DEVELOPING A STRATEGY

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DEVELOPING A STRATEGY
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Mission Statement

• The reason for the business
• What the business stands for.
• What it is about.

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Mission Statement

• Where are we now?
• Where do we want to go?
• How and when will we get there?

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S.W.O.T. Analysis

• S- Strengths
• W Weaknesses
• O- Opportunities
• T- Threats

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PESTEL Trends Analysis

• An overall assessment of the economic,
  political, social, legal and technological trends
  will be undertaken by the SME to facilitate a
  greater understanding of these external factors.

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PESTEL Trends Analysis
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Industry Assessment Audit

• The SME undertakes an industry assessment by
  way of an audit that will ensure the enterprise
  obtains the best possible benefit from the
  Industry Assessment process.

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Industry Assessment Audit

• How was the industry created?
• Is it young or old?
• What was occurring at that time?
• How has the industry changed and developed?
• How is it growing?

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Industry Assessment Audit

• What challenges has the industry faced?
• What are the key drivers/enablers?
• What are the key inhibitors?
• How has the industry responded to these
  challenges?

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Role of A Stakeholder Analysis

• To collect data on how all the different
  individuals and organisations interact with the
  environs of the organisation.
• To analyse this data and identify the
  relationships that must be taken into account
  when compiling the Management Plan.

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Role of A Stakeholder Analysis

• To present and disseminate this analysis in an
  easy to understand report.
• To provide the major stakeholder groups with a
  clear understanding of the importance of the core
  function of the organisation, and their role in
  its success.
• To provide the first step for future stakeholder
  participation in the management of the business.

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Customer Analysis

• Who are they?
• Where are they located?
• How do they spend their money?
• Where do they socialise?
• What social class do they belong to?
• What printed media do they read?

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Customer Analysis

• What radio station do they listen to?
• What kind of television programmes do they watch?
• What and who are their influencers?
• How do they form their opinions
• What is important about your product for the
  customer?

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Need to know ..

• To whom can we sell
• What can we sell
• When
• Where
• At what price
• In what quantities
• Why?

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Image

• What image do you want your business to have?
• How does this link to your customer?
• How will this be reflected in your pricing and
  promotional strategy?
• How will this be reflected in your product design
  and distribution strategy?

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Questions to Ask

• Who are our competitors?
• What threats do they post?
• What is the profile of our competitors?
• What are the objectives of our competitors?

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Competitor Analysis

• What strategies are our competitors pursuing and
  how successful are these strategies?
• What are the strengths and weaknesses of our
  competitors?
• How are our competitors likely to respond to any
  changes to the way we do business?
• What range of products do they offer?

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The Four Ps

• Product
• Price
• Place
• Promotion

P's
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Product Description (OKane)

• Describe the product
• Describe the core function of the product
• Describe the added features of the product
• What choices do you offer your customer?
• What extras are offered to the customer?

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Pricing Decisions

• Need to know
• What is the competitor charging?
• What is the customer willing to pay?
• What are the fixed and variable production costs?
• What margins are expected by the business?

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Distribution Decisions

• Need to know
• What will be the preferred distribution system
  direct or indirect or a combination of both?
• Why is this preferred?
• What system is use by the competitors?
• Are there any weaknesses in the proposed
  distribution system?
• Can they be corrected?

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Promotion Decision

• Five Aims of Promotion
• Category Need Consumers perception of his need
  for a product in a certain category
• Brand Awareness Distinguishing one
  manufacturers brand from the other
• Brand Attitude A consumers perception of a
  brand, formed by emotions and logic or cognitive
  beliefs
• Brand Purchase intention The consumers decision
  and efforts to purchase a particular brand
• Purchase Facilitation Availability, location,
  price and familiarity of vendor making it easy
  to purchase the product

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ADVERTISING USES

• Promote products, organisations, causes
• Stimulate primary and selective demand
• Offset competitors advertising
• Aid sales personnel

• 5.Educate the market
• 6.Increase uses of a product
• 7. Remind and reinforce
• 8. Reduce sales fluctuations

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Developing an Advertising Campaign
Identify Analyze target
Determine Advertising Budget
Define objectives
Create Platform
Develop Media plan
Create Advertising message
Evaluate Advertising effectiveness
Execute campaign
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Advertising Campaign

• 1. Define Advertising Objectives
• Should be clear, precise and measurable
• 2. Create the Advertising Platform
• The basic issues or selling points that an
  advertiser wishes to include in the advertising
  campaign
• 3. Determining the Budget
• Objective and task of Sales Meet Competitors
  Arbitrary approach

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Advertising Campaign

• Developing the Media Plan
• What vehicles to use, dates and times
• Reach of consumers actually exposed to a
  particular advertisement in a stated time period
• Frequency The number of times targeted consumers
  are exposed to a particular advertisement
• Cost Comparison indicator

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Advertising Campaign

• Creating the Advertising Message
• Regional Issues Different advertising and
  editorial content between regions
• Copy Verbal portion of an advertisement
• AIDA A persuasive sequence used in
  advertisements attention, interest, desire and
  action
• Storyboard shows sequence of advertising scenes
• Artwork Illustration and layout
• Illustrations Photographs, drawings, charts etc.
• Layout physical arrangement

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Advertising Campaign

• Executing the Campaign
• Who is involved?
• Evaluating the Effectiveness of the Advertising
• Pre-tests
• Consumer focus groups
• Post campaign
• Recognition test
• Aided/unaided recall tests

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2. Personal Selling

• The use of personal communication in an exchange
  situation to inform customers and persuade them
  to purchase products
• Telemarketing Direct selling over the telephone
• Types of selling communication
• Language
• Kinesic
• Proxemic
• Tactile

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Personal Selling

• Elements of the Personal Selling Process
• Prospecting
• Preparing
• Approaching the customer
• Making the presentation
• Overcoming objections
• Closing
• Following up

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Personal Selling

• Types of Salespeople
• Order getters
• Order takers
• Support personnel
• Missionary salespeople
• Trade salespeople
• Technical salespeople

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Personal Selling

• Management of Salesforce
• Establishing sales objectives
• As a group and individually
• Determining Salesforce Size
• Recruiting and selecting sales personnel
• Training
• Compensating Sales Personnel Motivating
• Managing sales territories
• Controlling and evaluating salesforce performance

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3. Publicity and Public Relations

• Publicity Non-personal communication in news
  story form about an organisation and/or its
  products that is transmitted through a mass
  medium at no charge
• Public Relations Managing and controlling the
  process of using publicity effectively
• Types include Press releases Feature articles
  Captioned photograph Press Conferences Third
  party endorsement

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4. Sales Promotion

• An activity or material that acts as a direct
  inducement by offering added value to the
  incentive for the product to resellers,
  salespeople or consumers
• Consumer promotions Coupons, Demonstrations,
  Frequent user incentives, loyalty cards, trading
  stamps, POS materials, Free samples, Money
  refunds, Competitions etc. Trade Promotions Buy
  back allowance, Free merchandise, Co-operative
  advertising, Dealer listing, Sales Contests,
  Dealer loader.

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5. Sponsorship

• The financial or material support if an event,
  activity, person, organisation or product by an
  unrelated organisation or donor
• Applications
• Reputable Partnerships

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6. Direct Mail

• A method of communication used to entice
  prospective customers or charitable donors to
  invest in products, services or worthy causes
• B2C and B2B
• Attention seeking flashes to gain attention
• The package
• Mailing Lists
• Copy writing

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7. The Internet

• A network of computer networks stretching across
  the world, linking computers of different types
• Web site
• Intranet
• eBusiness

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Rules of a Successful Web Site

• Keep it simple
• Make it fast
• Build trust
• Give directions
• Welcome the shopper
• Create communities
• Service the customer
• Think globally
• Shipping must be easy
• Let the world know
• Marco Argenti Efrim Boritz

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8. Direct Marketing

• A decision by a companys marketers to select a
  marketing channel which avoids dependence on
  marketing channel intermediaries and to focus
  marketing communications activity on promotional
  mix ingredients which deal directly with targeted
  customers
• Increasing due to
• - Technology, - changes in market information,
• - need for better targeting, - defining
  effectiveness of traditional media