ONE IDEA CHANGES EVERYTHING! MARKETING PLAN DECEMBER 07, 2013

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

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

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

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?

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

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)

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

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

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

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)

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)

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

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)

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).

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)

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

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?

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