Plan, Launch, Build Business Workshop® #501

Developing a Marketing Strategy

Workshop Overview

What is a Marketing

Plan

Marketing Strategy

Development

Putting It All Together

What is a Marketing Plan

Marketing

Plan

Market

Analysis

Market Environment

Consumer

Analysis

Situation

Analysis

Competitor Analysis

Marketing Objectives

Marketing

Strategy

Competitive

Advantage

Positioning

Marketing Mix

Market Analysis

1. Market Size

2. Industry Trends

3. Market Segmentation

4. Target Market

What is the current market size? How large is the potential market? Is the market stable? Where is the market heading? How many prospects are potential

customers? How many companies are competing in

the market?

1. Market Size

Changes in Package Size Variations in Product/Service Promotional Methods Technological Changes

2. Industry Trends

Demographic Psychographic Use Based Geographic Benefits Sought

3. Market Segmentation

Which of the segments can you best serve?

What is that segment’s needs?

4. Target Market

The Marketing Environment Current trends impacting the entire

society and the way the product/service is marketed make up the “marketing environment”What are the current trends?What is impacting our environment?How is it impacting our products and

services

Consumer Analysis

Two types of individuals that purchase your products and services

1. Customers- a person or entity that buys your product/service but does not actually use it.

2. Consumers- The person or entity that actually puts your product to use.

Today we will look at the “Consumer”

Factors Bearing on Your Typical

Consumer

What type of product feature most appeal to these consumers?

What are the benefits that these features provide to the consumer?

How important are these features? How are choices made between

competing products? What is their disposable income? What is their decision making process How important is “brand?” What promotions does the consumer like? What are their leisure time activities?

What Is Your Current Position?

“If you don’t know where you are, it is impossible to know how to get to where you want to be.”

The Situational S.W.O.T. Test Strengths-

What does the company/product better than the competition?

Weaknesses-What does the company/product do that not as good as the

competition?

Opportunities-What area of the market could the company enter where

there is a distinct advantage?

Threats-What actions could threaten the product or standing in the

market?

Analyzing Your Competitors Who are your top 3-5 competitors? On what basis are you competing?

Same product, different prices?Same product, different brand?Different market segments

Are there “niches” within the market place where you are not directly targeted by competition?

Think about the competition before implementing any marketing strategies.

Marketing Objectives

Use the SMART system to make your marketing objectives clear:SpecificMeasurableAttainableTimebound

Developing the Marketing Strategy- Two Options

Non-GrowthGrowth

Strategies for Growth

Grow Existing Markets

•Increase market share•Increase product usage•Increase frequency of use•Increase quantity used•Develop new applications

ProductDevelopment

•Add product features or refinements•Expand product line•Update product-new model•New products-same market

Market Development

•Using existing product and developing new uses in the same market•Target new segments of the market•Expand the geographical size of the market

Strategies for Non-Growth

Withdraw• A decision to withdraw from a market could be

made of a variety of reasons:• Insufficient resources• Focus on more profitable markets• Competition- Market split too many ways• Price competition

Milk • Designed to get the most profit from a product line with the lease investment possible.

• Company focus on other areas

Hold • Cost of growth is too high• Keep existing customers loyal but not

concentrate on gaining new customers

Sustainable Competitive Advantage (SCA)

An SCA is a means of competing using the products and company assets that provide a leverage or edge that is difficult to copy and is seen as advantageous by consumers.

Characteristics of Successful Sustainable Competitive Advantage

They are substantial enough to make a difference in the market

Are sustainable with regard to environmental changes

Are difficult for competitors to replicate Are leveraged into visible attributes that

influence consumer decisions Means by which to gain a sustainable

competitive advantage include differentiation, low cost, concentrated, niche

Differentiation

The process of making a product or service novel through a benefit that is relevant to the marketplace is a sustainable advantage.

Differentiation- Examples Product quality Service quality Brand name Product features Technical superiority Distribution channels Breadth of product line

The options for product differentiation is limited only by what the customer perceives to be different and important

Low Cost Strategy

This strategy relies on having the lowest cost in the industry at all times and thereby the lowest price to be offered to the customer.

Any company employing a low cost and low price strategy must have the ability to match and beat its competitors should a price war breakout

Methods of Achieving a

Low Cost Strategy

No-frills product Product design Raw material source Low-cost distribution Labor cost advantage Location advantage Automation advantage Reduced overheads Experience in producing

the productA low cost strategy is extremely difficult to sustain long-term

Concentrated

The concentrated thrust focuses on one part of the market or product line only.

It allows a company to become an “expert” in that area.

It is generally a smaller segment of the market.

Methods of Concentration

Focus on product line

Targeting a segment

Geographical area

Focusing again low share competitors

Niche

Strategies focus on one particular, generally small, segment of the market

The segment is generally too small for a major competitor to engage

Niche strategies require that customers see a significant difference in the competitor and see real value

Product/Brand Positioning Out of the strategy should come a unique

positioning for the product There should be a clearly developed

product/brand positioning within the market

Positioning is the way in which consumers perceive the product/service with respect to the rest of the market

Product positioning could take years to create and is difficult to change

Product/Brand Positioning Positioning can be based around such

factors as:A product attributeA consumer benefitA use or application of the productA product classThe place of originThe type of consumerCompetitive position in the market

The Market Mix

The crux of any marketing strategies involves 4 elements known as the 4-PsProductPricePromotionPlace

Product

Key product features and their benefit are paramount.

Key features include: Features Range Branding Packaging Additional accessories

Product- Service Based

For service based products, all aspects of presentation of the people providing the service are important. This includes everything that is visible, such as:Dressed in a formal fashion or a branded

sports shirtWhat your offices look likeAre the messages they convey

complimentary to your product positioning

Price

The price must conform to the product positioning

How important is price to the target market.In most markets price in an indicator of

quality – the higher the price the higher the perceived quality

Price should be set by “what the market will bear”

Price- 3 Important Factors It is a wrong assumption that offering a

better price gives a better value for the money.

Value for the money is a perception of the price compared to the benefits derived from the product.

In most markets and to most people the price is far less important than the benefits received from the product

Types of Pricing

All types of pricing decisions should be considered and planned, including:Standard pricePrice specialsDiscounts to the trade and distributorsPayment termsPayment methods

Promotion

Promotion is that element in the marketing mix that determines how you communicate with customers and what tools or tactics are used to achieve the marketing objectives.

Knowing the buying behavior of the target market is very important.

What media do they view, how frequently and what is their reason for using it?

Promotion

The promotion mix must comply with the product positioning and should not contradict in any way with the prescribed positioning.

Promotion

activities may

include

Advertising Sales promotions Publicity Personal selling Events Sponsorships Direct selling The internet & social

media Promotional materials

BrochuresGifts

Communication Plan

This component of the strategy should focus on keeping existing customers and finding new ones.

Components can include:Web siteEmailSocial Media: Twitter, FacebookBloggingPrinted and electronic newsletters

Distribution

While fairly well established, this element should not be overlooked.

Changes in the distribution channel or changes to the way in which you sell to the channel can provide great opportunities.

Distribution- Questions You Should Address How and where will the product be placed

so that the consumers have access to it and how will the sale be made?

Will you be using wholesalers, distributors, retailers or going direct to the consumer?

Are a combination of distribution points appropriate?

The strategy for dealing with distribution points needs to be addressed the same way the strategy for customers was developed

Putting It All Together

Working through the whole process (if necessary with the help of marketing

professionals) is important to getting the strategy right. A good marketing strategy,

correctly implemented, will give your company the edge over the competition.