Transcript Marketing Plan

Business Plan
Preparation
Frank Moyes
Leeds College of Business
University of Colorado
Boulder, Colorado
Marketing Strategy
Tonight



Marketing Strategy
Revenue Model
Customer acquisition costs
Marketing Strategy
Next Week
Operations Plan
 Development Plan
 Walk an Order

Marketing Strategy
Business Plan Elements




Executive Summary
Company Overview
Market & Industry Analysis
Product/Service Description
 Marketing Plan
 Operations Plan
 Development Plan
 Management
 Competitive Advantage
 Financial Plan
 Funding
Marketing Strategy
Marketing Plan Objectives


Build on Market & Industry Analysis
Define the strategies & key actions to
exploit the opportunity
Marketing Strategy
Marketing Plan Outline










Customer Research
Target Market Strategy
Channel Strategy
Positioning
Product/Service Strategy
Pricing Strategy
E-commerce
Communications Strategy
Sales Strategy
Revenue Model
Marketing Strategy
Customer Research

Show your results




George’s Questionnaire - qualitative 20 people
Surveys – walk-up, mailed, email, on-line
Lurk & listen
How do customers pay?
Marketing Strategy
Target Customer Strategy

Profile of the target customers






Demographics, psychographics, etc.
Photo
How does TC perceive products/services?
How will you overcome brand loyalty? What
will cause customers to switch? Spend
money?
Identify first 10 customers
Future markets
Marketing Strategy
How Do Customers Make Decisions?



Where, when & how
Initiator, Influencer, Decider, Purchaser &
User
Identify criteria used to make decisions


Criteria may be different than your features
Where get information, advice
Marketing Strategy
Customers Buy Benefits


Does your TC understand
How will you convince?
Marketing Strategy
You Must Prove That You
Understand the Target Customer
Marketing Strategy
Channel Strategy


Describe and justify the distribution channels
Potential channels







Distributors, wholesalers, retailers
OEM’s & VAR’s
E-commerce
Describe how you will gain access to the
channels
Identify specific companies
What is the decision making process
Delivery to your customers, e.g. UPS is not the
channel
Marketing Strategy
Positioning

Positioning is relative to the competition



Overt or perceived
How are you unique & different?
Base on Buying Decision Criteria
Marketing Strategy
Perceptual Map
Attribute 1
Competitor 3
You
Competitor 1
Competitor 2
Marketing Strategy
Attribute 2
Hot Chocolate
Flavour
Brown Palace
HC
Ski Resort
cafe
Hershey
packets
Marketing Strategy
Convenience
Hot Chocolate
“Coolness”
HC
Ski Resort
cafe
Hershey
packets
Brown Palace
Marketing Strategy
Price
Branding

Perceptions, impressions and feelings



What must target customer believe about you
Every thing you do supports this
Other


Name of your company
Company characteristics – essence of
personality, tone & manner
Marketing Strategy
Product/Service Strategy


Not the description
Product/service roll out




Initial product/services
Future product/services
Enhance the product/service with
operations & service
Actions to sustain competitive advantage



Features & benefits
New technology
New process
Marketing Strategy
Pricing Strategy





Describe and justify your pricing strategy
Provide evidence that your target
customer will accept your price
Position your pricing relative to current
and potential competition
Low price usually is NOT a good
strategy!
Measure of management
Marketing Strategy
What Are the Pricing Methods?


Value pricing - how much is customer willing to pay?
Commodity pricing











Set by the market
Supply and demand
Seasonality & perishability
Competition
Payback period – depends on impact on company profit
Rule of thumb – Keystone
Introductory low price to get customers to use
Cost plus – markup
Transaction fee
Razor & razor blade
A la carte
Marketing Strategy
Communications

How you will communicate with current and
potential customers?





Advertising – paid advertising newspapers,
magazines, TV, internet
Public relations – articles in paper, journals, blogs,
websites
Printed materials – flyers, brochures
Performances, concerts, exhibitions
Exhibitions
Why is this the most effective strategy?
 Be imaginative! Be a guerilla!

Marketing Strategy
Guerilla Examples I



New restaurant invites local hairdressers for free
meal just after opening
Mattress retailer has sleep over advertising on the
ceiling of a retail store
News is created so it will be covered in local
newspaper



Computer store does computer training for underprivileged
kids
Owner makes bold predictions, does something unusual
Articles are written by the entrepreneur for
newspapers
Mike Morris, Syracuse University
Marketing Strategy
More Guerilla Examples II

Reciprocal advertising: two businesses mention one
another in their 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 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 Strategy


How will you get orders?  How will you recruit,
 Personal selling
train, and compensate
 Online purchasing
our sales force?
 TV infomercials
 Direct mail
 How will you support
 800 telephone
the sales effort?
Who will do the selling?
 Internal staff




An internal sales force
Field sales force
Manufacturer's reps
Telephone solicitors
Marketing Strategy

Service operations
Customer Acquisition Costs
Costs to Get a Customer
Number of Customers

Costs to get a customer






Sales salaries, commissions
Advertising & promotion
Customer & tech support
Website
Travel & entertainment
Number of customers
Financial Plans
26
Revenue Model
Marketing Strategy
Two Approaches
down – market penetration &
timing
 Bottom up – pipeline, revenue by
customer
 Top
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model
Marketing Strategy
Revenue Model Variables

Market potential - number of customers, transactions or


Market share - penetration rate
Product/Services offered



units, purchases
 Size & growth




Roll-out strategy
Range & mix
New Products/Services
Obsolescence

Price per customer, transaction or unit
Average revenue per customer or transaction
Frequency of purchase – per day/week/month
Capacity Utilization – per time period, event
Prices


Channel strategy - discount
Marketing Strategy
Revenue Model (Bottom-up)

Identify specific customers


Determine



Identify decision maker
Annual purchases today & future
Who purchase from & level of satisfaction
What do you need to do to get an order?

If you meet the criteria, how much business can
you expect?
Marketing Strategy
How Much
Do Your Customers Care?
High Involvement
Low Involvement
Easy to get attention
Will invest to upgrade
Will try new brands
About “wants”
Hard to get attention
Will delay upgrading
Hard to change
About “needs”