Market Based Strategic Planning

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Market Based Strategic Planning For Early Stage Life Science Companies. See how to position your products and services to win the battle for your customers’ minds.

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Market Based Strategic Planning

  1. 1. Market Based Strategic Planning For Early Stage Life Science Companies Positioning To Win The Battle For Your Customers’ Minds September 9, 2008
  2. 2. We are an over-communicated society • Average Americans are exposed to: – Over 3,000 advertising messages daily per person (Newspaper Association of America) – 840 billion emails annually as a society (Forrester Research 2000) – 4.5 hours TV daily per person (Nielson) – Over 2 hours of radio per person every day (Nielson) Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 2
  3. 3. We have too many choices • Average supermarket has 10,000 individual products on display • 100,000 prescription drugs on US market • 1,500 companies listed on the NYSE introduce over 5,000 significant new products annually • 345 contract research organizations (biores.org) Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 3
  4. 4. Our Brains Need a Way to Cope • We don’t cope well with information overload • The mind can only deal with 7 units at a time • The “inadequate container” – A computer has to accept the information you put into it. The mind does not. Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 4
  5. 5. To cope, we create “Ladders in the Mind” • We think in relative terms • We create “ladders” or categories for products and services to simplify understanding This is where • We rank products and service marketing offerings in each category like rungs battles are on a ladder – Each rung is a brand or service offering fought – The “best” ones are at the top This is how we position things! Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 5
  6. 6. Key Points on Positioning • It’s a verb, not a noun • It’s something your customers do. Not you. • But you can influence it. • The odds are stacked against you. – Sturgeons Law: 90% of what’s out there is crap – Customers will only give you limited “mind space” – You only get one first impression – repositioning rarely ever works • However, you can influence it if committed throughout your organization. • Involves most important decisions your company will make • Marketing not sales • Makes it easier for customers to buy your product or service Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 6
  7. 7. For early stage companies trying to “cross the chasm” How do you cut through the information clutter and position your company, products, and service offerings for success?
  8. 8. Take a systematic approach to developing a Market Based Strategy How and where should we establish a Strategy beachhead? What is our imp. & diff. whole product Profiling solution for target customer personas? How would we like our customers to Positioning describe us? What key features & benefits Message communicate our positioning? How should our elevator pitch sound and Execution communications package look like? What’s the business model and launch Implementation plan? Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 8
  9. 9. Need to be brutally honest and in touch with the market • Market-based strategic planning employs a systematic approach to remove biases and prevent “sacred cows” from driving strategic decision making. • Need market research! Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 9 Source: Adapted from Cantillon eCourse
  10. 10. Map out markets and prioritize segments Market Development Strategy Checklist • Target customer persona Total Segment • Compelling reason to buy Significant unmet • Whole product solution need related to value proposition • Partners and allies Not satisfied with • Distribution current solutions • Pricing Able to be • Competition reached • Positioning Willing to switch Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 10
  11. 11. Agree on a target “beachhead” market • Need to commit to a target customer segment (market) • The decision to focus on some customer groups and applications means you don’t focus on others Copyright © 2008. Pharmacision LLC, (734)895-3670, Source: Adapted from Cantillon eCourse tmarten@pharmacision.com 11
  12. 12. “A woodpecker can tap twenty times on a thousand trees and get nowhere, but stay busy.”…….. ........“Or he can tap twenty-thousand times on one tree and get dinner.” Seth Godin, The Dip Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 12
  13. 13. Build a Whole Product Solution • Build a service or product for Potential Product your market Augmented Product Expected Product • Don’t try to Generic Product build a market for your service or product Adapted from: Geoffrey Moore, Crossing the Chasm, Harper Collins, 2002. Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 13
  14. 14. Product Profiling – What is your unique value proposition? Not Different Different Important Unimportant Understand your “purple cow” Purple cow concept from: Seth Godin, Purple Cow Transform Your Business by Being Remarkable, Penguin Group, 2003. Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 14
  15. 15. Envision how you want customers to perceive your products & services Positioning – what your customers say • For [Target customer] • Who [have “The Problem”] • Our product/service is [Description] • That provides [whole product solution to problem] • Unlike [the competition] • Our service provides [Fill in key differentiator] Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 15
  16. 16. Develop messages to communicate your positioning Positioning and Message are highly interrelated and need to be addressed together. Positioning (unique place for product in the customer’s mind) Message (what we need to say to communicate positioning) Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 16
  17. 17. Tell a simple story The greater the number of messages, the lower the recall, the lower the credibility and the more difficult it will be to persuade From: Clancy & Shulman Marketing Myths That Are Killing Business, 1994 Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 17
  18. 18. Market Based Strategic Planning • A process and structured approach • that provides a starting point for business and marketing plan development, • explores how a business can best compete in the markets it elects to serve, • encourages an unbiased assessments of internal core competencies and external opportunities, • and enables companies to position services and develop new products in a favorable fashion making them easier for customers to buy. Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 18
  19. 19. Contact Information Pharmacision LLC Thomas Marten President (734)895-3670 tmarten@pharmacision.com Copyright © 2008. Pharmacision LLC, (734)895-3670, tmarten@pharmacision.com 19

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