3Workshop Links Business Planning The Essentials Front Page Why start a business?Viability assessmentMarketingManagement controlLegal issuesFundingBusiness PlanningFront PageExecutive SummaryThe BusinessMarketOperationsFinanceSWOT AnalysisAction PlanMarketingProduct & servicePlacePricePromotionYour Notes_____________________________________________________________________FinanceProfit & LossCash flowBalance sheet
4Product Place Price Promotion Marketing – The 4 Ps Start-up WorkshopsMarketingBusiness PlanAction PlanOn-going SupportProductBe clear about what you’re sellingKnow your customers.Sell at a profit.Make promotion work.PlacePriceYour Notes_____________________________________________________________________Promotion
5Product & Services Promotional Message!! Product & Services Place Start-up WorkshopsMarketingBusiness PlanAction PlanOn-going SupportProduct & ServicesHave a clear idea about your product & service offer.Think about what the customer is buying, not what you’re selling.Ensure you have the skills to provide both product and service.Look for unique selling points to differentiate from your competitorsProtect something Unique.PlacePriceYour Notes_____________________________________________________________________PromotionFeed into yourPromotional Message!!
6Product & Services Competitor Analysis My CompanyCompetitor 1Competitor 2Competitor 3Strengths- Qualified- Market Knowledge- Data base- Established- Market knowledge- Contract customersWeaknesses- Job costing- Financial Mgt.- Not known- Selling- Capacity- Complacent- Customer service- Bad reputation- Dissatisfied workersPrice+ 10%Your Notes_____________________________________________________________________
7Product & Services Example: Landscape Gardener Product Offer Skills Needed- Design- Building/paving- Installation of electrical power- Horticulture- Garden maintenance- Design software- Planning Legislation- Legislation, approvals- Planning (Listed Trees etc)- Knowledge of plants etcService OfferCustomer Requirements- Responsive- Accessible- Reliable- Flexible- Value for money- Warranty- Quote request followed within 24hrs- 24/7- Turn up & deliver as promised- Exceed their expectations- Quality- Peace of mindYour Notes_____________________________________________________________________
8Confirm that there is sufficient demand to reach your sales targets PlaceStart-up WorkshopsMarketingBusiness PlanAction PlanOn-going SupportProduct & ServicesProfile the characteristics of your customersUnderstand your customer’s expectationsLocate and quantify the number of your potential customers and competitorsKnow your market shareConfirm how your customers will access your productPlacePriceYour Notes_____________________________________________________________________PromotionConfirm that there is sufficient demand to reach your sales targets
9Place – Customer Profile (B2B) Example: Landscape GardenerCustomer CharacteristicsResearch Areas- Type/Sector- Annual Sales- Profitability/credit rating- Number of employees- Premises- Standard Industry Classification (SIC code)- Schools/Councils/Businesses- Profitable/Busy- Capable of paying bills- N/A- Premises with groundsCustomer ExpectationsResearch Areas- Accreditations- Contracts- Licences- Standards- Buying behaviour- Legislation- Electronic trading- Horticultural/ building qualifications- Terms & conditions of trade- N/A- Professional (presentation/image)- Frequency of purchase- Health and safety/insurance- On-line orders/invoices/direct bankingYour Notes_____________________________________________________________________
10Place – Customer Profile (B2C) Example: Landscape GardenerScope of Product OfferResearch Areas- Type/Sector- Disposable incomePremisesGeography- General public- Ability to payProperty with gardensNorth WestScope of Service OfferResearch Areas- Accreditations- Contracts- Licences- Standards- Buying behaviour- Legislation- Electronic trading- Qualified- Terms & conditions of trade- N/A- Professional (presentation/image)- Frequency of purchase- Health and safety/insuranceYour Notes_____________________________________________________________________
11Place – Locate & Quantify Customer Numbers Information research sources:Telephone directories/yellow pages/Thomson directoriesGovernment Council Economic Development Units/Office of National statisticsTrade organisationsLibraries/PressMarket research organisationsList brokersResearch results Business to Business (B2B)LocationSourceNo. of CustomersNo. of CompetitorsLocal (St Helens)Regional (Lancs.)NationalInternet?50 (www.sthelens.gov.uk)607 (www.lancashire.gov.uk)13 (www.yell.com)100 (www.yell.com)Research results Business to Consumer (B2C)LocationSourceNo. of CustomersNo. of CompetitorsLocal (St Helens)Regional (Merseyside.)NationalInternet?15K (www.sthelens.gov.uk)462K (www.lancashire.gov)13 (yell.com)100 (yell.com)Your Notes_____________________________________________________________________
12Place Customer Access to Product Mail order (Catalogue/call centres)Store/your premisesInternet (e-bay)Their premises.Sales representativeImage/perceptionYour Notes_____________________________________________________________________Cost Implications?
13Price Product & Services Place Price Promotion Start-up WorkshopsMarketingBusiness PlanAction PlanOn-going SupportUnderstand market conditions in relation to supply and demand.Check what your customer is prepared to pay.Check competitor pricing.Know your break even and cover your costsAdd premium for added value.Monitor conversion rates from quotes to orders.Product & ServicesPlacePriceYour Notes_____________________________________________________________________PromotionOptimise profitability keeping abreast of market conditions and being flexible in pricing.
14Price – Break Even & Cost Plus Calculating Break Even:By Value :Total Overhead (Fixed Costs) ÷ Gross Profit %£25000 ÷ 45%Break even sales = £55,556By Number of Orders:Break even sales - £55,556Average order value £10Break even unit sales = 5555 unitsCalculating Cost Plus:Labour cost+Material CostOverhead Charge=Total costProfitSelling PriceYour Notes_____________________________________________________________________
15Use promotions to achieve sales targets Start-up WorkshopsMarketingBusiness PlanAction PlanOn-going SupportUse a clear message, emphasise product and service features and benefitsUse unique selling points in promotional materialsUse logos and branding to give a professional imageCheck competitor promotional methodsWork within budgetsMonitor the impact and return on investmentProduct & ServicesPlacePriceYour Notes_____________________________________________________________________PromotionUse promotions to achieve sales targets
16Promotion – Features & Benefits Service OfferYour Notes_____________________________________________________________________
19Promotion – Measure Impact Request for quotationBuild estimate & send quotationCustomer order decisionPlan & deliver promotion campaign:Decide on budget.Calculate no. of contacts to achieve sales targetsIdentify target customersDecide on promotional methodSet up data base to monitor response.Record customer response:Record date,Customer,Contact details,Nature of requestRecord your response:Record date quote sent, product information and costRecord customer response:Record date of order decision.Use Impact Reports:Time taken for each stage of the process.Number and value of request for quotationsNumber, value and frequency of orders.Conversion rates for contact to request for quote and placement of orderAverage value of quotes and orders/£1 of promotional costYour Notes_____________________________________________________________________
20Keep Your Customers Customer Service: Getting one new customer costs Be responsiveUnderstand their requirements and working methodsDo what you promise and exceed their expectationsLook after them and solve their problemsThe answer is yes- now what was the problemGetting one new customer costsmuch more than the cost ofkeeping an existing one.Your Notes_____________________________________________________________________
21Moving on? Marketing is not just advertising and selling! How often should you do it ?RoutineBudgetMeasureCustomers and competitors are ever changing.Make sure you’re always up to date.Your Notes_____________________________________________________________________
22Keep in touch with each other, chat and network on Linked in. Join the ‘Business Start Up Group’ and then join ‘The Workshop Group’ subgroup to keep in touch!