Day 2 intro to marketing, marketing mix, life cycle strategy plan

B R I A N W S T E E Ldeveloping higher performance

Starting in BusinessIntroduction to Streetwise Marketing


Introduction to marketing – street style.

By its nature marketing is about communications particularly with customers.

Marketing seeks to identify what customers needs, wants and desires are. It also looks to the future and changes that will impact on the business.

Streetwise marketing looks at only factors that directly impact on the business and market. That makes it highly focused and personal.

Marketing defines the market place, its demography and geological factors


So let’s build a great business ...

Taking care of the key aspects of business start-up can help ensure your adventure gets off to a good start and builds the foundation for a great future.

Remember this?


A few basic principles!

Packaging makes perfect?

The life cycle

Quality is a perception

Talk about growth No one area of a business is more important than another. Always look at the bigger picture.


People buy packages not products

Get your head around the imperatives. What will drive customers to buy from you or to buy from your competitors?

Think about benefits – they may be different for different people.

Think about the why not the what.


Product/business life cycle

4 Key areas:

Introduction

Growth

Maturity

Decline



Intro Growth Maturity Decline

Sales

Profit




Sales

Profit

Possible Introduction Strategies:

High profile: High price, Intense promotion, Defence of Brand and values.

Selective Penetration: Limited market, High price and quality, minimal competitive activity.

Pre-emptive Penetration: Wide market activity, Intense promotion, Price sensitive, Strong Potential Competition, Low unit cost.

Low Profile: Low price, Low key promotion, Rapid growth, Large market, Market aware of product, Price sensitive, Potential competition.




Sales

Profit

Possible Growth Strategies:

Improve Quality: add new features.

Markets: Look for new market sectors and segments.

Channels: look for new ways to distribute product.

Shift Emphasis: move away from using advertising and promotion to build awareness to confirmation of quality and conviction.

Price Management: Lower initial price to attract next layer of potential buyers




Sales

Profit

Possible Maturity Strategies:

Modify Market: Look for new markets, sectors and segments.

Increase Usage: Look for ways to draw customers into ‘product family’ – add recipes to food packaging.

Reposition: Re-target product to new buyers.

Modify Product: Re-launch product with new features and benefits, develop styling, increase potential usage.




Sales

Profit

Possible Decline Strategies:

Review Product and Market

Review possible or reported weaknesses

Review sales volumes

Identify dubious and redundant features/applications

Re-Target or Modify Potential Market Applications


How will your business grow?

Expansion of territory.

Growth in local customer base .

Franchise or something else.


Quality is a perception

It does not matter what you think represents quality.

Quality is fitness for purpose.

. Quality is about added value.


The Marketing Mix

.

Understanding the 4 P’s


The Marketing Mix - Understanding the 4 P’s

Product:Customer needsFeaturesBenefitsProduct nameBrand [ing]Differentiation

PriceValue to buyerIs there a price point?Is it price sensitive?Trade discounts?How does your price compare?

TargetMarket

Place:Where do customers buy?Can you access distribution?Sales force?What do competitors do?

Promotion:Where and when to market?What media to use?When is best time?How does competition promote?




TargetMarket



Product:

Customer needsFeaturesBenefitsProduct nameBrand(ing)Differentiation


Understanding the market – 4 P’s

Product:

Marketing begins with the process of finding out what people will buy.

It also demands you, at least, know what the common alternatives are.

You need to know what the feature and benefits should be

Bells and whistles = Features

What they do for the customer = Benefits




TargetMarket



Price:

Value to buyerPrice pointPrice sensitivityTrade discountsPrice comparison



Price:

What is the value of the product or service to the customer?

Are there established price points for the product or service?

Is the customer price sensitive?

Are discount structures expected by customers?

How does your price compare with competitors?





TargetMarket


Place:

Where do customers buy?Can you access distribution?Need a sales force?What do competitors do?



Place:

Where do customers look for the product or service?

What are the most popular product locations?

Can you access the most popular distribution channels?

How do competitors manage sales?

Will you need or benefit from a sales force?





TargetMarket


Promotion:

Where and when to market?What media to use?Timing?How does competition promote?



Promotion:

Where can you best get your marketing message across?

What media will best suit your promotion campaigns?

When is the best time to promote?

How do your competitors promote their businesses/products/services?


Time for a little analysis...

If you never have anything else you should have a strategy focused on helping develop your business to the level you want it to be.


Strategic development templateBusiness details, name address etc

Current position – started, planning, dreaming of what might be

Issues you face at present based on what you now know

Business direction – local, national, international – branchise or franchise

Future plans – what do you want out of this adventure?

Issues in relation to goals

Action plan


Profiling customers


Profiling customers

Profiling helps you:

Manage your customer database.

Build stronger customer relationships.

Manage your credit portfolio and level of credit risk.

Create more successful marketing campaigns.

Acquire the most profitable kinds of prospects.

Build a powerful Brand.


Profiling customers

Know your customers:

Probably the most powerful information you will ever hold


Profiling customers


Profiling customersDescribe one personWhat genderWhat ageWhere do they liveWhat do they live inWhat do they do for a livingWhat do they particularly likeWhat do they particularly dislikeWhat does the customer want from youWhat commons characteristics are required

What are the customers imperativesWhat do customers valueHow are they likely to find out about youIs the cost of particular concernList the ways in which you can reach, contact and communicate with your target customer.


The Power of the Brand

You don’t have to look too far to see just how powerful and valuable a brand can be.


Building the brand


Building the brand

$15 bn

$9.5 bn

$67 bn

$14 bn

$11 bn

$120 bn

$12 bn

$183 bn$13 bn


Building the brand

One of the 18,000 livery cabs which will serve Northern Manhattan, Queens, The Bronx, Brooklyn, and Staten Island


Building the Brand

Screwing

up


Building and protecting your brand

So what are you going to do???


Types of Intellectual Property [IP]

Copyright

Trade Mark

Design Rights

Patent



Copyright ©

Common right in UK Lasts for 70 years past death of originator Covers all written and 2 D creative work, manuals, letters, instructions, pictures, designs, photographs, software programmes, graphics, books etc. Costs nothing in UK



Trade Mark ®

Can be re-registered with IPO indefinitely Can be word, phrase, sound, shape, logo, symbol, signature, image, design or combination of them. Registers products in 11 classes for services and 34 classes for products Has to be distinctive to qualify for registration Costs around £200 or £170 on-line.



Design

3 D shapes including relief patterns on objects The shape and key characteristics of a product Unregistered – common right – lasts for 15 years. Registered lasts for 25 years with renewal fees every 5 years. Semi-conductors governed by separate legislation 10 years protection Costs £60 per design



Patent

Original equipment, product, component, new process etc. That is proven to work. Cover for 20 years Has to be renewed every 5 years Costs range from £3,000 to £5,000


Date post:	15-Nov-2014
Category:	Business
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