Marketing Plan Strategic Development


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Marketing Plan Strategic Development

  1. 1. Developing a Marketing Strategy<br />Plan, Launch, Build Business Workshop® #501<br />
  2. 2. Workshop Overview<br />
  3. 3. What is a Marketing Plan<br />
  4. 4. Market Analysis<br />
  5. 5. 1. Market Size<br />What is the current market size?<br />How large is the potential market?<br />Is the market stable?<br />Where is the market heading?<br />How many prospects are potential customers?<br />How many companies are competing in the market?<br />
  6. 6. 2. Industry Trends<br />Changes in Package Size<br />Variations in Product/Service<br />Promotional Methods<br />Technological Changes<br />
  7. 7. Demographic<br />Psychographic<br />Use Based<br />Geographic<br />Benefits Sought<br />3. Market Segmentation<br />
  8. 8. Which of the segments can you best serve?<br />What is that segment’s needs?<br />4. Target Market<br />
  9. 9. The Marketing Environment<br />Current trends impacting the entire society and the way the product/service is marketed make up the “marketing environment”<br />What are the current trends?<br />What is impacting our environment?<br />How is it impacting our products and services<br />
  10. 10. Consumer Analysis<br />Two types of individuals that purchase your products and services<br />Customers- a person or entity that buys your product/service but does not actually use it.<br />Consumers- The person or entity that actually puts your product to use.<br />Today we will look at the “Consumer”<br />
  11. 11. What type of product feature most appeal to these consumers?<br />What are the benefits that these features provide to the consumer?<br />How important are these features?<br />How are choices made between competing products?<br />What is their disposable income?<br />What is their decision making process<br />How important is “brand?”<br />What promotions does the consumer like?<br />What are their leisure time activities?<br />Factors Bearing on Your Typical Consumer<br />
  12. 12. What Is Your Current Position?<br />“If you don’t know where you are, it is impossible to know how to get to where you want to be.”<br />
  13. 13. The Situational S.W.O.T. Test<br />Strengths- <br />What does the company/product better than the competition?<br />Weaknesses-<br />What does the company/product do that not as good as the competition?<br />Opportunities-<br />What area of the market could the company enter where there is a distinct advantage?<br />Threats-<br />What actions could threaten the product or standing in the market?<br />
  14. 14. Analyzing Your Competitors<br />Who are your top 3-5 competitors?<br />On what basis are you competing?<br />Same product, different prices?<br />Same product, different brand?<br />Different market segments<br />Are there “niches” within the market place where you are not directly targeted by competition?<br />Think about the competition before implementing any marketing strategies.<br />
  15. 15. Marketing Objectives<br />Use the SMART system to make your marketing objectives clear:<br />Specific<br />Measurable<br />Attainable<br />Timebound<br />
  16. 16. Developing the Marketing Strategy- Two Options<br />
  17. 17. Strategies for Growth<br />
  18. 18. Strategies for Non-Growth<br />
  19. 19. Sustainable Competitive Advantage (SCA)<br />An SCA is a means of competing using the products and company assets that provide a leverage or edge that is difficult to copy and is seen as advantageous by consumers.<br />
  20. 20. Characteristics of Successful Sustainable Competitive Advantage <br />They are substantial enough to make a difference in the market<br />Are sustainable with regard to environmental changes<br />Are difficult for competitors to replicate<br />Are leveraged into visible attributes that influence consumer decisions<br />Means by which to gain a sustainable competitive advantage include differentiation, low cost, concentrated, niche<br />
  21. 21. Differentiation <br />The process of making a product or service novel through a benefit that is relevant to the marketplace is a sustainable advantage.<br />
  22. 22. Differentiation- Examples <br />Product quality<br />Service quality<br />Brand name<br />Product features<br />Technical superiority<br />Distribution channels<br />Breadth of product line<br />The options for product differentiation is limited only by what the customer perceives to be different and important<br />
  23. 23. Low Cost Strategy<br />This strategy relies on having the lowest cost in the industry at all times and thereby the lowest price to be offered to the customer.<br />Any company employing a low cost and low price strategy must have the ability to match and beat its competitors should a price war breakout<br />
  24. 24. No-frills product<br />Product design<br />Raw material source<br />Low-cost distribution<br />Labor cost advantage<br />Location advantage<br />Automation advantage<br />Reduced overheads<br />Experience in producing the product<br />Methods of Achieving a Low Cost Strategy<br />A low cost strategy is extremely difficult to sustain long-term<br />
  25. 25. Concentrated<br />The concentrated thrust focuses on one part of the market or product line only.<br />It allows a company to become an “expert” in that area.<br />It is generally a smaller segment of the market.<br />
  26. 26. Focus on product line<br />Targeting a segment<br />Geographical area<br />Focusing again low share competitors<br />Methods of Concentration<br />
  27. 27. Niche<br />Strategies focus on one particular, generally small, segment of the market<br />The segment is generally too small for a major competitor to engage<br />Niche strategies require that customers see a significant difference in the competitor and see real value<br />
  28. 28. Product/Brand Positioning<br />Out of the strategy should come a unique positioning for the product<br />There should be a clearly developed product/brand positioning within the market<br />Positioning is the way in which consumers perceive the product/service with respect to the rest of the market<br />Product positioning could take years to create and is difficult to change<br />
  29. 29. Product/Brand Positioning<br />Positioning can be based around such factors as:<br />A product attribute<br />A consumer benefit<br />A use or application of the product<br />A product class<br />The place of origin<br />The type of consumer<br />Competitive position in the market<br />
  30. 30. The Market Mix<br />The crux of any marketing strategies involves 4 elements known as the 4-Ps<br />Product<br />Price<br />Promotion<br />Place<br />
  31. 31. Product<br />Key product features and their benefit are paramount.<br />Key features include:<br />Features<br />Range<br />Branding<br />Packaging<br />Additional accessories<br />
  32. 32. Product- Service Based<br />For service based products, all aspects of presentation of the people providing the service are important. This includes everything that is visible, such as:<br />Dressed in a formal fashion or a branded sports shirt<br />What your offices look like<br />Are the messages they convey complimentary to your product positioning<br />
  33. 33. Price<br />The price must conform to the product positioning<br />How important is price to the target market.<br />In most markets price in an indicator of quality – the higher the price the higher the perceived quality<br />Price should be set by “what the market will bear”<br />
  34. 34. Price- 3 Important Factors<br />It is a wrong assumption that offering a better price gives a better value for the money.<br />Value for the money is a perception of the price compared to the benefits derived from the product.<br />In most markets and to most people the price is far less important than the benefits received from the product<br />
  35. 35. Types of Pricing<br />All types of pricing decisions should be considered and planned, including:<br />Standard price<br />Price specials<br />Discounts to the trade and distributors<br />Payment terms<br />Payment methods<br />
  36. 36. Promotion<br />Promotion is that element in the marketing mix that determines how you communicate with customers and what tools or tactics are used to achieve the marketing objectives.<br />Knowing the buying behavior of the target market is very important.<br />What media do they view, how frequently and what is their reason for using it?<br />
  37. 37. The promotion mix must comply with the product positioning and should not contradict in any way with the prescribed positioning.<br />Promotion <br />
  38. 38. Advertising<br />Sales promotions<br />Publicity<br />Personal selling<br />Events<br />Sponsorships<br />Direct selling<br />The internet & social media<br />Promotional materials<br />Brochures<br />Gifts<br />Promotion activities may include<br />
  39. 39. Communication Plan<br />This component of the strategy should focus on keeping existing customers and finding new ones.<br />Components can include:<br />Web site<br />Email<br />Social Media: Twitter, Facebook<br />Blogging<br />Printed and electronic newsletters<br />
  40. 40. Distribution<br />While fairly well established, this element should not be overlooked.<br />Changes in the distribution channel or changes to the way in which you sell to the channel can provide great opportunities.<br />
  41. 41. Distribution- Questions You Should Address<br />How and where will the product be placed so that the consumers have access to it and how will the sale be made?<br />Will you be using wholesalers, distributors, retailers or going direct to the consumer?<br />Are a combination of distribution points appropriate?<br />The strategy for dealing with distribution points needs to be addressed the same way the strategy for customers was developed<br />
  42. 42. Putting It All Together<br />Working through the whole process (if necessary with the help of marketing professionals) is important to getting the strategy right. A good marketing strategy, correctly implemented, will give your company the edge over the competition.<br />