Virtual Enterprise Management Function Marketing SWOT Analysis and

Virtual Enterprise: Management Function, Marketing, SWOT Analysis, and Discussion of Business Risks Matt Schaffnit & Teri Jones July 2015

Agenda Management Function Marketing Plan Marketing Mix SWOT Analysis Discussion of Business Risks -1 -

Management Function Budgets, Ordering Sales Goals Hiring Invoicing Marketing Organizing Warehouse & Delivery Supervision R&D Mgt Assistance Executive Assistance Financial Direction -2 - Product Packaging Ad Art Website Design & upkeep Tech Support

The Iterative Business Process Learn Build Measure -4 -

Consistency is Key! Mission Brand -5 - Image

Components of the Marketing Plan Industry Analysis (Real & Virtual) Target Market Segmentation Competitive Analysis -6 -

The Marketing Mix The Five P’s Positioning Product Placement Price Promotion -7 -

What’s Your Value Proposition? The Why of Your Business -8 -

Marketing Plan: Advertising Real Word Virtual World -9 -

Marketing Plan: Branding/Brand Image - 10 -

Target Market Driven - 11 -

Market Segmentation • Laid-Back • Flirt-Seeker – 15 -18 years old, – middle to low income – Urban or rural – Seeks opportunity to take a break – 15 -18 years old, – middle to high income – City or urban – Looks for flirtatious opportunities • Retail/Spas: • Judges/Coordinators – High stress, income – VE, Real - 12 -

Marketing Plan: Promotions & Sales Support How can you measure this? - 13 -

Marketing Plan Remember the budget… Cost Impact (Direct) Sales Impact (Indirect) - 14 -

Elements of SWOT Analysis helps answer a simple question: How well can a company compete? POSITIVE NEGATIVE INTERNAL Strengths Weaknesses EXTERNAL Opportunities Threats - 15 -

Strengths and Opportunities Strengths Opportunities (Internal) (External) What is a strength? An opportunity? - 16 -

Weaknesses and Threats Weaknesses Threats (Internal) (External) What is a threat? A weakness? - 17 -

Walkthrough SWOT Analysis Initial Approach: Where to start? What do you know about Starbucks? - 18 - What factors affect Starbucks: Competitors? Product Costs? Economy?

Walkthrough SWOT Analysis Weaknesses (Internal) Strengths (Internal) - 19 -

Walkthrough SWOT Analysis Opportunities (External) Threats (External) - 20 -

SWOT Analysis & Business Risks - 21 -

SWOT Analysis: Company’s Response So, what do you do with SWOT Analysis? INTERNAL EXTERNAL POSITIVE EXPLOIT NEGATIVE REMEDY Strengths Weaknesses Opportunities Threats - 22 -

SWOT Analysis: Using the Results - 23 -

Addressing Business Risks § How did you handle reality? § How did you address deviations from the plan? § What did you learn? - 24 -

Addressing Market Realities Companies must listen to their market, but remember when to follow instinct. “Point” Counterpoint This is especially relevant for new VE firms. - 25 -

Discussion of Business Risks “No plan survives contact with the enemy. ” - Helmuth von Moltke The Elder (1800 -1891), Chief of Staff, Prussian Army - 26 -

Discussion of Business Risks Students must connect between…. Past Present (Business Plan) (Annual Report) "In the business world, the rearview mirror is always clearer than the windshield. “ -Warren Buffett - 27 -

The Iterative Business Process (Reprise) Learn Build Measure - 28 -

In Conclusion “It’s better to be roughly right than precisely wrong” - John Maynard Keynes Matt Schaffnit – mschaffnit@gmail. com Teri Jones – tjones@veinternational. org - 29 -