Build Strategy

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Build Strategy

• Stephen Lawrence and Frank Moyes
• Graduate School of Business
• University of Colorado
• Boulder, CO 80309-0419

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Building Strategy
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Building StrategyOutline

• Marketing Plan
• Advertising and Promotion Strategy
• Sales Strategy
• Operations Strategy
• Development Strategy

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BUILD STRATEGY
MarketingStrategy
OperationsStrategy
DevelopmentStrategy
Target Customer Benefits Positioning Differentiati
on
Add Value
Steps to Accomplish
Drivers to the Financial Plan
Income Statement
Balance Sheet
Cash Flow
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Marketing PlanAdvertising Strategy

• How will we advertise and promote our product or
  service?
• How will we communicate with our customers?
• Advertising?
• Public relations?
• Personal selling?
• Printed materials?
• Other means of promotion?
• Why will this be strategy be effective in
  reaching our target customer?

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Marketing PlanSales Strategy

• How will orders be taken?
• Personal selling?  
• Online purchasing?
• TV infomercials?
• Direct mail?
• 800 telephone?
• Who will do the selling?  
• An internal sales force?
• Manufacturer's reps?
• Telephone solicitors?

• How will we recruit, train, and compensate our
  sales force?
• How will we support our sales effort?  
• Internal staff
• Service operations

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Operations PlanOperations Strategy

• How will we use operations to add value for
  customers in our target market?
• How we add value to our customers with
  operations?
• Quality
• Flexibility
• Timeliness
• Price
• Which dimensions will we stress and which will we
  de-emphasize?
• What comparative advantages do we have with our
  operational design?

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Development PlanDevelopment Strategy

• What work remains to launch our company and our
  products?
• What factors need to come together to make our
  concept work?
• What are we doing to bring them together?
• What are the risks to the successful
  implementation of our development plans?
• Technological risks
• Cost risks
• Competitive risks
• How will you mitigate these risks?

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Differentiation Road Map
Brand Trademark Bundling
Communications
Features Packaging Quality Color Size Style Option
s Timeliness Customize
Delivery Warranty Installation Time of
sale Service After sales Special
terms Usergroups Design help
Augmented Benefits
Tangible Benefits
Core Benefits
Whats it for? Whats it do?
Example Morton Salt
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Morton Salt

• Core Benefit
• Flavor enhancer, preservative, health
• Tangible Benefit
• Iodize, pourability, granual size, color flavor,
  packaging, organic, sea salt
• Augmented
• Delivery (restaurant, road dept.), healthy
  recipes
• Communication
• When it rains it pours (girl with umbrella)