Your Market Analysis and Marketing Plan

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Your Market Analysis and Marketing Plan

• Presented by Cynthia Franklin
• Senior Associate Director, Berkley Center

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Whats the Difference?

• Market AnalysisDescribes Targets (Who Why)

• Marketing PlanDescribes Tactics (How)

• Customers
• Competition
• Competitive Advantage
• Critical Success Factors
• Critical Risks
• Potential Sales/Market Share

• Product Positioning
• Price
• Placement
• Promotion
• Sales Process
• Partnerships

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Why Segment the Market?

• All firms have limited resources. They cant be
  all things to all people. They must decide where
  to focus their limited time, money and human
  capital so that they yield the greatest return.
• That means identifying right-sized pieces of
  the market to go after.

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What Makes a Market Segment Promising?

• Measurable possible to determine size
• Significant large enough to be profitable
• Recognizable distinct enough so that you can
  identify its members
• Compatible with your ventures mission,
  strengths, ability

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Ways to Target the Market

• Geographic
• local, regional, national, international
• Demographic
• B2C gender, age, income, education, ethnicity
• B2B revenues, employees, industry
• Psychographic
• values, lifestyles, hobbies
• Behavioral
• benefits sought, usage rate

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Tips for Identifying Market Segments

• Secondary Research
• Databases Reports
• Newspapers Magazines
• Trade publications and Trade shows
• Ask
• Industry players
• Potential customers
• Suppliers
• Observe

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Make Sure Your Product Is Compelling

• What problem will you solve? What need/desire
  does your product address?
• How will your product make their lives better,
  easier, happier?
• Know what your customers are currently doing
• Going to the competition
• Using another solution
• Nothing
• Know how satisfied they are with existing
  options.
• How hard will it be to get them to change what
  theyre currently doing?

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Who Is My Competition?

• Competition everybody whos after the same
  consumer dollar you are.
• Direct Competitors
• Indirect Competitors
• Possible New Entrants

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How Stiff Is the Competition?

• Analyze your competition.
• Look for marketplace gaps you can fill.
• Develop a competitive matrix.

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Your Competitive Landscape
Honda Civic Honda Civic LX Toyota Prius Toyota Corolla XLE Your Product
Mpg 37 28 44 32 ?
5-Yr Fuel Cost 6,500 8,500 5,500 7,500 ?
Tax Rebate 525 0 N/A 0 ?
Price 23,270 18,430 24,170 19,330 ?
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Creating a Competitive Advantage

• Having a Sustainable Competitive Advantage allows
  you to distinguish your product from the
  competitions. Its what gives you a significant
  edge. The basis of your SCA must not be able to
  be duplicated or imitated and is not
  substitutable.

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Creating a Competitive Advantage

• Tangible Items
• Intellectual property rights
• Exclusive license

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Creating a Competitive Advantage

• Intangible Items
• Superior Product/Brand
• Quality
• Selection
• Availability
• Operational Excellence
• Innovation Leadership
• Intimate Customer Relationships/Experiences
• Cost Advantage

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Your Critical Success Factors

• CSF What absolutely must happen in order for
  you to be successful. In other words, If I dont
  do X, then my venture will fail.
• Identify five or fewer CSFs.
• CSFs will be driven by your industry, business
  model, target markets, etc.

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Critical Risks

• Investors arent looking for risk-free
  businesses there is no such thing.
• What they are looking for is evidence that you
  know where potential trouble lies and that youve
  thought of contingency plans.
• Be forthright in your assessment of risk.

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Examples of Common Critical Risks

• Competitor response to your entry into the
  market.
• Sales projections below expectations.
• Unable to find suppliers.
• Inability to find a distributor.
• Inability to get shelf space.

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The Marketing Plan

• Your Go-to-Market Strategy

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Your Product

• Core Product Primary benefit
• Tangible Product Features
• Augmented Product Enhances purchase exp.
• Communicated Product Branding

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Pricing

• How much can you charge?
• Will your products be bundled?
• Will you be offering discounts, leasing,
  financing, coupons, etc.?
• Avoid competing on pricefor most, its not a
  winning strategy. Customers who shop based on
  price tend not to be loyal.

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Placement Getting It to the Customer

• Direct to your customer
• Online
• Own physical location
• Indirect to your customer
• Through retailers
• Through wholesalers

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Promotion Getting Their Attention

• Common Tools
• Advertising (print, broadcast, online)
• Direct mail
• Email/website
• Social networking
• Trade shows/events
• Cold calling/telemarketing
• Face-to-face
• Public relations

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Choosing Your Marketing Mix

• Factors to consider
• Choose media your target segments use most.
• Take into account how complex your sale is (big
  ticket, new technology, multiple decision
  makers).
• Use media appropriate for your product.
• Target your message so that your customer
  receives it when theyre most receptive.
• Use an assortment of tactics to send a unified
  message.
• Be focused.

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What Happens When CustomersRaise Their Hands?

• What systems do I need in place to handle
  customer inquiries and process orders?
• Fulfillment
• Shipping
• Brochures/Sales literature
• Website

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Partners

• Seek out partners for all phases of the
  Go-To-Market Strategy.
• Collaborate with potential competitors.