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Developing a Strategic Marketing Plan for your Sensor Business
Presented by Bryan Manning
President B & D International, LLC
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Typical Strategic Planning Approach
Strategic Planning at Hawker Siddeley
Time consuming: ties up valuable key staff for long periods
Complicated
Very expensive
Difficult to implement
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Marketing Strategy 1,2, 3
Step 1: Where we are today Internal and External Analysis
TALK TO CUSTOMERS Company’s Core Competencies Know your competition What’s happening in your Industry
Select company’s overall strategy
Step 2: Where we want to go Marketing Strategy
Segmentation Targeting Positioning
Develop a unique, sustainable value proposition backed by compelling evidence on differentiation to establish and maintain market leadership
Step 3: How will we get there Marketing Tactics
Product Price Place (channels) Promotion
Purse tactics that fit the Strategic Positioning
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Step 1: Where we are today
Internal & External Analysis
TALK TO CUSTOMERS First and most important step in any marketing
strategy Talking to customers important at every stage Concentrating on existing customers often
overlooked Value of existing customers can be very high
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Growth Strategy Options
Best sequence • Start with Existing Markets/Products • Then Existing Markets/New Products • Then New Markets/Existing Products
Existing Products New Products
New Markets
Existing Markets
#1
Market Penetration Product Development
Market Development Diversification
#2
#3 #4
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Growth Strategy Options
Best sequence • Start with Existing Customers/Products • Then Existing Customers/New Products • Then New Customers/Existing Products
Existing Products New Products
New Customers
Existing Customers
Customer Penetration
Product Development
Market Development Diversification
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Feeding the Sales Pipeline
1. Inquiries
2. Qualified Leads
3. Demo
4. Technical Eval.
5. Proposal
6. Closing - Contract
$40M (200)
$15M (75)
$8M (40)
$5M (25)
$3M (15)
$2M (10)
%
Prob
0%
10%
30%
50%
70%
90%
Customers
Marketing Lead Generation
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Feeding the Sales Pipeline
1. Inquiries
2. Qualified Leads
3. Demo
4. Technical Eval.
5. Proposal
6. Closing - Contract
$40M (200)
$15M (75)
$8M (40)
$5M (25)
$3M (15)
$2M (10)
%
Prob
0%
10%
30%
50%
70%
90%
Customers
Marketing Leads + Customer Leads
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Talk to Existing Customers -The first step
Contact existing customers on a frequent basis
Ask them is they are satisfied with your performance
Customer Surveys
Pursue other applications in existing locations
Ask for contact names in other locations in the US and overseas
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Understand Your Core Competencies
Loyal Customer base Brand image Technology (product, process, communication)
Quality/Service Marketing Sales/Distribution channels Low cost producer Global presence
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Know Your Competition
Why? Defend your base business Important in differentiation/positioning Forecast changes in the marketplace: (technology, pricing,
trends etc.) How?
Customers/salesforce Constantly tracking them (by yourselves or with outside help) Benchmarking Shows/Seminars/Publications
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Know Your Competition Sun Tzu The Art of War
400 – 320 BC
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Sun Tzu says….
What enables the enlightened ruler and the sage general to achieve results beyond the capability of the ordinary man is FOREKNOWLEDGE
The nature of war is ceaseless change – be prepared to change plans in mid-course
The expert commander strikes only when the situation assures victory
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Sun Tzu says….
The Art of War strategic and tactical doctrines are based on deception; the creation of false appearances to mystify and delude the enemy The indirect approach Ready adaptability to the enemy’s situation Flexible and coordinated maneuver of separate
combat elements And speedy concentration against points of
weakness
The only constant in war is constant change
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Know Your Competition
Gates Casts Cold Eye on Google
CARLSBAD, Calif. -- Don’t be fooled by all those speeches about global health and high-school education. Bill Gates is still, first and foremost, about clobbering Microsoft Corp’s Competition. Courtesy: The Wall Street Journal
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Know What’s Happening in Your Industry
Keep track of trends in your industry Size and growth of Industry and sub-segments Changes and direction of new technology Global trends New players in the industry
Keep track of trends in your Customer’s industry Size and growth of Industry and sub-segments Track new potential applications Vendor reduction Outsourcing Off shore manufacturing
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Step 1: Where we are today
Final Step: Select Strategic Alternatives
After an in-dept review of “where you are today” decide on one or more overall strategic alternatives
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Strategic Alternatives
Differentiation
Low Cost
Focus
Preemptive Move
Synergy
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Strategic Alternatives
Michael Porter says: “Differentiation and low cost represent the two basic strategies available to firms and that all successful strategies will involve one or both of these thrusts”
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Strategic Alternatives
Differentiation
Low Cost
Focus
Preemptive Move
Synergy
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Differentiation Strategy
Product offering is differentiated from the competition, concentrating on what target customers value most such as:
Quality Reliability Ease of use Features (e.g ability to handle harsh
environments) Excellent Service
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Focus Strategy
Focusing the business on either a: Focus on the type of Sensor product offered:
Temperature and Pressure Sensors Level Sensors Non-contact Displacement Sensors
Focus on relatively small segments or sub segments of the market: Automotive braking systems market Brake testing systems Disc Brake displacement measurement
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Avoid Strategy Dilution or Distraction
Compete with Limited Resources
Bypass Competitor
Assets/Competencies
Providing Positioning
Strategy
Reduce Competitive Pressures
Focus Strategy
Figure 10.4
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Why Differentiation and Focus?
The Sensors market is extremely fragmented (there are thousands of sensor companies worldwide)
It’s so fragmented because the market can be subdivided by three non-exclusive basic categories: Parameter sensed (Temperature, Pressure etc)
Technology used (bi-metal, thermistors, RTDs etc)
Specific Applications (e.g. satellite thermal control)
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Why Differentiation and Focus?
The market is therefore highly fragmented into thousands of market sub segments
For example one of a sensor suppliers focuses could be supplying Temperature sensors using bi-metal technology for the application of satellite thermal control
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Marketing Strategy 1,2, 3
Step 1: Where we are today Internal and External Analysis
TALK TO CUSTOMERS Company’s Core Competencies Know your competition What’s happening in your Industry
Select company’s overall strategy
SensorStrategy.com 617 698 1123 27
Marketing Strategy 1,2, 3
Step 1: Where we are today Internal and External Analysis
TALK TO CUSTOMERS Company’s Core Competencies Know your competition What’s happening in your Industry
Select company’s overall strategy
Step 2: Where we want to go Marketing Strategy
Segmentation Targeting Positioning
Develop a unique, sustainable value proposition backed by compelling evidence on differentiation to establish and maintain market leadership
Step 3: How will we get there Marketing Tactics
Product Price Place (channels) Promotion
Purse tactics that fit the Strategic Positioning
SensorStrategy.com 617 698 1123 28
Step 2: Where we want to go..
Develop Marketing Strategy
Segmentation Targeting Positioning
Develop a unique, sustainable value proposition backed by compelling evidence on differentiation to establish and maintain market leadership
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Step 2: Where we want to go..
Segmentation
Separate customers or potential customers into groups with like wants and needs
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Segmentation
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Step 2: Where we want to go..
Segmentation
Typical Sensors Market Segmentation Property sensed Market Application Features/Benefits Geographic
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Segmentation by Market
Automotive
Aerospace
Medical
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Market by Application
Aircraft Thermal Control
Satellite Thermal Control
Aerospace Market
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Step 2: Where we want to go..
Targeting What bases? Excellent Match with company’s Core Competencies Matches companies overall strategy Competition (or lack thereof) Size/growth Profitability Company’s feature and benefits match target market’s like
wants and needs Resources required
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Step 2: Where we want to go..
Positioning Describes the position a firm wishes to occupy in
the mind of customers in the target segment versus the competition
According to David Aaker, Positioning must: Resonate with the target market Differentiate from competitors Reflect the culture, strategy, and capabilities of the
business
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Step 2: Where we want to go..
Positioning Positioning statement should include:
What (type of product offered) Who (target market and/or application) Differentiation (how you are different from the competition)
Once you have developed excellent Positioning you are 80% there because your road map is in place
You know what you are offering to who, specifically and why they should by your product.
Some examples….
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Marketing Strategy 1,2, 3
Step 2: Where we want to go Marketing Strategy
Segmentation Targeting Positioning
Develop a unique, sustainable value proposition backed by compelling evidence on differentiation to establish and maintain market leadership
SensorStrategy.com 617 698 1123 38
Marketing Strategy 1,2, 3
Step 1: Where we are today Internal and External Analysis
TALK TO CUSTOMERS Company’s Core Competencies Know your competition What’s happening in your Industry
Select company’s overall strategy
Step 2: Where we want to go Marketing Strategy
Segmentation Targeting Positioning
Develop a unique, sustainable value proposition backed by compelling evidence on differentiation to establish and maintain market leadership
Step 3: How will we get there Marketing Tactics
Product Price Place (channels) Promotion
Purse tactics that fit the Strategic Positioning
SensorStrategy.com 617 698 1123 39
Thank You!!