“ Window of opportunity” is a metaphor describing the time period in which a firm can realistically enter a new market. Once the market for a new product is established, its window of opportunity opens, and new entrants flow in. At some point, the market matures, and the window of opportunity (for new entrants) closes.
How to Write a Killer Marketing Plan e-Society Seminar March 11, 2010 Dr. Michael Merz Department of Marketing & Decision Sciences College of Business San Jose State University
Market size is defined too broadly (e.g., target is the $550 billion/year pharmaceutical industry).
Overly aggressive financials -> loss of credibility
Sloppiness in any area.
Guidelines for Writing a Marketing Plan Section Description I. Executive Summary II. Current Marketing Situation IV. Objectives and Issues V. Marketing Strategy VI. Marketing Programs VII. Financial Plans VIII. Implementation Controls
Briefly reviews the plan’s highlights and objectives
Guerilla Marketing Plan constitutes good basis for the executive summary
Summarizes environmental trends affecting the new venture and provides SWOT analysis. Outlines the specific marketing objectives and identifies issues that may affect the new venture’s attainment of these objectives.
Shows the strategy to be used to achieve the marketing objectives
Explains the segmentation, targeting, and positioning decisions and analyzes the market and segments to be targeted through marketing strategy.
Lays out the program supporting the marketing strategy, including specific activities, schedules, and responsibilities for 4 P’s. Details expected revenues, expenses, and profits based on the marketing programs in the plan. Indicates how progress toward objectives will be measured and how adjustments will be made to keep programs on track. III. Environmental Analysis Describes the current situation, product, market, environment, and competition.
The first sentence tells the purpose of the marketing strategy.
The second tells how you’ll achieve this purpose , focusing upon your benefits.
The third tells your target market – or markets.
The fourth tells the marketing weapons you’ll employ.
The fifth tells your niche and position .
The sixth tells your identity .
The seventh tells your budget , expressed as a percentage of your projected gross revenues.
Levinson (2007), Guerilla Marketing
Executive Summary Guerrilla Marketing Plan – Example The purpose of Prosper Press is to sell the maximum number of books at the lowest possible selling cost per book. This will be accomplished by positioning the books as being so valuable to free-lancers that they are guaranteed to be worth more to the reader than their selling price. The target market will be people who can or do engage in free-lance earning activities. Marketing tools to be utilized will be a combination of classified advertising in magazines and newspapers, direct mail, sales at seminars, publicity in newspapers and on radio and television, direct sales calls to bookstores, and mail-order display ads in magazines. The niche to be occupied is one that stands valuable information that helps free-lancers succeed, the ultimate authority for free-lancers. Our identity will be one of expertise, readability, and quick response to customer requests. Thirty percent of sales will be allocated to marketing.
Show that new venture idea constitutes an opportunity (durable, timely, attractive, valuable for customers).
Show that window of opportunity is open.
Describe how your new venture product idea creates value (solving a problem, finding a gap in the marketplace).
Results from product/service feasibility analysis.
Window of Opportunity “ Window of opportunity ” is a metaphor describing the time period in which a firm can realistically enter a new market. Time Market Size t(0) t(1) Window of Opportunity t(1) – t(0)
Market Overview Feasibility Analysis has four components. - Concept Test Results - Usability Test Results
What it wants to accomplish in the larger environment.
Should be market oriented and defined in terms of customer needs.
Mission Example In 2002 Microsoft’s mission was "To empower people through great software -- any time, any place, and on any device.” The mission statement now reads, "At Microsoft, we work to help people and businesses throughout the world realize their full potential.”
One common mistake entrepreneurs make is that they position their market offering in terms of features.
“ Customers don’t buy perceived features, they buy perceived benefits”.
“ Our cell phones are equipped with sufficient memory to store 100 phone numbers” (feature positioning)
“ Our cell phones lets you store up to 100 phone numbers, giving you the phone numbers of your family and your friends at your fingertips” (benefit positioning)
How might a surgeon explain a new surgical procedure to a patient lying in a hospital bed, if only technical features (rather than benefits) were explained? “ Have I got an operation for you. Only three incisions and an Anderson Slash, a Ridgeway stubble-side fillip, and a standard dormer slip! Only five minutes with a scalpel; only thirty stitches! We can take out up to five pounds of your insides, have you back in your hospital bed in 75 minutes flat, and we can do ten of them in a day”. (McMath and Forbes (April 1998) in Entrepreneur, pp. 135-139)
Describe how you will communicate with current and potential customers.
Other means of promotion
Explain why the chosen strategy is most effective in reaching your target market.
Note: Use Guerrilla Marketing Techniques.
Promotion Promotion Tool Use Advertising Efficiently get messages to large audience. Sales Promotion Stimulate immediate purchase, reward repeat purchases, motivate sales personnel. Public Relations Build positive image, strengthen ties with stakeholders. Direct Marketing Reach targeted audiences, encourage direct response. Personal Selling Reach customers one-to-one to make sales, strengthen relationships.
Working backward from mission, goals, and objectives.
Looking for key components or activities related to customer buying behavior.
This includes metrics for each of the three key areas:
Sample Marketing Metrics Objective Metric To acquire new customers. Measure number or percentage of new customers acquired by month, quarter, year. To retain current customers. Measure number or percentage of customers who continue purchasing during a set period. To increase market share. Measure dollar or unit sales divided by total industry sales during a set period. To accelerate product development Measure the time needed to bring a new product to market.
Sample Financial Metrics Objective Metric To increase sales revenue by product. Measure product sales in dollars per week, month, quarter, or year. To improve profitability. Measure gross or net margin for a set period by product, line, channel, marketing program, or customer. To reach break-even. Measure the number of weeks or months until a product’s revenue equals and begins to exceed costs.
Sample Societal Metrics Objective Metric To make products more environmentally friendly. Measure the proportion of each product’s parts that are recyclable or have been recycled during a set period. To build awareness of a social issue. Measure awareness among the target audience after the program or a set period. To conserve electricity or fuel. Measure amount used by month, quarter, year.
Sample Behavioral Metrics Behavior Metric Customer Awareness Customer awareness per telephone survey. Customer Learning Number of information packets requested, number of hits to a website. Customer Attitudes Customer attitudes per telephone study, feedback on blogs, customer letters.