1. ONE IDEA CHANGES EVERYTHING! MARKETING PLAN DECEMBER 07, 2013

2. marketing plaN: CONTENTS
Overall Objectives
Market Analysis
Customer needs, market size
Distribution
Pricing strategy
Sales/promotion strategy
Sales projections, 3 scenarios

3. marketing plaN: What Does it mean
Marketing means communication of actions during
Design
Manufacturing
Promoting
Selling
Delivering
Servicing

4. marketing plaN: market Analysis
Questions that should be answered
How 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 weaknesses
Do they share the same opportunities and threats as you?
Product, Pricing

5. marketing plaN: market Analysis
Who are your competitors?
Their location?
What are their relative strengths and weaknesses
Unique opportunities and threats
Product
How are they unique?
Pricing
What is their pricing structure?
How are they positioned?
Promotion
How do they promote?
Do they have a brand identity?
What is their advertising message?
Placement
Where are they located? Advantage or disadvantage?
How do distribution channels differ?

6. marketing plaN: Objectives, Strategies, and tactics
Objectives (SMART)
Create a timetable
Establish performance goals and standards
Create budgets
Evaluate your strategies
Business goal examples
Market share 20% in the next six months
Increase sales by 20% in the next six months
Specific, Measurable, Achievable, Realistic, Time

7. marketing plaN: Objectives, Strategies, and tactics
Your plans for achieving your objectives
Segmentation strategies - Targeting customers
Demographic – age, gender, income level
Psychographic – interests, activities, beliefs
Behavioral – observations of consumer shopping pattern and placement based on those patterns
Geographic – location (neighborhood, rural, suburb)

8. marketing plaN: Objectives, Strategies, and tactics
Competitive advantages
Proprietary technology
Specialized niche
Product advantage due to better sourcing, location, or processes
Unique brand identity
Positioning
How products are positioned in the market to key in on competitive advantages or segmentation strategy

9. marketing plaN: Objectives, Strategies, and tactics
Product position should:
Benefit target audience
Separate yourself from competitors
Be unique difficult to copy
Tactics
The specific actions businesses take to produce, price, place, and promote their products
Should be unique
Use creativity, insight, and innovation
2-1 promotions
Selling through specialty boutiques

10. marketing plaN:Product
What do you plan to offer?
Product lines
Product mix
Brand your product/service
Brand identity – how you choose to present your product
Brand image – association that your brand evokes in consumers’ mind
Branding strategy – telling the story of your business and products in an enticing way
CREATE YOUR BRAND
Choose a logo
Build & manage your brand

11. marketing plaN:Price Basic Concepts Pricing Objectives
Cost – What you spend to produce your product
Price – What you will charge for your product
Value – What does your consumer believe your product is worth
Demand – amount of your product that customers are willing and able to buy at a specific price
Pricing Objectives
Maximizing profits (skimming strategy) – high short-term profits
Maximizing sales volume (penetration strategy) – sacrifice $ to gain market share
ROI – Achieve target return on investment
Meeting or beating the competition – Matches competitors’ prices
Quality leadership – Price implies quality (Rolex)

12. marketing plaN:PRice COSTS Break-even analysis Variable Fixed
Total costs
Break-even analysis
TR = P*Q
TC=TFC + (AVC per unit *Q)
Break-even point = TR = TC
Break-eve quantity = TFC/(Price-AVC)

13. marketing plaN:Price Strategies Pricing strategy should align with
Cost-plus
Premium pricing – pricing above market price
Skimming – Maximizing profit margin setting price high in the short-term (Unique or innovative products)
Penetration pricing – setting price low to enter the market
Pricing strategy should align with
Product strategy
Distribution strategy
Promotional strategy

14. marketing plaN:PRoMoTion
Promotional Mix
Advertising
Potentially expensive and flashy way to communicate your product information to a consumer to persuade them to purchase
Sales promotion
Consumer
Trade
Publicity
PR relations
Strategies
Pull – target an end consumer (consumer will “pull” the product through distribution channel
Push – target wholesale and retailers (They will “push” product to consumer)

15. marketing plaN:PRoMoTion
Strategies
Pull – target an end consumer (consumer will “pull” the product through distribution channel
Push – target wholesale and retailers (They will “push” product to consumer)
Manage Promotions
Set a budget
Create a calendar
Evaluate effectiveness
Sale Projections
Forecast 3 scenarios (realistic). Based on (estimated market size) x (price).

16. marketing plaN:Placement
Placement/Distribution
Activities involved in moving good from producer to consumer
Identify partners
Retailers
Wholesalers
Distributors
Creative Placement Strategies
“Piggybacking” (Free X with the purchase of Y)

17. marketing plaN: Importance
As a small business owner you may have some of additional burdens compared to larger businesses
Loan payments
Additional job
Familial responsibilities
Good marketing plans help
Organize thought / focus efforts
Prevents duplication of efforts
Avoids wasting precious resources

18. marketing plaN: Importance
Investor/lenders
Potential of the business
Target 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?

19. ANY