Transcript 3.05 Employ Marketing Strategies PPT

3.05 Employ
Marketing information
to develop a
Marketing Plan
• Trends and patterns of change
Researching the Industry
•
Industry forces that affect your business – understanding competitive forces can help a
business plan a strategy to succeed
• ◦
Barriers to entry
• ▪
barriers to entry – conditions or circumstances that make it difficult or costly for
outside firms to enter a market to compete with the established firm or firms
• ▪
economics of sale – situations where the cost of producing one unit of a good or service
decreases as the volume of production increases
• ▪
brand loyalty – loyalty to or the tendency to buy a particular brand of a product
• ◦
threats from substitute products
• ◦
sources of supply
• ◦
buyers' ability to bargain
Researching the Industry (con’t)
Industry demographics – includes the number of companies, annual revenues, and average
size of the companies by number of employees
•
The competition
•
◦ market share – a portion of the total sales generated by all competing companies in a
given market
•
◦
niche – a small, specialized segment of the market
•
◦
market positioning – the act of identifying a specific market niche for a product
•
◦ competitive advantage – a feature that makes a product more desirable than its
competitors' products
Researching the Industry (con’t)
Competitive Intelligence – Competitive advantage –
studying the competition is critical to finding your
company's competitive advantage. The following list
ways that are helpful to understanding your
competition:
• ◦ visit competitors' outlet
•
◦ buy your competitors' products
•
◦ search the internet and your competitors' web sites
•
prospective customers
Researching the target customer
• ◦ evaluating customers' needs
• ▪ customer needs analysis – pinpoints the features and benefits of your
goods and services that customers value
• ◦ forecasting demand – three ways to forecast a demand figure:
• ▪ one, to use historical analogy products
• ▪ two, to interview prospective customers and intermediaries
• ▪ three, to go into limited production to test the market
•
• Issues in entrepreneurship
Mass Marketing
Mass Marketing is trying to reach all customers with a
single marketing plan
should demonstrate the proposed advantage of the business
over its competitors. You can gather information on
competitors the following ways:
• ◦ viewing their web site
• ◦ talking to their customers, vendors, suppliers, or
•
employees
• ◦ attending trade shows
◦
• ◦ searching newspaper and magazine databases
• ◦ SWOT analysis – a strategic planning technique
Adjusting
tocompany's
sales environment
changes
that
analyzes a
internal strengths
and
weaknesses, and studies opportunities and threats
in the external sales environment
•
▪
Internal factors may include:
•
changes in spending on other parts of the company's marketing and promotional mix
•
changes in what is happening in different territories or markets
•
changes in sales management practices
•
changes in number of salespeople supervised by one person
•
•
▪
External factors may include:
intensity of competition-based
Resources
Allen, K.A., & Meyer, E.C. (2006). Entrepreneurship and small business
management (pp. 104,124-129,293 ). Woodland Hills, CA: McGraw-Hill Glencoe.