuing their research, Polette Niewold and Chianelli developed a full spectrum of pigments and begin and began thinking of commercial applications. That led to the formation of Mayan Pigments, lnc., an investor-backed company that sought to commercialize the products. The initial marking strategy was to target industrial manufacturers of inks, paints, coatings, plastics, and other applications such as paper, cement, and glass. Not surprisingly, the fledgling venture found itself up against entrenched and fierce competitors. The obvious customers were large corporations that, for the most part, had long and deep relationships with those existing competitors.
 In time, company leaders devised a niche marketing plan. One course of action was to become a supplier to another recent startup, Clementine Art. This Boulder, Colorado, firm specializes in paint, glue, modeling dough, crayons, and other chilldren’s products that are creative, natural, and green. As Clementine Art expanded, Mayan Pigments found that they were being introduced internationally.
 Polette-Niewold is the chief technology officer for Mayan Pigments. In that role, she is continually on the lookout for further applications in additional niches. She and her team discovered that they could not hit the big market as a large corporation might do. Instead, they focus on segments that recognize the special features that Mayan Pigment offers that are valued as benefits by consumers.
What Is Small Business Marketing?
 Marketing means different things to different people. Some owners view marketing as simply selling a product or service. For others, it is the same as advertising. Still others see marketing as those activities directing the flow of goods and services from producer to consumer or user. In reality, small business marketing has a much broader scope. It consists of many activities, some of which occur even before a product is produced and made ready for distribution and sale. People who are thinking about starting business should do their homework to make sure a market exists for what they plan to sell before they ever launch their companies.
 Small business marketing consists of those business activities that direct the creation, development, and delivery of a bundle of satisfaction from the creator to the targeted user. This definition emphasizes the benefits customers will gain from the core product and/or service. It may be helpful to view a product and/or service as having three levels: core product/service, actual product/service, and augmented product/service (see Exhibit 7.1). The core product/service is the fundamental benefit or solution sought by customers. The core product/service is the fundamental benefit or solution sought by customers. The actual product/service is the basic physical product and/or service that delivers those benefits. The augmented product/service is the basic product and/or service plus any extra or unsolicited benefits to the consumer that may prompt a purchase. In the case of shoes, for example, the core product is basic protection for the feet; the actual product is the shoes itself. The augmented product might be increased running speed, greater comfort, or less wear and tear on feet and legs. Augmentation could also be reflected in how the customer feels. Do the shoes give a sense of style, of prestige, of social identity?
 For Mayan Pigments, the first step in choosing a market for their product was to look at industrial users. The technology-focused startup team was familiar with the pigment industry, but less so with ultimate consumers of the products that would contain the pigments. The experience of this company is representative of the limitations small business face in taking their products to markets. Smaller generally cannot afford the talented marketing experts that large corporations employ. As a result, they conduct many trials and endure numerous problems. A marketing plan will not enable you to avoid all missteps, but it can drastically reduce the number of errors by forcing you to think through available option, given the resources you have.
 Ultimately, a business provides a bundle of satisfaction to its customers, not merely the tangible product or intangible service that is the focus of the exchange. Consider the case of ModCloth. According to cofounder Susan Gregg Koger, “We can get our customers involved, helping decide what we sell.” ModCloth is an online clothing accessories, and decor retailer. The business is based on the founders’ love of vintage and retro clothing. But the owners---Koger and her husband, Eric---do not let their personal preferences stand in the way of what their customer want. Using social net work sites such as Twitter and Facebook, they ask their customers to help them decide what items to carry. Accessing the company’s website, customers are invited to click on “Be the Buyer” and vote on the designs they would like to see created. The Kogers saw an immediate jumb in traffic to ModCloth.com when they began offering this option.
Action
 Startup Advice
 When your company is in the startup stage, planning for marketing is different form when your business has been running for a few years. Startup Professionals, lnc., is one of a number of companies that specializes in advising ventures that are just getting underway. At its website, http://startup professionals.com/, you can find articles about how to plan under conditions of uncertainty, such as “Five Elements of a Credible Startup Marketing Plan.”
Exhibit 7.1 The Three Levels of a Product and/or Service
 Augmented Product/Service
 Actual Product/Service
 Core Product/Service
Marketing Philosophies Make a Difference
 Just as an individual’s personal philosophy influences the strategies he or she use to achieve personal goals, a firm’s marketing philosophy determines how its marketing activities are developed, reflected in the marketing plan, and used to achieve business goals. Three different marketing perspectives that guide most small businesses are the production-oriented, sales- oriented, and consumer-oriented philosophies. We see the first two philosophies used most often, as they are associated with the experience and aptitudes of entrepreneurs who may have a manufacturing or technology-based background or who may have had a career in sales.
 A production-oriented philosophy emphasizes the product as the single most important part or the business. The firm concentrates resources on developing the product or service in the most efficient manner, even if promotion, distribution, and other marketing activities are slighted. On the other hand, a sales-oriented philosophy deemphasizes production efficiencies and customer preferences in favor of a focus on “pushing product.” Achieving sales goals becomes the firm’s highest priority. In contrast, a firm adopting a consumer-oriented philosophy believes that everything, including production and sales, centers on the consumer and his or her need. The result: All marketing efforts being and end with the consumer.
A Consumer Orientation---The Right Choice
  Over the years, both large and small businesses have gradually shifted their marketing emphasis from production to sales and, more recently, to consumers. Adhering to this approach is essential to marketing success. The marketing concept is a two-stage process that underlies all marketing efforts: identifying customer needs and satisfying those needs. This simple formula is easy to understand but difficult to implement, given the competitive nature of most markets. Still, for a company to be successful, it is essential that a product or service meet a real need in the marketplace. We strongly recommend that all new business begin with a consumer orientation, as this philosophy is most consistent with long-term success. Remember, customer satisfaction is not a means to achieving a goal---it is the goal!
 Why have some small firms failed to adopt a consumer orientation when the benefits seem so obvious? The answer lies in three key factors. First, the state of competition always affects a firm’s marketing orientation. If there is little or no competition and if demand exceeds supply, a firm is tempted to emphasize production. This is usually a short-term situation, however, and concentrating to the exclusion of marketing can lead to disaster in due tim
 
Chapter 7 The Marketing Plan
 “When you create colors that survive centuries of blistering sunshine and still remain brilliant, you’re probably onto something. Which is why we wanted to discover how the ancient Mayans pulled it off. After much rigorous research scientific analysis, we unlocked their secret.”
 The opening sentences from the Mayan Pigments home page capture your attention immediately. When you click on the video icon, music and visuals carry you to a locale and time unfamiliar and exotic. The visionaries at Mayan Pigments want you to get excited not only about their products, but also about their products’ almost mystical origins.
 Thoughts of marketing strategies were not running through the minds of Lori Polette Niewold and Russell Chianelli when they visited the Mayan ruins in Mexico. As research chemists specializing in materials science, they were fascinated by the chemical compositions that were able to survive all that nature could throw at them. In the 1990s, when Lori was a doctoral student and Russ was her advisor, they attended an academic conference in Mexico and took time for a tour of Mayan archeological sites. The vivid colors triggered their scientific curiosity. They returned to their laboratory and eventually emerged with what they labeled Maya Blue, a pigment that was not heave metal-based, yet exhibited high-performance properties, including chemical resistance, temperature stability, and light stability. And it was earth-friendly and nontoxic.
 Continuing their research, Polette Niewold and Chianelli developed a full spectrum of pigments and begin and began thinking of commercial applications. That led to the formation of Mayan Pigments, lnc., an investor-backed company that sought to commercialize the products. The initial marking strategy was to target industrial manufacturers of inks, paints, coatings, plastics, and other applications such as paper, cement, and glass. Not surprisingly, the fledgling venture found itself up against entrenched and fierce competitors. The obvious customers were large corporations that, for the most part, had long and deep relationships with those existing competitors.
 In time, company leaders devised a niche marketing plan. One course of action was to become a supplier to another recent startup, Clementine Art. This Boulder, Colorado, firm specializes in paint, glue, modeling dough, crayons, and other chilldren’s products that are creative, natural, and green. As Clementine Art expanded, Mayan Pigments found that they were being introduced internationally.
 Polette-Niewold is the chief technology officer for Mayan Pigments. In that role, she is continually on the lookout for further applications in additional niches. She and her team discovered that they could not hit the big market as a large corporation might do. Instead, they focus on segments that recognize the special features that Mayan Pigment offers that are valued as benefits by consumers.
What Is Small Business Marketing?
 Marketing means different things to different people. Some owners view marketing as simply selling a product or service. For others, it is the same as advertising. Still others see marketing as those activities directing the flow of goods and services from producer to consumer or user. In reality, small business marketing has a much broader scope. It consists of many activities, some of which occur even before a product is produced and made ready for distribution and sale. People who are thinking about starting business should do their homework to make sure a market exists for what they plan to sell before they ever launch their companies.
 Small business marketing consists of those business activities that direct the creation, development, and delivery of a bundle of satisfaction from the creator to the targeted user. This definition emphasizes the benefits customers will gain from the core product and/or service. It may be helpful to view a product and/or service as having three levels: core product/service, actual product/service, and augmented product/service (see Exhibit 7.1). The core product/service is the fundamental benefit or solution sought by customers. The core product/service is the fundamental benefit or solution sought by customers. The actual product/service is the basic physical product and/or service that delivers those benefits. The augmented product/service is the basic product and/or service plus any extra or unsolicited benefits to the consumer that may prompt a purchase. In the case of shoes, for example, the core product is basic protection for the feet; the actual product is the shoes itself. The augmented product might be increased running speed, greater comfort, or less wear and tear on feet and legs. Augmentation could also be reflected in how the customer feels. Do the shoes give a sense of style, of prestige, of social identity?
 For Mayan Pigments, the first step in choosing a market for their product was to look at industrial users. The technology-focused startup team was familiar with the pigment industry, but less so with ultimate consumers of the products that would contain the pigments. The experience of this company is representative of the limitations small business face in taking their products to markets. Smaller generally cannot afford the talented marketing experts that large corporations employ. As a result, they conduct many trials and endure numerous problems. A marketing plan will not enable you to avoid all missteps, but it can drastically reduce the number of errors by forcing you to think through available option, given the resources you have.
 Ultimately, a business provides a bundle of satisfaction to its customers, not merely the tangible product or intangible service that is the focus of the exchange. Consider the case of ModCloth. According to cofounder Susan Gregg Koger, “We can get our customers involved, helping decide what we sell.” ModCloth is an online clothing accessories, and decor retailer. The business is based on the founders’ love of vintage and retro clothing. But the owners---Koger and her husband, Eric---do not let their personal preferences stand in the way of what their customer want. Using social net work sites such as Twitter and Facebook, they ask their customers to help them decide what items to carry. Accessing the company’s website, customers are invited to click on “Be the Buyer” and vote on the designs they would like to see created. The Kogers saw an immediate jumb in traffic to ModCloth.com when they began offering this option.
Action
 Startup Advice
 When your company is in the startup stage, planning for marketing is different form when your business has been running for a few years. Startup Professionals, lnc., is one of a number of companies that specializes in advising ventures that are just getting underway. At its website, http://startup professionals.com/, you can find articles about how to plan under conditions of uncertainty, such as “Five Elements of a Credible Startup Marketing Plan.”
Exhibit 7.1 The Three Levels of a Product and/or Service
 Augmented Product/Service
 Actual Product/Service
 Core Product/Service
Marketing Philosophies Make a Difference
 Just as an individual’s personal philosophy influences the strategies he or she use to achieve personal goals, a firm’s marketing philosophy determines how its marketing activities are developed, reflected in the marketing plan, and used to achieve business goals. Three different marketing perspectives that guide most small businesses are the production-oriented, sales- oriented, and consumer-oriented philosophies. We see the first two philosophies used most often, as they are associated with the experience and aptitudes of entrepreneurs who may have a manufacturing or technology-based background or who may have had a career in sales.
 A production-oriented philosophy emphasizes the product as the single most important part or the business. The firm concentrates resources on developing the product or service in the most efficient manner, even if promotion, distribution, and other marketing activities are slighted. On the other hand, a sales-oriented philosophy deemphasizes production efficiencies and customer preferences in favor of a focus on “pushing product.” Achieving sales goals becomes the firm’s highest priority. In contrast, a firm adopting a consumer-oriented philosophy believes that everything, including production and sales, centers on the consumer and his or her need. The result: All marketing efforts being and end with the consumer.
A Consumer Orientation---The Right Choice
  Over the years, both large and small businesses have gradually shifted their marketing emphasis from production to sales and, more recently, to consumers. Adhering to this approach is essential to marketing success. The marketing concept is a two-stage process that underlies all marketing efforts: identifying customer needs and satisfying those needs. This simple formula is easy to understand but difficult to implement, given the competitive nature of most markets. Still, for a company to be successful, it is essential that a product or service meet a real need in the marketplace. We strongly recommend that all new business begin with a consumer orientation, as this philosophy is most consistent with long-term success. Remember, customer satisfaction is not a means to achieving a goal---it is the goal!
 Why have some small firms failed to adopt a consumer orientation when the benefits seem so obvious? The answer lies in three key factors. First, the state of competition always affects a firm’s marketing orientation. If there is little or no competition and if demand exceeds supply, a firm is tempted to emphasize production. This is usually a short-term situation, however, and concentrating to the exclusion of marketing can lead to disaster in due tim
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