Transcript Marketing powerpoint File

Young Enterprise Trust acknowledges and thanks
Andrea Cottrel for this teaching resource.
Author: Andrea Cottrell
Marketing
Getting your message out to a target audience
Author: Andrea Cottrell
Why is this important to me?

6 Credits from AS 91382
Develop a marketing plan for a new or existing product

Marketing increases sales, market share, brand awareness and helps
to achieve your YES company SMART goals

My YES company wants to make a profit and marketing and sales are
a key driver of profitability

Marketing is a potential career pathway

Marketing is fun!
Marketing is just one piece of the
big business picture
Remember the 3 M’s
measure, monitor & manage for success
What does marketing include?
1.
The setting of SMART marketing goals to support
corporate objectives
2.
Undertake market research
3.
Analyse market research results
4.
Identify your company’s position in the marketplace
5.
Develop a marketing strategy to meet marketing goals
6.
Devise sales forecasts & create a marketing budget
7.
Develop contingency plans
8.
Write an action plan for implementation and future
monitoring
1. SMART marketing goals to support
corporate objectives
Marketing goals can be specific to:
Sales
 Sell 100 units by September 30th, 2012
Market share
 Gain 5% market share by August 15th,
2012
Promotion & publicity
 Achieve nationwide media publicity by
June 1st, 2012
Recognition / Awards
 Win the MoreFM CanterburyYES
advertising award for 2012
Our marketing goal(s)
must relate to our mission
statement, values &
company objectives
What does marketing include?
1.
The setting of SMART marketing goals to support
corporate objectives
2.
Undertake market research
3.
4.
Analyse market research results
Identify your company’s position in the marketplace
5.
6.
Develop a marketing strategy to meet marketing goals
Devise sales forecasts & create a marketing budget
7.
Develop contingency plans
8.
Write an action plan for implementation and future
monitoring
2. Undertake market research
.
Conduct market research to:
 determine feasibility of your product / service ideas
 identify competitors already established in the
market
 complete a business environment scan
 segment the market
 identify your target market size and demographics
 survey customer needs and gain feedback
Successful market research
• Successful market research utilises both Primary and
Secondary techniques.
• Important business start-up decisions are based on market
research data.
• Therefore the potential success of your business is directly
related to the quality of your market research data!
Types of market research
Primary Research
• Focuses on your company's
needs. Conducted by you or by a
company that you pay to
conduct the research for you.
• Focus groups, surveys, field
tests, interviews, and
observation are examples of
primary market research.
• Primary market research lets
you investigate an issue, get
feedback about your product
assess demand for your service
or find out how much consumers
will pay for your product, and
more.
Types of market research
Secondary Research
• Based on information from
studies previously performed by
government agencies and other
organizations.
• It is easy to find and is free or
low-cost.
• You can find it online at
government or industry
websites, at your library, and in
magazines and newspapers.
market research continued…
 determine feasibility of your product / service ideas
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Do we have a ‘Unique Selling Point” (USP)?
Will the target market buy our product / service & in what quantities?
How much will our customers pay for the product / service?
Can we find local suppliers that will work with us?
Can our suppliers produce in small batches at a reasonable cost?
Can our suppliers fill our production order on time?
Can we make a profit from making & selling this product/service?
Do we have enough start-up capital to begin production?
Do we have any competitors in the market?
IP Considerations
Do we have the contacts, skills, experience, money to move forward
with this idea & if not where can we get it?
market research continued…
 identify competitors already established in the market
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who are the firms already established in this market?
how will our product / service differ from those currently available?
can we work innovatively / smarter / harder to actively compete?
is there room for a new firm to enter this market & make a profit?
can we compete on design / quality / price?
What can we learn from our competitors successes and failures?
market research continued…
 complete a business environment scan
 An environmental scan is a 360degree review of the environment the
business is operating.
 It identifies external opportunities the company may be able to exploit
and external threats to the company’s survival.
There are several environmental scan methods available
 PEST
 PEEST
 PESTLE
All involve analysing:
Political
Economic
Social
and Technological factors
market research continued…
Political
Economic
Ecological/Environmental
Social
Technological
_________________________________
Political
Economic
Social
Technological
Legal
Environmental
market research continued…
Environmental Scan Elements
Political Factors
Includes areas such as:
• tax policy
• labour laws
• environmental law
• trade restrictions
• merit goods
• demerit goods
market research continued…
Environmental Scan Elements
Economic Factors
• Includes areas such as:
• economic growth
• interest rates
• exchange rates
• inflation rate
These factors have major
impacts on how businesses
operate and make
decisions. For example,
interest rates affect a
firm's cost of capital and
therefore to what extent a
business grows and
expands. Exchange rates
affect the costs of
exporting goods and the
supply and price of
imported goods in an
economy
market research continued…
Environmental Scan Elements
Environmental Factors
Includes areas such as:
 weather
 climate
 climate change
 resource depletion
 endangered species
 natural disasters
These factors affect some
industries and
geographical areas more
than others.
market research continued…
Environmental Scan Elements
Social Factors
Includes areas such as:
• cultural aspects
• health consciousness
• population growth rate
• age distribution
• career attitudes
• safety.
Trends in social factors
affect the demand for a
company's products and
how that company
operates.
market research continued…
Environmental Scan Elements
Technological Factors
Includes areas such as:
• R&D activity
• automation
• technology incentives
• the rate of technological
• change.
Technological shifts can
affect costs, quality, and
lead to innovation.
market research continued…
Environmental Scan Elements
Legal Factors
Includes areas such as:
 discrimination law
 consumer law
 antitrust law
 employment law
 health and safety law
 These factors can affect
how a company operates,
its costs, and the demand
for its products.
market research continued…
 segment the market
•
Segmenting is dividing the
population of possible customers
into groups
•
Customers in the same segment
share common characteristics
•
Segmentation allows you to
determine the size of your
potential market
Demographic segmentation
age, gender, income
Psychographic segmentation
lifestyle, attitudes, aspirations
Behavioural segmentation
Product consumption behaviour
Frequency, product type, volume
Needs based segmentation
Needs, wants, benefits sought
market research continued…
How many people are in my ‘target market segment’?
www.stats.govt.nz provides a wealth of information about the NZ
population
market research continued…
 What should my target market segment look like?
Example
70k+ income
women
shop weekly
30-44 years
time poor
active lifestyle
Live in Canterbury
market research continued…
 How do I work out the target market segment size?
59,868 Canterbury women in age range 30-44years
http://www.stats.govt.nz/Census/2006CensusHomePage/Tables/AboutAPlace/SnapShot.aspx?ParentID=&type=region&tab=Agesex&i
d=1000013
market research continued…
6% of Cantabrians earn in excess of $70k per annum (c.f 20% nationally)
3,592 Canterbury women in age range 30-44 years earn in excess of $70k
assuming women make up 50% of the canterbury population
market research continued…
• We estimate 10% of the women
in Canterbury with incomes in
excess of $70k per annum:
 have an active lifestyle
 shop weekly
 Are time poor
• The target market segment for
our product is 360 women who
we estimate will purchase 1200
units of our product in 2012.
market research continued…
 survey customer needs and gain feedback
Once you have developed a prototype product seek feedback from
your target customer segment, not just your Mum! She will think
everything you do is fabulous.
Think about running a focus group where you can get quality
feedback.
What does marketing include?
1.
The setting of SMART marketing goals to support
corporate objectives
2.
Undertake market research
3.
Analyse market research results
4.
Identify your company’s position in the marketplace
5.
Develop a marketing strategy to meet marketing goals
6.
Devise sales forecasts & create a marketing budget
7.
Develop contingency plans
8.
Write an action plan for implementation and future
monitoring
3. Analyse market research results
Summarise the results of your
market research into easily read
tables, graphs and pictograms.
Focus on Key concepts:
 how many will consumers buy?
 at what price?
 how often?
 where from?
 packaging preferences?
 media advertising preferences?
 branding / name responses?
__________________________________
•
Look for patterns, issues &
opportunities
•
Adapt your goals and business plan
if needed
What does marketing include?
1.
The setting of SMART marketing goals to support
corporate objectives
2.
Undertake market research
3.
Analyse market research results
4.
Identify your company’s position in the marketplace
5.
Develop a marketing strategy to meet marketing goals
6.
Devise sales forecasts & create a marketing budget
7.
Develop contingency plans
8.
Write an action plan for implementation and future
monitoring
4. Identify your company’s position in the
marketplace
Now you understand your customers and your competitors it’s time
to look at your company’s position in the market place.
3 useful tools
i)
ii)
iii)
Ansoff Matrix
Boston Matrix
Porters 5 forces model
Try to use one of these tools
Identify your company’s position in the marketplace
continued…
i)
Ansoff Matrix
The matrix suggests that a
business’ attempts to grow
depend on whether it markets
new or existing products in
new or existing markets.
The output from the Ansoff
product/market matrix is a
series of suggested growth
strategies that set the
direction for the business
strategy.
Identify your company’s position in the marketplace
continued…
i)
Ansoff Matrix continued…
Market penetration
The business focuses on
selling existing products into
existing markets.
4 main objectives:
• Maintain or increase the market
share
• Secure dominance of growth
markets
• Restructure a mature market by
driving out competitors
• Increase usage by existing
customers – for example by
introducing loyalty schemes
Identify your company’s position in the marketplace
continued…
i) Ansoff Matrix continued…
Market development
A growth strategy where the
business seeks to sell its existing
products into new markets.
There are many possible ways
of approaching this strategy,
including:
• New geographical markets; for
example exporting the product
to a new country
• New product dimensions or
packaging: for example
• New distribution channels
• Different pricing policies to
attract different customers or
create new market segments
Identify your company’s position in the marketplace
continued…
i)
Ansoff Matrix continued…
Product development
A growth strategy where a
business aims to introduce
new products into existing
markets.
This strategy may require the
development of:
 new competencies
 modified products which can
appeal to existing markets
Identify your company’s position in the
marketplace continued…
i)Ansoff Matrix continued…
Diversification
the growth strategy where
a business markets new
products in new markets
• This is a riskier strategy
because the business is
moving into markets in which
it has little or no experience.
• The business must have a
clear idea about what it
expects to gain from the
strategy and an honest
assessment of the risks.
Identify your company’s position in the marketplace
continued…
ii) Boston Matrix
The Boston matrix mimics the
product lifecycle
Cash cow  launch / introduction
Star growth
Problem child  maturity
Dog  decline
Identify your company’s position in the
marketplace continued…
Boston matrix continued
 The logic is the income from cash cows can be used to:
Promote a problem child and prevent it becoming a dog
Fund R&D to design and make new products
 Income from stars and problem children can be used to
support the business
 Dogs should be put down or introduced
into niche markets
Identify your company’s position in the marketplace
continued…
iii) Porters 5 Forces Model
Identify your company’s position in the marketplace
continued…
iii) Porters 5 Forces Model continued…
Five Forces Analysis assumes that there are five important
forces that determine competitive power in a business
situation:
1.
2.
3.
4.
5.
Supplier Power
Buyer Power
Competitive rivalry
Threat of substitution
Threat of new entry
Identify your company’s position in the marketplace
continued…
iii) Porters 5 Forces Model continued…
Supplier Power
 Assess how easy it is for suppliers to drive up prices
•
•
•
•
This is driven by:
the number of suppliers of each key input
the uniqueness of their product or service
their strength and control over you
the cost of switching from one to another
 The fewer the supplier choices you have, and the more you need
suppliers' help, the more powerful your suppliers are.
Identify your company’s position in the marketplace
continued…
iii) Porters 5 Forces Model continued…
Buyer Power
 how easy it is for buyers to drive prices down.
This is driven by:
• the number of buyers
• the importance of each individual buyer to your business
• the cost to them of switching from your products and services to
those of someone else
 If you deal with few, powerful buyers,
then they are often able to dictate terms
to you.
Identify your company’s position in the marketplace
continued…
iii) Porters 5 Forces Model continued…
Competitive rivalry
 The number and capability of your competitors is important.
 If you have many competitors, and they offer equally attractive
products and services, then you will have little power in the
situation
 Suppliers and buyers will go elsewhere if they don't get a good
deal from you
 On the other hand, if no-one else can do
what you do, then you can often have
tremendous strength.
Identify your company’s position in the marketplace
continued…
iii) Porters 5 Forces Model continued…
The threat of substitution
 This is affected by the ability of your customers to find a different
way of doing what you do – for example, if you supply a unique
software product that automates an important process, people
may substitute by outsourcing it or completing it manually
 If substitution is easy and substitution is viable, then this
weakens your power.
Identify your company’s position in the marketplace
continued…
iii) Porters 5 Forces Model continued…
The threat of new entrants
 Power is also affected by the ability of people to enter your
market.
 If it costs little in time or money to enter your market and
compete effectively, or if you have little protection for your key
technologies, then new competitors can quickly enter your
market and weaken your position.
 If you have strong and durable barriers
to entry, then you can preserve a
favourable position and take fair
advantage of it.
What does marketing include?
1.
The setting of SMART marketing goals to support
corporate objectives
2.
Undertake market research
3.
Analyse market research results
4.
Identify your company’s position in the marketplace
5.
Develop a marketing strategy to meet marketing goals
6.
Devise sales forecasts & create a marketing budget
7.
Develop contingency plans
8.
Write an action plan for implementation and future
monitoring
4. Develop a marketing strategy to meet your
marketing goals
 Marketing strategy for a product
The 4P’s
1.Product
2.Price
3.Place
4.Promotion
Develop a marketing strategy continued…
 Marketing strategy for a
service
The 7 P’s
1. Product
2. Price
3. Place
4. Promotion
5. People
6. Process
7. Physical evidence
The 7 P’s of marketing strategy
The 7 P’s of marketing strategy continued…
1. Product
 Features – what are the characteristics of the product or service?
eg organic, carbon neutral, comes in a range of colours & sizes
 Benefits – what benefits does this product offer the target customer?
eg sustainably produced, recyclable, on-trend, saves on fuel etc
 USP – what is your unique selling point that differentiates your product
or service from those of competitors?
eg made in NZ, original songs, new recipe, active ingredients
The 7 P’s of marketing strategy continued…
2. Price
 Cost price - how much did it cost you to make the product?
eg per unit production cost is $2.22
 Mark-up - what mark-up percentage will you add to the cost price?
eg 100% mark-up
 Wholesale price – the cost price + mark-up is the price paid by retailers
eg $2.22 + $2.22 (100% mark-up) = $4.44
 RRP – the price you advise retailers to charge customers
RRP is $4.99
The 7 P’s of marketing strategy continued…
3. Place
 Where will you sell your product?
Identify specific places where the target customer shops & using
technologies the target market are familiar with eg trade-me, facebook
 Distribution channel
Identify the specific distribution chain you will use including names
eg manufacturer transport wholesaler retailer customer
 Identify your growth strategy if you have one
Local  regional  national  export
The 7 P’s of marketing strategy continued…
4. Promotion
 Advertising – very expensive and time consuming to arrange
 Publicity – free media exposure achieved by issuing press releases and
inviting media to interview you and write / shoot a story
about you. It is priceless and believable c.f advertising
 Word-of-mouth- customers telling others about your product / service.
While this is a cost free strategy remember, customers
tell twice as many people if they are unsatisfied with
your good or service than if they are happy with your
good / service.
The 7 P’s of marketing strategy continued…
 Don’t forget Guerrilla marketing
Remember we looked at guerrilla marketing in our innovation &
enterprise topic earlier in the year.
The 7 P’s of marketing strategy continued…
5. People
 What is your story
Your customers are not just investing in your product. They are also
buying into your story. Tell them the story of the people in your
company & how you got started. Remember the buy two, get one, shoe
story?
 After sales service
Remember selling the good or service is just the beginning. How will you
look after your customers with after sales service & still pursue them for
repeat business?
 Culture
How does your good / service / organisation reflect
and respect the culture of it’s stakeholders?
The 7 P’s of marketing strategy continued…
6. Process
 Service delivery
Refers to the systems used to assist the organisation in delivering the service.
Banks that send out Credit Cards automatically when their customers old one
has expired again require an efficient process to identify expiry dates and
renewal. An efficient service that replaces old credit cards will foster consumer
loyalty and confidence in the company.
 Complaints
The best companies still experience complaints from time to time. The
important thing is how you deal with them. Be prepared, have a system
in place.
 Response time
Imagine you walk into Burger King and you order a
Whopper Meal and you get it delivered within 2 minutes.
What was the process that allowed you to obtain an
efficient service delivery?
The 7 P’s of marketing strategy continued…
7. Physical evidence
 User stories
Customer stories entice potential customers to give your service a try
 Recommendations
Endorsements of your service by recognised, respected people or
celebrities are gold in marketing strategy terms.
 Premises
Consumers form perceptions based on their sight
of the service provision. If you walk into a restaurant
your expectations are of a clean, friendly
environment.
What does marketing include?
1.
The setting of SMART marketing goals to support
corporate objectives
2.
Undertake market research
3.
Analyse market research results
4.
Identify your company’s position in the marketplace
5.
Develop a marketing strategy to meet marketing goals
6.
Devise sales forecasts & create a marketing budget
7.
Develop contingency plans
8.
Write an action plan for implementation and future
monitoring
5. Devise sales forecasts & create a
marketing budget
Sales Forecasts
Remember this from segmenting
the market?
“The target market segment for our
product is 360 women who we
estimate will purchase 1200 units of
our product in 2012”
Use this as a basis for preparing a
sales forecast like below:
__________________________________
Pessimistic -20%
960 sales
Realistic
1,200 sales
Optimistic + 20%
1,440 sales
__________________________________
Devise sales forecasts & create a marketing budget
continued…
Create a Marketing Budget
Remember the most effective
marketing tools are often the
cheapest eg word of mouth &
publicity.
Predict your marketing costs:
Company T-shirts
Banners for product launch
Lunch for focus group
Printing
Flash mob
Signage
Total:
100
20
50
25
40
25
260
======
Prepare a marketing budget
Marketing funds
300
Marketing costs:
Company T-shirts
Banners
Focus group
Printing
Flash mob
Signage
Total marketing costs
Budget surplus
100
20
50
25
40
25
260
40
What does marketing include?
1.
The setting of SMART marketing goals to support
corporate objectives
2.
Undertake market research
3.
Analyse market research results
4.
Identify your company’s position in the marketplace
5.
Develop a marketing strategy to meet marketing goals
6.
Devise sales forecasts & create a marketing budget
7.
Develop contingency plans
8.
Write an action plan for implementation and future
monitoring
6. Develop contingency plans
 identify risks and develop
contingency plans
• Revisit your company goals
now that you have completed
your marketing research
• Identify risks that may
prevent you from achieving
your goals
• Devise contingency plans to
minimise or eliminate these
risks.
Develop contingency plans continued
What should a contingency plan look like?
Hyperlink to contingency plan doc
What does marketing include?
1.
The setting of SMART marketing goals to support
corporate objectives
2.
Undertake market research
3.
Analyse market research results
4.
Identify your company’s position in the marketplace
5.
Develop a marketing strategy to meet marketing goals
6.
Devise sales forecasts & create a marketing budget
7.
Develop contingency plans
8.
Write an action plan for implementation and future
monitoring
7.Write an action plan for implementation
and future monitoring
Write an action plan of
who needs to do what & by
when to make your overall
marketing plan a winner
Don’t forget to measure,
monitor and manage for
success!
What does marketing include?
1.
The setting of SMART marketing goals to support
corporate objectives
2.
Undertake market research
3.
Analyse market research results
4.
Identify your company’s position in the marketplace
5.
Develop a marketing strategy to meet marketing goals
6.
Devise sales forecasts & create a marketing budget
7.
Develop contingency plans
8.
Write an action plan for implementation and future
monitoring
The End
Bibliography
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•
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http://en.wikipedia.org/wiki/Marketing
http://lexicon.ft.com/Term?term=market%20segmentation
http://www.accountingformanagement.com/Break_even_analysis.htm
http://www.google.com/search?hl=en&safe=vss&q=marketing&bav=on.2,or.r_gc.r_pw.r_qf
.,cf.osb&biw=1280&bih=613&wrapid=tlif133464658179610&um=1&ie=UTF8&tbm=isch&source=og&sa=N&tab=wi&ei=PxeNT8jgNJGZiAedybTSDA
http://tutor2u.net/business/strategy/ansoff_matrix.htm