3marketing plaN: What Does it mean Marketing means communication of actions duringDesignManufacturingPromotingSellingDeliveringServicing
4marketing plaN: market Analysis Questions that should be answeredHow big is your target market?What are major segments of you market?Who are your customers?What are their needs?What are their preferences?Where do they buy?Why do they buy?How do they pay?Is your market shrinking or expanding, or stable?Who are your competitors?Their location?What are their strengths and weaknessesDo they share the same opportunities and threats as you?Product, Pricing
5marketing plaN: market Analysis Who are your competitors?Their location?What are their relative strengths and weaknessesUnique opportunities and threatsProductHow are they unique?PricingWhat is their pricing structure?How are they positioned?PromotionHow do they promote?Do they have a brand identity?What is their advertising message?PlacementWhere are they located? Advantage or disadvantage?How do distribution channels differ?
6marketing plaN: Objectives, Strategies, and tactics Objectives (SMART)Create a timetableEstablish performance goals and standardsCreate budgetsEvaluate your strategiesBusiness goal examplesMarket share 20% in the next six monthsIncrease sales by 20% in the next six monthsSpecific, Measurable, Achievable, Realistic, Time
7marketing plaN: Objectives, Strategies, and tactics Your plans for achieving your objectivesSegmentation strategies - Targeting customersDemographic – age, gender, income levelPsychographic – interests, activities, beliefsBehavioral – observations of consumer shopping pattern and placement based on those patternsGeographic – location (neighborhood, rural, suburb)
8marketing plaN: Objectives, Strategies, and tactics Competitive advantagesProprietary technologySpecialized nicheProduct advantage due to better sourcing, location, or processesUnique brand identityPositioningHow products are positioned in the market to key in on competitive advantages or segmentation strategy
9marketing plaN: Objectives, Strategies, and tactics Product position should:Benefit target audienceSeparate yourself from competitorsBe unique difficult to copyTacticsThe specific actions businesses take to produce, price, place, and promote their productsShould be uniqueUse creativity, insight, and innovation2-1 promotionsSelling through specialty boutiques
10marketing plaN:Product What do you plan to offer?Product linesProduct mixBrand your product/serviceBrand identity – how you choose to present your productBrand image – association that your brand evokes in consumers’ mindBranding strategy – telling the story of your business and products in an enticing wayCREATE YOUR BRANDChoose a logoBuild & manage your brand
11marketing plaN:Price Basic Concepts Pricing Objectives Cost – What you spend to produce your productPrice – What you will charge for your productValue – What does your consumer believe your product is worthDemand – amount of your product that customers are willing and able to buy at a specific pricePricing ObjectivesMaximizing profits (skimming strategy) – high short-term profitsMaximizing sales volume (penetration strategy) – sacrifice $ to gain market shareROI – Achieve target return on investmentMeeting or beating the competition – Matches competitors’ pricesQuality leadership – Price implies quality (Rolex)
12marketing plaN:PRice COSTS Break-even analysis Variable Fixed Total costsBreak-even analysisTR = P*QTC=TFC + (AVC per unit *Q)Break-even point = TR = TCBreak-eve quantity = TFC/(Price-AVC)
13marketing plaN:Price Strategies Pricing strategy should align with Cost-plusPremium pricing – pricing above market priceSkimming – Maximizing profit margin setting price high in the short-term (Unique or innovative products)Penetration pricing – setting price low to enter the marketPricing strategy should align withProduct strategyDistribution strategyPromotional strategy
14marketing plaN:PRoMoTion Promotional MixAdvertisingPotentially expensive and flashy way to communicate your product information to a consumer to persuade them to purchaseSales promotionConsumerTradePublicityPR relationsStrategiesPull – target an end consumer (consumer will “pull” the product through distribution channelPush – target wholesale and retailers (They will “push” product to consumer)
15marketing plaN:PRoMoTion StrategiesPull – target an end consumer (consumer will “pull” the product through distribution channelPush – target wholesale and retailers (They will “push” product to consumer)Manage PromotionsSet a budgetCreate a calendarEvaluate effectivenessSale ProjectionsForecast 3 scenarios (realistic). Based on (estimated market size) x (price).
16marketing plaN:Placement Placement/DistributionActivities involved in moving good from producer to consumerIdentify partnersRetailersWholesalersDistributorsCreative Placement Strategies“Piggybacking” (Free X with the purchase of Y)
17marketing plaN: Importance As a small business owner you may have some of additional burdens compared to larger businessesLoan paymentsAdditional jobFamilial responsibilitiesGood marketing plans helpOrganize thought / focus effortsPrevents duplication of effortsAvoids wasting precious resources
18marketing plaN: Importance Investor/lendersPotential of the businessTarget audience- Who are you selling to?How will you position yourself in the market?How well do you know the customer and the market?How realistic are your goals?What make your product unique?