ONE IDEA CHANGES EVERYTHING!MARKETING PLAN

DECEMBER 07, 2013

MARKETING PLAN: CONTENTS

Marketing plan Overall Objectives Market Analysis

Customer needs, market size Distribution Pricing strategy Sales/promotion strategy Sales projections, 3 scenarios

MARKETING PLAN: WHAT DOES IT MEAN

Marketing means communication of actions during Design Manufacturing Promoting Selling Delivering Servicing

MARKETING PLAN: MARKET ANALYSIS

Questions that should be answered How big is your target market? What are major segments of you market? Who are your customers? What are their needs? What are their preferences? Where do they buy? Why do they buy? How do they pay? Is your market shrinking or expanding, or stable? Who are your competitors?

Their location? What are their strengths and weaknesses Do they share the same opportunities and threats as you? Product, Pricing

MARKETING PLAN: MARKET ANALYSIS

Who are your competitors? Their location? What are their relative strengths and weaknesses Unique opportunities and threats Product

How are they unique? Pricing

What is their pricing structure? How are they positioned?

Promotion How do they promote? Do they have a brand identity? What is their advertising message?

Placement Where are they located? Advantage or disadvantage? How do distribution channels differ?

MARKETING PLAN: OBJECTIVES, STRATEGIES, AND TACTICS

Objectives (SMART) Create a timetable Establish performance goals and standards Create budgets Evaluate your strategies

Business goal examples Market share 20% in the next six months Increase sales by 20% in the next six months

MARKETING PLAN: OBJECTIVES, STRATEGIES, AND TACTICS

Strategies Your plans for achieving your objectives

Segmentation strategies - Targeting customers

Demographic – age, gender, income level Psychographic – interests, activities, beliefs Behavioral – observations of consumer

shopping pattern and placement based on those patterns

Geographic – location (neighborhood, rural, suburb)

MARKETING PLAN: OBJECTIVES, STRATEGIES, AND TACTICS

Competitive advantages Proprietary technology Specialized niche Product advantage due to better sourcing,

location, or processes Unique brand identity

Positioning How products are positioned in the market to

key in on competitive advantages or segmentation strategy

MARKETING PLAN: OBJECTIVES, STRATEGIES, AND TACTICS

Product position should: Benefit target audience Separate yourself from competitors Be unique difficult to copy

Tactics The specific actions businesses take to produce,

price, place, and promote their products Should be unique

Use creativity, insight, and innovation 2-1 promotions Selling through specialty boutiques

MARKETING PLAN:PRODUCT

What do you plan to offer? Product lines Product mix

Brand your product/service Brand identity – how you choose to present your product Brand image – association that your brand evokes in

consumers’ mind Branding strategy – telling the story of your business

and products in an enticing way CREATE YOUR BRAND

Choose a logo Build & manage your brand

MARKETING PLAN:PRICE

Basic Concepts Cost – What you spend to produce your product Price – What you will charge for your product Value – What does your consumer believe your product is worth Demand – amount of your product that customers are willing

and able to buy at a specific price Pricing Objectives

Maximizing profits (skimming strategy) – high short-term profits Maximizing sales volume (penetration strategy) – sacrifice $ to

gain market share ROI – Achieve target return on investment Meeting or beating the competition – Matches competitors’

prices Quality leadership – Price implies quality (Rolex)

MARKETING PLAN:PRICE

COSTS Variable Fixed Total costs

Break-even analysis TR = P*Q TC=TFC + (AVC per unit *Q) Break-even point = TR = TC Break-eve quantity = TFC/(Price-AVC)

MARKETING PLAN:PRICE

Strategies Cost-plus Premium pricing – pricing above market price Skimming – Maximizing profit margin setting price

high in the short-term (Unique or innovative products)

Penetration pricing – setting price low to enter the market

Pricing strategy should align with Product strategy Distribution strategy Promotional strategy

MARKETING PLAN:PROMOTION

Promotional Mix Advertising

Potentially expensive and flashy way to communicate your product information to a consumer to persuade them to purchase

Sales promotion Consumer Trade

Publicity PR relations

Strategies Pull – target an end consumer (consumer will “pull” the

product through distribution channel Push – target wholesale and retailers (They will “push”

product to consumer)

MARKETING PLAN:PROMOTION

Strategies Pull – target an end consumer (consumer will “pull”

the product through distribution channel Push – target wholesale and retailers (They will “push”

product to consumer) Manage Promotions

Set a budget Create a calendar Evaluate effectiveness

Sale Projections Forecast 3 scenarios (realistic). Based on

(estimated market size) x (price).

MARKETING PLAN:PLACEMENT

Placement/Distribution Activities involved in moving good from

producer to consumer Identify partners

Retailers Wholesalers Distributors

Creative Placement Strategies “Piggybacking” (Free X with the purchase of Y)

MARKETING PLAN: IMPORTANCE

As a small business owner you may have some of additional burdens compared to larger businesses

Loan payments Additional job Familial responsibilities

Good marketing plans help Organize thought / focus efforts

Prevents duplication of efforts Avoids wasting precious resources

MARKETING PLAN: IMPORTANCE

Investor/lenders Potential of the business Target audience- Who are you selling to? How will you position yourself in the market? How well do you know the customer and the

market? How realistic are your goals? What make your product unique?

ANY