1. Business Plan Preparation Marketing Plan
Frank Moyes Leeds College of Business
University of Colorado Boulder, Colorado
Business Plan Preparation: Marketing Strategy

2. Tonight Marketing Strategy Revenue Model In the Fire Elevator speech
Preliminary Industry Analysis
Competitive Advantage
Model company description
Elevator speech
Hand-in
10 Call Reports
Competitive matrix
Team meetings
Business Plan Preparation: Marketing Strategy

3. Next Week Operations Plan Development Plan Marketing Workshops
Tues Mar 7 room ? 6:00 to 7:00pm
Business Plan Preparation: Marketing Strategy

4. Business Plan Elements
Executive Summary
Company Overview
Market & Industry Analysis
Product/Service Description
Marketing Plan
Operations Plan
Development Plan
Management
Competitive Advantage
Financial Plan
Funding
Business Plan Preparation: Marketing Strategy

6. Marketing Plan Objectives
Build on Market & Industry Analysis
Define the strategies & programs to exploit the opportunity
Business Plan Preparation: Marketing Strategy

7. Marketing Plan Outline
Target Market Strategy
Channel Strategy
Positioning
Product/Service Strategy
Pricing Strategy
E-commerce
Communications Strategy
Sales Strategy
Revenue Model
Business Plan Preparation: Marketing Strategy

8. Target Market Strategy
Consumers vs. purchasers
Profile of the customers you will serve
Consumer: demographics, psychographics & values
Business: industry, size, location, purchase decision
How will you overcome brand loyalty? What will cause customers to switch?
Future markets
Child care service
Who makes final decision?
Who else involved?
Business Plan Preparation: Marketing Strategy

9. How Do Customers Make Decisions?
How Do Customers Make Decisions?
Decision making process – where, when & how
Initiator, Influencer, Decider, Purchaser & User
Identify criteria used to make decisions?
Criteria may be different than your features
Where: retail stores, mail order, internet
When: time of year, month and day; seasons; end fiscal year
How: how collect info, sales people, brochures, TV, internet
how make decision: emotional, holistic, automatic, spontaneous
Initiator baby diapers - mom
Influencer - grandmother, other moms, dad
Decider - mom
Purchaser - mom
User – baby
Initiator purse – women, husband, family
Influencer – women of same demographic, friends, husband, Oprah
Decider - women
Purchaser – women, husband, boyfriend
User - women
Business Plan Preparation: Marketing Strategy

10. Channel Describe and justify the distribution channels you will use
Potential channels
Distributors, wholesalers, retailers
OEM’s & VAR’s
E-commerce
Identify specific companies
Describe how you will gain access to the channels
Decision making process
How you will deliver to your customers?
Business Plan Preparation: Marketing Strategy

11. Positioning Positioning statement
Positioning
Positioning statement
Describes market/industry, target customer, important features, benefits
What must target customer believe about your product
What features & benefits are most persuasive to get the customer to act? depends on how persuasive
Name of your company
Company characteristics – essence of personality, tone & manner
Business Plan Preparation: Marketing Strategy

12. Positioning Statement SST Corporation
“SST is a stainless steel toothbrush company. By its one bristle brush made of high tensile stainless steel, it provides an exhilarating tooth cleaning experience to thrill-seeking X-gen consumers”
Business Plan Preparation: Marketing Strategy

13. Positioning Statement Dell Computer
“Dell Computer sells personal computers to consumers. Our build-to-order manufacturing and customer-direct sales enable us to offer custom built computers at very competitive prices. Our customers get the computer that they have always imagined and save money.”
Business Plan Preparation: Marketing Strategy

14. Positioning Statement Vic’s Coffee
“Vic’s Coffee is a Boulder based coffee house. Its gourmet coffee, convenient and fast service, provide a welcoming environment for people who want to meet with their friends or a stimulating morning coffee for on-the-go business people.”
Business Plan Preparation: Marketing Strategy

15. Attribute Map Attribute 1 You Attribute 2 Competitor 3 Competitor 1
Exercise: Take 5 minutes and have each team present
Use Spectrum analysis
Business Plan Preparation: Marketing Strategy

16. Hot Chocolate Flavour HC Convenience Brown Palace Ski Resort cafe
Hershey
packets
Convenience
Exercise: Take 5 minutes and have each team present
Use Spectrum analysis
Business Plan Preparation: Marketing Strategy

17. Hot Chocolate “Coolness” HC Price Ski Resort cafe Hershey packets
Exercise: Take 5 minutes and have each team present
Use Spectrum analysis
Brown Palace
Business Plan Preparation: Marketing Strategy

18. Smooth Grooves Convenience SG Quality of Repair D-I-Y Internet Mail In
Exercise: Take 5 minutes and have each team present
Use Spectrum analysis
Mail In
Business Plan Preparation: Marketing Strategy

19. Product/Service Strategy
Product/service roll out
Initial product/services
Future product/services
Enhance the product/service with operations & service
Actions to sustain competitive advantage
New features & benefits
New technology
New process
Business Plan Preparation: Marketing Strategy

20. Pricing Strategy Describe and justify your pricing strategy
Provide evidence that your target market will accept your price
Position your strategy relative to current and potential competition
Low price usually is NOT a good strategy!
Business Plan Preparation: Marketing Strategy

21. How determine prices? Approaches Not just a positioning tool
How determine prices?
Approaches
Cost +
Industry markup - keystone
Competition
Target market
Value added
Not just a positioning tool
Measure of management
Commodity pricing
Set by the market
Supply and demand
Based on competitor(s) price
Value pricing - how much the customer is willing to pay for value received
Payback period – depends on impact on company profit
Industry rule of thumb – keystone pricing is common in retail businesses and equals purchase cost + 100% markup
Introductory low price to get customers to use
Cost plus + markup
Razor & razor blade
E-commerce – transaction fee, advertising, intermediary commission, affiliate commission fee, subscription fee
A la carte
Business Plan Preparation: Marketing Strategy

22. Communications
How you will communicate with current and potential customers?
Advertising
Public relations
Personal selling
Printed materials
Exhibitions
Why is this the most effective strategy in reaching your target market?
Be imaginative! Be a guerilla!
Business Plan Preparation: Marketing Strategy

23. Sales Strategy How will you get orders?
Personal selling
Online purchasing
TV infomercials
Direct mail
800 telephone
Who will do the selling?
An internal sales force
Company sales force
Manufacturer's reps
Telephone solicitors
How will you recruit, train, and compensate our sales force?
How will you support our sales effort?  
Internal staff
Service operations
Business Plan Preparation: Marketing Strategy

24. What is a Revenue Model? Market potential Market share
Size & growth
Market share
Penetration rate
Roll-out strategy
Product/Service offered
Range & mix
New Products/Services
Obsolescence
Frequency of purchase – per day, week, month
Capacity Utilization
Channel strategy - discount
Prices
Business Plan Preparation: Marketing Strategy

25. Revenue Drivers Number of customers, transactions or units
Price per customer, transaction or unit
Average revenue per customer or transaction
Distribution channel discount
Market penetration
Response rate
Churn rate
Growth rate
New services or product
How measure?
Business Plan Preparation: Marketing Strategy