Marketing Strategy Business Plan Preparation
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Transcript of Marketing Strategy Business Plan Preparation
Marketing Strategy
Business Plan PreparationBusiness Plan PreparationBusiness Plan PreparationBusiness Plan Preparation
Frank MoyesFrank MoyesLeeds College of Business Leeds College of Business University of ColoradoUniversity of ColoradoBoulder, ColoradoBoulder, Colorado
Marketing Strategy
TonightTonight
Marketing StrategyMarketing Strategy Revenue ModelRevenue Model Customer surveysCustomer surveys Margins – didn’t cover last weekMargins – didn’t cover last week In the Fire – Industry Analysis & Model CompanyIn the Fire – Industry Analysis & Model Company Hand-inHand-in
10 Call Reports10 Call Reports Competitive matrixCompetitive matrix Model company descriptionModel company description
Marketing Strategy
Next WeekNext Week
Operations PlanOperations Plan Development PlanDevelopment Plan Review status of plansReview status of plans Hand-in: Customer Survey questionnaireHand-in: Customer Survey questionnaire Wednesday Office Hours two weeks 3:00 to 4:30Wednesday Office Hours two weeks 3:00 to 4:30
Marketing Strategy
Business Plan ElementsBusiness Plan Elements
Executive SummaryExecutive Summary Company OverviewCompany Overview Market & Industry AnalysisMarket & Industry Analysis Product/Service DescriptionProduct/Service DescriptionMarketing PlanMarketing Plan Operations PlanOperations Plan Development Plan Development Plan ManagementManagement Competitive AdvantageCompetitive Advantage Financial PlanFinancial Plan FundingFunding
Marketing Strategy
Marketing Plan ObjectivesMarketing Plan Objectives
Build on Market & Industry Analysis Build on Market & Industry Analysis Define the strategies & programs to exploit the Define the strategies & programs to exploit the
opportunityopportunity
Marketing Strategy
Marketing Plan OutlineMarketing Plan Outline Customer ResearchCustomer Research Target Market StrategyTarget Market Strategy Channel StrategyChannel Strategy PositioningPositioning Product/Service StrategyProduct/Service Strategy Pricing StrategyPricing Strategy E-commerceE-commerce Communications StrategyCommunications Strategy Sales StrategySales Strategy Revenue ModelRevenue Model
Marketing Strategy
Customer ResearchCustomer Research
Show your resultsShow your results Questionnaire - qualitative 20 peopleQuestionnaire - qualitative 20 people Surveys – walk-up, mailed, email, on-lineSurveys – walk-up, mailed, email, on-line
ProveProve You solve a problemYou solve a problem Features are wantedFeatures are wanted Customer understand the benefitsCustomer understand the benefits Customer will pay your priceCustomer will pay your price
Don’t cook the booksDon’t cook the books
Marketing Strategy
Target Market StrategyTarget Market Strategy
Consumers vs. purchasersConsumers vs. purchasers Profile of the customers you will serveProfile of the customers you will serve
Consumer: demographics, psychographics & valuesConsumer: demographics, psychographics & values Business: industry, size, location, purchase decisionBusiness: industry, size, location, purchase decision
How will you overcome brand loyalty? What will cause How will you overcome brand loyalty? What will cause customers to switch?customers to switch?
Future marketsFuture markets
Marketing Strategy
How Do Customers Make Decisions?How Do Customers Make Decisions?
Decision making process – where, when & how Decision making process – where, when & how Initiator, Influencer, Decider, Purchaser & UserInitiator, Influencer, Decider, Purchaser & User Identify criteria used to make decisionsIdentify criteria used to make decisions
Criteria may be different than your featuresCriteria may be different than your features Customers buy benefitsCustomers buy benefits
Marketing Strategy
ChannelChannel Describe and justify the distribution channels Describe and justify the distribution channels Potential channelsPotential channels
Distributors, wholesalers, retailersDistributors, wholesalers, retailers OEM’s & VAR’sOEM’s & VAR’s E-commerceE-commerce
Describe how you will gain access to the channels Describe how you will gain access to the channels Identify specific companiesIdentify specific companies Decision making processDecision making process
Delivery to your customers, eg UPS is not the channelDelivery to your customers, eg UPS is not the channel
Marketing Strategy
PositioningPositioning
What must target customer believe about youWhat must target customer believe about you Positioning is in the mind of the customer, relative to the Positioning is in the mind of the customer, relative to the
competitioncompetition ““perceptions, impressions and feelings”perceptions, impressions and feelings” How are you unique & different?How are you unique & different?
Marketing Strategy
Positioning StrategyPositioning Strategy
Positioning statementPositioning statement Describes market/industry, target customer, important Describes market/industry, target customer, important
features, benefitsfeatures, benefits Use your Value PropositionUse your Value Proposition
What features & benefits are most persuasive to get the What features & benefits are most persuasive to get the customer to act? customer to act?
Other considerationsOther considerations Name of your companyName of your company Company characteristics – essence of personality, tone & Company characteristics – essence of personality, tone &
mannermanner
Marketing Strategy
Attribute MapAttribute Map
Attribute 1
Attribute 2
You
Competitor 2
Competitor 3
Competitor 1
Marketing Strategy
Hot ChocolateHot Chocolate
Flavour
Convenience
HC
Hersheypackets
Ski Resortcafe
Brown Palace
Marketing Strategy
Hot ChocolateHot Chocolate
“Coolness”
Price
HC
Brown Palace
Ski Resortcafe
Hersheypackets
Marketing Strategy
Product/Service StrategyProduct/Service Strategy Not the descriptionNot the description Product/service roll outProduct/service roll out
Initial product/servicesInitial product/services Future product/servicesFuture product/services
Enhance the product/service with operations & Enhance the product/service with operations & serviceservice
Actions to sustain competitive advantageActions to sustain competitive advantage New features & benefitsNew features & benefits New technologyNew technology New processNew process
Marketing Strategy
Pricing StrategyPricing Strategy
Describe and justify your pricing strategyDescribe and justify your pricing strategy Provide evidence that your target market will accept Provide evidence that your target market will accept
your priceyour price Position your pricing relative to current and potential Position your pricing relative to current and potential
competition competition Low price usually is Low price usually is NOTNOT a good strategy! a good strategy!
Measure of managementMeasure of management
Marketing Strategy
What Are the Pricing Methods?What Are the Pricing Methods?
Commodity pricingCommodity pricing Set by the marketSet by the market Supply and demandSupply and demand Seasonality & perishabilitySeasonality & perishability
CompetitionCompetition Value pricing - how much is customer willing to pay?Value pricing - how much is customer willing to pay? Payback period – depends on impact on company profitPayback period – depends on impact on company profit Rule of thumb – KeystoneRule of thumb – Keystone Introductory low price to get customers to useIntroductory low price to get customers to use Cost plus – markupCost plus – markup Razor & razor bladeRazor & razor blade A la carteA la carte
Marketing Strategy
CommunicationsCommunications
How you will communicate with current and potential How you will communicate with current and potential customers?customers? Advertising – paid advertising newspapers, magazines, TV, Advertising – paid advertising newspapers, magazines, TV,
internetinternet Public relations – articles in paper, journals, blogs, websitesPublic relations – articles in paper, journals, blogs, websites Printed materials – flyers, brochuresPrinted materials – flyers, brochures Performances, concerts, exhibitionsPerformances, concerts, exhibitions ExhibitionsExhibitions
Why is this the most effective strategy?Why is this the most effective strategy?
Be imaginativeBe imaginative! Be a guerilla!! Be a guerilla!
Marketing Strategy
Guerilla Examples IGuerilla Examples I New restaurant invites local hairdressers for free meal just after New restaurant invites local hairdressers for free meal just after
openingopening Mattress retailer has sleep over advertising on the ceiling of a Mattress retailer has sleep over advertising on the ceiling of a
retail storeretail store News is created so it will be covered in local newspaperNews is created so it will be covered in local newspaper
Computer store does computer training for underprivileged kidsComputer store does computer training for underprivileged kids Owner makes bold predictions, does something unusualOwner makes bold predictions, does something unusual
Articles are written by the entrepreneur for newspapers
Mike Morris, Syracuse University
Marketing Strategy
More Guerilla Examples IIMore Guerilla Examples II
Reciprocal advertising: two businesses mention one another in Reciprocal advertising: two businesses mention one another in their adstheir ads
Store offers discount card/coupon that appreciates in value each time it is used
Coupon that is worth something different each time it is used
Theatre places speakers outside front of facility with movies soundtracks playing; bakery purposely lets smells waft into customer passageway of mall
Mike Morris, Syracuse University
Marketing Strategy
More Examples IIIMore Examples III
Bowling alley charges based on number of bowling pins customer knocks down
Bicycle retailer puts promotional tags on bike racks around town Day care center adds cameras and streaming videos so parents
can see how children are treated Flower shop with lack of visibility at their location decorates
popular park and some small cafes in the area with creative and simple flower arrangements
Mike Morris, Syracuse University
Marketing Strategy
Sales StrategySales Strategy
How will you get ordersHow will you get orders?? Personal sellingPersonal selling Online purchasingOnline purchasing TV infomercials TV infomercials Direct mailDirect mail 800 telephone800 telephone
Who will do the sellingWho will do the selling?? An internal sales forceAn internal sales force Field sales forceField sales force Manufacturer's repsManufacturer's reps Telephone solicitors Telephone solicitors
How will you recruit, How will you recruit, train, and compensate train, and compensate our sales force?our sales force?
How will you support the How will you support the sales effort? sales effort? Internal staffInternal staff Service operationsService operations
Marketing Strategy
Revenue ModelRevenue ModelRevenue ModelRevenue Model
Marketing Strategy
Two Approaches Two Approaches
Top down – market penetration & timingTop down – market penetration & timingBottom up – pipeline, revenue by customerBottom up – pipeline, revenue by customer
Marketing Strategy
Revenue Model VariablesRevenue Model Variables Market potential - Market potential - number of customers, transactions or units, purchasesnumber of customers, transactions or units, purchases
Size & growthSize & growth Market share - penetration rateMarket share - penetration rate Product/Services offeredProduct/Services offered
Roll-out strategyRoll-out strategy Range & mixRange & mix New Products/ServicesNew Products/Services ObsolescenceObsolescence
Frequency of purchase – per day/week/monthFrequency of purchase – per day/week/month Capacity Utilization – per time period, eventCapacity Utilization – per time period, event PricesPrices
Price per customer, transaction or unitPrice per customer, transaction or unit Average revenue per customer or transactionAverage revenue per customer or transaction
Channel strategy - discountChannel strategy - discount
Marketing Strategy
Revenue Model (Bottom-up)Revenue Model (Bottom-up)
Identify specific customersIdentify specific customers Identify decision makerIdentify decision maker
DetermineDetermine Annual purchases today & futureAnnual purchases today & future Who purchase from & level of satisfaction Who purchase from & level of satisfaction
What do you need to do to get an order?What do you need to do to get an order? If you meet the criteria, how much business can you expect?If you meet the criteria, how much business can you expect?
Revenue Model
Revenue Model
Revenue Model
Revenue Model
Revenue Model
Revenue Model
Revenue Model
Revenue Model
Marketing Strategy
MarginsMargins
% Gross Profit Margin% Gross Profit Margin
% Contribution Margin% Contribution Margin
% Net Profit Margin % Net Profit Margin
% Operating Expenses% Operating Expenses
Revenue – COG’s Revenue
Revenue – Variable Costs Revenue
Net Earnings Revenue
Sales, General & Admin Revenue
Margins %
ToyotaIntel Dell HP Corp
2005 2005 2005 2005 2004 2005Gross Profit 59.4 17.8 23.6 11.2 17.3 19.5SGA 16.4 9.3 16.6 3.6 2.4 4.8Net Profit 22.3 6.4 2.8 -5.7 1.4 6.5
P & G Whole Fds Kroger Amazon Merck2005 2005 2005 2005 2005
Gross Profit 51.4 35.1 24.8 24.0 76.6SGA 28.2 27.2 19.3 17.5 43.4Net Profit 12.7 2.9 1.6 4.2 21.0
Gen Motors