5. 1. Market Size What is the current market size? How large is the potential market? Is the market stable? Where is the market heading? How many prospects are potential customers? How many companies are competing in the market?
6. 2. Industry Trends Changes in Package Size Variations in Product/Service Promotional Methods Technological Changes
8. Which of the segments can you best serve? What is that segment’s needs? 4. Target Market
9. The Marketing Environment Current trends impacting the entire society and the way the product/service is marketed make up the “marketing environment” What are the current trends? What is impacting our environment? How is it impacting our products and services
10. Consumer Analysis Two types of individuals that purchase your products and services Customers- a person or entity that buys your product/service but does not actually use it. Consumers- The person or entity that actually puts your product to use. Today we will look at the “Consumer”
11. What type of product feature most appeal to these consumers? What are the benefits that these features provide to the consumer? How important are these features? How are choices made between competing products? What is their disposable income? What is their decision making process How important is “brand?” What promotions does the consumer like? What are their leisure time activities? Factors Bearing on Your Typical Consumer
12. What Is Your Current Position? “If you don’t know where you are, it is impossible to know how to get to where you want to be.”
13. The Situational S.W.O.T. Test Strengths- What does the company/product better than the competition? Weaknesses- What does the company/product do that not as good as the competition? Opportunities- What area of the market could the company enter where there is a distinct advantage? Threats- What actions could threaten the product or standing in the market?
14. Analyzing Your Competitors Who are your top 3-5 competitors? On what basis are you competing? Same product, different prices? Same product, different brand? Different market segments Are there “niches” within the market place where you are not directly targeted by competition? Think about the competition before implementing any marketing strategies.
15. Marketing Objectives Use the SMART system to make your marketing objectives clear: Specific Measurable Attainable Timebound
19. Sustainable Competitive Advantage (SCA) An SCA is a means of competing using the products and company assets that provide a leverage or edge that is difficult to copy and is seen as advantageous by consumers.
20. Characteristics of Successful Sustainable Competitive Advantage They are substantial enough to make a difference in the market Are sustainable with regard to environmental changes Are difficult for competitors to replicate Are leveraged into visible attributes that influence consumer decisions Means by which to gain a sustainable competitive advantage include differentiation, low cost, concentrated, niche
21. Differentiation The process of making a product or service novel through a benefit that is relevant to the marketplace is a sustainable advantage.
22. Differentiation- Examples Product quality Service quality Brand name Product features Technical superiority Distribution channels Breadth of product line The options for product differentiation is limited only by what the customer perceives to be different and important
23. Low Cost Strategy This strategy relies on having the lowest cost in the industry at all times and thereby the lowest price to be offered to the customer. Any company employing a low cost and low price strategy must have the ability to match and beat its competitors should a price war breakout
24. No-frills product Product design Raw material source Low-cost distribution Labor cost advantage Location advantage Automation advantage Reduced overheads Experience in producing the product Methods of Achieving a Low Cost Strategy A low cost strategy is extremely difficult to sustain long-term
25. Concentrated The concentrated thrust focuses on one part of the market or product line only. It allows a company to become an “expert” in that area. It is generally a smaller segment of the market.
26. Focus on product line Targeting a segment Geographical area Focusing again low share competitors Methods of Concentration
27. Niche Strategies focus on one particular, generally small, segment of the market The segment is generally too small for a major competitor to engage Niche strategies require that customers see a significant difference in the competitor and see real value
28. Product/Brand Positioning Out of the strategy should come a unique positioning for the product There should be a clearly developed product/brand positioning within the market Positioning is the way in which consumers perceive the product/service with respect to the rest of the market Product positioning could take years to create and is difficult to change
29. Product/Brand Positioning Positioning can be based around such factors as: A product attribute A consumer benefit A use or application of the product A product class The place of origin The type of consumer Competitive position in the market
30. The Market Mix The crux of any marketing strategies involves 4 elements known as the 4-Ps Product Price Promotion Place
31. Product Key product features and their benefit are paramount. Key features include: Features Range Branding Packaging Additional accessories
32. Product- Service Based For service based products, all aspects of presentation of the people providing the service are important. This includes everything that is visible, such as: Dressed in a formal fashion or a branded sports shirt What your offices look like Are the messages they convey complimentary to your product positioning
33. Price The price must conform to the product positioning How important is price to the target market. In most markets price in an indicator of quality – the higher the price the higher the perceived quality Price should be set by “what the market will bear”
34. Price- 3 Important Factors It is a wrong assumption that offering a better price gives a better value for the money. Value for the money is a perception of the price compared to the benefits derived from the product. In most markets and to most people the price is far less important than the benefits received from the product
35. Types of Pricing All types of pricing decisions should be considered and planned, including: Standard price Price specials Discounts to the trade and distributors Payment terms Payment methods
36. Promotion Promotion is that element in the marketing mix that determines how you communicate with customers and what tools or tactics are used to achieve the marketing objectives. Knowing the buying behavior of the target market is very important. What media do they view, how frequently and what is their reason for using it?
37. The promotion mix must comply with the product positioning and should not contradict in any way with the prescribed positioning. Promotion
38. Advertising Sales promotions Publicity Personal selling Events Sponsorships Direct selling The internet & social media Promotional materials Brochures Gifts Promotion activities may include
39. Communication Plan This component of the strategy should focus on keeping existing customers and finding new ones. Components can include: Web site Email Social Media: Twitter, Facebook Blogging Printed and electronic newsletters
40. Distribution While fairly well established, this element should not be overlooked. Changes in the distribution channel or changes to the way in which you sell to the channel can provide great opportunities.
41. Distribution- Questions You Should Address How and where will the product be placed so that the consumers have access to it and how will the sale be made? Will you be using wholesalers, distributors, retailers or going direct to the consumer? Are a combination of distribution points appropriate? The strategy for dealing with distribution points needs to be addressed the same way the strategy for customers was developed
42. Putting It All Together Working through the whole process (if necessary with the help of marketing professionals) is important to getting the strategy right. A good marketing strategy, correctly implemented, will give your company the edge over the competition.
