Business Plan Preparation Marketing Plan Frank Moyes Leeds
Business Plan Preparation Marketing Plan Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado Business Plan Preparation: Marketing Strategy
Tonight Ø Marketing Strategy Ø Revenue Model Ø In the Fire 4 Preliminary Industry Analysis 4 Competitive Advantage 4 Model company description Ø Elevator speech Ø Hand-in 410 Call Reports Business Plan Preparation: Marketing Strategy 4 Competitive matrix 2
Next Week Ø Operations Plan Ø Development Plan Ø Marketing Workshops 4 Tues Mar 7 room ? 6: 00 to 7: 00 pm Business Plan Preparation: Marketing Strategy 3
Business Plan Elements Ø Executive Summary Ø Company Overview Ø Market & Industry Analysis Ø Product/Service Description ØMarketing Plan Ø Operations Plan Ø Development Plan Ø Management Ø Competitive Advantage Ø Financial Plan Ø Funding Business Plan Preparation: Marketing Strategy 4
Business Plan Preparation: Marketing Strategy 5
Marketing Plan Objectives Ø Build on Market & Industry Analysis Ø Define the strategies & programs to exploit the opportunity Business Plan Preparation: Marketing Strategy 6
Marketing Plan Outline Ø Target Market Strategy Ø Channel Strategy Ø Positioning Ø Product/Service Strategy Ø Pricing Strategy Ø E-commerce Ø Communications Strategy Ø Sales Strategy Ø Revenue Model Business Plan Preparation: Marketing Strategy 7
Target Market Strategy Ø Consumers vs. purchasers Ø Profile of the customers you will serve 4 Consumer: demographics, psychographics & values 4 Business: industry, size, location, purchase decision Ø How will you overcome brand loyalty? What will cause customers to switch? Ø Future markets Business Plan Preparation: Marketing Strategy 8
How Do Customers Make Decisions? Ø Decision making process – where, when & how Ø Initiator, Influencer, Decider, Purchaser & User Ø Identify criteria used to make decisions? Ø Criteria may be different than your features Business Plan Preparation: Marketing Strategy 9
Channel Ø Describe and justify the distribution channels you will use Ø Potential channels 4 Distributors, wholesalers, retailers 4 OEM’s & VAR’s 4 E-commerce Ø Identify specific companies Ø Describe how you will gain access to the channels 4 Decision making process ØBusiness How Plan you. Preparation: will deliver your customers? Marketingto Strategy 10
Positioning Ø Positioning statement 4 Describes market/industry, target customer, important features, benefits Ø What must target customer believe about your product Ø What features & benefits are most persuasive to get the customer to act? depends on how persuasive Ø Name of your company Ø Company characteristics – essence of personality, tone & manner Business Plan Preparation: Marketing Strategy 11
Positioning Statement SST Corporation “SST is a stainless steel toothbrush company. By its one bristle brush made of high tensile stainless steel, it provides an exhilarating tooth cleaning experience to thrill-seeking X-gen consumers” Business Plan Preparation: Marketing Strategy 12
Positioning Statement Dell Computer “Dell Computer sells personal computers to consumers. Our build-to-order manufacturing and customer-direct sales enable us to offer custom built computers at very competitive prices. Our customers get the computer that they have always imagined and save money. ” Business Plan Preparation: Marketing Strategy 13
Positioning Statement Vic’s Coffee “Vic’s Coffee is a Boulder based coffee house. Its gourmet coffee, convenient and fast service, provide a welcoming environment for people who want to meet with their friends or a stimulating morning coffee for on-the-go business people. ” Business Plan Preparation: Marketing Strategy 14
Attribute Map Attribute 1 Competitor 3 You Competitor 1 Competitor 2 Attribute 2 Business Plan Preparation: Marketing Strategy 15
Hot Chocolate Flavour Brown Palace HC Ski Resort cafe Hershey packets Convenience Business Plan Preparation: Marketing Strategy 16
Hot Chocolate “Coolness” HC Ski Resort cafe Hershey packets Price Brown Palace Business Plan Preparation: Marketing Strategy 17
Smooth Grooves Convenience D-I-Y SG Quality of Repair Internet Mail In Business Plan Preparation: Marketing Strategy 18
Product/Service Strategy Ø Product/service roll out 4 Initial product/services 4 Future product/services Ø Enhance the product/service with operations & service Ø Actions to sustain competitive advantage 4 New features & benefits 4 New technology 4 New process Business Plan Preparation: Marketing Strategy 19
Pricing Strategy Ø Describe and justify your pricing strategy Ø Provide evidence that your target market will accept your price Ø Position your strategy relative to current and potential competition Ø Low price usually is NOT a good strategy! Business Plan Preparation: Marketing Strategy 20
How determine prices? Ø Approaches 4 Cost + 4 Industry markup - keystone 4 Competition 4 Target market 4 Value added Ø Not just a positioning tool Ø Measure of management Business Plan Preparation: Marketing Strategy 21
Communications Ø How you will communicate with current and potential customers? 4 Advertising 4 Public relations 4 Personal selling 4 Printed materials 4 Exhibitions Ø Why is the most effective strategy in reaching your target market? Ø Be imaginative! Be a guerilla! Business Plan Preparation: Marketing Strategy 22
Sales Strategy Ø How will you get orders? 4 Personal selling 4 Online purchasing 4 TV infomercials 4 Direct mail 4 800 telephone Ø Who will do the selling? 4 An internal sales force 4 Company sales force 4 Manufacturer's reps 4 Telephone solicitors Ø How will you recruit, train, and compensate our sales force? Ø How will you support our sales effort? 4 Internal staff 4 Service operations Business Plan Preparation: Marketing Strategy 23
What is a Revenue Model? Ø Market potential 4 Size & growth Ø Market share 4 Penetration rate 4 Roll-out strategy Ø Product/Service offered 4 Range & mix 4 New Products/Services 4 Obsolescence Ø Frequency of purchase – per day, week, month Ø Capacity Utilization Ø Channel strategy - discount Ø Prices Business Plan Preparation: Marketing Strategy 24
Revenue Drivers Ø Number of customers, transactions or units Ø Price per customer, transaction or unit Ø Average revenue per customer or transaction Ø Distribution channel discount Ø Market penetration Ø Response rate Ø Churn rate Ø Growth rate Ø New services or product Business Plan Preparation: Marketing Strategy 25
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