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Value Proposition canvas- Customer needs and pains
Marketing Power Sample Slides
1. MARKETING POWER ™ THE STRATEGIES, TECHNIQUES, AND TACTICS OF SUCCESSFUL COMPANIES
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3. Five Step Marketing Plan Five elements to drive successful marketing campaigns in your organization Marketing Objectives 1 Marketing Strategy 3 Financials 4 Controls 5 2 Situation Analysis
5. Exercise 1 CurrentSituation List three areas in need of improvement. DesiredSituation What changes would you like to make? SMART Objectives Convert these three ideas into SMART objectives.
6. Top Seven Benefits of a Written Marketing Plan Reduces internal conflict between managers Improves communication Facilitates change Forces management to think systematically and strategically Helps the leader develop logical marketing goals Increases management focus on strategic objectives Enhances employee understanding of organization direction 2 1 3 4 5 6 7
7. Strategic Planning 1. Determine Your Mission and Objectives 3. Formulate Strategies 2. Do an Environmental Scan 4. Implement Strategies 5. Evaluate and Refine
8. The Marketing Mix Product Price Placement Financing Value Distribution Sales Affiliates Locations & Delivery Promotion Features & Benefits Appearance Quality Guarantees Service Product Support Discounts & List Price Media Message Packaging Joint Ventures Advertising Public Relations
9. Product Introduction Product Life Cycle Stages Price: - high cost, low sales - little or no competition - low price to build market share quickly Product - protected by patents, copyrights and trademarks - branded to distinguish it in the marketplace - a quality level is established Stage 1 TM
10. Product Maturity Product Life Cycle Stages Price - costs are very low - sales volume peaks - competition forces price drop - most profitable stage Product - features/services are added to differentiate the product Placement - peaks with maximum availability Promotion - reminder advertising helps maintain mindshare Competition increases as others enter the market. Stage 3 High Speed Internet
11. Product Decline Product Life Cycle Stages Placement - market saturation and peak availability in the maximum number of outlets Promotion - product differentiation to distinguish their product from the competition Few products survive this stage. Notable exceptions are Coca-Cola ® , Ivory Soap ® , and the Swiss Army Knife ® . Stage 4
12. The Value of Marketing Research Accuracy of information Cost of information Willingness to act on findings How current the information is Absence of bias
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14. Assessing the Playing Field The 3 Cs: Key Information Recap Know Your Company Know Your Customer Situation Places to Look Plan For Know Your Competition How You Operate Strengths and Weaknesses Future Investment
15. The distance between your company’s self- perception and what you desire is an essential measurement. Make a plan to bridge the gap. Analyze Your Company
16. SWOT Analysis S W T O Threats Weaknesses Strengths Opportunities External Internal Helpful Harmful
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18. Ask Ten People What They Think Don’t wait for formal market research. Roll up your sleeves and as your customers what they think of your products and services. Don’t spend your time in analysis paralysis .
19. Maslow’s Hierarchy of Needs Living up to one’s potential; self-fulfillment Family, friendship, sense of belonging Avoiding harmful situations Air, food, warmth, shelter, conveyance Self-respect, recognition, prestige, success Physical Needs Safety Needs Social Needs Self-esteem Self- actualization
20. Five Phases of Consumer Buying Behavior Problem recognition Search for solutions Evaluation and choice of alternatives Post-purchase assessment of product or service Post-purchase behavior A promotional strategy has to attract buyers in the second phase. If they can’t find you, they will buy somewhere else. 1. 2. 3. 4. 5.
21. Calculate the lifetime value of a customer to your company’s sales volume and profitability. Determining A Customer’s Lifetime Value A. Average sale (divide annual sales by number of sales) B. Number of annual transactions made by the average customer D. Average number of referrals made by each customer annually C. Average number of years a customer buys from your company E. Total annual purchases made by the average customer (A X B) F. Lifetime purchases (E X C) G. Potential sales volume from referrals (F X D) Total lifetime value of the customer to your company (F+G) $50 4 5 2 $200 $1,000 $2,000 $3,000
22. Competitive Analysis Matrix Product/ Service Our Company Competitor 1 Widgets Sprockets Gadgets Competitor 2 Quality Service Warranty Quality Service Warranty Quality Service Warranty 2 3 3 4 3 2 Competitor 3 5 3 3 Quality Service Warranty Quality Service Warranty Quality Service Warranty 4 5 2 4 5 2 4 5 1 Quality Service Warranty Quality Service Warranty Quality Service Warranty 1 1 1 2 3 3 2 3 3 Quality Service Warranty Quality Service Warranty Quality Service Warranty 5 1 5 5 5 5 5 5 5 List top three in each category with a performance rating between 1 (the lowest) and 5 (the highest).
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25. Compelling Reasons For your customers to do business with you Effective Communication Problem Solving Ask Yourself With your customers Approach integrated into the development of your products
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Editor's Notes
Start with the idea that you are giving a presentation on the following points to your peers. This provides a specific game plan for accomplishing a overall set of goals to retain current clients and building new clients. Each of these areas are essential to building a well-disciplined company offering stronger products, happier customers, and profitability. Marketing Strategy Sales Strategy Client Service Strategy Operational Strategy People Strategy Marketing Effectively is a vital contribution to the success of any organization sets the stage for the types clients that you serve determines the product and service mix develops the unique methods distribution creates the culture of your organization is the essential business discipline by which you survive and prosper
SMART goals are specific, measurable, achievable, realistic, and timed. You will receive a Pocket Reference Guide that contains a detailed definition of the 3 Cs and 4 Ps, and the marketing plan outline. Step 1: Marketing Objectives Determine SMART Goals Step 2: Situation Analysis (Current 3 Cs & 4 Ps) Company Customers Competition Current 4 Ps: Price, Product, Placement, & Promotion Step 3: Marketing Strategy (Changes in the 3 Cs & 4 Ps) Positioning & Growth Company Customers Competition New 4 Ps: Price, Product, Placement, & Promotion Step 4: Financials Step 5: Controls
Step 1 in this process is to define your marketing objectives. This is done by determining your current 3 Cs and 4 Ps and then making changes to them. Why look at the 3 Cs (Company, Customers, and Competitors)? • Examine your company to define its strengths and weaknesses. Customer insight is crucial to marketing your business effectively. It is essential to listen to your customers and meet their needs. Companies who don’t are soon gone from the marketplace. Competitive analysis helps your company understand the competition so that you can differentiate your products/services.
EXERCISE Your evaluation of the 3 Cs and 4 Ps should be helpful in developing and prioritizing your marketing objectives. Identify your three primary objectives by first determining your company’s current position and then the desired position. Current Situation: List three areas (3 Cs and or 4 Ps) in need of improvement. Desired Situation: What changes would you like to make to these three areas? Convert these three ideas into a SMART Objectives – Specific, Measurable, Achievable, Realistic, and Timed
It reduces internal conflict between managers regarding ‘where the company should be going’. Improves communication on market-related issues. Increases an organization’s facility for handling change. Forces management to think about the future systematically and strategically . It helps the leader develop logical marketing goals and a meaningful vision. It helps management stay focused on strategic objectives. It helps the sales, marketing, and front line employees to understand the organization’s direction and reasoning.
Determine the company’s mission and objectives. Do an environmental scan (internal and external) to assess the situation. Formulate your strategies by matching strengths to opportunities, and addressing weaknesses and external threats. Implement the strategies through budgets, programs, and procedures. Evaluate success and make refinements to the program.
“ Product” consists of the features & benefits such as appearance, the level of quality, guarantees, service, and the product support. “ Price” consists of the pricing strategy including discounts, list price, financing and the perceived value. “ Placement” refers to the locations were a product or service is available, the distribution system, and sales affiliates. “ Promotion” is the message and media used convey it. It includes all the methods that promote the product or service such as packaging, advertising, and web sites. Other ways are through public relations and joint venture agreements.
Price Costs are high cost and expected sales volume is low. There is little or no competition. Price is set low price to build market share quickly. Product Protected by patents, copyrights, and trademarks Product is branded to distinguish it in the marketplace. A quality level is established for the product.
Price Costs are very low due to economies of scale. Sales volume peaks with market saturation. Competition forces a drop in price. This is the most profitable stage of the product life cycle. Product Features or services are added to differentiate the product from the competition. Placement Peaks with maximum availability. Promotion Reminder advertising helps maintain mindshare. Promotion emphasizes the differences between competitors (cost, features, benefits, and functions). Competition increases as other companies enter the market.
Placement Market saturation and peak availability in the maximum number of outlets Promotion Company uses product differentiation to distinguish their product from the competition. There are several strategies to extend product life including sub-branding, line extensions, new target audiences, and promoting new uses for the product. Very few products survive past this stage. Notable exceptions are Coca-Cola®, Ivory Soap®, and the Swiss Army Knife®.
The value of the data to the organization is based on: The accuracy of the information Cost of information in terms of time and money Company’s willingness to act on the findings How current the data is The absence of errors and bias
Product, price, placement and promotion
The 3 Cs provide the necessary information for a SWOT analysis which we are going to do shortly.
The distance between your company’s self-perception and what you want it to be is an essential measurement. Make a plan to bridge the gap between the present and desired situations. Prioritize your research based on company issues and limitations first. Choose which actions to take based on your resources, time limitations, your tolerance for risk, and the size of the prize you are committed to. Real Competitive Advantage Every company has a unique set of strengths, and it's critical that you determine yours, as well as your competitors'. Gaining an advantage is the key to success and even survival. But many of the so-called advantages that businesses rely on are not sustainable. They can be easily copied, stolen or negated. Real competitive advantages — things like brand name recognition, patented manufacturing processes or exclusive rights to a scarce resource — cannot be easily copied. How do you analyze your 3 Cs? How to look at your Company How to look at your Customer How to look at your Competition When you leave you will have a plan for assessing your own ( company ) capabilities: All the work you have done on understanding the market, your customers, and the competition is useless if you aren’t totally honest and willing to face hard facts. Knowing your own limitations is key to setting your sights on realistic goals. It’s the final step in getting to point B of your future vision, your attractive offering, and your differentiated position. Doing an ABC gap analysis on your own strengths and weaknesses leads to the action plan you need to make all of these a reality. The first step in doing this is making sure you really know who you are today, how others perceive you, who you want to be, and the distance between these factors. The best way to learn about your own strengths and weaknesses is through direct experience. Be a customer of your product. Dig into your own numbers. Understand your customers’ motivations and their needs. Finally, think ahead. Plan out how you’re going to overcome your gaps. Prioritize the investment of your resources. Pick the low-hanging fruit first and go from there. Make sure to prioritize based on your real abilities, not wishful thinking. Specifically, be sure your choices match your real resource level, your true time horizons, your stomach for risk, and the size of the prize you are committed to.[1] [1] Zagula and Tong, The Marketing Playbook
Examine your company to define its strengths and weaknesses. A SWOT analysis matches a company’s resources and capabilities to the demands of the market in which it operates. Analyzes the company’s weaknesses and how they threaten the company’s profitability. It is an analysis of the internal and external factors affecting a company. Think in terms of broad strokes, not details.
EXERCISE Check off the factors where you have opportunities: New technology Free trade An unfulfilled customer want or need New use for your product
Start using the power of informal research. Get your hands dirty. Don’t wait for formal market research, but roll up your sleeves and ask your customers what they think about your products and services. Ten honest answers are better than no answers. Don’t look for a high number of research subjects, lots of questions, and statistical significance…look for immediate feedback. Informal research can be implemented quickly allowing your company to respond while the competitors are still taking bids from market research firms. Be action-oriented and get on with it. Incorporate feedback from real live customers who use your product or service. Don’t spend your life in analysis paralysis .
Maslow’s Hierarchy of Needs is the source of “benefits” in marketing messages. (e.g., “Keeps you warm and cozy on the coldest winter night” is a benefit that promises the satisfaction of physical needs.) The lowest level of needs satisfy mankind’s basic physical needs for air, food, warmth, clothing, and shelter. (e.g., housing, shoes, a drink of water, taking the bus to work) The next level needs are close to physical needs and tap into man’s instincts for survival. (e.g., guns, alarm systems) Social needs are fulfilled by family, friendship, and a sense of belonging. (e.g., prisoners are punished by time in solitary confinement) Self-esteem is one of the primary drivers of purchasing in this country. When a woman chooses between two handbags with equal features and benefits, the one with a designer logo gets purchased because it provides self-esteem. An example of self-actualization needs being fulfilled would be the purchase of products that are good for the environment or benefit a charity.
The 5 phases of consumer buying behavior: Problem recognition Search for solutions A promotional strategy has to attract buyers in the second phase: the search for solutions. If buyers do not find your product or service as a potential solution to their problem in phase 2, they will buy somewhere else. Evaluation and decision of alternatives Post-purchase assessment of product or service Post-purchase behavior
EXERCISE Use this exercise to determine the lifetime value of your customers. Treat every single customer in terms of their lifetime value. Make sure that every single person in your company knows what the lifetime value is of losing a single customer. Losing a customer is not about a $50 sale — it’s about a $3,000 loss in sales.
The sample shows that Competitor 1 is consistent on all products: high quality, great service, but an inadequate warranty implies that this company doesn’t believe in the quality of its own products. Competitor 2 has terrible quality and service, and an average warranty. Ranked average to mediocre in all products and service comparisons. Competitor 3 is consistently strong in all areas. It’s only weakness is in service after the sale in the Sprocket product line. There is no phone or on-site technical support. They outsource support and service to other nations resulting in language problems and aggravated customers. EXERCISE List the top 3 products or services offered by your company in a matrix. List the 3 most important characteristics on which those products are judged. List your top three competitors and rank their performance from 1 (low) to 5 (high) on these criteria.
TREND ALERT The Internet is leading to greater price transparency. E-commerce is changing the rules of the market, allowing buyers to get instant price comparisons from thousands of vendors (PriceScan.com) The Internet allows buyers to name their price and have it met (Priceline.com). EXERCISE: See Questionnaire, Exercise 9.4, Marketing Plans to evaluate your price Another Exercise Idea: See “Evaluating your Pricing Policy”
Variables in Place (also called Placement) Location Where/how it is sold Where is product placed on a shelf How is product accessed via website links Where is service located related to customers
EXERCISE: Ask yourself three questions: Of all the advantages that your products or services have over the competitors’… Which of these advantages creates compelling reasons for customers to do business with you instead of with your competitors? How do you effectively communicate them to customers? How do you integrate a problem-solving, marketing approach into the development of your products and services?
Impart knowledge and awareness. Assess skills and capabilities. Apply the tools, techniques and strategies to address new information and skills. Measure and monitor success to ensure a positive outcome.
