Transcript Market the small business The Marketing Plan

Your competitors
COMPETITOR ANALYSIS
WHAT COMPETITOR INFORMATION SHOULD BE ANALYSED
• Any organisation that wishes to succeed in their market,
needs to analyse their competitor's strategies.
The
Marketing • A strong competitor can hinder business success, even
Plan
lead to business failure. Competitor analysis helps firms
to anticipate their competitor's actions and exploit
competitor's weaknesses.
• It also helps firms to identify their firm's unique selling
points, so that these can be promoted in marketing
campaigns.
Market
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Your competitors
Market
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Market Entry
A new business or a firm entering into a new market
should gather information to help answer the following
questions about their competitors:
Who are your competitors?
• The firm should decide on which competitors are
likely to impact on their business and which
businesses the firm will be able to compete with.
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Your competitors
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What is their size and dominance within the market?
• An understanding of the market share each
competitor has, will help you identify their size and
dominance. It will also reveal whether there is
market share available for your business.
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Your competitors
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What customer base do competitors have?
• This will help you identify if a firm is a competitor. If
a firm is aimed at a different customer base to yours
they may not be a competitor
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Your competitors
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What is their positioning strategy within the market?
• This question is about the perceptions customers
have about your competitor's products. Are they
quality products? cheap products or luxury
products? Think about how each competitor's
positioning strategy is the same or different to
yours?
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Your competitors
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What objectives does each competitor have?
• This includes future growth plans and company
values. For example are they about to embark on an
aggressive growth programme? Or do they believe in
recycling and saving the planet. To gather
information about competitor objectives and plans
look at their websites, company reports, press
releases and marketing material. It is important to
analyse competitor objectives so that you get an
idea of their values and likely strategy.
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Your competitors
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What are their strengths and weaknesses?
• A SWOT analysis may help you to identify and record
the answers to this question. Each competitor will
have strengths that give them a competitive
advantage. They are also likely to have weaknesses
that may give you or other competitors an
advantage.
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MARKET TARGETING OPTIONS
Market
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Target Markets
Before engaging in marketing campaigns and
promotions businesses need to decide who they would
like to aim their products at.
This involves analysing and splitting (segmenting) the
market into different sectors. The most effective way to
segment the market will depend on the product and
the business producing the product. After
segmentation firms can adopt one of three strategies
to target customers.
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MARKET TARGETING OPTIONS
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Option 1: Undifferentiated Marketing
Undifferentiated marketing is marketing that does not
target a particular segment of the market.
The firm adopts one marketing strategy and hopes that
it will appeal to as many people as possible.
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MARKET TARGETING OPTIONS
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Option 2: Differentiated Marketing Strategy
If a firm decides to target several segments of the
market, it is engaging in a differentiated marketing
strategy.
A differentiated marketing strategy, a firm will develop
products and services with separate marketing mix
strategies for each of the segments chosen by the firm
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MARKET TARGETING OPTIONS
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Option 3 Concentrated Marketing
Concentrated marketing occurs when a business
concentrates its marketing effort on one segment of
the market.
The firm will develop a product that caters for the
needs of that particular group. For example Rolls Royce
cars and the Harrods Group target the premium
segment of the market.
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MARKET TARGETING OPTIONS
Market
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Summary
There are three targeting strategies that can be used by
firms when aiming their products and services at
market segments. Undifferentiated marketing
implements one marketing strategy aimed at the whole
market place, differentiated marketing tailors
marketing efforts for each market segment chosen by
the firm, whilst concentrated marketing tailors
marketing strategy for one particular segment of the
market. Each of the three targeting strategies has its
advantages and disadvantages; these should be
weighed up when deciding which one to ado
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Your Customer
Customer demographics
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Who are your customers ?
What are they spending habits?
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Your Customer
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Distribution strategies
Place
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How to get your products or services to your customers
Place is also known as channel, distribution, or
intermediary. It is the mechanism through which goods
and/or services are moved from the manufacturer/
service provider to the user or consumer
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Market
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Distribution strategies
From your experiences as a consumer,
producers rarely sell their goods or services
directly to the person that consumes them.
Marketing channels, or place in terms of the
marketing mix, are the means by which
interdependent organizations move products
or services from the producer to the person
that purchases or consumes the product. This
is the basic role of distribution
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Distribution strategies
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A basic example would be a tin of vegetable soup. The
entire chain would begin with the seeds that the
farmer sews and then plants. The farmer would sell the
vegetables to the soup manufacturer, who would
create soup from a recipe and then package the soup in
a tin, and then bulk pack tins into a box and then those
same boxes onto a pallet.
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Distribution strategies
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The pallets would be driven by lorry or some other
vehicle to a wholesaler. Independent retailers whilst
visiting the wholesaler would break down a pallet and
take a box of tinned soup. The retailer would return to
his or her store and open the boxes of soup and place
individual items onto a shelf next to similar products.
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Distribution strategies
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The purchaser or customer would enter the store and
buy a series of products including tinned soup. Having
paid for the products the customer returned home and
cooked soup for his or her family. The family eats the
soup and they are the final consumers, as opposed to
customers. This is an example of a very basic marketing
channel in operation.
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Distribution strategies
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The case is that a manufacturer will attempt to
maximise the accessibility of his product to as many
consumers as possible. A prime example of this is CocaCola and their attempt to put a bottle of Coke within
the arms reach of every consumer. For Coca-Cola this
means a number of channels of distribution including
manufacturing, transportation, bottling, wholesaling,
retailing, vending machines and any other form of
distribution you can think of. Coca-Cola maximises its
accessibility.
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Distribution strategies
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Place has a number of names. Place is also known as
channel, distribution or intermediary. It is the
mechanism through which goods and/or services are
moved from the manufacturer/ service provider to the
user or consumer.
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Distribution strategies
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There are six basic 'channel' decisions:
• Do we use direct or indirect channels? (e.g. 'direct'
to a consumer, 'indirect' via a wholesaler).
• Single or multiple channels.
• Cumulative length of the multiple channels.
• Types of intermediary
• Number of intermediaries at each level
• Which companies as intermediaries to avoid
'intrachannel conflict' (i.e. infighting between local
distributors).
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Distribution strategies
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Types of Channel Intermediaries
• Wholesalers
• Agents
• Retailers
• Internet
• Licensing and franchising
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